7. Business Metrics – Local Abbatoir
• USDA-inspected Co-Packer
• 2017 Revenues: + $1.2 million
• 2017 Slaughter volume: 1.1 million lbs
• 2016 Total livestock butchered: 4,257
• Customer count = +300
• Employees = 19
• Effective operational space + 6,500 SF
8. Specific T&E Growth Benchmarks
• Growth of private labels: 4 to >80
• Increase in custom processing: >600K lbs
• Growth of custom processing: >10% YoY since
2008
• Large payroll growth
• Work force capability significantly expanded
12. What do Farmers Need?
• High Quality Processing / Reasonable Rates
• Timely Slaughter Dates
• Appropriate Packaging / Labelling
• Assistance with Risk Management
– Product Flow
– Food Safety
– Insight on Regulation
– Insight on Marketing
13. What do Processors Need?
• Regular Cash Flow
• Steady Consistent Business
• Less Volatile Seasonal Cycles
• Good Communication
• Savvy Customers
14. Current Trends in
Small-Scale Sustainable Farming
• Deep universal concerns about our food system
• Industrial Meat = Global Industry. Creates Niche
Market Opportunities
• Growth in Farmers Markets – 17% since the 1980’s
• Farm 2 Fork, Farm 2 School, Beginning Farmers &
Ranchers, FMLFPP Program
• Local/Regional food system organization underway
• Generational change is underway
15. Current Trends in
Sustainable Meats
• Growing Awareness of Environmental Impacts
• Sustainable Meat late to the dance, but Niche Beef
growth >10% – USDA AMS 2010
• US grassfed meat a $4 Billion market – Stone Barns Center
• Grass-fed labelling claims +60%/yr – meat & dairy
• Emergence of Ancestral Health & “fat positive” diets
(i.e. Keto, Paleo, Primal, LCHF, etc.)
• Growth of “Clean Meats” i.e. meat analogues
16. # 1
How many small meat plants gave up USDA
Inspection in early 2000’s when reform gave them
control of own HACCP (food safety) plans?
• 5% ?
• 15% ?
• 25% ?
• 50% ?
• 75%
17. # 2
Tyson’s Annual Revenue > GDP of 97
countries. Which country is >Tyson?
• Bhutan $2.3 B
• Nicaragua $13.7 B
• Iceland $23.0 B
• Bahrain $34.3 B
• Serbia $37.7 B
18. # 3
A new dairy in the desert of Eastern Oregon was
recently in the news, due to its size. How many
cows does it have? (all cows)
• 5,000
• 10,000
• 30,000
• 50,000
• 70,000
19. # 4
• Smithfield’s largest slaughter plant has
capacity to slaughter 35,000 hogs/day.
• Assume it is working at capacity, & live
weight of average hog is 300 #’s.
• Write down the approximate amount of
offal produced every day, in pounds.
20. T & E Small Plant Biz Strategy
• Be the Best
• Be Full Service
• Be a Leverage Point, not a Brand
21. Small Plant Keys to Success
• A. Focus on Customer Service
• B. Focus on Quality
• C. Investment in Workforce
• D. Investment in Plant and Equipment
Slides from West Virginia Small Processors Training Workshop
22. A. T&E Customer Service Approach
• #1: Understand Your Customers
• #2: Gain Your Customers’ Trust
• #3: Train Your Customers
• #4:Know What Makes You Money, and
Price Accordingly (Understand our role
in the larger Value Chain)
25. Actual Beef Carcass Yield Example
Total Carcass Weight 543 lbs
Quarter Weight 136 lbs
- Take Home Weight 104 lbs 76%
- less Bones & Organs 90 lbs 66%
Half 271.5 lbs
- Take Home Weight 206 lbs 76%
- less Bones & Organs 178.5 lbs 66%
26. B. T&E Approach to Quality
“It may not be everything but it is way ahead of whatever is in second place!”
• Critical Nature of Good Policies and Procedures
– TEID#
– Cut Sheets
– Logistics
• Critical Role of Training
• Critical Role of Good Equipment
– Expensive, but so are people
– Enable you to do so much under same roof area
27. Quality Control Tools
• Insert photo of key documents on table –
HAACP, P&P, FSA’s, Log Books
28. C. T&E Approach to Investment in
People
• Principle of “Quality of Worklife”
• Training
• Retention
• Teams & Team Development
• Incentives
29. TRAINING
• Most employees trained at T&E by current
employees
• Critical to hire to train
• Prior experience not necessary –
attitude/work ethic/potential is critical
• Ongoing Nature of Training
• Importance of Training Records
30. Training is Risk Management
• Two Major Sources of Risk
–Financial
–Regulatory
• Two Major Sources of Regulatory Risk
–FSIS and Agents
–OSHA and agents
31. STAFF RETENTION
• Major Focus
• Employee Replacement is Expensive
• Clearly linked to Quality
• Also linked to Customer Relations
• Role of Performance Improvement Plan &
Issue Documentation
• Employee Handbook is ESSENTIAL
32. T&E INCENTIVE PROGRAM
• Bonus Program
– Immediate – Tied to Pay Cycle
– Tied to Production Target, no carry-over
– Specific Eligibility Rules
• Demerits
– Earned by individuals, charged to team
– Each demerit = to 10% bonus
– Clearly identified at Bi-Weekly Team Meeting
– Easy to Target, Steer Attention where Ownership Wants
33. D. T&E Approach to Plant and
Equipment Investment
• Constantly search to upgrade
• Maintain Equipment Wish List – know costs and priorities)
• Annual Strategic Planning exercise around priorities for the
year – Have Evaluation Criteria to help rank them
• Understand production savings potential of every decision
• Develop close relationships with equipment vendors
• Understand Bottlenecks – Work to alleviate them