USDA Process Verified by EXU3I6PL

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									USDA PROCESS VERIFIED

 Michael Boland and Renee Sanden
      Kansas State University


  Funded by Agricultural Marketing
         Resource Center
    Why is K-State Involved?

• Increase awareness of process
  verification and how it may benefit
  many different value added ventures
• Gain first-hand knowledge about
  latest USDA certification
• Increase rate of learning process for
  other groups
                           • Retailers
• All Natural
      Beef
 Cooperative
           • Rainbow    • Kansas
              Organic      State
              Farms      University
Markets
  • Hen House
    – 15 locations in the
      Kansas City area
  • Price Choppers
    – 4 locations in
      Kansas City area
  • Community
    Mercantile
    – One location in
      Lawrence
All Natural Beef
 Cooperative
        • Beef Producer
          Cooperative
        • Supplies beef
          solely to program
        • Operations vary
          in size, location
          and goals
           Differentiation
• Sought to differentiate themselves from
  other value added beef programs
• Main considerations
  – Tastes good
  – Environmentally conscious
  – Humane treatment of animals
  – Local production
  – No hormones or sub-therapeutic
    antibiotics
       Process Verification
• USDA system
• Based on ISO 9000
• Provides third party
  audits for a fee
• Verifies that self-
  imposed label claims
  are credible
                Claims
• Can be simple or complex as a group
  chooses
• The group wanted their claims to be
  valuable to the consumer
• They also wanted claims to reflect what
  they were already doing in their
  production practices
         Producer Question
• Why did you decide to participate in this
  program?
GNFF Process Verified Claims
 1) Raised on local, family size
    farm operations
 2) No growth hormones
 3) No sub-therapeutic antibiotics
 4) 100% vegetarian ration (no
    animal by-products)
    Claims continued…
5) No antibiotics during the
   finishing phase
6) Source of origin verified from
   producer through retailer
7) Dry-aged 10-14 days
         Producer Question
• Why these particular claims?
    Program consists of…..
• Self-written process verified manual
• Training Guides
• Major record keeping includes:
  – Passports for each animal
  – Internal reviews
  – Records and affidavits for purchased
    cattle
         Producer Question
• What was the training like?
                   Audit
• First Audit, September of 2002
• 2 Auditors came and visited 2 farms, 1
  grocery store and the processing facility
• Discussions were held to find out what
  the program was missing to fulfill
  requirements
• Awaiting Process Verification
         Producer Question
• What kinds of questions were you
  prepared to answer for the audit?

• How did you prepare?
              Outcomes
• Currently only 8 programs in the U.S. are
  process verified
  – Excel Pork, Farmland Pork, PSF (pork), Pro
    Pork Associates, Berkshire Pork, and
    Pederson’s Natural Farms
  – PM Beef Group and Red Angus Association
• Consumers are not yet aware of what the
  label means
• Action will be taken to educate consumers
  once verification is received
                 Benefits
• Producer
  –Prepared for COOL and other
    regulations with record keeping
• Processor
  – Able to collect data that would otherwise
    be unavailable
• Retailer
  – Able to gain knowledge and
    understanding of products they sell
       Accomplishments
• Increased demand for beef by average of
  per year 40% each year since 2000
• Average $0.12 per pound premium based
  on dressed weight since 2001
• High level of communication between
  producer, processor and retailer.
• High level of consumer education
         Producer Question
• What are the benefits of Process
  Verification?

• What are the drawbacks?
                     Summary
• Need to be linked to consumer preferences
   – Implies vertical coordination or integration
• Not every operation can or should do this
• There are some upfront costs
   – Not major but the big cost is finding a “champion” to
     lead the process.
• Deciding what is to be process verified is important
   – Source of verification is likely to be the most widely
     adopted
• Not all animals are likely to be process verified

								
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