David Thompson, MBA

EXPANDING LOCALLY SOURCED BEEF IN NORTHERN ONTARIO THROUGH THE

CO-OPERATIVE MODELNORDIK INSTITUTE

SAULT STE. MARIE, ON

87% of Ontario’s landmass (more than UK & France combined)

Three urban centresSmall towns

(forestry / steel/ mining /agriculture industries)

Distance from markets, aging population, youth outmigration

NORTHERN ONTARIO

NORTHERN AGRICULTURE AREAS

80% of agriculture is dairy and beef.

752 beef cattle farms$24.5 million in cash

farm receipts for cattle and calves in 2009

Mad cow crisis in 2003Struggling abattoirs

(slaughterhouses)

INTRO TO NORTHERN BEEF

Penokean Hills Farms (Algoma/Sault Ste. Marie)

Eat Local Sudbury Co-op Golden Beef Co-operative

(Temiskaming)True North Community

Co-operative (T-Bay)Ontario Northeast Meats

(Cochrane)CrEATive Meats (Sudbury)Rainy River District Abattoir

(Rainy River)

CO-OPERATIVE DIFFERENCE

RESEARCH PARTICIPANTS

Contribute to develop sustainable food systems in the North

Increase Northern Ontario’s food processing capacity to keep small slaughterhouses in operation

Produce, process and distribute food in a way that lessens environmental degradation

HOW CAN NORTHERN CO-OPS…

How can marketing co-ops and place-based businesses in Northern Ontario stabilize or raise incomes in the value chain through selling differentiated beef products in the local market?

RESEARCH QUESTION

What is the demand for differentiated beef products in Northern Ontario?

SOME SECONDARY QUESTIONS

How can beef farmers in Northern Ontario work effectively within a value chain to achieve a greater market share for their products in the local market?

SOME SECONDARY QUESTIONS

What influences the participation of Northern Ontario beef farmers in marketing co-operatives and place-based businesses?

SOME SECONDARY QUESTIONS

Consumer preferences (beef/locavores)

Effective value chains that build relationships

Co-operative entities in value chains

Challenges in Northern Ontario with co-op model

LITERATURE REVIEW

Action research approach to tackle real-world problems

Leaders of value chain partners (abattoirs, retail co-ops, producer co-ops) that produce, process or sell Northern beef

Eight organizations, eleven participants (board members, farmers, managers)

Semi-structured interviews / grounded theory to analyze data

METHODOLOGY

Producers• Raising and finishing of cattle according to set protocols

Abattoir

• Animals are killed, inspected, processed and refrigerated at the abattoir/slaughterhouse.

Distribution

• Delivery of wrapped product is performed by producer groups or by transport

Market

• Marketing of product is sold from farmer to consumer at farmers' markets, the farm gate or through intermediaries (retailers/restaurants).

Consumer

• The consumer picks up their beef in bulk (boxes of various cuts) or in individual cuts from the farmer directly or from a retailer.

VALUE CHAIN

Direct marketing – farmers’ markets, building relationships and community organizing.

Local food co-op retailers – resurgence of food co-ops, staff/volunteer turnover is a frustration

FINDINGS AND DISCUSSION:CONSUMER PREFERENCES &

MARKETING

Community Supported Agriculture that reach Ontario’s Far North

Co-operatives that access Nutrition North Canada subsidy program

Partnerships through co-operatives and First Nation communities and Nishnawbe Aski Nation

FINDINGS AND DISCUSSION:CSA FOR THE NORTH

Intermediary marketing – communication issues, loss of direct relationship, additional resources

Restaurant sales – beneficial depending on scale, marketing opportunity

Institutional market – infrastructure gaps to meet market needs (federally inspected abattoirs), farmers’ trying to produce premium products; scale is an issue.

FINDINGS AND DISCUSSION:STRENGTHENING THE VALUE

CHAIN

Quality – from the producer and the slaughterhouse; grading capability is not there for some. Local beef is not linked to quality.

Scale – ability to scale local processing is difficult without producers working together with common protocols.

Staffing – attracting and retaining workers in rural areas is increasingly difficult.

FINDINGS AND DISCUSSION:STRENGTHENING THE VALUE

CHAIN

Government regulations that limits opportunities for value-added meats

Lack of federally inspected slaughterhouses in the North; limits expansion to markets, but also expensive

Push towards higher standards for slaughterhouses (HACCP) adding significant costs

FINDINGS AND DISCUSSION:STRENGTHENING THE VALUE

CHAIN

Socializing and organizing important factor in development

Volunteer fatigue amongst farmers

Global forces can quickly alter engagement

Collaboration between co-ops is stifled

FINDINGS AND DISCUSSIONMEMBERSHIP ENGAGEMENT

Local beef producer co-ops are stretched Pervasive quality and consistency concerns Need for direct marketing for the North Local food co-ops with an engaged membership and minimized overhead

Distribution networks to bridge hubs Future research? Local food co-ops and First Nations; local food co-op startup challenges (reliance on funding vs. membership engagement)

CONCLUSION

For a copy of the presentation/report, visit:

THANK YOU