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Provincially licensed meat processing facilities in BCLessons learned from a decade on the meat file
And the effort to “make it work”
Kathleen Gibson and Abra Brynne forFarm, Fish and Finance * May 2013 * Toronto
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IntroductionThe “meat file” decade2003-05 BC Food Systems Network
2005-12 BC Food Processors AssociationGovernment-funded projects MIES, MTAP
2005-08 Help Desk2008-12 Project Manager
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BC’s Meat Inspection RegulationPrior to 2003: Meat Inspection Areas2004: all meat for sale for human
consumption in BC must be from a licensed, inspected facility
2007: full implementation; introduction of waste Code from MoE and SRM requirements from CFIA
2009-10: Remote Sites Consultation, D/E licences
2011-13: provincial inspection system review
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BC’s graduated meat processing licensing system
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BC slaughter facilitiesWe worked only with the provincial systemThe very many very smallThis discussion will focus on A and B facilitiesBC currently has:
56 A and B licensed facilities95 D and E farmgate licences11 federally licensed facilities (only one red
meat)
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Producers and processorsInterdependent relationship, reciprocal rolesPRODUCERS
Need accessible, affordable slaughter facilities10% animals available for slaughter in BC are
processed in provincial facilitiesPROCESSORS
Need steady, reliable, good quality animal supply
Can’t recover most capital costs from marketplaceOften lack affordable waste solutions (red meat)
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Facility business models1. Private business2. Co-op3. Social enterprise / community business Jurisdiction, terrain, population size and
type, foodshed and food culture are determining factors
Operation may be Slaughter plant only (B) Slaughter plus cut/wrap (A) Slaughter, cut/wrap (A), plus butcher shop
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Privately owned portable poultry
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Community portablered meat and poultry
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Capital costsPlans, building, equipmentProjects usually cost 2X what was budgeted
and took 2-3X longer than forecastActual cost for a new poultry mobile $150-
350KActual cost for a new red meat mobile $300K
or moreActual cost new red meat fixed plant $1MWaste handling facility costs on top, could
cost as much as the abattoir
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Operating costsTraining and compensating workersSlowdowns with new people (workers,
inspectors)Downtime required for repairsRefrigeration – ongoing cost and repair
issuesWaste management, removal or dumping
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Regulatory costsEvery regulation carries cost, even filing for a
permitMany iterations for plans approvalHealth, environment regulators recommend
gold-plated “world class” measuresFirst licence puts the facility on other agencies’
radarProducers want abattoirs, neighbours don’t,
leads to cost through time-consuming public process
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MarketingCustomers should be the basis of the
operationWork backwards from marketplaceMeat from provincial facilities may only be
sold in BCBe careful what markets you wish for!Same product may earn more away from
homeEthnic markets growing, especially HalalCan combine direct sales and web-based
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Business planningGood producer does not necessarily = good
processorTight margins in slaughter, best debt is OValue adding tends to help profitabilitySmall operations are seasonalOperating plan is critical, needs strong
emphasis on value chain relationships, scheduling
Qualified labour is hard to get and retain
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Of noteProduction envelope can be stretched – up to a
pointMobiles are not a magic solutionFor food safety, good hygiene is the best preventionYou can’t achieve zero risk or zero contaminationRelationships and communications are key – web is
under-usedLicensing and inspection should be graduated,
based on assessment of public health, animal welfare and environmental risks
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ChallengesExport-oriented single-
commodity systemReactive, risk-averse
environment gold-plated standards, increasing liability, cost
Regulatory mazeFarmers and rural
communities struggling, supply faltering
OpportunitiesLarge system reaching
limitsImport replacement
potentialSolid demand for local,
especially from citiesIncreasing demand for
ethnic foods and meatsHandful of capable
survivors in the business
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Worth exploring – next steps?1. Community food processing facilities
Red meat, poultry, fish, vegetables from farm to package, sharing refrigerated storage
College or UBC farm as sponsor, with regional government?
2. Standardized modular portable facilities, using containers, that can be ramped up and down seasonally
3. Online support for processors (e.g. NMPAN)4. Online tools
For producer-processor organizing and schedulingFor customer orders
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Some abattoir websitesRed meatnorthwestpremiummeat.comwww.pasture-to-plate.comwww.kelownafreegrazelamb.comPoultrywww.farmhousepoultry.cawww.passmorepluckers.caRed meat and poultrywww.saltspringabattoir.ca
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Thank you! Questions?
GBH Consulting Group Ltd.659 Radcliffe Lane, Victoria, BC V8S 5B8
Tel: 250.598.4280Cell: 250.216.9736
Email: [email protected]: kathleen.gibson.659
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