David Thompson, MBA
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Transcript of David Thompson, MBA
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David Thompson, MBA
EXPANDING LOCALLY SOURCED BEEF IN NORTHERN ONTARIO THROUGH THE
CO-OPERATIVE MODELNORDIK INSTITUTE
SAULT STE. MARIE, ON
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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
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NORTHERN AGRICULTURE AREAS
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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
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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
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RESEARCH PARTICIPANTS
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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…
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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
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What is the demand for differentiated beef products in Northern Ontario?
SOME SECONDARY QUESTIONS
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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
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What influences the participation of Northern Ontario beef farmers in marketing co-operatives and place-based businesses?
SOME SECONDARY QUESTIONS
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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For a copy of the presentation/report, visit:
THANK YOU