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Southern sawg a supportive meat processor joe cloud-t&e meats

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Joe Cloud's presentation on Working with a local meat processer at the 2018 Southern SAWG conference in Chattanooga TN

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Southern sawg a supportive meat processor joe cloud-t&e meats

  1. 1. Southern SAWG Conference 2018 Working with a Supportive Meat Processor Joe Cloud T&E Meats Harrisonburg, VA
  2. 2. SHOTGUN MARRIAGE?
  3. 3. Or … TRUE LOVE FOREVER!
  4. 4. Who is T & E Meats?
  5. 5. Who is Joe Cloud?
  6. 6. T&E Meats – Past and Present
  7. 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. 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
  9. 9. Customer Base
  10. 10. What is Today About?
  11. 11. Farmers Know Stock, Not Meat PRODUCER SKILLS • Herd Health • Input Costs • Rations & Feed • Animal Handling • Reproduction • Land Management • Finishing for Harvest MEAT MARKETING SKILLS • Yields per Animal • Meat Cuts/Product Mix • Meat Handling Requirements • USDA Regulations • Labeling Laws • Revenue Projections • Seasonal Requirements
  12. 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. 13. What do Processors Need? • Regular Cash Flow • Steady Consistent Business • Less Volatile Seasonal Cycles • Good Communication • Savvy Customers
  14. 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. 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. 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. 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. 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. 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. 20. T & E Small Plant Biz Strategy • Be the Best • Be Full Service • Be a Leverage Point, not a Brand
  21. 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. 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)
  23. 23. Working with Your Processor
  24. 24. What ½ of a Beef Looks Like
  25. 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. 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. 27. Quality Control Tools • Insert photo of key documents on table – HAACP, P&P, FSA’s, Log Books
  28. 28. C. T&E Approach to Investment in People • Principle of “Quality of Worklife” • Training • Retention • Teams & Team Development • Incentives
  29. 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. 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. 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. 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. 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
  34. 34. 2011
  35. 35. 2012
  36. 36. 2013
  37. 37. 2013
  38. 38. 2014
  39. 39. 2014
  40. 40. 2015 • Insert photo of new lane
  41. 41. 2016 • Insert photo of Rollstock Machine
  42. 42. 2017 • Insert photo of new Hot Water System
  43. 43. Current Expansion
  44. 44. www.temeats.com
  45. 45. Other Resources
  46. 46. THANK YOU • Animal Welfare • Food Safety • Liability
  47. 47. THANK YOU Joe Cloud joe@temeats.com (540) 434-4415

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