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David Thompson, MBA EXPANDING LOCALLY SOURCED BEEF IN NORTHERN ONTARIO THROUGH THE CO-OPERATIVE MODEL NORDIK INSTITUTE SAULT STE. MARIE, ON.

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Presentation on theme: "David Thompson, MBA EXPANDING LOCALLY SOURCED BEEF IN NORTHERN ONTARIO THROUGH THE CO-OPERATIVE MODEL NORDIK INSTITUTE SAULT STE. MARIE, ON."— Presentation transcript:

1 David Thompson, MBA EXPANDING LOCALLY SOURCED BEEF IN NORTHERN ONTARIO THROUGH THE CO-OPERATIVE MODEL NORDIK INSTITUTE SAULT STE. MARIE, ON

2  87% of Ontario’s landmass (more than UK & France combined)  Three urban centres  Small towns (forestry / steel/ mining /agriculture industries)  Distance from markets, aging population, youth outmigration NORTHERN ONTARIO

3 NORTHERN AGRICULTURE AREAS

4  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 2003  Struggling abattoirs (slaughterhouses) INTRO TO NORTHERN BEEF

5  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

6 RESEARCH PARTICIPANTS

7  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…

8 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

9 What is the demand for differentiated beef products in Northern Ontario? SOME SECONDARY QUESTIONS

10 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

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

12  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

13  Co-operatives started in the 18 th century in England  A business that is owned by members of the co-op (farmers / individual consumers) – open and voluntary membership  Profits are shared with its members, not shareholders  Balance the economic, environmental and social needs  v=ecSMtMurwsI v=ecSMtMurwsI CO-OPERATIVES

14  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

15 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

16  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

17  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

18  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

19  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

20  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

21  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 DISCUSSION MEMBERSHIP ENGAGEMENT

22  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

23  For a copy of the presentation/report, visit: THANK YOU


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