Regional Meat Harvesting Facility Proposal
Background:
In 2008, there were 692,000 beef cows in Virginia with a calf crop of 620,000 head (birthing rate of approximately 90 percent). Commercial slaughter under USDA or state inspection accounted for 11,300 head. There was a 60,000 head lamb crop with a commercial slaughter of only 14,800. The consequence is that the only alternative for many farmers is to sell through local auction barns or by the truckload to feedlots in the Midwest. With increasing demand for local foods and specialty beef and lamb (pasture raised), other market opportunities are open for local producers. Currently, one marketing firm, Grayson Natural Foods, LLC, is selling to restaurants and universities and cannot meet the demand because available abattoirs (slaughterhouses) are at maximum production and cannot expand.
To study the practicality of constructing a USDA inspected meat slaughter plant somewhere within close proximity to the I-81/I-77 corridors within the project area, which includes the counties of Carroll, Floyd, Giles, Grayson, Pulaski and Wythe, it was proposed to the Appalachian Regional Commission that the current study be initiated and plans made to determine demand and related costs of construction and initial operation.. Grayson LandCare, Inc., is working closely with public and private sector partners in accomplishing this goal.
Matching funds of $50,000 were received from the Virginia Tobacco Indemnification and Community Revitalization Commission.
Recent/Upcoming Activities:
A request for proposals was submitted in the regional newspaper, The Roanoke Times. Working in cooperation with Virginia Tech and Virginia Farm Bureau, the requisite expertise was identified and consultants selected that met those criteria. In cooperation with the Virginia Foundation for Agriculture Innovation and Rural Sustainability (Virginia FAIRS) in Richmond, Virginia the following have been completed:
- A capacity needs assessment by Dr. Ann Wilkinson (agricultural economist) that included market demand, input and feed prices, government regulations, shifting demographics and existing processing base;
- A producer survey to determine the demand for an abattoir in 18 surrounding counties has been completed by the Virginia Tech Business Technology Center under the leadership of Dr. Richard Daugherty (economist and business panning specialist) and with the cooperation of cooperative extension services in Virginia and North Carolina;
- A review of Virginia Business Legal Structures to guide the decision in forming a business organization to operate the facility has been completed by Chris Cook of Virginia FAIRS, James Matson of Matson Consulting (agricultural economist specializing in agricultural business development), and Lynn Suter, Esq. of Lenhart Obenshain Attorneys at Law;
- An interim Report has been submitted by engineers of Allen and Shariff Facilities in partnership with Alten Solutions that describes a series of options for the design of the abattoir.
Upcoming activities include (1) working with local governments and consultants to explore possible sites, (2) completion of engineering plans based on selections from the design options to determine the final design and estimates of costs, (3) development of a business plan and budget for the construction, equipment purchases, operation and management of the facility, (4) review of the final plans from all consultants to determine additional needed information and seek answers to those questions, and (5) development of proposals regarding potential capitalization and financing of the project.
Progress Made Toward Project Outcomes:
As noted in the proceeding section, three major components of the proposed study have been completed. Grayson LandCare and representatives of local farm organizations and governments are meeting to make decisions from among an array of possibilities that will guide the final steps to complete the project. With the current information in hand, the development of the above mentioned business plan is underway.
Outlook for Program Continuation and Sustainability:
The next stage of this project is exploring funding opportunities with the consultants. We expect that we will find the necessary financing for the construction of the abattoir. Local producer groups are now alerted and county governments are engaged in finding a site and financial resources to complete the establishing of a meat harvesting facility. |
