EGIONAL G A FED BEEF PPL CHAIN - Cornell University
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EB 2020-03
MARCH 2020
REGIONAL
EGIONAL GRASS
G A FEDFED
BEEF SUPPLY CHAIN
BEEF PPL CHAIN
N E YORK STATE
NEW O KBEEF CASE
A ESTUDY
BEEF CA E D
MARIA KALAITZANDONAKES, AGRICULTURAL AND CONSUMER ECONOMICS, UNIVERSITY OF ILLINOIS;
MIGUEL GOMEZ, CHARLES H. DYSON SCHOOL OF APPLIED ECONOMICS, CORNELL UNIVERSITY;
CHRISTIAN PETERS, GERALD J. AND DOROTHY R. FRIEDMAN SCHOOL OF
NUTRITION SCIENCE AND POLICY, TUFTS UNIVERSITY
ItI isis the
he Policy
Polic ofof Cornell
Cornell University
Uni ersi actively
ac i el to
o support
s ppor equality educational
eq ali of ed and emplo
ca ional and employment
men
opportunity. No person shall be denied admission to any educational program or activity or be
oppor ni . No person shall be denied admission o an ed ca ional program or ac i i or be denied
denied
emplo men on he basis of an legall prohibi ed discrimina ion in ol ing, b no limi ed o, s ch fac ors
employment on the basis of any legally prohibited discrimination involving, but not limited to, such
as race, color, creed, religion, na ional or e hnic origin, se , age or handicap. The Uni ersi is commi ed
factors as race, color, creed, religion, national or ethnic origin, sex, age or handicap. The University is
o he main enance of affirma i e ac ion programs hich ill ass re he con in a ion of s ch eq ali of
committed
oppor ni to . the maintenance of affirmative action programs which will assure the continuation of such
equality of opportunity.
CASE
CA ESTUDY
D
MMA
SUMMARY
Wi hjust
With j s2424 paddocks
paddocks onacres,
on 90 90 acres, 84 and
84 cows, co his
s, and his comp
computer, Ken er
Ken isJaffe
Jaffe is saar
starting ing a grass
regional regional grass
fed beef fed beef re ol ion.
revolution.
Whenhehestarted
When s ar ed Jaffe
Jaffe kne
knew li le abo
little about farming.
farming. He was He as family
practicing
prac icing
medicine famil medicine
in Brooklyn. in Brookl
In his practice n.many
he saw In hismembers
prac iceofhe sa food
a large
man members
cooperative, of a Food
Park Lope largeCo-Op.
food coopera
He heardi the
e, tinkling
Park Slope
chatterFood Co-
of a new,
Op. He
vocal heard segment.
consumer he inkling cha
They er oftheir
wanted a nefood, toocal cons mer
be healthy,
segmen . The an ed heir food o be heal h , s s ainable, and
sustainable, and locally produced. Then, when a dairy crisis hit upstate and
locall prod ced. Then, hen a dair crisis hi ps a e and land
land values fell, he decided to take up the farming challenge. He bought a
al es fell, he decided o ake p he farming challenge. He
hilly farm in the Western Catskills.
bo gh a hill farm in he Wes ern Ca skills.
In aa few
In fe short
shor years
ears he
he grew
gre aa herd
herd and
and created
crea ed a a brand
brand ---- Slope
Farms.Farms.
Slope Demand for grass
Demand for fed,
grass grass
fed, finished, local beef
grass finished, local beef
con in ed o gro , and Jaffe reali ed he o ld need o incl de
continued to grow, and Jaffe realized he would need to include
o hers in his mission. In his hill , rock , and of en chill area of
others
Ups a in his mission.
e Ne In this ha
York, farmers hilly,
earocky,
diffic and often
l ime chilly aarea
making of
li ing.
Upstate
Jaffe an Newed York,
o shofarmers have a difficult
his neighbors ha grass timefed
making a living.a
beef offered
Jaffe
simple, wanted to show
and profi able,his
solneighbors
ion. The that
areagrass fedshor
has no beefage
offered
of a
grasses or a er, he selec ed co breeds did ell in
simple, profitable, solution. The area has no shortage of grasses he long
in ers, land al es ere rela i el lo , and here as no illing
or water, the selected cow breeds did well in the long winters,
req ired. Bes of all, he ere j s a shor dri e a a from a
land values were relatively low, and there was no tilling
major marke .
required. Best of all, they were just a short drive away from a
major
Jaffe market.
Jaffebecame
becamean an
important
impormiddle man inman
an middle the grass
in hefed beef supply
grass chain.
fed beef
He
s contracted
ppl chain. with
Helocal
confarmers
rac edto buy their cattle,
i h local farmers set up
o bdatesheir
for them
ca le,
tose p da to
be taken esbefor hem o ,be
processed andaken
fulfilledobeef
be processed, and f across
orders from buyers lfilled
beefYork
New orders fromhandle
that can b ers across
whole Necows.
or half York ha can handle
He managed the hole
or half co s. He managed he rela ionships i h b ers and
relationships with buyers and sellers, minimized the risks for farmers and
sellers, minimi
consumers, ed he risks
and supported for farmers
the brand and consand
through promotion mers, and
quality
s ppor ed he brand hro gh promo ion and q ali ass rance.
assurance.
Asconsumer
As cons mer demand
demand for grass
for grass fedhas
fed beef beef has gro
grown, so hasn,Jaffe's
so has
Jaffe s bThis
business. siness.
case This
study case s the
explores d eupstream
plores and
he downstream
ps ream and
supply
do ns
chain ream Farms,
of Slope s ppl identifies
chain ofbottlenecks
Slope Farms,
in theiden ifies
system boarelenecks
that
in he s sexpansion,
preventing em ha areandpre en the
shows ingpossibility
e pansion, and sho
for growth s he
in regional,
possibili
grass formarkets.
fed beef gro h in regional, grass fed beef marke s.
G A FED
GRASS FEDBEEF
BEEFBACKGROUND
BACKG O ND
Grass fed
Grass fed beef
beef is
is not
no aa new
ne concept.
concep . Historically,
His oricall , iit is
is he The
The Back
Back too Grass
Gra report
repor notes
no es that
ha the because
he beca se the
he grass
thea way
mosmost
beefbeefaswas
raised. Toda
raised. , i is itneis new
Today, again and
again fed beef
grass fedsbeef
s em is fragmen
system ed, and a and
is fragmented, imeatinefficien
time , he
cons mers are clamoring for i . The ha e a m riad of price premithe
inefficient, mprice
ha cons mersthat
premium pa consumers
does no all make
pay doesi not
and consumers are clamoring for it. They have a myriad
reasons for p rchasing grass fed, incl ding impro ed back o prod cers, as some of he premi m goes o
of all make it back to producers, as some of the premium
h reasons
man healforh,purchasing grassen
animal elfare, fed, including
ironmen improved
al pro ec ion, pa ing he addi ional cos s of prod c ion and branding all
human
clima ehealth,
changeanimal
mi iga welfare,
ion, and environmental
as e. And as demand protection, goes
alongtohepaying
s pplthechain.
additional costs of production and
climate
gro s, change
he s pplmitigation,
chain m and taste.. And as demand
s follo branding all along the supply chain.
grows, the supply chain must follow. Al ho gh consumers
"Although cons mers may
ma bebe paying
pa ing a
a 70
70 percen
percent price
price
The U.S.
The U.S. labeled
labeled grass
grass fed
fed beef
beef market
marke is
is abo
about $1 $1 billion
billion premi m o er con en ional beef, he grass fed ca le
premium over conventional beef, the grass fed cattle
in re ail al e, or abo 1 percen of U.S. beef ind
in retail value, or about 1 percent of U.S. beef industry. s r . prod cer onl recei es a 25 o 30 percen premi m hen
producer only receives a 25 to 30 percent premium when
Unlabeled grass fed beef ( hich is generall of lo er selling his or her animals o a branding program. (p. 6).
Unlabeled grass fed beef (which is generally of lower selling his or her animals to a branding program." (p.6).
q ali han labeled grass fed beef) acco n s for abo $3
quality than labeled
billion (Back grass
o Grass, fedBbeef)
p. 5). accounts
demand is grofor ing
about
a As the
he grass
grass fed
fed beef
beef industry
ind s r grows,
gro s, iti will
ill ha e to
o tackle
ackle
As have
$3
speed ra es, especiall for high q ali , fresh c s of at
billion (Back to Grass, p. 5). But demand is growing he challenges
challenges ofof the
he supply
s ppl chain.
chain. These
These challenges
the challenges
speedy
grass fed rates,
beef.especially for high quality, fresh cuts of incl de: main aining a consis en s ppl and q ali
include: maintaining a consistent supply and quality
grass fed beef. hro gho all seasons, crea ing and pro ec ing a firm
The grass
grass fed
fed beef
beef is
is made
made upp of
of many
man smaller throughout
defini ion ofall seasons, creating
a heand protecting
le el, acompe
firm ing
The smaller pla ers.
players. grass fed beef na ional
There has
has been
been some
some consolidation
consolida ion through
hro gh branding definition of grass
i h in erna ional sfed beef atcrea
ppliers, the ing
national
efficienlevel,
s s ems for
There branding
programs, here man farmers ill sell o one b er ho competing
processingwithandinternational suppliers,
dis rib ing grass creating
fed beef, amongefficient
o her
programs, where many farmers will sell to one buyer
brands and sells he grass fed beef -- similar o he ork hings.
systems for processing and distributing grass fed beef,
who
Jaffebrands
does. and sells the grass fed beef -- similar to the
among other things.
work Jaffe does.
CA E STUDY
CASE D BUSINESS
B INE MODEL
MODEL
> FAME
FA ME
minimi risk
minimizes es through
risk hro gh con
contracting rac ing
predicable
predicable priceprice and ol me
and volune
q ick
quick pa men
payment
g aran eed
guaranteed a bat least
a buyer er one
a leas one ear in ad ance
year in advance
can manage farm mos l
can manage farm mostly independently independen l
doesnotno
does needneed o ac
to actively i el
seek seek o c s omers
out customers
recei es premi m on animal
receives premium on animal
m sadhere
must adhere o Slope
to Slope Farm quality
Farm schedule, sched le, q and
standards, ali grass
s andards, and grass fed pro ocols
fed protocols
m shave
must hacontracts
e con thatraclimit
s the
ha farmer's
limi and
he customer's
farmer s ability
and toc circumvent
s omer stheirabili
role o circ m en heir role
> SLOPE
L O FARMS
E FA M
manages risk
manages risk
could
co ld have
hatrouble
e roif able largeifcustomer
a largewas c lost becauseas
s omer SlopelosFarms would
beca sestillSlope
have contracted
Farms obligations to pay
o ld s ill ha the
e farmers
con rac ed obliga ions o
pa he farmers
manages
manages rela ionships
relationships
m s have
must ha e con racthat
contracts s halimit limi he farmers
the farmers or customersor c sability
omers to abili
circumvento circ
theirmroleen heir role
manages brand, including creating
manages brand, incl ding crea ing consis
consistent high quality product through aggregation from multiple farms. en high q ali prod c hro gh aggrega ion from m l iple farms.
acassthird
acts aspartyhird par
verifier of qualityerifier of q ali
occasionall
occasionally this means his
gettingmeans geif quality
rid of farmers ing ofridtheirof farmers
product is low if he q ali of heir prod c is lo
> OCE
PROCESSOR O
manages
manages risk risk b sched
by scheduling ling
regular reg up
business lartoba year
siness p owith
in advance a Slope
ear Farms
in ad ance i h Slope Farms
doesnotno
does needneed o manage
to manage rela
relationships ionships
between buyers,be een
sellers, andbtransportion
ers, sellers, and ranspor ion
ne er
never akes
takes possession
possession of animal,of
justanimal,
completesj the
s service
comple es he ser ice
managesspecifics
manages specifics of processing
of processing consisweek
consistency enc to week
eek o eek
> AN
TRANSPORTATION O A ION
Predic able
Predictable weekly eekl
delivery deli er theosame
to mostly mosdelivery
l hesites
same deliliveer
for both si es
animals andfor bo h liproducts
processed e animals and processed prod c s
> CUSTOMER
C OME
minimi es
minimizes risk
risk hro contracting
through gh con rac ing
predic able
predictable high high
quality q
onlyali onl through
available a ailable hro service
aggregation gh aggrega ion ser ice
H A THE
WHAT'S ' DIFFERENCE?
HE DIFFE ENCE?
Mos beef
Most beef raised
raised in U.S.
in the he U.S.
is fedison
fed on pas
pasture until re n il he finishing
the finishing s age
stage - where the-cows
here
are he cofedsaare
then henoffed
mixture a mi
grains re of
and food
grains and food b prod c s.
byproducts.
Grassfed
Grass fedbeef,
beef,
on on he o hand,
the other her hand,
is fed is
onfed on pas
pasture even re e en
during thedfinishing
ring hestage.
finishing s age.
Grass
Grass fedfed
beefbeef is finished
is finished on
on grasses, grasses,
sold sold
a little later, a libelesold
and can la for
er,a and can
premium. be sold for a premi m.
PPL CHAIN
SUPPLY CHAIN
Belo wee outline
Below o line an
an example
e ample ofof a
a branded
branded regional
regional grass
grass fed
fed beef
beef ssupply
ppl chain
chainbased
basedon onSlope
Slope
Farms' cos s. The amo n s are calc la ed in dollars per po nd of re ail c mea , sing an a erage
Farms' costs. The amounts are calculated in dollars per pound of retail cut meat, using an average
n mber of po nds of re ail c per co in his s ppl chain, 450 po nds. We break do n he s ppl
number of pounds of retail cut per cut in this supply chain, 450 pounds. We break down the supply
chain in o si gro ps: he farmers ho raise he co s, ranspor from he farms o he processor, he
chain into six
processor, groups:
and the from
ranspor farmers
he who raised othehecows,
processor transport
c s omer, from the program
he branding farms to the
(i.e.processor,
Slope
the processor,
Farms), and c and transport from the processor to the customer, the branding program (i.e. Slope
s omers.
Farms), and customers.
REVENUE ADDED VALUE PERCENT
ADDED
E EN E E CEN
AL E
FARMER $4.60 $4.60 30.67%
FA ME $4.60 $4.60 30.67%
TRANSPORT (FARM TO $0.10 $4.70 0.67%
PROCESSOR)
AN O
(FA M O $0.10 $4.70 0.67%
OCE O )
PROCESSING $1.50 $6.20 10.00%
OCE ING $1.50 $6.20 10.00%
BRANDING PROGRAM $5.50 $11.70 36.67%
B ANDING
OG AM $5.50 $11.70 36.67%
TRANSPORT (PROCESSOR TO $0.80 $12.50 5.33%
CUSTOMER)
AN O
( OCE O O $0.80 $12.50 5.33%
C OME )
CUSTOMERS $15.00 $2.50 16.67%
C OME $15.00 $2.50 16.67%
A G E202 0
PAGE
INP
INPUTS
Theinputs
The inp sforfor a ro a ional
a rotational grasystem
grazing ing s are
s em are simple,
relatively > COWS
CO
rela isaid.
Jaffe el Below
simple,
is aJaffe said. Belo
breakdown is a breakdo
of his essential inputs. Itn isof
his essento ial inpthats.regional
I is impor Picking aa breed
Picking breed ofof cows
co s that
ha do ell on
do well on grass
grass and
and can
important note grassan o nofarms
fed beef e hacan
regional
benefit
grass fed beefoffarms handle he Ne York in ers is an impor an s ep.
from economies scale,can benefi
as the from economies
work grazing 20 or 100 of can handle the New York winters is an important
scale, as he orkthe ofsame.
gra ing 20the
or farms
100 animals is Jaffe selec ed Black Ang s and Hereford, al ho gh
animals is relatively Also, are relatively step. Jaffe selected Black Angus and Hereford,
rela i intensive
el he same. o hers ma do as ell in he clima e. B ing from a
capital as the Also, he farms
farmer must have are
land,rela i el
cows. and although
capi al in ensi e as he farmer m s ha e land, co s, s pplier others
ho hasmay do as well
e perience and ingood
the climate.
gene icsBuying
is
machinery. For Jaffe's farm to be profitable, he said , he must
and machiner . For Jaffe s farm o be profi able, he from
imporaan supplier
, Jaffewho
said.has
Whenexperience
he beganand he good
paid less for
finish at least 30 animals per year.
said, he m s finish a leas 30 animals per ear. lo er q ali
genetics ca le, hinking
is important, he coWhen
Jaffe said. ld manage
he beganhe he
paid less for lower quality cattle, thinking he couldo
gene ics on his o n. I ho gh I d ha e i fig red
in fi e ears, he said. I as deepl del sional. Jaffe
> LAND
LAND manage the genetic on his own. "I thought I'd have it
said if he had o do i o er again, he o ld ha e
figured
in es edout in five
earlier in years,"
good genehe said.
ics. "I was deeply
Jaffe sland
Jaffe's land
is is perennial
perennial pas-- aremix
pasture -- aofmi of differen
different grasses
delusional." Jaffe said if he had to do it over again, he
grasses
and weedsand eeds
including incl dandelions,
clover, ding clo er, dandelions,
burdock, and others.
b rdock, and o hers. He does no seed or soil
change he would
E have invested
I M Eealier
> EQUIPMENT N in good genetics.
He does not seed or change the grasses. As his and has
grasses.and
improved As his
hisexperience
soil and has
has impro
grown, ed andhis
so has hisability to
e perience has gro n, soHe
has his abili 1 animal
o raise Handling equipment
Handling eq ipmen is is e pensi e, and
expensive, and ne
new farmers
farmers
raise more animals per acre. now grazes permore
1
animals perthe
acre. Hemonths
no gra esgrows
1 animal per are da n ed b he cos , b Jaffe no es ha i is
acre. During winter grass slower. He1buys
acre. are daunted by the cost, but Jaffe notes that it is
D ring he in er mon hs grass gro s slo er. He essen ial from bo h a h man heal h and animal
large round bales of hay from local suppliers. So far, he said, essential from both a human health and animal
b s large ro nd bales of ha from local s ppliers. So elfare s andpoin . Farmers ill also need a rac or o
he has never had a problem procuring hay, as New York is a welfare
far, he said, he has ne er had a problem proc ring mo e hastandpoint. Farmers
bales. Some farmerswill also
nderneed a tractor
he Slope
hay exporting state. to movebrand
hay bales. Some farmers
ha , as Ne York is a ha e por ing s a e. Farms gro ha hemsel es,under
hichthe
reqSlope
ires
Farms
ha hebrando ngrow hay
baling eqthemselves,
ipmen . which requires
that they own baling equipment.
> WATER
A E
On his
On his land
land he
he has
has easy
eas access om
access to l iple flo
multiple ing
flowing
bodies of a er; he also has hea ed ro ghs for a er
bodies of water; he also has heated troughs for
d ring he in er mon hs.
water during the winter months.
> OTHER
O HE
Farmers will
Farmers ill also
also need
need fencing, accina ions,
fencing, vaccinations,
medicines (al ho gh Slope Farms does no se
medicines (although Slope Farms does not use
an ibio ics), mineral blocks, e c. Taken all oge her, he
antibiotics), mineral blocks, etc. Taken all together,
inp s can ins re good q ali beef in impor an
the
a ribinputs can si
es like insure good, quality
e, eigh beeffa
fla or, and in.important
attributes like size, weight, flavor, and fat.
Jaffe also
Jaffe also pays
pa s aa premium
premi m for
for the
he grass
grass fed
fed beef
beef and
and
FA ME
FARMERS pays quickly. Jaffe gives the contracts to farmers aat
pa s q ickl . Jaffe gi es he con rac s o
least a year in advance. Slope Farms pays by
eigh .
hanging weight.
farmers
leas a ear in ad ance. Slope Farms pa s b hanging
The Slope
The Slope Farms
Farms brand
brand sources
so rces iits
s beef
beef from
from
appro ima el 20 regional farmers, al ho gh abo 6 His oversight of the different farms varies, he said. Some farms produce good quality every
His o ersigh of he differen farms aries, he said.
approximately 20 regional farmers, although about 6 year and require little oversight and others require more support. Although Slope Farm's
of he farms pro ide 80 percen of he b siness, Jaffe Some farms prod ce good q ali e er ear and
of the farms provide 80 percent of the business, Jaffe consumers understand that the quality will be somewhat variable due to season and across
said. The farms are loca ed all across he region - req Jaffe
farms, ireprotects
li letheo brand
ersigh and
by ensuring o hers
a good req every
quality product ire more
time. Generally, this
said.
from The farmsPenns
Nor hern are located
l aniaallo across the Lakes
he Finger region -o he system works well. Although his margins were squeezed pretty tightly when a large grazing
s ppor . Al ho gh Slope Farm s cons mers
cooperative began and later went bust.
from
H dsonNorthern
Valle Pennsylvania
. All he farms tohotheghFinger
are iLakes
hin a to o nders and ha he q ali ill be some ha ariable
the
ho Hudson Valley.
r dri e from Alls.the farms though are within
Jaffe d e o season and across farms, Jaffe pro ec s he
two hour drive from Jaffe's. brand b ens ring a good q ali prod c e er ime.
Mallor Mort
Mallory Mor isis one
one of
of the
he farmers
farmers that
ha raises
raises ca le
cattle Generall , his s s em orks ell. Al ho gh his
nder he Slope Farm brand. His farm, based in margins ere sq ee ed pre igh l hen a large
under the Slope Farm brand. His farm, based in
Ghen , Ne York began in 1976. C rren l he farm gra ing coopera i e began and la er en b s .
Ghent, New York began in 1976. Currently the farm
has 28 "mama co s", Mor said, and all of his ca le
has 28 "mama
marke ed hro cows", Mort
gh Slope said, are
Farms and"concei
all of hised,
cattle
born "For me,
me, one
one of
of the
he big
big things
hings is
"For is kno ing that
knowing ha Slope
Slope
marketed
and raisedthough
here." Slope Farms
The farm are520
o ns "conceived,
o ned acres born Farms marke s a high q ali , rep able prod c
Farms markets a high quality, reputable product
and
and raised
leaseshere."
ano herThe farm
150 owns
acres, mos520ofowned
hich acres
is beca se ha is ha I like o prod ce," Mor said. "I
because thatqisali
what I like
repto aproduce, "Morto said. "I
and leases another 150 acres, most of which ishorses.
de o ed o breeding and raising Thoro ghbred belie e ha and ion are ke
believe thatanquality
marke ing prodandc . reputation
Prod cing are keyfed
grass to beef for
devoted to breeding and raised thoroughbred horses.
Farmersworkork
Farmers with iJaffe
h Jaffe becahese
because he manages
manages marke
market risk by marketing
Slope Farms any product.
orks beca Producing
se mos grass
of m fed
imebeef for
is spen
risk b gi ing hem a for ard con rac
giving them a forward contract on the cattle. on he ca le. on o r Thoro ghbred opera ion."
Slope Farms works because most of my time is
spent on our Thoroughbred operation."
P OCE O
PROCESSOR
Slope Farms
Slope Farms uses
ses a
a local
local mea
meat processor,
processor, S einer
Steiner
Packing, based in O ego, NY. The plan opened in
Packing, based in Otego, NY. The plant opened in
1950 and has been USDA inspec ed since 1976. The
1950 and has been USDA inspected since 1976.
c rren o ner, Na haniel Brandon has been orking
The
herecurrent
for aboowner, Nathaniel
15 ears. Brandon
The plan has has
fo rbeen
f ll ime
working
and o there for about
par ime emplo15ees.
years. The plant has four
full time and two part time employees.
"We aren't
"We aren' huge,
h ge, but
b we're
e're al a s bbusy,"
always s ," Brandon
Brandon said.
"We re sla gh ering be een 18-20 beef a eek,
said. "We're slaughtering between 18-20 beef a week,
probabl an here from 6-12 pigs per eek, and
probably anywhere from 6-12 pigs per week, and
ano her 6-12 lambs per eek."
another 6-12 lambs per week."
Theplant
The plan serves
ser esbetween
be een 300 300 and
and 350
350 total
o al customers
c s omers
of ar ing si es. Jaffe is he plan 's larges c s omer.
of varying sizes. Jaffe is the plant's largest customer.
Brandon said Jaffe's animals ha e "good marbling,
Brandon said Jaffe's animals have "good marbling,
good fa co er" and ha " he animals are ell aken
good fat cover'
care of." Slope and
Farmsthat
is "the animals
an impor an are
c swell
omertaken
care
becaof."
se Slope
of i s siFarms
e andisreliable,
an important
ear rocustomer
nd sched le.
because of its size and reliable, year round schedule.
"The best
"The bes thing
hing about
abo him him is
is he's ear ro
he's year nd," Brandon
round,"
Brandon said. "A lo of people an o pile in here in he
said. "A lot of people want to pile in here in the fall, and
fall, and e r o make i ork b here are onl so
we try to make it work but there are only so many
man spo s. E er bod an s Oc ober, b here are
spots.
onl soEverybody
man da s." wants October, but there are only so
many days."
Brandonsaid
Brandon said
thatha Slope
Slope Farms
Farms booksbooks heir animals
their animals with his
plant a year ahead of time. He said that's good for Jaffe,'sgood
i h his plan a ear ahead of ime. He said ha good
forthe
for Jaffe, goodgood
farmers, for for
hethe
farmers, good animals
plant. Having for he plan .
year round
Ha booking
and ing animals
ahead ofear ro makes
time nd and booking
Slope Farmsahead
a greatof ime
makes Slope Farms
customer to work with. a grea c s omer o ork i h.
Jaffe said
Jaffe said his
his own
o n animals
animals pro ide him
provide i h fle
him with ibili , if
flexibility,
here is a gap in ha he farmers are able o ge him.
if there is a gap in what the farmers are able to get
Bo h Brandon and Jaffe o ld like o see he plan
him. Both Brandon and Jaffe would like to see the
e pand capaci . Na haniel said he hopes in he ne
plant
fe earsexpand capacity.
he can Nathaniel
add cold s oragesaid he hopes
space and geininthe o
next few years
smoking mea s.heHecan
saidaddhecold storage
o her limi ingspace
fac orando get
gro smoking
into h is access o reliable,
meats. He saidqthe aliotherorkers.
limiting factor to
growth is access to reliable, quality workers.
The contracted
The con rac ed trucks
r cks pick
pick upp Slope
Slope Farm's
Farm's beef
beef aat
S einer Packing, so i also ser es as an impor an brick
Steiner Packing, so it also serves as an important
and mor ar h b for he Slope Farm s opera ions, Jaffe
brick and mortar hub for the Slope Farm's operations,
said.
Jaffe said.
C OME
CUSTOMERS
Slope Farms
Slope Farms began
began too fill
fill unmet
nme consumer
cons mer demand.
demand. In aa world
In orld where
here most
mos customers
c s omers buy b specific
specific ccuts
s of
of
Cons mers in Ne York Ci and Brookl n an ed too bo ed beef, onl a alen ed fe kno ho o handle hole
Consumers in New York City and Brooklyn wanted boxed beef, only a talented few know how to handle whole
p rchase locall prod ced, responsibl raised, grass fed beef. or par ial animals. B ers m s learn ho o se he organs
purchase locally produced, responsibly raised, grass fed or partial animals. Buyers must learn how to use the
Slope Farms formed rela ionships i h res a ran s, food and a hole lo of gro nd beef, in addi ion o he premi m
beef.
coops,Slope
and bFarms formed
chers relationships
all across Ne Yorkwith
S arestaurants,
e. In he food organs
c s. and a whole lot of ground beef, in addition to the
coops, andnei
beginning butchers all nor
her Jaffe acrosshis cNew Year State.
s omers kne m In the
ch abo premium cuts.
beginning neither
he grass fed beefJaffe nor his
b siness. B customers
o er ime knew
his c much
s omersabout
ha e Peil does
Peil does this
his by
b aa being
being part
par ofof aa company
compan that ha incl des
includes
become er sophis ica ed, he said. The kno
the grass fed beef business. But overtime his customers have ha he res a ran s hich se a lo of gro nd beef for b rgers, b
restaurants which use a lot of ground beef for burgers, by
an no and he re ocal abo ge ing i righ . C s omers orking i h chefs on ho o p sh cer ain c s, and b
become "very sophisticated ," he said. "They know what they working with chefs on how to push certain cuts, and by
care abo condi ions of he animals, q ali of he mea , and ailoring his ordering o ho m ch gro nd beef he can
want now and they're vocal about getting it right." Customers tailoring
handle ra hisher
ordering
han hoto how
manmuchprime ground
c s he beef he can
hinks he co ld
he si e of si e of he orders, Jaffe said.
care about conditions of the animals, quality of the meat, and handle rather
sell. Chef thanSmi
Pa rick howh,many
said prime
he also cutsdrheage
thinks
meahe o
the
Forsize
For condiofions,
the orders,
conditions, Jaffe
he want
they an o said.
to see that
see ha the
he ca le are
cattle are being
being could sell. Chef Patrick Smith, said they also dry age
increase he al e and heir fle ibili . Smi h also saidmeat
ha
raised in humane conditions, are being fed and finished on
raised in h mane condi ions, are being fed and finished on toheincrease
sa e hethemos
valuepremi m c flexibility.
and their s for he Smith
eekend alsomen
saids
grass, are no gi en an ibio ics, are no p in CAFOs, e c. and plan far in ad ance for holida s and e en s (for
grass, are not given antibiotics, are not put in CAFOs, etc. that they save the most premium cuts for the weekend
This occasionall means ha he c s omers an o isi he e ample, his res a ran does lo s of eddings).
This menus and plan far in advance for holidays and events (for
farm.occasionally means that the customers want to visit
the farm. example,
Up hishis
Up too this restaurant
poin
point,, Jaffe doeshad
Jaffe hasn't
hasn lotsto
had oofmarket
weddings).
marke oo m
too ch. Mos
much. Most
Thehead
The head b cher
butcher of one
of one of Jaffe's
of Jaffe's main c s omers,
main customers, Josh
Josh Peil, said Peil,
that of his c s omers ha e come hro gh ord of mo h. In he
of his customers have come through word of mouth. In the
said ha
visiting isi ing
the farms he farmsbecause
is important is impor an beca
it allows seask
him to i allo s him
questions of f re he ma e pand his marke ing effor s, b doing so
future he may expand his marketing efforts, but doing so
o ask
Jaffe andq be
esable
ionsto of Jaffeinquires
answer and bethat
able o ans
come from er
his inq iries ha
employees' and o ld cer ainl req ire hiring ano her person. His brand is
would
highlighcertainly
ed, horequire hiringeranother
gh, hene person.
a c s omer b His
s hisbrand
beef is
come from
customers' in his
Newemplo ees' and c s omers' in Ne
York City. York Ci .
highlighted,
hro gh he though, whenever
Slope Farms's a customer buys his beef
label.
For quality,
For q ali , Peil
Peil said
said they
he want
an the
he beef
beef to
o ha
havee good
good through the Slope Farms's label.
in ram sc lar marbling and ha e a carcass eigh of 700-800 C s omer demands
Customer demands areare ever
e er evolving,
e ol ing, and
and Jaffe
Jaffe does
does aa
intramuscular marbling and have a carcass weight of
po nds. Peil said ha Jaffe's beef is "e cellen ." good job a e ol ing along i h hem. Mos recen l , here
700-800 pounds. Peil said that Jaffe's beef is "excellent." good job at evolving along with them. Most recently,
has been an increased p sh i hin he food ind s r for
there has been an increased push within the food
Impor an l , Jaffe
Importantly, Jaffe only
onl takes
akes on
on customers
c s omers whoho can
can se raceabili , or an ing o kno e ac l here he food
hole, half, or q ar er animals. This is a bo leneck for industry
s ar ed ofor. traceability,
C s omers areor wanting
also reqtoes
know exactly
ing cer ifiedwhere
use whole, half, or quarter animals. This is a bottleneck
e pansion. the food started
organic, out. Customers are also requesting
Peil said.
for expansion.
certified organic, Peil said.BOTTLE
B ENECKS
EC
Consistent
ConsistentQuality
Qualit+ Quantity
+ Quantit Processing
ProcessingCost
Cost
One of
One of the
the biggest
biggest challenges
challenges in in grass
grass fed
fed beef
beef isis trying
trying The cost
The cost of
of processing
processing atat smaller
smaller plants
plants raises
raises the
the final
final
to replicate conventional beef's year-round access to high cost of grass fed beef. This occurs in part because larger
to replicate conventional beef's year-round access to high cost of grass fed beef. This occurs in part because larger
quality and high volume beef. Grass fed beef gain weight processors can achieve efficiencies through scale. Larger
quality and high volume beef. Grass fed beef gain weight processors can achieve efficiencies through scale. Larger
more slowly than grain fed ones do. This is especially true processing orders are also able to participate in
more
in theslowly
winter,than grain proficient
although fed ones do. This do
farmers is especially
this well. true processing orders are
byproduct markets for also
manyable to participate
of the in odds
beef industry's
in the winter, although proficient farmers do this well. byproduct
and ends, markets for many
for example of the
hide and beef(Back
tallow industry's oddsp.
to Grass,
Maintaining high
Maintaining high quality
quality beef
beef from
from multiple
multiple small
small toto and
28).ends, for example hide and tallow (Back to Grass, p.
medium farms, even throughout the winter is a challenge 28).
medium farms, even throughout the winter is a challenge
for Jaffe and the rest of the grass fed beef industry. Customers
Customers
for Jaffe and the rest of the grass fed beef industry.
Additionally, maintaining a steady quantity throughout the
Additionally, maintaining a steadyact. quantity throughout
his ownthe One of
of the
the most
most apparent
apparent bottlenecks
bottlenecks is
is the
year is an importance balancing Jaffe has One the limited
limited
year is anpartially
animals, importance
to fillbalancing
in if there act. Jaffe has
are "gaps" his farmers'
in his own number of consumers or retailers that can take partial or
number of consumers or retailers that can take partial or
animals,
supplies.partially to fill in if there are "gaps" in his farmers' whole animals. Most customers are used to buying
whole animals. Most customers are used to buying
supplies. "boxed beef," Jaffe said.
Processing
ProcessingCapacity
Capacit "boxed beef," Jaffe said.
Consumers want
Consumers want to
to buy
buy certain
certain cuts
cuts meat
meat at
at the
the times
times
Although there
Although there are
are many
many processing
processing plants
plants spread
spread across
across they desire, and they generally don't have use for the less
they desire, and they generally don't have use for the less
the country (Back to Grass), for regional supply chains of popular cuts or byproducts. Additionally, grass fed ground
the country (Back to Grass), for regional supply chains of popular cuts or byproducts. Additionally, grass fed ground
grass fed beef these plants may still be too far away or beef receives a much smaller premium than other grass
grass fed beef these plants may still be too far away or beef receives
fed beef cuts. aOnly
much smaller
a very premium
select than
group of other grass
butchers,
too small in si e. Jaffe is lucky to live near a high quality
too small in but
processor, size.
hisJaffe is luckystill
processor to has
live limited
near a capacity.
high quality fed beef cuts.and
restaurants, Only a very select
consumers group of
are willing butchers,
and capable to
processor, but his processor still has limited capacity. buy beef in this
restaurants, andway.
consumers are willing and capable to
TheNew
The New York
York processor
processor priorities
prioriti esJaffe's
Jaffe'sproducts,
products,but
but buy beef in this way.
his business is still limited by the processing capacity. For regional
For regional grass
grass fed
fed beef
beef supply
supply chains
chains to
to grow,
grow, this
this is
is
his business is still limited by the processing capacity.
Limited processing makes the regional grass fed beef one major hurdle they must overcome - either by creating
Limited processing makes the regional grass fed beef one major hurdle they must overcome - either by creating
supply chain less predictable and more costly. a "boxed beef" system or by increasing consumers'
supply chain less predictable and more costly. a "boxed beef" system or by increasing consumers'
demand for partial or whole animals.
demand for partial or whole animals.C
CLOSINGG
Slope
Slope Farms
Farms coordinates
coordinates their grasstheir grass
fed beef fed across
enterprise beef many
enterprise
farmers This
andcase study underscores
maintaining the importance
relationships of fostering
in regional, niche and
markets
and customers.
across many They emphasize
farmers andmaintaining relationships
customers. Theyand collaborating
emphasi e with maintaining relationships
and provides in regional,
a blueprint niche markets
for branding and provides
programs learninga to
all the players along
maintaining the supply chainand
relationships to maintain a high quality
collaborating withproduct. Slope
all the blueprint
manage for quality
brandingacross
programs learning
farms andtoseasons.
manage quality
Slopeacross
Farms'
Farms provides regional beef with a different, but effective, supply chain model farms and seasons. Slope Farms' experience suggests there is in
players along the supply chain to maintain a high quality experience suggests there is tremendous opportunity
that minimizes risk for small farmers, effectively utilizes regional processing
product. Slope Farms provides regional beef with a tremendous
regional, opportunity
grass fed in regional,
beef grassprograms,
branding fed beef branding programs,
especially in
capacity, and keeps customers happy through quality control and transparency of
different, but effective, supply chain model especially in areas
areas with easywith easy access
access to large,
to large, urbanurban customer
customer bases.
bases.
farming methods (including farm visits).
that minimi es risk for small farmers, effectively utili es
regional processing capacity, and keeps customers happy Thiscase
This case study
study also
also found
found that
that there
there is
is room
room to
to improve
improve
through quality control and transparency of farming these systems by increasing research on regional supply
these systems by increasing research on regional supply
methods (including farm visits). chains and farmer involvement, giving processors access
chains and farmer involvement, giving processors
to funds to retrofit older plants, and increasing customer
This case study underscores the importance of fostering access to to
capacity funds
use to retrofit
whole older plants,
or partial and increasing
animals.
customer capacity to use whole or partial animals.C A
CITATIONS && F E
FOOTNOTES
INTERVIEWS
Interviews
Interviews conducted
conducted by Maria
by Maria Kalait andonakes
Kalaitzandonakes
Ken Jaffe: June 11, 2018, June 18, 2018, in-person
Josh Peil: June 18, 2018, in-person
Nathaniel Brandon: November 16, 2018, telephone
Malory Mort: December 7, 2018, telephone and email
PHOTOS
Photos of Slope Farms' animals and land were taken
byMaria
by MariaKalaitzandonakes
Kalait andonakes on June
on June 11,and
11, 2018 2018 and
June
June 18,
18, 2018. 2018.
Other images:
NYC Taxi Photo, Canva free media.
LITERATURE
Cheung, R. and McMahon, P. (2017). "Back to Grass:
The Market Potential for US Grassfed Beef"
King,R.,
King, R.,Hand,
Hand,M.,M.,
andand Gome
Gomez, , M. (2014).
M. (2014). "Growing
"Growing Local:
Local:
Case Caseon
Studies Studies on Local
Local Food SupplyFood Supply Chains."
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University of Nebraska Press.
Stake,
Stake,R.R.(1995). Art A
(1995). of case study
f ca e research.
d e ea SAGE.
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2020-02 Cost of Establishment and Production of Cold Hardy Davis, T., Gomez, M., Moss, R.,
Grapes in the Chautaqua Region of New York - 2019
Martin, K., and Walter-Peterson, H.
2020-01 Cost of Establishment and Production of V. Davis, T., Gomez, M, Moss, R., Walter-Peterson, H.
Vinifera Grapes in the Finger Lakes Region of
New York - 2019
2020-01 Regional Grass Fed Beef Supply Kalaitzandonakes, M., Gomez,
Chain M., and Peters, C.
2019-06 Adapting Your Labor Strategies to New Eiholzer, L., Ifft, J., Karszes, J., and
York's Revised Farm Employment Laws Stup, R.
2019-05 Assessing the Barriers to Increasing Customer
Schmit, T.M., Severson,
Participation and Farm Sales at Farmers
Markets: Implications for Marketing Strategy R.M. & Sawaura, E.
2019-04 Crop Budgets and Cost & Return Studies Li, J., Gomez, M. & Murphy, J.
for Organic Grain in Western New York
2019-03 2018 New York State Berry Market Analysis: Davis, T., Gomez, M. &
Pricing Information of Local Berries
Pritts, M.
2019-02 The State of the USDA Inspected Red Meat Harvest & Waro, M., Kalaitzandonakes, M., Baker,
Processing Industry in New York & New England M., Peters, C., Gomez, M. & Conrad, M.
2019-01 The State of the Agricultural Stup, R., Ifft, J. & Maloney, T.
Workforce in New York
Karszes, J.
2018-08 Six Year Trend Analysis New York State
Dairy Farms Selected Financial and
Production Factors
Tauer, L. W.
2018-07 Production Agriculture Diversification for
Each State in the United States
2018-06 Dairy Business Summary New Karszes, J., Christman, A.,
York State 2017 Howlett, A. & Knoblauch, W.
2018-05 Business Summary New York State 2016 Karszes, J., Christman, A., Howlett,
A., Windecker, K. & Knoblauch, W.
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