Source: RAINBOW ORGANIC FARMS, CO. submitted to NRP
A TEST CASE TO EVALUATE THE EFFICACY OF THE USDA QUALITY SYSTEM CERTIFICATION PROGRAM (QSCP) FOR SMALL BEEF PRODUCERS AND PROCESSORS
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0186301
Grant No.
00-33610-9577
Cumulative Award Amt.
(N/A)
Proposal No.
2000-03123
Multistate No.
(N/A)
Project Start Date
Sep 1, 2000
Project End Date
Aug 31, 2002
Grant Year
2000
Program Code
[(N/A)]- (N/A)
Recipient Organization
RAINBOW ORGANIC FARMS, CO.
1976 55th STREET
BRONSON,KS 66716
Performing Department
(N/A)
Non Technical Summary
The USDA Quality System Certification Program (QSCP) provides a uniform, verifiable system for transmitting food safety and quality information from the farm through the processor to the retailer. Data regarding the cost/benefit of the adoption of an ISO-9000 based quality system such as QSCP by small U.S. meat producing and marketing businesses is not available. This test case will provide empirical data on the initial and ongoing costs of QSCP implementation for firms of this type, and include market research on a new brand incorporating the resulting quality designation in a cost/benefit analysis. Benefits of this project will include quality system adoption, and providing the USDA and other agencies with additional context for the formation of evolutionary quality standards affecting small livestock and meat marketing programs.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
71233203030100%
Goals / Objectives
Prepare a documented quality system suitable for certification under USDA Quality System Certification Program(QSCP) for use in a small All-Natural Beef program, and submit the Quality Manual to the USDA (or its designated certifying agent) for review. Implement the approved All-Natural Beef QSCP and validate it be achieving USDA certification. Determine the marketability of USDA QSCP `Process Verified' designation on the program's All-Natural Beef products. Complete a cost benefit analysis of adopting the USDA QSCP.
Project Methods
This project will encompass 15 to 20 small beef farms, at least one meat slaughtering and processing facility, and a retail supermarket chain with up to 23 participating stores. The following major steps comprise the work plan: Designate a QSCP Coordinator and assemble a QSCP design team who will develop an enterprise-wide QSCP manual, conduct internal QSCP program training, and implement the enterprise-wide system. Conduct internal reviews, submit to formal USDA QSCP audit, and maintain certification status. Capture the development and implementation costs of achieving USDA `Process Verified' status. Prepare marketing materials that acquaint consumers with the significance of USDA `Process Verified' designation. Measure consumer response to labeled products. Quantify the change in on-going quality compliance costs to participants and draw appropriate conclusions and calculate return on investment for participants. Secure independent review of economic findings and publish results.

Progress 09/01/00 to 08/31/02

Outputs
OUTPUTS: The results of this project is a 296 page Good Natured Family Farms All-Natural Beef Quality System Certification Program (QSVP) Manual and can be found at the following: http://www.goodnatured.net/QSVP%20Manual%20-%20Final.pdf A corresponding Multi Media eighty slide PowerPoint was developed and can be viewed at the following: http://www.goodnatured.net/QSVP/QSVP multi media power point.rar **If you do not already have a utility installed to uncompress "RAR" files. One can be downloaded at the following link: http://download.cnet.com/WinRAR-32-bit/3000-2250_4-10007677.htmlpart =dl-113677&subj=dl&tag=button This research has been disseminated extensively by Kansas State University department of Agriculture Economics, for more information see publication list under publications below. The result of this research was also the basis for developing Good Natured Family Farms Quality System Verification Program for Free-Range Poultry. Using this quality system, small-scale free-range and pastured producers have developed three small-scale federal inspected poultry processing plants in the state of Kansas. Today, this research continues to sustain relevancy and is the basis of small-scale family farm Good Agriculture Practices (GAP) certification for fruits and vegetables. This research provided the foundation and building blocks we utilized to accomplish successfully obtaining, the first in the country, GAP certification for Amish and Mennonite family fruit and vegetable farms. PARTICIPANTS: Diana Endicott, Rainbow Organic Farms, responsibility project director. Andrew Howell, Rainbow Organic Farms, repsonsibility technical research assistant. Dr. Michael Boland, Kansas State University Department of Agriculture Economics, responsible for data collection and cost-benefit analysis and assist in presentations and final report of findings. Reene Hawkins Sanden and Lori Thielen, KSU Department of Agriculture Economics graduate students, responsibility QSVP design/implementation team members for producer cooperative, processor, and retailer. Peggy Shults, Step Two Investments, responsible for providing project management guidance and assist in documentation system design and interim and final project reporting. Bart Hall, Blue Stem Associates, responsible for assisting in the development of the QSVP manual. AIB international, Len Steed, Sr. Auditor, responsible for conducting internal audit and providing guidance through the formal certification audit. TARGET AUDIENCES: The target audience is small family farm beef operations and small-scale meat processors and meat marketing groups needing a means to add value and differentiate their beef from commodity beef. The target audience also includes beef producers wanting to sell non-hormone treated beef to the export market. Another audience served is small and mid size beef producers trying to find methods to meet country of origin labeling. Kansas State University graduate students assisting in the project developed producer, processor, and retailer QSVP training manuals and conducted workshops throughout the duration of the project. Diana Endicott, PI, presented the QSVP results across the country at various conferences, workshops, and trainig sessions. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
Expanded Sales of Good Natured All-Natural Beef. The QSVP provides the basis for developing an effective supply chain with small size beef producers and small-scale processors and when successfully implemented could potentially propel the GNFF beef to at least ripple its size within the next 5 years. Conservative calculations characterize the ensuing economic benefit to the respective rural communities at over $2 million over this time frame. The replication of the Good Natured All-Natural Beef Program with other alliances. Due in large part to the availability of an established enterprise-wide quality system, the Good Natured brand could be extended to other qualified natural and organic farm cooperatives. In this scenario, the resulting economic benefit on rural communities will be multiplied. Building upon the availability of an established core QSVP (ISO 9000) based quality system; customized quality guidelines and procedures could be developed at a considerably lower cost than a start-up effort. The opportunity exists to extend the Good Natured brand identification to other natural and/or organic products, such as pork, dairy, and produce. A successful test case combining the eco-label Good Natured with USDA IS0 9000 based Quality System Certification Program has the potential to encourage other meat eco-labeling programs to adopt the USDA QSCP as a means of verifying their eco-label claims.

Publications

  • Sanden, R., Boland, M., and Thielen, L. (2003) USDA Process Verified: It Is Not As Easy As You Think, Kansas State University Agriculture Experiment Station and Cooperative Extension Service, Department of Agriculture Economics, Risk and Profit Conference, KSU, Manhattan, KS. Pp 1-14.
  • Sanden, R., Boland, M., and Thielen, L. (2004) Economic Issues with Process Verification. Kansas State University Agriculture Experiment Station and Cooperative Extension Service, MF-2646.
  • Sanden, R., Boland, M., and Thielen, L. (2004) USDA Process Verification Certification Generic Training Guide for Natural Beef Production, Kansas State University Agriculture Experiment Station and Cooperative Extension Service, Department of Agriculture Economics. Pp 1-19.
  • Vaaler, B., Schroeder, T., and Boland M., (2005) Costs and Benefits of Marketing Differentiated Beef through Process Verification Systems, Agriculture Issues Center University of California, Agriculture Marketing Resource Center. Pp 1-20.