Source: UNIVERSITY OF NEVADA submitted to NRP
FEASIBILITY OF PROCESSING AND MARKETING LOCAL MEAT PRODUCTS
Sponsoring Institution
State Agricultural Experiment Station
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0205438
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Jun 22, 2005
Project End Date
Dec 31, 2006
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UNIVERSITY OF NEVADA
(N/A)
RENO,NV 89557
Performing Department
RESOURCE ECONOMICS
Non Technical Summary
The livestock industry in Nevada and surrounding states is currently very unstable due to market uncertainties. Livestock operations are a very important component of Nevada agriculture and it is imperative that we maintain these industries in rural Nevada.
Animal Health Component
(N/A)
Research Effort Categories
Basic
100%
Applied
(N/A)
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6013320301050%
6013620301050%
Goals / Objectives
The University of Nevada Reno and the University Center for Economic Development in cooperation with Nevada Livestock producers in the three valley regions propose to conduct an in-depth feasibility study on a producer-owned slaughter, processing and packing facility (USDA inspected and certified) to be located in the Carson, Smith and Mason Valley region. A committee of knowledgeable livestock producers will work with the University Center economists and other production, slaughter and processing expertise in all phases of the study.
Project Methods
THe feasibility study to be conducted iwll be subdivided into three major components which include a marketing assessment, a production assessment, and a business operations plan. Surveys will be developed to elicit information as to market characteristics, packaging preferences, delivery preferences, and quantities required. Projected production costs and sales revenues from the production assessment and marketing assessment will be used to compute profit projections, operational budgets, and necessary start-up capital. The business operations plan will provide the necessary information to set up cooperative ownership plans and acquire investment capital.

Progress 06/22/05 to 12/31/06

Outputs
The first objective of this program is to complete an in-depth feasibility study of a producer-owned slaughter, processing, and packing facility (USDA inspected and certified) to be located in the Carson, Smith, or Mason Valley region. A complete feasibility analysis and report will be provided at the end of the study. The second objective is to provide educational programming to the Local Livestock Marketing Group in Gardnerville regarding business planning, business organization, marketing, packaging, and health inspections. 2006 Activities: Research: Approximately 95% of the research for the program was completed in 2006. One UCED bulletin (130 pages), 3 UNCE fact sheets, and 3 journal articles are in progress. Programming: I gave three presentations on the results of specific sections of the feasibility study. 1/23/2006: Preliminary results of the producer survey to local livestock marketing group in Gardnerville, NV. 03/07/2006: Final results of the producer survey at the Nevada Grown Connections conference in Reno, NV. 12/01/2006: Final results of the producers' survey and Nevada resident survey at the Nevada Agricultural Summit in Fallon, NV. Educational sessions on business planning (1/23/2006), cooperatives (2/27/2006), as well as USDA meat inspections (11/21/2005) were held in Gardnerville, NV and conducted by guest speakers. UNCE fact sheets and speaker materials were distributed at these sessions. Steve Lewis arranged and invited speakers to these sessions. Dick and Mary Bradbury presented an overview of the Oregon Beef Cooperative at the Nevada Grown Connections conference in Reno, NV (03/07/2006). 2007 Activities: Presentations of the final results of the study will be given, a final report will be published along with corresponding fact sheets and journal articles.

Impacts
Ultimate Goal 1: Improved financial stability for Nevada livestock producers through local processing and niche marketing. Impact Measures To Date: Based on initial programming, two livestock producers have begun processing their beef and marketing it to local restaurants and at farmers markets. Ultimate Goal 2: Economic development in rural communities. Impact Measures To Date: Once the feasibility study is completed we will have more impact and outcome measures. The meat processing facility may be located in Churchill or Lyon County, which would provide additional jobs and income to these areas.

Publications

  • Curtis, K. R., Hu, W. (2006 Working) Consumer Willingness to Pay for Nevada Grown and Grass-fed Meat Products.
  • Curtis, K. R., Hu, W. (2006 Working) Testing the Content-Invariant Property of the Cheap Talk Method in Measuring Willingness to Pay.
  • Curtis, K. R., Hu, W. (2006 Working) Customary and Endowment Effects in Hybrid Design of Willingness to Pay Analysis.
  • Curtis, K. R., Cowee, M., Lewis, S. R., Harris, T. R. (2006 Working) Nevada Locally Produced Livestock Processing and Marketing Feasibility Assessment.


Progress 01/01/05 to 12/31/05

Outputs
The University of Nevada, Reno and the University Center for Economic Development in cooperation with Nevada livestock producers in the three valley region will conduct an in-depth feasibility study of a producer-owned slaughter, processing, and packing facility (USDA inspected and certified) to be located in the Carson, Smith, or Mason Valley region. A complete feasibility analysis and report will be provided at the end of the study. In 2005 the grant proposal and accompanying application materials were completed. Kynda Curtis worked with Steve Lewis and constructed the livestock producers survey to assess producer interest and livestock supply for the cooperative. The survey was tested and sent out to agricultural producers in 5 counties. All survey responses have been input and analysis will be conducted in early 2006. Kynda Curtis worked with Wuyang Hu to construct a consumer survey on meat preferences and demand for cooperative products. This survey has been tested and will be mailed and analyzed in early 2006.

Impacts
The livestock industry in Nevada is currently very unstable due to market uncertainties. Livestock continues to be a highly efficient means of harvesting rangeland grasses, reducing the amount and degree of rangeland fires. Livestock production in Nevada constitutes 64.2% of total agricultural value. Additionally, there are currently 2989 farms operating in the State of Nevada, with at least 1600 producing cattle and at least 300 producing sheep. Hence, 64% of all farms in Nevada raise livestock. Livestock operations are a very important component of Nevada agriculture and it is imperative that we maintain these industries in rural Nevada. The number of farms with cattle in 2003 is 94% of the 1994 level, and the number of farms with sheep is 86% of 1994 level. Currently, the majority of Nevada livestock producers are forced to process their meats out of state or sell their livestock before slaughter. The large distances for processing require high transportation costs and also animal stress leading to weight loss and meat quality deterioration. There are currently two processors in Fallon, NV, which is 80 miles from Gardnerville, NV. These facilities have limited space for aging and storage and are not currently inspected for retail sales. Due to these issues and the travel distance of 80 miles it is not currently profitable for livestock producers in the Carson, Smith, and Mason Valley region to use these facilities.

Publications

  • No publications reported this period