Processing facilities planned for north country to help livestock farmers sell meat to retailers

Farmers and local officials have their eyes set on the launch of two livestock processing facilities certified by the U.S. Department of Agriculture by 2013 that could be the springboard farms need to sell their products to retailers across the country, said Jay M. Matteson, agriculture coordinator for the Jefferson County Agriculture Development Corp.

Plans are in the works for two plants — to be in Jefferson and St. Lawrence counties — that would enable farmers to have their cattle herds processed in their own backyard, Mr. Matteson said. Now, farmers are compelled to make a trip of more than two hours to plants in Utica to do so, he said, or to Tri-Town Packing in Winthrop, a small plant with a limited production capacity.

Mr. Matteson declined to say where the two plants might be located but said there are groups actively seeking property for the projects.

“Our livestock industries — especially beef — have the market opportunity and land space to promote growth,” he said, “but it’s just a matter of putting the pieces together.”

In particular, he said, the move would benefit two groups: livestock farmers raising beef cows who are already having their herds processed at facilities and farmers in the dairy beef industry who don’t usually choose to do business with processors but would benefit by selling their product to retailers, which can be done only at plants that are USDA certified.

Dairy farmers use female calves for milking operations, but the bulls are used for beef production, he said. Meat from these bulls, however, is sold primarily to local customers by dairy farmers in Jefferson County, who don’t see the advantage of having their herds processed at a facility.

“The dairy beef industry has the potential to grow, and right now (processing facilities) are drastically under utilized,” he said, adding that there are about 230 dairy farms in Jefferson County. “A lot of times these cows are sold at auctions, raised by families to produce their own beef,” sold to companies that freeze them or processed by local butchers.

But by having a cow processed at a USDA plant, farmers can make more money by selling packaged meat to national customers, he said. Dairy farmers can find customers who are interested in purchasing beef cows, for instance, and then make plans with the processor to have it cut, packaged and labeled based on the agreement.

Steve G. Winkler, who owns Lucki 7 Livestock Co., 20562 County Route 69, Rodman, with his wife, Lisa O., helps connect local farmers with national customers interested in buying their processed meat. Of the 60 farmers who do business with him, about 90 percent have their cattle butchered at certified USDA plants in Utica, he said. These farmers sell their meats to national supermarkets and high-end retailers in states across the Northeast.

“We have farmers who are looking to sell their animals for retail products, and I’m kind of the lightning rod that puts customers and farmers together,” he said, adding that he sells hogs and cattle from his own farm to processors, as well.

As a liaison between farmers, processors and customers, Mr. Winkler inspects the cattle of farmers interested in selling their product to acquire certification with the processor and makes purchasing agreements with customers. Once a deal is reached, all farmers have to do is drop off their cattle at a plant to be butchered, while the processor and customer do the rest of the work.

That same business model could be successful at a plant launched in Jefferson County, he said, but farmers would need to develop a marketing strategy that would draw more customers.

“Our dairy farmers have a quality market here, but they don’t do enough to market it,” he said. If a new plant is built, “they would have to get together and build a brand and marketing strategy to promote area beef and find customers. Businesses won’t invest in the plant unless animals are processed there with a regular flow.”