Summary
The Center for Agribusiness and Economic Development conducted a feasibility study to examine the potential for establishing a centrally located grass fed beef processing facility, or a network of smaller, regional processing facilities to supply grass fed beef to major markets in the southeastern U.S.
Situation
The consumer market for grass fed beef products is experiencing rapid growth across the U.S. Supplies of grass fed beef remain limited, however, as producers lack access to adequate local processing facilities. Most Georgia cattle producers sell cattle at auction for delivery to feed lots in the central U.S. for grain finishing instead of finishing cattle locally, thus missing out on potential value added opportunities.
Response
A group of Georgia businessmen, along with the Georgia Farm Credit Bureau and Georgia Cattlemen’s Association, contracted with the Center for Agribusiness and Economic Development to conduct a feasibility study aimed at evaluating the potential for developing a grass fed beef processing and distribution network in Georgia.
Impact
The study, although still underway, shows early signs of significant profit potential for such a business. It is projected to break even within its first two years of operations. If implemented, the project will offer many of the state’s cattle producers an alternative for finishing cattle locally while supplying a growing consumer market. The project is projected to gross more than $15 million in sales annually when fully operational, while creating between 15 and 20 full time processing, sales, and delivery jobs and offering numerous cattle producers the option to participate in finishing and selling grass fed cows locally at a premium over current auction sales.
State Issue
Sustainability, Conservation, & the Environment
Details
-
Year:
2018
-
Geographic Scope:
State
-
County:
Clarke
-
Program Areas:
- Agriculture & Natural Resources
