SBIR-STTR Award

The US is rapidly losing small-to-medium scale farmers. In the 10 years between 2007 and 1997, the U.S. lost over 11,000 farms and over 32 million acres of farmland. To save and attract new farmers to agriculture requires that farming be a profitable enterprise and that farmers have access to wholesale markets. Industry trends in consolidation and vertical integration, particularly in the meat industry, have made it extremely challenging for independent livestock producers to penetrate these markets. At the same time, consumer interest in local, pasture-raised and other niche meat products is on the rise. A recent review of meat sales through natural retail grocery stores shows the ‘natural and organic’ meat sector growing at a much stronger rate than conventional meat sales. Pasture-based meat production is an important and viable enterprise for many farmers however those producers interested in marketing their own meat find themselves ill-equipped, on their own, to provide what wholesale markets demand. Farmhand Foods is a new, innovative North Carolina business designed to provide small-to-medium scale pasture-based livestock producers with access to wholesale market opportunities, and to create jobs in allied businesses, including meat processing. As a branded meat company, Farmhand Foods sources from a network of local producers who raise their animals humanely, on pasture, without feeding antibiotics or animal by-products or using added hormones. Farmhand Foods co-owners believe in doing business with transparency and therefore trace the company’s meat products back to the farm of origin so that their customers know exactly where their meat comes from and how it was raised. Farmhand Foods works with small-scale, USDA inspected slaughter and processing facilities to harvest and fabricate their meats. Farmhand Foods focuses on doing the legwork necessary to market and distribute its products to restaurant and retail customers. Farmhand Foods was started, at least in part, as a counterpoint to the intensive trends in consolidation and concentration seen throughout the meat sector. It is an innovative test case for the nation, and the south in particular, of the viability of a mission-driven business model in the meat sector that can provide social, environmental and economic benefits along the local meat supply chain. Farmhand Foods has developed an award-winning brand and local supply chain that includes 16 livestock producers, 2 small-scale meat processors, and 25 restaurant and retail customers. It is well on its way to achieving significant societal benefits but specific research is needed to assist with scaling the business beyond its current size and scope.

Most small and mid-scale livestock producers have been unable to take advantage of growing consumer demand for premium, all-natural, locally-raised meats, especially through wholesale channels. This relates to a host of factors, including the vertically-integrated nature of existing meat supply chains, constraints surrounding slaughter and processing capacity, and the specific demands of wholesale buyers. It also reflects the fact that local food systems suffer from a lack of connectivity between producers, processors and buyers. Working towards vibrant regional food economies requires supporting the development of businesses that can strengthen these relationships and "connect the dots" along local meat supply chains. In the case of proteins, it suggests a strong need for middle businesses that can provide the skills and infrastructure needed to aggregate, distribute and market meat products at the local level. Firsthand Foods, an innovative food hub, offers a regional solution to many of these challenges. Firsthand Foods, LLC was awarded a Phase I grant to prove the feasibility of its business model through research and development of a range of marketing strategies and supply side partnerships. Firsthand Foods is a branded, regional food hub in North Carolina that delivers local, high-quality beef and pork to restaurants and retailers. We are one of the only food hubs in the nation that focuses exclusively on proteins. Firsthand Foods sources animals from a network of small-to-medium scale producers, all of whom raise their animals humanely, outdoors on pasture, without feeding antibiotics or using added hormones or animal by-products. By working with a range of producers, Firsthand Foods’ business model allows livestock producers to remain small while being part of a network that supplies larger-scale institutional and retail markets. As a Phase II applicant, Firsthand Foods proposes to conduct research that strengthens its business systems and practices to: 1) support sustainable livelihoods for a growing network of small and mid-sized livestock producers, 2) assist with the professionalization and business advancement of the small-scale meat processing sector, 3) solve numerous challenges that wholesale buyers encounter in sourcing local protein products, and 4) significantly expand consumer access to local, pasture-raised meats.