by Malinda Geisler, content specialist, AgMRC, Iowa State University, malindag@iastate.edu.
Profile updated April 2008.
Overview
Traceability, in which the product is tracked from its origin through processing, is becoming a competitive advantage to today’s meat suppliers. Product quality attributes and/or the actual manufacturing process is verified or certified by a third party.
Such programs may become increasingly important as the food industry makes further attempts to appeal to the social consciousness of consumers. According to USDA, the top three U.S. restaurant franchises place restrictions on how animals used in the companies’ foods are produced, accounting for approximately 35 percent of franchised restaurant sales.
The USDA Process Verified program allows livestock producers an opportunity to assure customers of their ability to provide consistent quality products by having written manufacturing processes confirmed through independent, third-party audits. Being USDA Process Verified allows a producer to market a product claiming to be a specific breed, or to have fed, raised or processed a product in a certain manner that was verified by USDA. This program uses many of the same features as the International Organization for Standardization’s ISO 9000 series standards for documented quality management systems.
To quality for the verification, one must submit documented quality management systems to the Audit Review and Compliance (ARC) Branch of USDA’s Livestock and Seed Program and must successfully pass an onsite audit.
According to information on the Safe Pork Web site by the University of Illinois’ College of Veterinary Medicine, costs are affected in two ways. Pork raised for certification is likely more costly because of the adaptation of quality and safety management procedures. Plus, additional costs are associated with verifying procedures in the marketplace.
Direct Marketing
Traceability is another reason why producers are considering the direct marketing of products to consumers. Several producers have turned to direct marketing their pork enterprises by developing and expanding on the niche to market pork directly to consumers, bypassing traditional marketing channels.
In addition to traceability, an advantage to direct marketing includes the opportunity to capture a greater share of the food dollar. The value farmers currently contribute to food expenditures accounts for just 19 percent of the total value.
Profile originally created January 2003 and updated April 2008.
Sources
Food Marketing System in the United States, Briefing Room, Economic Research Service, USDA.
USDA Process Verified Program, Audit, Review and Compliance Branch, Livestock and Seed Program.