For the past few decades, there has been a steady decline of small meat processing plants in Iowa for a variety of reasons. Meat processors were struggling in several areas: business planning and feasibility, financing and financial assistance, plant design, plant construction, and labor. Assistance organizations with answers to these problems were not working holistically to help small processors.

The Small Meat Processors Working Group was formed in 2006 to bring resources together at the local and state levels to address the challenges of small meat processors, resulting in many discussions, much research, educational workshops, and hands-on work with individual meat processors. The group is comprised primarily of processors, regulators, educators, and business consultants.

The group worked to determine what it takes to build, expand, and upgrade a small meat processing plant, and identify where assistance providers fit into this process and what pieces were missing. According to Stanhope Locker owner Clint Smith: “It was a struggle finding contractors that know all the little peculiarities of the industry and ones that could help us meet all the regulations. We had the support of the previous owner for several months, but it wasn’t until Arion came along and invited us to be part of the working group that we saw the right hand and left hand of the meat industry come together for us – for all small meat processors.”

The Small Meat Processors Working Group, through the North Central Regional Center for Rural Development, published its findings in 2008 as the Iowa Meat Processors’ Resource Guidebook: A Guide to Building, Upgrading, or Expanding a Small Meat Processing Facility. Comprehensive and systematic resources are laid out in each section of the guidebook, covering five critical areas: Business Planning and Feasibility, Financing and Financial Assistance, Rules and Regulations, Plant Design and Construction, and Labor. It is the only guidebook of its kind in the US. The guidebook was distributed to all state meat inspectors and is widely utilized as a resource. “This reference book serves as a common starting point for processors and regulators as they begin working together,” states Dr. Gary Johnson, Iowa Meat and Poultry Inspection Bureau Chief. Two of the Small Meat Processors Working Group members are putting the guidebook to use in rebuilding their plants. The Spillville Locker in Spillville, Iowa, is planning to upgrade its 1930’s facility and County Line Locker in Riceville, Iowa, will rebuild its operation following a fire in October 2008.

After publishing the Iowa Meat Processors’ Resource Guidebook, the Small Meat Processors Working Group has gone on to address several challenge areas in detail:

• Product costing: Many processors were using ineffective accounting methods. In conjunction with the SMPWG, Iowa State University Extension’s Center for Industrial Research and Service (CIRAS) is developing product-costing software and offering workshops to meet the specific needs of small meat processors. An early version was released in late 2008.
• Succession planning: Many processors have closed their doors because they could not find someone to take over their business. As a partner in the SMPWG, ISU Extension’s Value Added Agriculture Program hosted a succession-planning workshop in the spring of 2008 for small meat processors. Members of the Iowa Alliance for Cooperative Business Development and a prominent Des Moines lawyer advised attendees on how to approach succession planning.
• Plant productivity: Many processors are unaware of constraints on production throughput and how to deal with them. In the Spring of 2009, a member of CIRAS will lead a workshop on how processors can better understand how productive their businesses are, and how they can better understand the constraints on their production.
• Financial Benchmarking: How do plants stack up against each other? What costs are reasonable? The Small Meat Processors Working Group is conducting a pilot study to find out.

Additional information on the guidebook