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Diana Endicott led her meat
co-op’s effort to learn the public’s preferred cuts, partly
by in-store sampling.
Photo by Bob Cunningham. |
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Diana and Gary
Endicott
Rainbow Farms
Bronson, Kansas
Updated in 2005
Summary of Operation
75 head in cow/calf operation
Tomatoes, grain and hay on 400-acre certified organic Rainbow Farms
Coordinator of Good-Natured Family Farms, a group of “natural” meat
and vegetable producers
Problem Addressed
Raising “natural” beef and getting
a premium. After moving to Kansas to run their own ranch,
Diana and Gary Endicott sought a way to produce beef in a way that
would reflect their principles and provide them with a premium price.
Background
When the Endicotts decided to return to the rural beauty of their
childhood home in southeast Kansas, they bought a 400-acre farm
and began raising beef cattle, vegetables, grain and hay.
They always had big ideas. They wanted to sell their organic beef
from the farm directly to customers and sought a way to connect
the dots — from rural slaughtering plant to small processor
to local supermarket, marketing their product outside the bounds
of the mainstream food system. In today’s perilous agricultural
markets, realizing this kind of vision takes initiative, energy
and a lot of courage. The Endicotts have an abundance of all three.
What later became a 30-member meat cooperative started small. In
the mid-1990s, the Endicotts had scaled back from salad vegetables
to focus exclusively on tomatoes and wanted to sell them at an upscale
grocery. Diana Endicott took her tomatoes to Hen House Markets,
which has 15 stores throughout Kansas City, and passed out samples
to produce managers.
“We went into that store and not only tried to sell our product,
but we tried to sell ourselves,” she says.
Focal Point of Operation
— Marketing
Both Diana and Gary squeeze out about 40 hours a week to work on
the farm, where they are helped by Gary’s parents. They have
integrated their tomato and beef operations, composting manure and
hay from the cattle feedlot for use on tomato plots. The rest of
the time they spend growing their small business, the Good-Natured
Family Farms Alliance.
After Hen House began buying tomatoes from the Endicotts, the couple
offered meat managers their hormone- and antibiotic-free corn-fed
beef. Hen House, coincidentally looking for a branded beef product,
began buying their meat. When demand exceeded supply, the Endicotts
searched for other producers who could provide tomatoes and beef
raised using such “natural” methods.
Today, Diana is the market coordinator and driving force behind
the “Good-Natured Family Farms” cooperative, a group
of family farmers and ranchers in Kansas and Missouri. The co-op’s
product line expanded to include beef, free-range chicken and eggs,
milk in glass bottles, farmhouse cheeses and tomatoes, among others.
Their meat is labeled “all-natural,” a USDA-approved
claim specifying the ranchers use no growth-enhancing hormones,
sub-therapeutic antibiotics or animal by-products.
Producing and marketing beef in a cooperative allows the ranchers
to get paid for the added value of beef produced without such supplements
— while sharing risk, knowledge and profits.
“The meat market is very competitive,” Diana says. “We’re
all competing for shelf space in the supermarket, and we don’t
have the volume to compete with the large producers. We’re
trying to develop the local markets, and the best way to do this
is to have many producers band together.”
Primarily third- and fourth-generation farmers, co-op members hail
from central and southeast Kansas and west central Missouri. They
operate diversified farms using certified organic, transitional
or sustainable practices. All of the cattle are grazed on grassland,
then fed a corn ration during their last four months of production
— 20 to 30 days longer than conventional beef. Endicott thinks
grazing and a high-quality corn diet develops marbling for exceptional
flavor and tenderness.
Co-op members are careful to ensure that their labeling claims are
true. Each producer follows strict USDA-approved quality control
procedures and sign forms that spell out their production and “no-chemical”
claims. The meat from each animal is labeled at processing and tracked
so that each package can be traced back to the farm — and
animal — of origin
Diana researched pricing by examining branded beef program pricing
grids, then developed her own pricing spreadsheet.
The middle meats are easiest to sell, while the “end meats”
posed a marketing challenge. With a SARE grant and assistance from
Kansas State University, the co-op gave five meat managers nearly
$1,500 worth of meat products to prepare and judge for 15 consecutive
weeks. Information from the survey not only provided producers with
valuable production and marketing information, but it also helped
cement positive, reciprocal relationships with meat managers.
With support from the meat managers, the co-op now has lead-off
counter space in 15 Hen House stores throughout Kansas City. Reaching
this point has meant negotiating seemingly endless hurdles, but
Diana has taken on the details systematically — and even cheerfully.
To organize a formal cooperative, Diana did research, networked
and attended meetings to learn articles and bylaws, business plans,
feasibility studies, tax registration and trademarks.
As if the challenge of organizing a producer co-op wasn’t
enough, the co-op had to find a slaughtering plant and processor
to accommodate the ranchers’ desire to follow each cut from
field to grocery. They purchased a Kansas state-inspected meat processing
plant and initiated the processes to change the plant to a federal
inspected facility so they could sell their meat across state lines
— Missouri’s in particular. That meant complying with
a long list of federal rules.
Diana worked with inspectors and other officials at federal and
state levels to comply with the strict labeling and food safety
laws. She wrote her own labels and brought the plants into line
with federal regulations in just one month.
“It was an enormous undertaking,” she says, “but
I worked one-on-one with a federal inspector and had a lot of hands-on
knowledge going into it.”
Eugene Edelman, co-op president, visits the member ranches and does
the slotting and cattle deliveries for the group.
Economics and Profitability
The co-op slaughters 30 head of cattle per week
for Hen House. Diana said they are netting, on average, about $45
to $100 more per head than if they sold their cattle on the open
market. They also see substantial premiums for chicken and eggs.
Diana stresses that it took years to get to that point.
“When people put together an organization, they often have
a misconception that it will become profitable immediately,”
she says. “You have to be dedicated to a longer-term effort
and, like most businesses, expect five years before you get the
returns.”
One of the main benefits of the co-op is that members avoid the
enormous variability in meat market prices, Diana says. This stability
can provide them with a steady income and peace of mind. “Some
of our members find increased profitability to be an advantage,
but most are looking at a system that’s more sustainable,”
she says. “We’re developing a network of producers who
can learn from one another and gain more control over their markets.”
Taking animals independently from slaughter to store has inefficiencies
costing nearly double what it would cost to slaughter conventionally.
But Diana sees this as incentive to reap even higher profits as
they increase efficiency. For her exhaustive efforts, Diana sometimes
takes a small cut from a markup she adds to sales; more often, that
4 to 5 percent markup goes toward the cost of putting on a promotion.
The Endicotts produce tomatoes — both outside and in the
greenhouse — for six months a year. At their busiest time,
in July, they sell several thousand pounds of tomatoes to Hen House
stores each week, receiving about $2 a pound.
Environmental Benefits
Grain fed to Good Natured Beef does not have to be organically grown;
however, most producers in the co-op try to be as natural as possible
in their production. All of the ranchers work on family farms and
raise their animals on the open range. They all finish their animals
themselves rather than in large commercial feedlots, most with feed
they raise themselves, with the rest of the group buying grain with
the least amount of inputs.
Community and Quality
of Life Benefits
To qualify for membership, ranchers must raise cattle on a “small
family farm” where family income is primarily generated from
the operation and the family members are actively involved in labor.
Working with small, local processors and meat lockers boosts rural
economies.
As with any alternative marketing strategy, selling at supermarkets
requires constant consumer contact and education. Endicott hires
restaurant chefs to prepare samples so Hen House shoppers can taste
Good Natured Beef and then buy it with coupons. Producers from the
co-op often attend tastings to meet with customers, learning what
they want in their meat while offering information about their family
farms.
“A cooperative is like a family. You put together a diverse
group of people, and you have to respect each other’s knowledge
and opinions,” Endicott says. “Each of us tries to do
what we think we can do best. Getting people together who have different
skills and attributes really helps the business.”
Transition Advice
Unlike producers protective of their markets, Diana believes there
is room for more direct marketing, and that saving family farms
means educating other farmers about profitable alternatives. She
suggests producers seek help from private and governmental agencies,
organizations, institutions and businesses. Diana says her first
grant from SARE gave the project credibility and created more interest
from other funding organizations.
Building relationships with processors and retailers also is key
to success, Diana says. Although the road likely will be rough,
persistence and some sacrifice will pay off.
“Do the legwork yourself and hire out as little as possible,”
she says. “This will allow you to understand the necessary
procedures from the farm through the market.”
The Future
Diana’s long-term challenge remains to develop a franchise
that markets her idea of a sustainable food system linking local
producers to local supermarkets. She likes to think of the Good-Natured
Family Farms Alliance as a model that they can package as a success
story prompting others to follow suit.
 Profile
written by Lisa Bauer & Valerie Berton
For more information:
Diana Endicott
Rt 1 Box 117
Bronson, KS 66716-9536
(620) 939-4933;
(630) 929-3786 fax
allnatural@ckt.net
www.goodnatured.net/
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