The evolving humanization of pets creates significant opportunities for smaller meat and poultry processors…if we can create a new supply chain model to connect those processors with pet product brands catering to the demand of today’s “pet parents.”
That was the focus of last week’s Offal Party: Pet Food Edition, sponsored by Colorado State University’s Agricultural Innovation Center at the university’s Spur Campus in Denver.
A generation ago, Fido may have slept on the porch to protect the house while Fluffy kept the property free of rodents. No more. Fido and Fluffy are likelier to sleep in the master bed than on the porch. Last week’s Offal Party came on the heels of a new report that indicated that pet owners squeezed by inflation would cut their own food budget before scrimping on the quality of their companion animals’ diets.
Dr. Jennifer Martin of CSU highlighted some humanization trends, noting that 73% of pet owners say their companion animal’s health is as important as their health. She also noted that the pet food and treat market is a $66.9 billion category, growing five percent yearly.
At first glance, the pet food and treat marketplace seems nearly as concentrated as the meat and poultry industries. Nestle Purina and Mars Petcare alone account for more than half of the sales among the top 100 companies worldwide. However, a wide array of emerging smaller companies are offering pet parents products containing locally produced, regenerative, organic, grass-fed ingredients or other unique attributes.
Those are ingredients that come from smaller processing facilities.
Flower Hill Regional Director Dave Carter told the Offal Party audience that connecting smaller processors with these emerging brands is a key focus for the Meat and Poultry Processing Technical Assistance network.
“Pet product production is rapidly changing,” Carter said. “Take a look at the dog food aisle in Petco or PetSmart. It looks a lot like the frozen and refrigerated meat section at Kroger.”
Future grant opportunities can help processors connect with companies by underwriting part of the cost to purchase and install equipment in processing plants to turn offal into formats easily utilized in manufacturing pet treats and foods. Promoting collaboration among smaller processors in a given geographic region to aggregate their offal into volumes that pet product manufacturers can use is another opportunity.
In the meantime, many smaller processors can utilize smokers, dehydrators, stuffers, and other equipment already on their processing floor to make treats, chews, and other products to market in their local community or distribute to independent pet stores.
Jordan Lambert, CSU’s director of Ag Innovation, is breaking promising ground in identifying new opportunities for meat and poultry processors to capture value from underutilized parts of the animal. Last week’s “edition” of the Offal Party was the latest in an ongoing commitment that includes opportunities in the culinary world, fashion, and healthcare products. The 40 in-person attendees at the Offal Party ended the day with a reception featuring a beef heart taco bowl, beef liver street tacos, and nachos topped with beef tongue.
Jordan has initiated an offal business plan contest, and processors can sign up for the Ag Innovation Center’s monthly Offal Newsletter.
Building customer demand for quality, unique products from smaller processors is vital to the success of those enterprises. With the help of Jordan and her team, some of those customers will even have slobbery tongues and wagging tails.