Havre, Montana – USDA MPPTA Client Story
In the aftermath of the 2020 COVID-19 pandemic, disruptions in the meat supply chain caused bare shelves and suppressed cattle prices across the United States. Major meat processor closures exposed vulnerabilities, prompting a visionary response from local meat producers around Havre, Montana. Walt Schweitzer, president of the Montana Farmers Union and Director of Montana Premium Processing Co-op, started Montana Premium Processing Cooperative (MPPC) to bring more resilience and independence to Montana's meat producers.
A Collaborative Journey
The two-year journey began with the purchase of a mobile harvest unit from Mike Callicrate and the formation of a steering committee tasked with crafting the cooperative's bylaws. Building a meat processing co-op from scratch presented challenges, but the team drew inspiration from other processors, learning from failures and adapting their approach. Support from Farmer’s Union Processing (a partnership between Montana Farmers Union and Farmers Union Enterprise), which leases the land to MPPC, Montana ranchers, the Montana Department of Ag, and the USDA’s Meat and Poultry Processing Technical Assistance program (MPPTA).
Representing the USDA’s MPPTA program through Flower Hill Institute, Chris Roper supported Montana Premium Processing Co-op by offering technical assistance for the USDA MCap grant application. Matt Rains, Chief of Staff at Montana Farmers Union, emphasized that “Organizations don't have to pay for MPPTA’s services. So that's really vital for the smaller organizations like ours.”
Tracey McIntyre, director of the Montana Cooperative Development Center, also guided the cooperative, assisting with bylaws and offering valuable insights. The co-op's commitment to fairness is evident in its membership criteria, allowing only Montana producers to join as common stock members.
A Unique Cooperative
Montana Premium Processing Co-op operates on a fee-based service model. A $5,000 common stock purchase grants members ownership rights and the first right to book processing slots; current membership stands at 65. This unique structure ensures inclusivity and prevents any single producer from dominating the system.
Overcoming Hurdles
The cooperative focuses on addressing the needs of the evolving generation of ranchers, providing a platform for those who want to retail their products. The challenge lies in the two-year wait for processing slots, hindering smaller producers.
After overcoming hurdles, including a rigorous USDA certification process, Montana Premium Processing Co-op officially began operations in February and gained full USDA approval in August. With USDA inspectors on-site for every animal processing, the multi-million dollar meat processing operation is a reliable, quality-driven facility processing beef, bison, hogs, and sheep.
Ensuring Efficiency and Excellence in Processing
The cooperative's commitment to specialization, championed by Bill Jones, General Manager, ensures efficiency and excellence in processing, allowing producers to sell independently. In Jones’s words, “The Montana Premium Processing Co-op is a group of ranchers and farmers who have gotten together and started a total processing facility for livestock.” To ensure the future of the processing plant, Jones is working closely with Montana State University-Northern to design a degree to educate future butchers for successful meat businesses.
Looking ahead, the cooperative envisions expanding its model to open more processing plants, becoming a conduit for local grocery stores and restaurants seeking high-quality, locally sourced meat. While labor and funding remain challenges, Montana Premium Processing is poised to impact the state's meat industry, offering a blueprint for creating resilient and independent meat supply chains.
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Please note: The Meat and Poultry Processing Technical Assistance (MPPTA) Program is funded through a cooperative agreement with the USDA Agricultural Marketing Service. The MPPTA Project Coordinators do not offer or provide direct contractor services or financial capital, grant writing, or project management services, nor does the voluntary use of MPPTA guarantee the success of a grant application or the grant-funded project