The northwest Iowa town of Sioux Center welcomed a flavorful addition in December with the opening of Member’s Cut, a specialty retail meat market featuring premium cuts of pork and beef raised by local producers.
Farmers Cooperative Society (FCS) opened the new store after working closely with CIRAS to determine if this new distribution channel could be successful.
“FCS depended on CIRAS to understand the market opportunity and to frame a high-level business plan,” said CJ Osborn, CIRAS director of business services.
The cooperative business model, which focuses on providing new markets for members, was the driving force behind the retail meat store concept.
“Member’s Cut in many ways exemplifies the Farmers Coop Society mission,” said John McDaniel, FCS CEO. “It opens up a new opportunity for our members, enhancing life in our community and, most importantly, putting a spotlight on the excellent work our livestock producer members are doing. The quality of the products from the store will be a big draw in this region of Iowa and neighboring states.”
The idea of selling member-produced premium meats at a new retail store connects to the farm-to-table concept, which has gained popularity, said Christian Fisher, manager of Member’s Cut.
“This really brings things full circle,” Fisher said. “Our members produce grain that becomes livestock feed, they raise these animals, and they have them processed. Now their products will be available at Member’s Cut, where it’s all about farm-to-table meats.”
“The project also represents a significant collaboration between FCS, its members, Sioux Center leaders, and CIRAS,” said Jared Terpstra, senior director of feed.
FCS brought CIRAS to the table to help determine if the project was feasible.
“It was an extremely good experience,” Terpstra said. “We didn’t fully realize the knowledge base CIRAS had until we started
digging into this project together.”
“One of the first things we did was help them formalize their business concept using our Business Model Generator program,” said Osborn. “It’s a comprehensive approach to identify a company’s value propositions, potential customers, sales channels, and needed support all in one concise page.”
“CIRAS also had a wealth of resources FCS could rely on,” Osborn said. CIRAS was able to offer food industry expertise and guidance on operations and meat processing equipment. Paul Gormley, a CIRAS project manager, advised on marketing and product development by working closely with Iowa State University Meat Science Extension.
Leveraging proven online survey tools and capabilities available from Iowa State, the team gathered insights from more than 300 rural consumers in northwest Iowa and southern Minnesota. The survey clarified consumer attitudes toward locally produced premium meat, including their willingness to travel and pay more for it.
Fisher, who has 26 years of experience in retail meat, wasn’t surprised by the popularity of a specialty meat market.
“We have a generation coming up that is really interested in where their food comes from,” he said. “They are food enthusiasts who embrace the farm-to-table concept and appreciate premium cuts and higher-quality products.”
Member’s Cut will offer premium cuts of beef and pork from locally raised livestock. Customers will find dry-aged steaks, pure-bred Angus, Duroc pork, and smoked products. Fisher has met with local producers to ensure the supply will meet the expected demand.
“We have producers who are really focused on flavor in the livestock they raise, even more than the rate of gain. They are 100 percent behind this project. It’s exciting,” he said. “I talked to one who sends his high-premium beef to Japan, where they pay top dollar for it, and we’ll be selling it here.”
Terpstra credited CIRAS support for helping Member’s Cut “act on this idea quicker than we would have been able to on our own.”
“We have the experience and connections needed to help people make better decisions when they are contemplating new products or new markets,” Osborn said. “We’re going to save you time and work closely with you.”
For more information, contact CJ Osborn at cjosborn@iastate.edu or 641-840-0505.