Iowa Farmer Today
11-17-07
Producers find niche raising Berkshire hogs
By Hannah Fletcher, Iowa Farmer Today
STATE CENTER --- A pig is a pig, of course of course. But, Berkshire pigs
produce different pork.
Berkshire pork hardly classifies as “the Other White Meat” because it is known
for its darker color, marbling and flavor.
That difference in product creates a marketing opportunity that helps Berkshire
producers such as Kelly Biensen capture a premium.
“You see the difference,” the Central Iowa producer says, referring to the
noticeable ruby color while handling a freshly sealed pork loin.
Biensen recognized the marketing opportunities associated with Berkshire pork
and set out to form a safety net for farmers in the dynamic pork industry.
In 1998, Biensen launched a co-op, called Eden Natural which markets Berkshire
pork to up-scale restaurants and distributors mostly on the East and West
Coasts.
At that time, Japan, the dominant market for Berkshires, was experiencing an
economic recession. This coincided with the domestic hog market crash, when
prices plumetted to $7 to $8 per cwt. for producers.
Biensen, who has raised Berkshires since he was a boy, says it was a
devastating time for all pork producers.
“Eden Natural was born out of catastrophe,” he notes.
“I found myself drawn by these producers. I had the feeling like I was somewhat
responsible for helping producers become more profitable.
“They were on the verge of giving up with 8 cents/lb. hogs.”
The co-op now includes 25 producers in Iowa, Wisconsin, Illinois and Kansas.
The herds must be of Berkshire heritage and registered with the American
Berkshire Association.
The hogs are raised with no added hormones and must be antibiotic-free for their
last 100 days of life.
To avoid market fluctuations, producers are given a set price of 56 cents/lb. no
sort.
Any profit surplus goes into an individual producer’s savings account.
The account is used to cover accounts-receivable charges, new-product
development costs, or to compensate in case hog prices drop or corn prices get
too high.
“Saving these small family farms and making them profitable is what we are
doing,” Biensen says, referring to the five-member board that makes financial
and marketing decisions.
“Eden Natural is 100-percent producer owned. We’re going through this together.
I am an employee.”
Biensen is a busy employee. He maintains his farrowing operation at home and
is constantly working on relationships with distributors and restaurateurs to build
the market.
That market is blossoming, creating a need for more production, he says.
“We are always in need of more producers,” he says.
Larry McMullen, Iowa State University Extension swine field specialist, has
studied opportunities in the Berkshire market. He has seen a shift in the demand
for Berkshires.
“Domestic demand is increasing, especially for the East and West Coast,” he
says. “It is becoming known for the quality and flavor that is inherent to
Berkshire.”
In taste tests Berkshire pork is usually credited for its enhanced flavor, increased
marbling, less cooking loss and darker meat color, when compared with
commodity pork, McMullen says.
Locally, some Midwestern chefs are asking for Berkshire, but the majority is sent
to the East and West Coasts. There, restaurants and distributors can handle the
volume and premium price for Berkshire shipments.
McMullen predicts the demand for Berkshire production will continue to grow.
“As muscle quality becomes known to consumers, the need for Berkshires will
increase because it does have a distinct flavor,” he says.
Beyond the price advantages, raising Berkshires offers some advantages for
producers due to the nature of the breed.
McMullen says the hogs are docile, durable, adapt well outside or in confinement
and have a good gain average. But, there are some drawbacks too, he adds.
The breed tends to be less feed-efficient, has smaller litters and must be
registered and often purebred to see premiums.
“Because of these constraints, you need a higher receipt to get a return on your
investment,” McMullen says. “If you put purebred Berkshires into commodity
markets, you will not see as good of returns.
“To have profitability, you will have to work with a marketing group.”
Marketing is not for everyone, he warns.
“It takes a special type of producer to want to raise hogs in a niche market,”
McMullen notes.
Biensen is the type of producer who is willing to focus a lot of time on marketing
and quality assurance.
Biensen and operations manager Nick Jones make the weekly trip to a Des
Moines processor to hand inspect the meat to ensure it meets their standards —
the standards they promise their customers.
“We have to go a step above the rest,” Jones explains. “(The customers) like
what we are doing. They like knowing where it comes from and that the profits go
back to the producers.”
Biensen says product quality and producer profitability go hand-in-hand.
“It is a chicken-and-the-egg situation,” he says, smiling.
“I firmly believe we have a great product. When producers are profitable, they
produce a great product, and great products mean profitability here.”