New Pa. Poultry Cooperative Begins Operations
Submitted by Editor on Thu, 06/07/2007 - 3:58pm.
A new poultry cooperative began operations recently with the delivery of 30,400 poults, or young turkeys, to the Shippensburg-area farm of James E. Fitch, Sr.
Fitch will be raising the birds for the Turkey Division of Pennsylvania Independent Poultry Producers Cooperative Agricultural Association, also known as PIPP Cooperative. Additional farmers will be receiving poults from the cooperative.
PIPP Cooperative will own the turkeys and supply its farmer-members with the feed and other inputs they require to raise the birds to maturity. The cooperative has a multi-year contract with a processing company to which the cooperative will provide whole live birds. Under this one contract, the cooperative is expected to be selling between 70 million and 80 million pounds of live turkeys by 2010. Based on USDA statistics, the cooperative’s production could represent between a quarter and a third of total turkey production in Pennsylvania within three years. The cooperative is exploring additional wholesale arrangements with other processing companies.
Fitch and the other farmer-members of PIPP Cooperative formerly raise turkeys for investor-owned poultry companies. “The difference between the way we used to do it and the way we’re doing it now is that we own the business,” Fitch said. “We’ve assumed the risk, there’s no question about that.” Fitch said. “But when we’re successful the profits will stay right here in our communities rather than going to out-of-state stockholders.”
PIPP Cooperative is the outgrowth of efforts that began more than two and a half years ago when a number of poultry farmers began to be concerned about the future and structure of the poultry industry in Pennsylvania. “We were concerned about changes and consolidation in the industry,” PIPP Cooperative President Clifford W. Lindgren said. “We are afraid that decisions might be made without our participation that could adversely affect the future of our farms, families and communities,” he said. “With the cooperative, we farmers have ownership and control.”
Working capital for the cooperative was provided through significant equity investments by its farmer-members and loans from AgChoice Farm Credit, the Franklin County First Fund, and the state First Industries Fund. PIPP Cooperative has received technical assistance from numerous statewide, regional, and local economic development organizations and state and federal agencies.
Recognizing the increasing demand for consumer-ready food products, PIPP cooperative’s farmer-members are studying the construction or purchase of a facility to produce value-added, further-processed poultry products. This work is being done by the cooperative’s sister organization, PIPP LLC. The LLC has received financial support for its studies from state and federal agencies, as well as its members. A marketing study focused on consumer trends has been completed and another focused on the food distribution supply chain is currently under way. The LLC recently retained another consultant to conduct detailed studies related to the actual construction or purchase of a food processing facility.
“We recognize that, in the future, the real value in agriculture will not be so much in producing agricultural commodities themselves, but rather adding value to them,” Lindgren said. He pointed to increasing consumer preference for partially and fully prepared food products.
“By working together through our cooperative, we intend to increase the share the food dollar received by our farmer-members,” Lindgren said.
A new poultry cooperative began operations recently with the delivery of 30,400 poults, or young turkeys, to the Shippensburg-area farm of James E. Fitch, Sr.
Fitch will be raising the birds for the Turkey Division of Pennsylvania Independent Poultry Producers Cooperative Agricultural Association, also known as PIPP Cooperative. Additional farmers will be receiving poults from the cooperative.
PIPP Cooperative will own the turkeys and supply its farmer-members with the feed and other inputs they require to raise the birds to maturity. The cooperative has a multi-year contract with a processing company to which the cooperative will provide whole live birds. Under this one contract, the cooperative is expected to be selling between 70 million and 80 million pounds of live turkeys by 2010. Based on USDA statistics, the cooperative’s production could represent between a quarter and a third of total turkey production in Pennsylvania within three years. The cooperative is exploring additional wholesale arrangements with other processing companies.
Fitch and the other farmer-members of PIPP Cooperative formerly raise turkeys for investor-owned poultry companies. “The difference between the way we used to do it and the way we’re doing it now is that we own the business,” Fitch said. “We’ve assumed the risk, there’s no question about that.” Fitch said. “But when we’re successful the profits will stay right here in our communities rather than going to out-of-state stockholders.”
PIPP Cooperative is the outgrowth of efforts that began more than two and a half years ago when a number of poultry farmers began to be concerned about the future and structure of the poultry industry in Pennsylvania. “We were concerned about changes and consolidation in the industry,” PIPP Cooperative President Clifford W. Lindgren said. “We are afraid that decisions might be made without our participation that could adversely affect the future of our farms, families and communities,” he said. “With the cooperative, we farmers have ownership and control.”
Working capital for the cooperative was provided through significant equity investments by its farmer-members and loans from AgChoice Farm Credit, the Franklin County First Fund, and the state First Industries Fund. PIPP Cooperative has received technical assistance from numerous statewide, regional, and local economic development organizations and state and federal agencies.
Recognizing the increasing demand for consumer-ready food products, PIPP cooperative’s farmer-members are studying the construction or purchase of a facility to produce value-added, further-processed poultry products. This work is being done by the cooperative’s sister organization, PIPP LLC. The LLC has received financial support for its studies from state and federal agencies, as well as its members. A marketing study focused on consumer trends has been completed and another focused on the food distribution supply chain is currently under way. The LLC recently retained another consultant to conduct detailed studies related to the actual construction or purchase of a food processing facility.
“We recognize that, in the future, the real value in agriculture will not be so much in producing agricultural commodities themselves, but rather adding value to them,” Lindgren said. He pointed to increasing consumer preference for partially and fully prepared food products.
“By working together through our cooperative, we intend to increase the share the food dollar received by our farmer-members,” Lindgren said.
