During the tour, Jake Sailer pointed out equipment and explained the processes, as well as what it cost to modernize in his current location.
We then did a very short Q&A about the current location, which was designed and built out approximately 10 years ago in the heart of the small town. With the changing business environment, however, Sailer’s has outgrown the facility based on the product demand they’re seeing. At this point, we headed to “Sailer’s 3.0” — the new location near Interstate 94 — toured that location and had another Q&A with Sen. Baldwin.
Understand, this wasn’t a “photo-op” visit; it was a chance for Sen. Baldwin to see first-hand what it takes to run a growing business in the meat industry and learn the real costs associated with modernizing a small to mid-size facility.
During the discussion, the topic of women in the workforce and in ownership/leadership roles came up. We also discussed automation and the unique position small and mid-sized meat- and poultry-processing facilities found themselves in when the COVID-19 pandemic hit.
The challenge to grow a small meat and poultry shop into a mid-sized one really boils down to how much capital can be secured. Equipment costs are very high, and when you look at the cost of building the facility, let alone the necessary refrigeration, and the struggles to attract additional employees, acquire automation, etc., it rapidly becomes unattainable for the average small processor.
Sen. Baldwin has helped already by pushing for funding in the American Rescue Plan, which is geared to strengthening the food supply chain. She was keen to hear how the funds would be used by small plants to modernize and retain employees, and how the food supply chain is being strengthened by smaller, local facilities.
The meeting caused me to step back and really put a critical eye to our supply chain. Looking out the home-office window, I am surrounded by farmers who are the first link in that chain. I work with processors and distributors daily, and at the end of the day, I am a consumer.
I believe we are seeing a fundamental change in how we supply food to the American public. Mega plants that maximized efficiency also have an Achilles’ heel; the pandemic shined a light on the fact that those very things that made them efficient also made them vulnerable.
The facilities that weathered this storm the best were the small and mid-size facilities. Those that had invested in automation and employee protections early on had the least amount of disruption.
What’s the future hold? I see a need for all sizes and types of operations. Having said that, I do believe that most of the growth is going to be in the mid-size to small, multi-facility companies. Those businesses are small enough to serve the local community, but large enough to take advantage of new technology and leverage innovation.
I applaud Sen. Baldwin for reaching out to industry, learning first-hand about the process, and investigating how she might help them grow to ultimately support the local communities, towns and cities that surround them.
This brings me to an innovator and entrepreneur we recently lost far too soon — Andy Shaw of Cypress Valley Meat Co. Andy not only believed in small, local, community meat and poultry establishments, but he proved that they could grow by providing burst capacity to larger communities, all while still supporting the local communities around them. He leaves us a great example of how small processors can win, and he will be missed!
— Andrew Lorenz, president,
andrew@werfoodsafety.com
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