NE- 165 Case Study : CANOLA AS AN EMERGING INDUSTRY: A Processor and Producer Perspective

The canola industry in the United States has been very small with a limited canola oil demand being met through imports. However, an apparent increase in consumer demand for more healthful alternatives to traditional vegetable oils has sparked an interest among domestic processors desiring to be among the first entrants to a U.S. canola oil market. Processor interest has in turn led to some producer experimentation with the crop. This case study documents the early activities of U.S. Canola Processors (USCP), one of two companies processing the U.S. crop, and Ralph King, a Central Illinois canola producer. USCP, a joint venture of Central Soya and Calgene, describes their role in terms of "building an industry," according to General Manager Larry Horn. The company actively participated in amending the 1990 Farm Bill which permitted producers to plant some canola without risking their wheat or corn bases. Also, USCP is pursuing the establishment of U.S. grain inspection standards for canola. Company representatives are holding farmer meetings and elevator training as a means of promoting the crop. The goal for USCP is to establish an infrastructure that would permit the company to secure adequate supplies of canola for their processing needs. Ralph King, an Illinois farmer, had a positive experience with canola the first production season and plans to continue experimenting with the crop. Despite his positive production experience, other producers have been less enthusiastic about canola's production season, volunteer plant problems, questionable suitability of canola varieties to specific geographic areas, and a volatile market situation.Agribusiness, Crop Production/Industries,

NE- 165 Case Study : LEANER PORK: Can New Sector Linkages Be Formed?

A more demanding and evolving consumer is creating change in the market for pork and many working within the industry are predicting opportunities for leaner products. However, leaner pork enthusiasts also are frustrated by the established industry food chain that offers little incentive for modification. Modification would require change on the part of genetic suppliers, commercial producers, packers and processors, and retailers. However, many of these food chain participants traditionally have not collaborated with others in the sector. Yet the establishment of these new linkages may be key to the success of a leaner pork industry. This case study documents several of the activities currently occurring within the leaner pork industry and explores new linkages which may be critical in the future. Currently, genetic suppliers are struggling with short-term needs of producers, while attempting to look at the long-term demands of consumers. Hog producers have been profitable and lack incentives to alter practices which would produce leaner animals. Packers are interested in efficiently running large scale operations with large quantities of low cost meat. Retailers struggle with labeling inconsistencies and a low cost mentality that make it difficult to market leaner pork in the meatcase. Leaner pork enthusiasts are making strides to overcome the disadvantages found in the traditional system. Some genetic suppliers are now working with packers to determine animal quality beyond the producer's feedlot. Some packers are creating incentive programs that pay producers for leaner quality. These lean incentive programs may become more attractive for packers and producers if new technologies measuring lean become less prohibitive for larger operations. Many packers are moving into branded products, resulting in incentive programs for producers who supply animals with the desired quality. Overall, these efforts have remained a small portion of total pork industry activities.Agribusiness, Livestock Production/Industries,

Trait enthusiasm does not guarantee on-farm profits

Adoption of agronomic traits has led to investment into quality traits. However, true values of these traits are poorly understood. Traits may lack the required value to satisfy all participants in the chain from technology supplier to end user. There are no guarantees, under current conditions producers will benefit

NE- 165 Case Study : LEANER PORK: Can New Sector Linkages Be Formed?

A more demanding and evolving consumer is creating change in the market for pork and many working within the industry are predicting opportunities for leaner products. However, leaner pork enthusiasts also are frustrated by the established industry food chain that offers little incentive for modification. Modification would require change on the part of genetic suppliers, commercial producers, packers and processors, and retailers. However, many of these food chain participants traditionally have not collaborated with others in the sector. Yet the establishment of these new linkages may be key to the success of a leaner pork industry. This case study documents several of the activities currently occurring within the leaner pork industry and explores new linkages which may be critical in the future. Currently, genetic suppliers are struggling with short-term needs of producers, while attempting to look at the long-term demands of consumers. Hog producers have been profitable and lack incentives to alter practices which would produce leaner animals. Packers are interested in efficiently running large scale operations with large quantities of low cost meat. Retailers struggle with labeling inconsistencies and a low cost mentality that make it difficult to market leaner pork in the meatcase. Leaner pork enthusiasts are making strides to overcome the disadvantages found in the traditional system. Some genetic suppliers are now working with packers to determine animal quality beyond the producer's feedlot. Some packers are creating incentive programs that pay producers for leaner quality. These lean incentive programs may become more attractive for packers and producers if new technologies measuring lean become less prohibitive for larger operations. Many packers are moving into branded products, resulting in incentive programs for producers who supply animals with the desired quality. Overall, these efforts have remained a small portion of total pork industry activities

NE- 165 Case Study : CANOLA AS AN EMERGING INDUSTRY: A Processor and Producer Perspective

The canola industry in the United States has been very small with a limited canola oil demand being met through imports. However, an apparent increase in consumer demand for more healthful alternatives to traditional vegetable oils has sparked an interest among domestic processors desiring to be among the first entrants to a U.S. canola oil market. Processor interest has in turn led to some producer experimentation with the crop. This case study documents the early activities of U.S. Canola Processors (USCP), one of two companies processing the U.S. crop, and Ralph King, a Central Illinois canola producer. USCP, a joint venture of Central Soya and Calgene, describes their role in terms of "building an industry," according to General Manager Larry Horn. The company actively participated in amending the 1990 Farm Bill which permitted producers to plant some canola without risking their wheat or corn bases. Also, USCP is pursuing the establishment of U.S. grain inspection standards for canola. Company representatives are holding farmer meetings and elevator training as a means of promoting the crop. The goal for USCP is to establish an infrastructure that would permit the company to secure adequate supplies of canola for their processing needs. Ralph King, an Illinois farmer, had a positive experience with canola the first production season and plans to continue experimenting with the crop. Despite his positive production experience, other producers have been less enthusiastic about canola's production season, volunteer plant problems, questionable suitability of canola varieties to specific geographic areas, and a volatile market situation