Saturday, May 4, 2024

Talking meat prices and more with Farmer to Fridge, formerly Half A Cow

Recent stories

It’s been a few seasons since Australian Rural & Regional News found out all about the innovative farm to plate online marketplace, Farmer to Fridge (formerly Half A Cow) from founder James Gilbert. Especially with prices the way they are, it’s timely to find out how this young business is travelling, and what it has to offer meat producers and meat eaters too.

Farmer to Fridge

Business

ARR.News: Half A Cow was such a great and catchy name. What’s behind the name change to Farmer to Fridge?

James Gilbert: The name change was a very difficult decision, and I weighed up both sides for about three months before announcing it publicly.

The primary reason was customer perception. While country people instantly “got it”, when we did trade shows and surveys I found that most people assumed we only sold beef, and only sold entire sides of beef. Often we’d have a potential customer walk past our booth and say “oh I don’t want to buy half a cow – I don’t have the space” or worse “oh I don’t eat beef only lamb – I wish you sold lamb” (we always have!).

So after a year of this ongoing struggle, I decided that changing the name would be best for the future of the platform.  “Half A Cow” what’s that ? vs “Farmer to Fridge”; the general public instantly get it, and I do have to remember that we’re not trying to sell meat to farmers.

ARR.News: How has the business and platform grown since last year?

James Gilbert: We have grown significantly but there’s still more to do!

We now have farms in South Australia, New South Wales, Victoria, Queensland and Western Australia … with a few in the pipeline for Tasmania … as well as a growing waitlist of farmers working on their local supply chains ready to come onboard.

In terms of options for customers, we’ve got your typical Lamb, Beef, Chicken and Pork options, but more importantly we’ve been able to work with a number of farms to bring a greater diversity to the product “size”. So for the most part you’re no longer “stuck” with having to buy a 20kg box you can now get options from 2kg, 5kg, 7kg and 10kg from some farmers. They’re not always available, but it’s a step in the right direction – and of course once people buy the meat they’ve been coming back for larger (and more economical) options.

We’re turning over more now in a month than we used to do in a quarter!

ARR.News: Have you put on more people, as you’d planned?

James Gilbert: Yes, we have added to the number of farms on the platform, and we now also offer additional marketing services to those farms as well. We’ve sold over $500,000 worth of meat now, so we’re getting quite good at knowing what works and what doesn’t!

ARR.News: Are you still going to ag shows? How has that gone? Which ones are coming up?

James Gilbert: We’ve just finished at the Royal Adelaide Show – that was 9 days, 12 hours a day. We met a LOT of people and it was great from a promotional side of things, however I don’t have any planned for the rest of this year. Our own farm needs a bit of time put into things to help it tick over. But I think we’ll go to some more next year.

Farmers

ARR.News: How can Farmer to Fridge increase the return for farmers?

James Gilbert: We’re helping farmers get a better price by selling their meat as either “boxes” or as “dressed weight” sides. There’s huge complexity behind the scenes, but the main driver is that “meat” is worth more than a “cow” as a commodity. So the farmers who have the courage to act as their own brand, work with their local abattoir and butchers, are able to “keep” a lot of that extra value. If you’ve got an extra 30 minutes, give this a read https://halfacow.farm/why-are-farmers-price-takers/

ARR.News: Can you give some indication of the difference in return for a farmer using Farmer to Fridge and selling through normal retail channels?

James Gilbert: There are obviously many factors which go into that equation, but in a general sense, the farmers are making a significant profit over the farm gate prices.

The “price to beat” in terms of a “return” is what the farmer would be paid for their “cow” in normal channels.

We use the example for a $1200 cow, which was pretty standard when we first started, prices have shifted over December a lot, but then completely collapsed this year. A lower farmgate price makes this option better for farmers.

Here’s a side by side comparison, using a cow that we assume has a dressed weight of around 220kg:

Farm Gate/ Sale YardFarmer to Fridge
Cow price$1200$0
Butchering costs ($2.50kg)$550
Abattoir costs$150
Transport to abattoirSameSame
Transport to customer0Paid by customer
Transport to butcher020
Agent fees5%?5.5% on successful sale only
Income$1200 minus costs$15/kg* 220 (Dressed weight)
= $3300
Net profit$1200 minus costs$3300 minus Original cow price minus All other costs
$3300 minus $182 (fees) minus $550 (butchering) minus $150 (abattoir) minus $20 (transport) (total $1200 approx)
= $1200 approx ABOVE the estimate sale yard price of the cow after the costs
= $2400

ARR.News: What are the cost outlays for farmers to sell through the platform?

James Gilbert: There are no direct costs for a farmer to join our platform, however there is a significant investment in time for them to contact local butchers and processors. We’re building an internal network of suppliers to help make this process easier.

ARR.News: What’s involved in getting their products on the platform?

James Gilbert: The first thing I say to any farmer is that it’s more work to sell direct to the public than it is to sell at the sale yards, so make sure it’s right for you before you sign up.

What’s involved differs between farms, how much experience they have, how good their connections are to local butchers and processors.

We have a detailed explanation on what’s needed and the pro’s and con’s here! https://halfacow.farm/register-my-farm/

In a general sense you need photos, prices, butcher contacts, processor contacts and courier contacts. We can help with all, some, or none of these depending on where you are.

ARR.News: Is Farmer to Fridge in competition with local butchers? How have relations been with local butchers this last year?

James Gilbert: Honestly, we get a mixed reception. Looking at the data Coles and Woolworths are selling about 90 per cent of the meat in this country, so that’s where the real competition is for everybody.

We’re helping farms to ship mostly bulk quantities to the far corners of their state (and sometimes beyond) so I would argue that the customer segment focus is different. A butcher sells in different quantities, and you can just “pop over” if you’ve run out. Think of the “Farmer to Fridge” meat in the freezer for whenever you need to cook dinner for the next few days.  

At the end of the day, I believe we’re an opportunity for those butchers and processors who see us as such. I have had more than a few farmers on our platform talk about starting their own abattoir or cut and pack services to help meet the demands of their current customers.

We’re happy to work with any butcher or processor who wants to be part of our platform. In this process, they do get paid for the cut and pack work of between $2 and $4 a kg depending on the butcher (a price they charge the farmers and totally independent of our platform). Some butchers do see us as competition, but for each side of beef they break down, they are making a cool $600, so it’s not like they’re being left outside in the cold.

It’s also worth noting that about 10 per cent of the farms on the platform are also registered butchers, sourcing cows from their own farms or local farmer co-ops.

Farmer to Fridge meat

Consumers

ARR.News: Can consumers across Australia find a farmer for their meat supplies through Farmer to Fridge now? Are some areas not yet covered?

James Gilbert: We’ve got good coverage in the major population centres of Adelaide, Melbourne, Sydney, Brisbane and soon Perth. Some farms and butchers also offer pickup. The limitation on the coverage is closely linked to where the refrigerated couriers will go, and at a price point that makes the exercise worthwhile. But for most people, they can just chuck in their postcode and the website will show them a list of farms and products they can buy directly.

https://halfacow.farm/find-local-farms

As we continue to grow, we’ll get more local farmers and butchers and help fill in some of the regional areas. We also have plans to deal directly with couriers at a platform level so that farmers don’t need to worry about that side of the process.

ARR.News: Can you give an indication of the difference in price to consumers for meat using Farmer to Fridge and the local butcher or supermarket?

James Gilbert: We don’t set the prices, so it’s up to the individual farmer and butcher to sell at a price they’re happy with. We’ve got farmers who are selling a side of beef from about $7/kg dressed weight, and we’ve also got premium boxed meat options from $25/kg.

The quality is amazing when compared to the supermarkets. There’s just something about the locally sourced supply chain that is different.

Butchers are not a homogeneous group either. Some butchers don’t do cut up of sides of beef, but instead purchase from large meat wholesalers. Those butchers who buy direct from local farms, have cattle processed locally, and do their local cut and pack would have identical quality. The trick is making sure that the meat you’re buying ON THAT DAY is sourced in that fashion. When buying from Farmer to Fridge you’re dealing with a specific farm and a specific animal, so you know it’s locally sourced and processed.

I did do a cost comparison vs the supermarket prices and for a side of beef you were saving at least $500 or about 25 per cent … but I’ve never eaten anything from the supermarket that comes close to the quality from the farmers.

ARR.News: What is the minimum quantity that can be ordered?

James Gilbert: We’ve got a new beef and lamb product called the “Try and See” box which is a 2kg (usually frozen) meat box to allow customers to try some mince, try some sausages, and they’ll also get another cut of beef (chosen at random) from a side. These sell out quick when they come up, but most customers can also access a 5kg box or a 7kg box across Australia.

ARR.News: How is delivery arranged?

James Gilbert: Once the butcher has everything cut and packed, the farmer contacts the customer to give them an updated delivery time. Some farmers self-deliver with registered refrigerated vans, others will outsource to a third-party courier service.

ARR.News: How long does it normally take for a delivery to arrive?

James Gilbert: Varies between farms and butcher duos’. Some take 2 to 4 weeks – typically the smaller producers where things are done “to order”, or if you’re ordering from a more popular farm with constant sales volume than it can be same week delivery!

ARR.News: How reliable is it? Can it be counted on, for instance, if the order is needed for a specific event?

James Gilbert: If you need to meet a specific event or deadline it’s important to talk to the farmer first to see if they have the capacity do provide that service. This is where the farmers who are also butchers are better placed. If we do have an event inquiry we’ll usually refer them to a farmer that is most suitable.

ARR.News: Can groups of consumers, eg neighbours or friends, arrange a group order?

James Gilbert: Yes, currently ‘off platform” but we’ve got some plans to bring in an online “group order” function to help friends and family do that!

Supply

ARR.News: El Nino. Do you think this will affect supplies?

James Gilbert: I’d hate to become one of those tech CEOs who thinks they know everything because they built a popular website.

If the current sale yard prices are any indication, I believe that farmers are bracing for the worst.

Overall, I don’t think it will affect the platform too much, but we’ll probably have a smaller supply of grass fed and finished meat, with farmers having to supplement feed supplies if there’s a lack of hay or grass on the ground.

We are somewhat immune to local conditions being a national marketplace platform, but if we are helping return more dollars to farmers, then that gives them greater ability to invest in their farm with irrigation or feed to continue to bring product to market.

Related story: Interview with founder of farm to plate marketplace, Half A Cow Online, James Gilbert.

KEEP IN TOUCH

Sign up for updates from Australian Rural & Regional News

Manage your subscription

We don’t spam! Read our privacy policy for more info.