Vital Statistics
Products: Elk and bison snack sticks, jerky, steaks
No. of Members: 36 in Minnesota and Wisconsin
Began Operations: 2004
Beginning Sales: $300,000
Current Sales: $1 million (projected)
Whether you’re on the trail or perched in a deer stand munching an Elk Snack Stick, you are enjoying a healthy meat product produced by the Elk Marketing Council Corporation, headquartered in Rogers, Minnesota.
CDS assisted EMC in determining a more efficient way of utilizing the elk carcass for food production and identifying new market opportunities through a feasibility study, business plan, and a $150,000 value-added producer grant. This effort resulted in a 40% increase in sales, says EMC President Scott Salonek. He projects sales will reach $1 million this year.
While the larger part of EMC’s business was in its snack sticks, they also market a line of red meat cuts. The feasibility study showed there were better margins to be made in further developing the snack meat line. The study also showed that EMC could obtain better results changing the mix of product development by packaging the higher quality meat cuts (steaks, tenderloins, etc.) for restaurant sales. A business plan was developed and EMC applied for and received a USDA value-added producer grant for working capital in 2005 to further develop and market its product lines.
“CDS suggested making the grant application because we were adding value to the product in a different way by changing the way we processed the animal,” Salonek says. “With those funds we were able to purchase an inventory of elk from producers, hire another person for the office, and increase our marketing efforts.”
Salonek embarked on a marketing campaign which included meeting with farmers to procure an elk inventory of approximately 40,000 pounds and television commercial promotion that they otherwise wouldn’t have been able to do. They also sponsored the St. Paul Saints, a local baseball team that enjoys a loyal fan base and generally sold-out games.
EMC contracts with local elk producers for the purchase of the animal, and directs the timing of when the animals need to be delivered to the processing plant. After the animals are processed, the various meat products are delivered to EMC pre-packaged and further sent out to a federal USDA processing plant for specific product processing and packaging.
CDS helped EMC reach a higher level of sales about a year ahead of projections, Salonek says. “With the value-added grant funds, we were able to secure inventory and pursue a level of marketing that wouldn’t have been possible before. When you get customers like Sportsman’s Warehouse, Bass Pro Shops®, Cabela’s®, and Gander Mountain™, inventory and cash flow are your two biggest concerns,” Salonek says. “Working with CDS allowed us to do that.”
Salonek estimates that 98% of their business is done through sporting goods retailers. Cabela’s® (Minnesota locations only), Gander Mountain™, Bass Pro Shops, and Sportsman’s Warehouse™ represent their biggest customers for the snack meat line, he says. Local grocers carrying EMC products include Lunds, Byerly’s, Jerry’s Foods (Edina and Eden Prairie, Minn.) and Cub Foods® (Elk River, Minn.). Meat cuts are primarily sold to distributors in Colorado and Florida, ultimately making their way to the high-end white-table restaurants. All EMC products are available to order on EMC’s web site.
CDS Project Consultants
Kevin Edberg – Grant writing
Nathan Dorn – Feasibility analysis, business plan, grant writing
JoAnne Berkenkamp – Feasibility analysis, business plan
See more Value-Added Agriculture projects.