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MIFFS and Niman Ranch Partnership Produce Profitable Results for Michigan Family Farms

When the hog market fell as low as eight cents per pound in 1998, many farmers were forced to leave their farms. Those who stayed struggled, losing money and hope, as their business situations worsened. Many developed larger facilities, often for confinement, following America’s growing trend of “bigger is better” in agriculture.

Not all farmers wanted to make this change and sacrifice their small family farms with pasture-based hogs, for the big and expensive confinement buildings and the production practices that often went with them. However, many of these smaller farmers continued to struggle to market their hogs and compete with large operations, even as the market returned to some prosperity. A few farmers have been able to find niche marketing opportunities. These opportunities not only keep them in business but pay a premium as well.

Andy and Amy Pachay of Marcellus, Michigan, were ready to give up when the market plummeted. They were farrowing 100 sows on pasture but were seeing little return for their efforts. With the intent to continue farming, they began looking for alternatives. Desperate to keep working on the family farm, they found a solution when Andy read a “Successful Farming” article in December of 2002 that ignited a new sense of hope in them.

The article featured Paul Willis’s hog operation in Iowa and his work with Niman Ranch, a company founded by Bill Niman of California, which sells natural pork, beef, and lamb products.

Niman Ranch is America’s leader in marketing natural pork and emphasizes quality taste, humane treatment of animals, and sustainable production on family farms. Emphasizing low-input production and high touch marketing, Niman has been extremely successful and is currently experiencing growth rates of 25 to 40%, especially in the hog market. A strict production plan ensures the hogs are never given antibiotics or any meat or meat by-products in their feed and are raised outdoors on pasture or in deeply bedded pens according to the Animal Welfare Institute’s (AWI) protocol.

“They’re healthier outside,” says Neal Yoder of Centreville, Michigan who has had few problems raising his hogs outside without the use of antibiotics. Even after market prices rose, he was continually losing markets. Niman offered the security of a stable market that valued the finish of free-range hogs with additional backfat to protect them from the elements. Free-range hogs on pasture tend to deposit more fat due to a lifestyle and genetics different from the lean hogs dominant in the market. More fat equals more flavor in the end and a more desirable product. Natural behaviors like playing, rooting, and nesting can also be freely expressed with this natural system.

More than just the hogs benefit from this free-range lifestyle. Farmers, in exchange for their time, labor, and commitment to Niman and its production systems, are guaranteed a market floor price. For each hog they produce, they know that they will get at least the market floor price, creating a more stable market and a safety net. Producers can also receive an additional premium for the quality of their product.

“We focus on quality of husbandry, not solely on production numbers,” says Andy Pachay. Through all of the struggles in past years, he and his wife Amy never wanted to abandon the traditional, pasture system that his father used. Andy’s interest in Niman grew after reading the article, and with a little work, he and Amy became the first producers in Michigan to get on board with Niman.

Andy, now a Field Agent in Michigan for Niman Ranch, put together a meeting with other farmers in his area to spread the word about Niman. Many of these farmers were still producing the free-range or deep-bedded way. The Pachays, along with six other farmers in the area, began shipping to Niman in 2003. Andy now has over 40 farmers involved with a bit of help from MSU Extension, some very helpful truckers like Richard Cramer of Stanwood, Michigan, and a lot of word of mouth.

The farming community of Stanwood, Michigan embraced the Niman Ranch opportunity quickly. Eli Miller was one of the first in the community to join in September 2004 with his herd of Yorkshire cross hogs. He just removed antibiotics from his production system to be eligible for Niman and has had very few problems with illness in his hogs since. The extra income that Niman’s premium brings in really helps and could help make Eli’s dream for the future come true, seeing his children and grandchildren continue the family farm. “I think that Niman could help make that happen,” Eli says.

The great taste and high quality of Niman pork comes as a result of the traditional system and good husbandry. Hogs are raised outside on pasture and require more backfat to protect them from the elements, both hot and cold. More fat simply means more marbling and more flavor. Selective breeding from such breeds as Berkshire, Chester White, Duroc, and Farmers Hybrid crosses also contributes to the great product. Prior to farmer acceptance into the program, Niman requires pork chop samples to taste test, ensuring that they only put the highest quality pork on the market for their consumers.

Farmers also like Niman’s focus on small family farms and maintaining that family atmosphere. To be eligible, the farmer must own the animals and farm and must provide the majority of labor as well. Stanwood’s Iddo Brenneman was initially
attracted to this concept, saying “We really like the family farm aspect of Niman and the way that we take care of the hogs.” With a smile, he added, “The premium is nice, too.”

Farmers are faced with more challenging circumstances in Michigan, as compared to California. Weather, like wind, rain, and hot sun, can be hard on the hogs, especially on little piglets. Dan Schwartz, also of Stanwood, finishes feeder hogs and was initially quite concerned about not being able to use antibiotics. However, he has not had problems of significance and is experiencing high yields. “I’m very satisfied at this point.” Dan added, “The hogs more than pay for production and shipping.” Having that extra money will really help out in a few years as he hopes to expand and start his own farrowing operation to raise them from birth to market.

Samuel Peachey has already taken that step. Last November, he put in a new barn that works with the Niman system and allows for farrowing sows, a group of lactating sows and their litters, and pens for holding and breeding. AWI has specific guidelines for barns that let in natural light and give animals adequate space to live in and express natural behaviors. Samuel followed these guidelines and looked at many different barns before developing his plan with his father in-law and fellow Niman producer, Iddo Brenneman.

Some farmers with existing facilities have difficulties making such changes. Investing money into a new building that satisfies space requirements can be expensive, and risky. Changing feeds can be difficult as well. Niman approves all feeds and inspects facilities and production systems to ensure that they follow AWI requirements. They also test pork chops for quality and palatability, starting production and shipping to Niman can take some time as well. However, farmers in the system expressed that the higher prices and satisfaction of raising free-range hogs is worth it.

Niman Ranch offers an excellent opportunity for farmers of all types, whether you are looking for premium pricing and more stable markets, an alternative to confinement operations, or maintaining the family farm. Niman is currently seeking more hog farmers to help meet its high demand for natural pork.

For more information about Niman Ranch and how you can get involved, you can contact Andy and Amy Pachay at 269/646-2045, by e-mail at AJPachay@aol.com, or by US mail at 52350 Burlington Rd, Marcellus, MI 49067-9732.

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Founded in 1998, MIFFS is a statewide membership organization (501c3) whose purpose is to promote diverse efforts that foster and sustain food and farming systems that improve economic, ecological and social well-being. MIFFS has been effective at establishing successful partnerships among producers, markets and institutions that have created more profitable, environmentally friendly food systems in Michigan.