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DAKOTA PROVISIONS

www.dakotaturkeygrowers.com

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Harris investigates how a group of independent farmers came together eate Dakota Provisions, a multimillion-dollar integrated business solution. ers with a single crop now own their own processing facility and are asing market share in their industry the good old-fashioned way

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s the temperature starts to cool and the leaves on the trees change from green to bright orange and red, a new season begins. For centuries the arrival of autumn has been a time to harvest crops and to prepare for the cold winter months ahead. Traditionally, many cultures mark the culmination of their hard work of gathering provisions with a celebration to give thanks for the gifts of the harvest.

“The plant a

Dakota Provisions

has the ability to harvest, debone and cook over 8 million turkeys per year, and the capacity to process over 320 million pounds of live weight annually�

The US is no different, with its story of the Pilgrims and the first Thanksgiving.

President Abraham Lincoln proclaimed Thanksgiving a national holiday in 1863, and in 1941 President Franklin Roosevelt fixed Thanksgiving Day as the fourth Thursday in November. Thanksgiving in America brings thoughts of family, football and great food.

Families gather around the Thanksgiving table with many different traditional foods, but there is usually one dish that’s the center of attention: the turkey.

In 2009 more than 226 million turkeys were consumed in the US alone. Nearly 88 percent of Americans surveyed by the National Turkey Federation eat turkey at Thanksgiving, and almost 736 million pounds of turkey were consumed last year during that holiday period. Since 1970, turkey consumption overall has increased 109 percent, and turkey production has increased 113 percent.

Turkey companies are traditionally vertically integrated and usually control all phases of the company’s operations. The different processes of the turkey-producing business, from research and development to proper breeding techniques, require many special management skills and abilities. From hatching, feeding and growing of the livestock to processing, packaging, transporting and then marketing the product— all require a special kind of company. Dakota Provisions is proving to be one such operation.

a process called Controlled Atmosphere Stunning (CAS), which modifies the atmosphere to induce a less stressful experience for the animals during the euthanasia process. This produces a much higher quality of meat because there are no broken bones or hemorrhages. Easier animal handling also produces a safer working environment, which is one of Dakota Provisions’ main corporate goals. Turkeys are cleaned using a three-stage process, with the final stage using fresh water.

The raw and ready-to-eat sides of the plant have

“Over the course of the feasibility study, it became apparent to the turkey growers that for their farms to remain in business the group would need to become turkey processors” The vision to create Dakota Provisions started in 2003 when a committee of 44 turkey farmers came together to discuss options for the best way to market their flocks. Over the course of the group’s feasibility study, it became apparent that for their farms to remain in business the group would need to become turkey processors. So in February 2004 the group, Dakota Turkey Growers, voted to invest and build a state-of-the-art facility in Huron, South Dakota. In March 2004 the group hired Kenneth D. Rutledge to lead the newly developed company, Dakota Provisions, as its president and CEO. This vision became a reality on September 27, 2007, when the new $45 million facility was opened after only 15 months of construction.

The 150,000-square-foot plant is located approximately two miles east of Huron on a 114-acre site, and it is the first full-line turkey processing plant built in the US since the 1980s.

The plant has the ability to harvest, debone and cook over 8 million turkeys per year, and the capacity to process over 320 million pounds of live weight annually. This facility can process pork, beef and chicken products as well. Today the company employs more than700 people and has sales of more than $100 million.

The Dakota Provisions plant is the newest and most technologically advanced meat-processing plant in the US today. Turkeys are harvested using

also been designed to be completely separated for maximum food safety. The facility has the capability to produce a fully cooked product and specializes in luncheon meats and deli breasts for its supermarket and foodservice customers.

The Dakota Provisions management team is constantly looking for new ways to improve productivity and operations. Recently, approval has been given for a $1.5 million expansion of the deboning facility, with an additional $5 million worth of new cooking equipment also being purchased. In addition, management is excited about the recently acquired SAP software system, the installation of which should be completed within a few months.

With this new system, the company will be able to share communications and information among operations, supply chain, manufacturing, marketing and sales much more effectively.

However, at the heart of the company is its commitment to food safety and to quality assurance. As part of that commitment, Dakota Provisions uses the Warnex Rapid Pathogen Detection System to ensure that its products are safe. This system assesses the presence of pathogens by rapidly identifying the DNA signature of the target organism. It’s a simple three-step process that doesn’t require specialized lab training, and results can be returned within three to 48 hours. This technology gives more accurate results, is much more user-friendly, and gives the

Dakota Provisions

firm a faster inventory turnover than conventional testing methods.

Over the past 20 years the turkey industry has evolved from a single-product holiday-oriented business model into one that has a varied product line that supplies healthy items to its customers year round. However, when families gather together for the holidays, the meal just doesn’t seem right without turkey. Turkey makes the Thanksgiving meal complete, and it’s the center of attention.

Similarly, Dakota Provisions is an integrated business solution that works together making turkeys the center of its attention. www.dakotaturkeygrowers.com

DAKOTA PROVISIONS

www.dakotaturkeygrowers.com