The Challenges of a Co-op

A new meat processing co-op has opened in Havre. The co-op aims to empower producers by allowing them other processing options for their animals, but it doesn’t come without challenges.

Ben Peterson of E.L. Peterson Ranch explains those challenges.

“The economy of scale is definitely a big challenge. The more product you are able to run through a particular facility or entity the more advantages you can take off of each piece. You can cut cost there, cut cost there, cut cost there. Well one of the biggest problems that is for a facility like this, above all else is the front-end financing. The fact that the Farmers Union was able to use our own financing through Farmers Union Enterprises puts us ahead of the game by a long shot.”-Ben Peterson