Monday, July 17, 2017

Alaska Ag.....Get yer popcorn, folks!

Looks like the reality show that is Alaska Ag is about to heat up-again.

Over the weekend, Todd Pettit (of Denali Meat Company) let it slip on Facebook, that Denali Meats not only has their USDA mobile slaughter unit, they will be installing a USDA approved cut & wrap unit as well. You can look up the principals with an interest in Denali Meat Co. online if you are so inclined.

He did not share the location. Or, when they might be up and running for the public-but he did say they'd be open to "all amenable and non-amenable" livestock.....whatever that means. Here's the screenshot of Todd's post:

It seems reasonable to conclude that some reservations at MMM&S will be cancelled, due to personal and business clashes with the new owner and their services to date.  And the reverse will no doubt be true as well:  Some will remain with MMM&S due to issues with the Denali Meat Co. principals. 

The impact of this new facility, in direct competition to MMM&S, will have wide ranging effects, no doubt. For the small livestock producer, it might prove to be a boon, in that perhaps there will not a lengthy bottleneck over the fall processing period. But it might well put MMM&S even further into the red.....remember, it failed to make money even using cheap prison labor for years. It's no doubt true that the new owner has, or is, modernizing what can be remedied, and no doubt finding those efficiency measures which eluded the State itself. Or, conversely, the market might prove that two plants in the same geographic area is not sustainable on any level-particularly financial. 

The Pt. MacKenzie plant remains closed to the public, so it's operation should not have any adverse effect on either of these two than it already has. 

(Note: The BAC loaned the money for the purchase of the plant which will be competing with MMM&S..... the wisdom of that we'll leave up to someone else)


Anonymous said...

He is the official spokes person for the Denali Meat Co. Why they were even going to save the MMM&S plant at one time real soon with there state of the art thinking and there state of the art ARLF loans but seems this time it has taking more than ARLF looks like ARRC in Palmer which Ben Vanderweele and Amy Pettit head up have gratuitous stepped in to assist with multiple loans sure glad to know the good ole boy system is still alive and well in Alaska! All for a portable plant that after 90 days of operation IF they get there USDA temporary establishment number to even to begin operations they will be evaluated to see if they will get a permanent establishment number seems to me that there should have been more investigation into what they were loaning money to. After there last failed fiascos with the MMM&S plant and failed promises from the Denali Meat Co. But hey this is Alaska after all! Common sense never prevails in Agriculture look who's the Division of Ag Director!

suvalley said...

We know there's a lot of bruised feelings, even downright bad blood, between some of these producers and/or principals. Direct competition is generally a good thing if the economy is growing (which it is not), and a bad thing if there is a limited market. One or the other will need a "better mousetrap" in a down economy.

A person would like to think that there is enough growth in this sector of Ag for all, since USDA sanctioned operations are crucial to the state. Food security remains the elusive end goal, and perhaps-just perhaps-having these new operations will push the State of Alaska past that minuscule 4 percent.

Don't anyone hold their breath though....still can't get around the forage for livestock issue.

Anonymous said...

Wonder how Greg is going to handle the direct competition from the Denali Meat group and the back stabbing he has received from the DOA on ARLF financing the competition for him when he was guaranteed a market by the Division and the Director?

Anonymous said...

Free enterprise! It's what America is made of kudos to Denali Meat Co! Mikes Meats will have to buck up now and have to get real on all prices across the board at the plant to be competitive or go by the way side! Maybe this will be Greg's wake up call!

suvalley said...

So, posting photos here in the comments is a tedious, complicated process, that requires pug ins and apps.

Look for another post with information relevant to this discussion soon ;)