Starting a beef jerky business can be as easy as preparing jerky in your kitchen and selling it at a local farmers market. But it can also be difficult to find success and make a living from it.
Here are some tips to help you see more clearly what to expect …
1. Government Inspection – By law, if you make beef jerky for the purpose of sale, your production facility must be inspected at the state or federal level. If you plan to sell your jerky in the same condition it was produced, you only need a state inspection. If you plan to sell to consumers in other states, you need a federal inspection.
Being inspected is not so much the biggest challenge as maintaining inspection. A state or federal inspector will visit your facility every day.
However, many small “mom and dad” businesses that handle beef jerky don’t bother to be inspected and never seem to get in trouble. They make all their jerky at home, in their kitchen, and sell it wherever they can. State and federal government inspectors don’t bother looking for violators – the problem only seems to arise when consumers get sick and file complaints.
2. Private Labeling – To circumvent state and federal inspection requirements, most small businesses contract with an inspected and approved meat processing facility to make jerky for them. The facility can prepare jerky to your recipe or use its own in-house recipe. They can even get beef specifically for their needs, or use their own. The facility will then pack the jerky with its label.
The problem that most entrepreneurs encounter when hiring a facility is that the jerky never comes out with the same flavor and consistency as when they prepared it themselves in their own kitchen. The answer is to try several installations and find one that produces something closer to what you are looking for.
Do a Google search on the words “USDA Establishment Number” to find a list of federally inspected meat processing facilities.
3. Condoms or not? – Most consumers tend to stay away from foods that contain preservatives, artificial flavors and fillers. Sodium nitrite is a common preservative in beef jerky, and there have been studies to suggest that it causes cancer, although other studies question it.
The problem for manufacturers and retailers is that jerky must be able to stay on store shelves for several months to retain freshness. To do this, it must contain preservatives. Most distributors and retailers will not even consider storing jerky that cannot guarantee freshness for more than a few weeks.
So the trick for a small upstart beef jerky company, if they want to avoid preservatives, is to find markets where long shelf life is not an issue. It is common to sell jerky at farmers markets, street fairs, and trade shows. Selling jerky online from a website is very popular. Some manufacturers have agreements with smaller stores to come in once a week to buy old material and replace it with new.
4. Distributors: The jerky brands you see in convenience and grocery stores were placed there by distribution companies. Names like Core Mark, Sysco, and US Foods represent America’s largest distributors and are responsible for filling the store shelves of all national retail outlets. You can’t just talk to a national retail chain and have them stock your jerky, you have to go through a distributor. And as it is in the 21st century, retailers are unwilling to talk to small, upstart brands.
Instead, you can talk to smaller niche distributors and / or small supermarkets that don’t belong to the chain. Look for those that focus on natural foods. Small independent health food stores in your area are willing to buy jerky from local producers because of their desire to store “locally grown and sourced” food as long as it does not contain preservatives.
In order for larger distributors to become aware of your brand, you must develop recognition for that brand across the country. That means a lot of social media, a lot of sponsorships, being mentioned on television and radio, etc.
5. Don’t Associate: Starting a jerky business from scratch is a lot of work. It takes years of dedication just to build a loyal customer base, and even then you will find that your life revolves around your business. Your business will become your life.
If you have a partner, other than a spouse, you will often find that your partner becomes your enemy. Even if it is your brother, your best friend or your mother. You will always find that your partner is not doing your job or telling you how to do your job. It will appear that your partner is not working hard enough, but he is still making half the profit. You may find that your partner is working harder than you and you may feel guilty for not doing your part.
If you need a business partner, talk to your spouse and ask him or her to be involved in starting a beef jerky business. If you can’t find a partner and you think you need one, then it may not be the right time to start. Otherwise, take a deep breath, clear your mind, and be prepared to do it all yourself.
The rewards are greater that way.
