Wolfe's Neck Farm Beef goes For Profit
This week's edition of MaineBiz magazine includes a feature about the Wolfe's Neck Farm brand of natural meats. Wolfe's Neck Farm, a not-for-profit located in Freeport, Maine, through it's Foundation for Agricultural Renewal has been selling it's naturally-grown meats for several years. The market for the product started out fairly small - farmer's markets and local restaurants and natural foods stores. Now WNF sells to large retailers (Hannaford and Whole Foods Markets) and high-end restaurants as well. With people becoming increasingly aware of what goes into their foods, and especially since the introduction of Mad Cow Disease to the US, demand for Wolfe's Neck's naturally grown beef (pasture fed, no hormones or antibiotics used, etc.) has rapidly increased. The operation, with revenues of $6.5 million last year and growing to an estimated $10-$16 million this year, has outgrown the scope of Wolfe's Neck Farm.
Now, with the support of the Portland-based philanthropic Libra Foundation, the WNF is spinning off the natural meats division to Pineland Farms Natural Meats Inc. Management will remain basically intact, and the new corporation will be housed at the Pineland Farms business center, located at the former Pineland mental health institution in New Gloucester, Maine. Because the Wolfe's Neck Farm label has become widely recognized it will continue to be used, though it may be complemented with the Pineland Farms Prime Beef label in the future.
I admit that I am usually skeptical about adding a "for profit" motive to a business model. When decisions are made solely with the bottom line in mind, bad things often happen to products and people. For now, however, it sounds like the current mission of FAR will be continued:
While Pineland Farms Natural Meats is in the midst of developing new business
strategies, (Erick) Jensen (founder of FAR) says its social purpose will remain the same: helping cattle farmers in Maine and beyond get the best value for their product, thereby
keeping farmland in production. “Now that we’re for-profit, we have the
resources to do that,” he says. Currently, the company has seven feedlots across
the state, with more than 4,000 head of cattle. Jensen would like to see the
number of feedlots increase by 30%-50% in the coming year.
My wife and I have made it a point to only purchase natural meats, and we have readily supported Wolfe's Neck Farm in our purchasing decisions. To the extent that this change makes natural meats more accessible and affordable, it can only be looked at as a positive. I will be optimistic that the company will be able to maintain its standards of quality as it continues to grow in the coming years.