SDAPV receives funds for feasibility study The South Dakota Ag Producers Ventures (SDAPV) will receive $154,800 from the Value-Added Ag Subfund to study the feasibility of an integrated lamb and veal slaughtering and processing company in South Dakota, Chris Braendlin, commissioner, Governor's Office of Economic Development, announced Oct. 21.
"The goal of this study is to determine if an integrated lamb and veal plant is economically feasible," Braendlin said. "The South Dakota Ag Producers Ventures will commission this study and determine the feasibility of a new plant in South Dakota."
South Dakota ranchers produce approximately 300,000 lambs and 50,000 bull calves annually. "Currently only one lamb slaughter facility operates in South Dakota and veal slaughter facilities are nonexistent," Braendlin said. The addition of an integrated facility would create value-added opportunities all around."
Lamb and veal are niche products with high market value and similar distribution channels. "If we can introduce a veal slaughtering and processing operation into South Dakota, ranchers will be able to sell their bull calves at higher profit margins than they would if sold at market weight," Braendlin said.
Another benefit would be the creation of a new livestock production chain of bull calves, created specifically for the veal market. "That is the ultimate goal of the Value-Added Subfund," Braendlin said, "to find niche markets that will add value to and expand South Dakota ag commodities."
The Value-Added Ag Subfund is designed to support feasibility and marketing research for ag processing projects. For more information on the subfund, call Larry Stearns at the GOED at 773-5032.