Value-Added Success
Nine years ago, Central Dakota Cattle
Association members asked Karl Hoppe, extension
livestock specialist at the NDSU Carrington Research
Extension Center, to brainstorm ideas on how to make
more money.
The result? Last March the Dakota Halal Processing Company of Harvey began supplying
halal foods to the Muslim community. The Arabic word "halal" means "lawful." In the
Quran,
Allah commands Muslims and all of mankind to eat of
the halal things.
"A few years ago members of the
association decided that it didn't make any sense to send
their cattle out of state for slaughter and then have
the meat sent back here," Hoppe says. "They decided
to investigate building their own packing plant."
Just two days later, Adnan Aldayel walked
into Hoppe's office with a business plan for a
meat processing facility. Aldayel is Saudi Arabian,
but his wife, Merita, is from New Rockford.
He came up with the idea of a halal processing plant while teaching at a college in Louisiana.
"I found a fairly large community of Muslims, but
I couldn't find good quality halal meat and
products," Aldayel said.
Why build in North Dakota? "North Dakota
has some of the best quality cattle in the world.
The people are wonderful and have a great work ethic. Support from the state and university
system was also critical," Aldayel says.
The association moved forward with Aldayel. Currently 60 percent of the plant is owned
by producers. Aldayel owns the rest.
Hoppe helped set up an equity drive, investigated product label claims and worked with
producers to assure their cattle would meet the plant's specifications. "Producers have to follow
very strict guidelines to be certified halal,"
Hoppe said. Cattle cannot be fed any animal by-products
or have any implant or hormone injections. An
association employee visits each producer to educate
him and to check feed and supplement records.
Maddock-area livestock producer and association member Wendell Grondahl says it's not
that difficult to raise halal animals, but it does
cost money. "Taking away the implants has a
cost involved," Grondahl said. "Several feed
companies now are making a special blend of supplements
so we can comply with the guidelines."
Selling halal products is not what producers originally had in mind. "But it's a good niche
because the number of potential customers is very
high," Grondahl says. The U.S. Muslim population
is estimated at 8 million and may double in the
next decade.
The company ships products to California, Seattle, Minneapolis and a wholesaler in
Cedar Rapids, Iowa. "Some of our products are shipped
to five-star hotels and restaurants overseas where
it has been well accepted," Aldayel said.
The plant employs about 20 people, and expects to double capacity in the next year.
The plant is one success story from efforts
to add value to the state's agricultural
production. "Producers lose potential profits when they send
their raw products out of the region to be processed,"
says Chet Hill, value-added area specialist at
NDSU's Williston Research Extension Center.
Hill and Rudy Radke, value-added area specialist in the eastern part of the state,
promote value-added concepts and help producers
and entrepreneurs explore potential enterprises
from growing onions and carrots to producing halal
meat products. The key, according to Hill, is to do
your homework and have a good business plan and management strategy.
The Dakota Halal Processing Company now produces 17 products ranging from
microwavable products to jerky and summer sausage. Plans
are underway for a canning operation and for
processing bison, elk, chicken and lamb. As a result, a
second plant may be established in Tolna. The company
is issuing three million shares of preferred stock
for investors.
"I think North Dakota, through agencies
and universities such as NDSU, can take the lead
in developing a lot of value-added industries,"
Aldayel said.
For more information: Chet Hill, 701-774-4315, expwill@ndsuext.nodak.edu
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