Bison co-op buys Denver food firm - Newsline

Rural Cooperatives, Sept-Oct, 2002 by Patrick Duffey

With an eye toward boosting its meat sales in a glutted industry, the North American Bison Cooperative, New Rockford, N.D., has purchased Denver-based New West Foods, which sells bison meat in retail grocery stores. The bison cooperative, formed in 1993 by 350 producers in 19 states and four Canadian provinces, has focused primarily on the restaurant and food service business, so merging the sales and marketing organizations with the Denver firm makes sense, says Dennis Sexhus, the cooperative's chief executive officer.

The co-op was the major supplier to New West Foods, formerly the Denver Buffalo Co. Retail labels from both firms will be used on bison meat products. While production still outpaces market development, Sexhus sees the industry returning to health in another year or so. The cooperative's sales this year are expected to reach $25 million, or double the 2001 level.

Buffalo numbers have been climbing despite a glutted market for buffalo meat. The national buffalo herd numbers about 400,000, compared with only 50,000 a decade ago. While the cooperative provides half the nation's supply of buffalo meat, it has nearly 4 million pounds--the equivalent of a year's production--in its freezers. The U.S. Department of Agriculture recently agreed to buy $10 million in buffalo meat for hospitals and prisons.