Disposing of Excess Agricultural Animals and Products

Op3.06 Disposing of Excess Agricultural Animals and Products

Historical Perspective

All Missouri universities as well as those in surrounding states have traditionally sold bulk agricultural products through commercial marketing outlets or through the sealed bid process.

All Missouri universities as well as those in the surrounding states have traditionally sold unique agricultural products through an "expert" placing a value on the animal and/or product with the first person agreeing to pay the value being awarded the sale.

This process for disposing of unique products has become the practice for universities due to the following:

  1. It is the practice followed in the private sector.
  2. It maximizes the returns for the university.

Marketing and/or Disposal Process

  1. Specific procedures to follow at MSU for marketing of excess animals:
    1. The "expert" (normally the MSU employee in charge of the project) will establish a price for each animal that is to be sold. The established price will be determined by current market values of similar animals or consultation with an outside appraiser with established expertise in the livestock industry.
    2. Marketing and sales of animals is a routine practice and we use standard industry methods. Animals are advertised through print and social media. For example, Journagan Ranch advertises in several periodicals, monthly. Social media advertising is on a continuous basis. Methods of sales include private treaty, production, consignment and public auctions.
    3. Direct sales to employees must comply with Governing Policy 1.02 (Conflicts of Interest and Financial Disclosure Policy)(enclosure D). Sales to any university employee through a competitive marketplace established in sections 1 & 2 would be acceptable. However, to ensure full compliance when selling to employees via direct sale, the College must ensure the product for sale has been publicly advertised and purchaser has no influence over the pricing of the product being purchased. This means the "expert" and all supervisors of the "expert" are ineligible to purchase agricultural products without the review and documented approval of an independent third party.
  2. Specific procedures to follow at MSU for marketing of excess meat products:
    1. The "expert" (normally the MSU employee in charge of the project) will survey the local markets and price the meat products at market value if possible, or enough below market value to dispose of product and to account for the nonprofessional nature of the processing (even though it meets USDA food safety standards). In no case will products be sold at less than one-half of the determined market value.
    2. When product is available, the university community and the general public will be notified through social media outlets and sales conducted. Products may be provided as promotion of the university to individuals and groups. Sales to any one person or group will be limited to no more than 10% of available product per day. This limit does not apply to commercial vendors.
  3. Specific procedures to follow at MSU for marketing of excess field crops:
    1. Field crops that cannot be utilized by MSU animals may have uniquely high or low quality. The "expert" (normally the MSU employee in charge of the project) will survey the local markets and establish a fair market value of the product.
    2. The "expert" will prepare a memo to file in each case, documenting the established price and providing a summary basis for the price established. For each sale, the "expert" will identify and document the determined market value.
    3. In the case of grain crops, bids will be solicited from potential interested parties by facsimile, telephone or other reasonable means. Sealed bids will be permissible in any case.
    4. In the case of hay crops the university community and the public will be notified and sales conducted under guidelines as advertised by expert.
  4. Procedures applicable to marketing and or disposing of all animals and products pursuant to this policy:
    1. Appropriate documentation of quantity sold, proceeds received and disposition proceeds and accounting for monies collected will be followed in all cases, following university procedures.
    2. In each case, financial proceeds will be deposited to the credit account of the College (or campus as in the case of the Mountain Grove campus) to further support the missions of those entities as determined appropriate by the Dean or Director.
    3. Spoilage may be disposed of without cost, and fruit and crops not sold according to this policy will be disposed of in accord with applicable public health, safety and environmental regulations. Fruit treated with experimental agents will not be sold, but will be disposed of according to this policy.
    4. All items will be sold on an "as is, where is" basis, with no warranty or representation as to the functionality and that statement will be included in all sale notices and transfer documentation unless expressed in writing.
  5. Mountain Grove Campus Policy on Base Price Setting for Commodities and Discounts:
    1. Retail price will be established via policy OP3.06 of the Policy Library.
      The “expert” (normally the MSU employee in charge of the project) will survey the local markets and price the fruit and vegetable products at market value if possible, or only enough below market value to dispose of product and to account for the non-professional nature of the processing (even though it meets USDA food safety standards).
    2. Employee and Student Discount:
      Full-Time and retired Faculty and Staff as well as current Students of Missouri State University System will receive a 10% discount off the listed retail price at the Missouri State Fruit Experiment Station in Mountain Grove, MO. No monetary discount will be given to any individual and/or organization not affiliated with Missouri State University System without written approval from the Dean prior to the transaction.
    3. Quantity Discount:
      If any individual buys a sufficient quantity of a certain product, a 10% discount will be applied to the listed retail price of the specific product. Quantity thresholds listed below.
      Case of wine (12 bottles)
      Bushel of fruit (48 pounds)
      Case of fruit products (12 jars)
    4. Wholesale Discount:
      A wholesale discount of 10% off the listed retail price will be given to licensed retailors regardless of purchase quantity.
    5. Prohibited Discount
      No more than a 10% discount will be given on any one purchase. Example; An employee purchasing a case of product will not receive 10% for each qualifying factor of the sale.