A producer’s bottom line is their most important consideration – after all, an operation can’t run if it isn’t financially viable. So, it’s important for producers to understand what they are paying for when it comes to getting certified with VBP+.
We often get asked why the cost of the audit is what it is, and we feel this is a question that many producers might have. As a non-profit, we work on a cost-recovery basis. Just like our producers, our focus is efficiency and minimizing costs.
When you get certified with VBP+, you are signing up for five years of certification. While you can pay a fee for all five years up front or pay annually, you commit to the full five year price up front. The reason for this becomes clear when the cost of the first year is broken down.
Note: This article will break down average costs for a Level 1 operation (i.e. a cow-calf, grasser/stocker, or short-term backgrounding operation).
| Phase of Certification | Cost to VBP+ Delivery Services Inc. | Description |
| Year 1 – On-Farm Audit | $750 | Costs for the auditor to visit the farm, carry out the audit, and complete reporting |
| Year 2 – Records Assessment | $100 | Costs for reviewers and assessors to evaluate records submitted and address corrective actions |
| Year 3 – Self-Declaration | $100 | Costs for reviewers and assessors to evaluate responses and address any concerns |
| Year 4 – Records Assessment | $100 | Costs for reviewers and assessors to evaluate records submitted and address corrective actions |
| Year 5 – Records Assessment | $100 | Costs for reviewers and assessors to evaluate responses and address any concerns |
| Administration | $100 | Costs for VBP+ Delivery Services Inc. to maintain producer database to get producers value back |
| Total | $1250 | Total cost over the 5-year certification cycle |
For a Level 1 operation, the cost of getting certified is $1250, or $250 per year for five years. This value equals the average cost to Verified Beef Delivery Services Inc. to carry out the certification of one operation. This means that VBP+ does not profit from certification.
For operations that require a Level 2 or 3 audit, the cost increases to $350 or $400 per year, respectively. These operations are generally larger, manage cattle closer to slaughter, and typically have more complex records in greater volumes. As a result, it takes an auditor or a VBP+ Delivery Services Inc. staff member a longer amount of time to complete an audit or review a renewal. This added time is reflected proportionally in the additional cost.
Understanding what each year of certification costs is interesting, but raises questions about what kinds of costs go into each year. Obviously, the on-farm audit accounts for the greatest portion of the cost of certification. When an auditor actually visits the farm in person, they incur travel costs. As well, the time it takes for an auditor to fully assess an operation on-farm and then compile all of the results into a format that is useable by a producer takes longer than the average renewal event. The audit year also requires processing by staff (for example, to assign an auditor to the operation, obtain all relevant information for certification, etc.).
For renewal events, VBP+ Delivery Services Inc. has to pay renewal coordinators, reviewers and assessors to keep track of timing of renewals, send out reminders, provide assistance, review documentation, and approve renewals. Administration encompasses the time that renewal coordinators use to help producers find answers to their questions in between renewals, manage the database, and handle other administrative tasks, like accounting.
VBP+ is committed to helping producers yield maximum value from the program. We welcome questions about the certification process and what VBP+ Delivery Services Inc. does as the third-party verification arm of VBP+. To reach out to us, head to our Staff Contacts page on the website.
