NORTHEAST SARE
2000 FARMER/GROWER GRANT APPLICATION
Please type or print clearly. Attach additional pages if needed.

Project Title: Small Ruminant Meat Processing Plant (through renovation of existing building)

Project Leader: Colleen and Christopher Parsons

Address: Capricorn Hill Farm – 369 Clark Hollow Road – Pine City, New York 14871

Telephone: (607)732-4987

E-mail address: CapricornHillFarm@prodigy.net

How did you hear about SARE? Dr. tatiana Stanton suggested I apply.

I am applying for:

[ X ] a Grass Roots Grant        [___] an On-Farm Demonstration Grant        [___] an Agroforestry Grant

Funding Request: $7,300       Matching Funds: $7,175

1. WHAT DO YOU WANT TO DO? Briefly state the problem your project will address and what you propose to do about it. If applying for an on-farm demonstration grant, indicate which one here.

We have a small but growing commercial meat goat herd in Chemung County, New York. This past year we had quite a problem booking appointments for the slaughter and processing of these goats once sold. Many of our customers had to wait weeks and up to a month for their meat. There are several reasons for this, and we eventually had to deal with a facility more than 180 minute drive (round trip x 2) to get our goats processed for our customers – and then pick up the processed meat. That ate into our meager profit margin.

Through our investigation, we found that meat-processing facilities would rather book for the larger beef and hog processing as the profit margin was greater. They have a limited time and desire to process goats and sheep. We found that other meat goat producers in our area had no better luck.

Our business plan for the production of goat meat on Capricorn Hill Farm includes a goal of breeding 200 does every seven months for an annual production of over 500 meat-grade animals a year. Marketing them is one problem. Finding suitable and willing slaughter and processing facilities compounds that significantly.

In effort to solve our problem we will begin renovating the now vacant milk bottling plant on our farm into a USDA certified meat processing plant. This three-year project begins with establishing the facility as a custom slaughter/processing plant.

2. TELL US ABOUT YOUR FARM and how your proposed project will fit in with your farming operation. For example, are you a full or part-time farmer? What do you grow or raise? Do you own or rent land? How long have you been farming? How many acres do you farm?

In the late ‘70s we graduated from SUNY at Morrisville, Colleen as a Registered Nurse, and Chris with a degree in Animal Science. In the early ‘80s Colleen raised a small herd of dairy goats while Chris managed Angus beef cattle farms in Virginia. Circumstances brought us back to New York in the late ‘80s and in 1988 we opened Elmira’s Pet Boutique (pet supply store and dog grooming shop).

In January of 1998 we purchased a 107 acre parcel of a once successful 400+ cattle dairy with barns and a milk bottling plant. Colleen manages the budding farm full-time with the help of Chris, when he’s available. We are slowly and methodically bringing the farm back into production. We will be entering our second year of kidding as the year 2000 begins. We presently have 40 goats of combined breeds which will increase to 200 does by April of 2002.

We are members of the Empire State Meat Goat Producers Association and sit on the Small Ruminant Marketing Advisory Board through Cornell University. Colleen has also recently been named editor of the Chemung County Farm Bureau Newsletter.

Our intention is to raise profitable goat meat in the northeast. Research indicates that a profit can only be made if costs are kept minimal as the price of goat meat is reasonably stable. Processing costs of that goat meat increase significantly if transportation becomes a problem. Other farmers who may be interested in raising goat meat become disenchanted if processing is a problem. Potential customers also become disenchanted if processing is a problem. Our aim is to eliminate that tri-fold problem.

3. BRIEFLY TELL HOW THE RESULTS OF YOUR PROJECT WILL HELP FARMERS in the Northeast and your area specifically.

Producers of goat meat in the northeast are up against many disadvantages not faced in the south and southwest where goats can be raised quite inexpensively. Here, because of weather conditions with wintering enclosures a necessity and limited grazing seasons, we must provide higher quality meat and better service if we are to effectively compete. Having slaughter/processing facilities that are designed specifically to meet the needs of small ruminant (goat, sheep and deer) producers will greatly benefit the marketability of our livestock and our ability to get them processed. Renovating existing buildings to meet our smaller production needs may prove to be well worth the cost. Most of these buildings will be found “on the farm” and will assume no additional mortgage payments, other than renovation costs.

With a low overhead, such facilities need not be concerned with a constant flow of slaughter animals, and may thrive all the better by hiring part-time meat cutters who are looking for a second income or who are trying to establish themselves. They also bring the control and focus of the product back into the hands of the producer. It seems that with small ruminants, bigger is not necessarily better.

More to the point: it is costing us $35 a head (plus transportation) to get a goat slaughtered regardless of size or the number that we take to the processor. If we hire a meat cutter with a helper for two days, they can effectively slaughter and process into wrapped meat twenty 80 pound goats. It will cost us about $23 per hour in combined wages for those services or $370. That brings the labor cost down to $18 per goat. Even if the utilities, offal disposal, supplies and debt payments on the building renovations add up to $7 per goat, that is still a $10 savings over what we are presently paying. $10 per goat on the 500 a year that we intend to process equates to a savings of $5,000 annually.

It is our intention to extend the use of the processing facility to other producers in the area. We will keep the leasing fees as reasonable as possible with hopes of allowing them a similar savings. With greater profit margins in small ruminant meat production, more people will be producing the animals. This acts to stimulate agricultural adventures in the immediate area. When others follow the model of renovating an existing building, there will be more small ruminant agricultural adventures in other areas as well.

Not all goat meat will be able to be sold to the custom market. Therefore this facility will have to be upgraded to meet with all USDA standards so that within a three-year time span it can double as processing plant for inspected meat. There are no USDA certified processors in Chemung County at present. All available income will be put to that use.

4. PROJECT METHODS. Describe in detail how you are going to carry out your project. Use additional pages as needed.

As with most business renovations, this is a multi-faceted plan. We have already met with the USDA inspectors twice, to establish the feasibility of renovating this building. The first meeting was facilitated by Dr. tatiana Stanton of Cornell University, and took place at Cornell. Besides Colleen and Dr. Stanton, this meeting was attended by Dr. PJS Arboleda, Veterinary Circuit Supervisor of the USDA; Inspector Don Warden, District Supervisor; and Inspector George Carlyle, Plant Inspector. Given our basic business plan and shown pictures of the building, they felt it was worth pursuing. Later, at an independent meeting, Inspector Carlyle came to see the building and commented favorably. He verbalized that there was certainly “a lot to do to become a USDA inspected plant,” but that we weren’t that far from becoming a custom processing facility. We have been supplied with all of the regulations, and assured that these three inspectors will assist us as much as they are able.

The rooms need to be “stripped” of existing piping and appliances, rewired and painted. The existing cooler needs repair and a new compressor. A wall needs to be built and possibly a livestock entrance. We need to develop a water drainage and disposal plan.

We also need to contract with a rendering facility for removal of offal. We need to have our attorney review the lease for meat cutters and processors to use the facility.

We need to purchase dressing equipment, basic meat cutting equipment, offal disposal barrels, and the like, which we are assured we can get high quality used equipment at far less than what new will cost. We need appropriate cleaning supplies.

We need to establish a Web site that will serve to disseminate the process we have undertaken with this renovation, to find prospective producers to use this facility and to maintain a schedule of available leasing dates.

Such an undertaking requires quality management. Chris, with his expertise in business, will manage the plant (its use and upkeep), the meat cutters, the accounts and the renovations, doing many of them himself. Colleen will work with the inspectors, assist with renovations, manage advertising, manage the web site, and keep the schedule for use of the facility.

Renovations are scheduled to begin in April and take three months to complete. The facility should then begin to custom slaughter and process small ruminants by August 1, 2000. We may still have some meat-grade goats from the first kidding in January, and will definitely have them from the late March kidding. Other producers will have animals available at this time as well. During deer season we expect meat cutters to lease the facility.

Lease agreements to processors and meat cutters will be available on a “by-the-day” basis and will be dependent on anticipated cooler space and will be available during the evenings and on weekends.

5. HOW WILL YOU MEASURE YOUR RESULTS?

Results will be measured in two ways. When the renovations are inspected by the USDA for compliance and found acceptable to proceed as a custom slaughter/processing facility, that will be the conclusion of Phase I of this project. At that point we will be well prepared to present our facility as a possible model to the Empire State Meat Goat Producers Association and the Small Ruminant Advisory Board, or other interested parties in the northeast.

We will measure the results of Phase II, running the processing plant, by the number of small ruminants actually processed each quarter and through a “users evaluation survey”. We anticipate minimal usage in August and September where we will be able to assess design and management flaws. October, November and December are traditionally busy processing months and we will be able to ascertain the effectiveness of our facility at that point. January, February and March, again less active, will be spent redesigning as indicated by “users evaluation survey”, working with USDA inspectors toward the goal of becoming a certified facility as well as advertising for the busy spring processing season.

The measurement of success or failure of such a project is difficult in a one year span as we feel it will take 3-5 years to assess its usefulness.

6. List your COLLABORATORS:

7. WHO IS YOUR TECHNICAL ADVISOR? All proposals must have a technical advisor such as a county extension agent, NRCS staff, university research or extension specialist, private crop management consultant, etc. A person may be both a collaborator and a technical advisor.

8. OUTREACH PLAN. How will you share the results of your project with other farmers/growers?

We will develop a Web Site as means of sharing the step-by-step renovations and USDA requirements. We hope to have this Web Site linked to site of the Empire Meat Goat Producers Association and any other regional or nationally interested sites.

We will ask to both share our plant as a model and solicit regional producers by requesting to present our information at an ESMGPA meeting. We will do likewise with the members of the Small Ruminant Marketing Advisory Board.

Colleen will also write at least three articles encouraging others to examine our model for publishing in the national and international goat focused periodicals such as: The Goat Rancher, Meat Goat News, and The Goat Farmer. She will also submit shorter essays for publication in small ruminant newsletters.

The Web Site will also advertise the processing facility and solicit use by regional producers and include the schedule availability.

BUDGET WORKSHEET
Please type or print clearly. Attach additional pages if needed.

Project Title: Small Ruminant Meat Processing Plant (through renovation of existing building)

Project Leader: Colleen and Christopher Parsons

Address: Capricorn Hill Farm – 369 Clark Hollow Road – Pine City, New York 14871

Telephone: (607)732-4987

This form, and the accompanying budget justification, must be completed and returned with your application. Use the first column to show how you would use the grant funds in the project. Use the second column to show matching funds, if any. Your contributions of labor, facilities, supplies, etc. should be shown in this column. NRCS staff time, for example, could be shown in this column. If you have questions about completing the form, please call 802-656-0487 for help.

Applicant's Signature: _________________________________________Date:____________

BUDGET JUSTIFICATION

Labor:

Job	Grant funds requested
Christopher Parsons, Plant Manager	$10 per hour x 10 hours per week = 520 hours
Colleen Parsons, Plant Manager	$10 per hour x 5 hours per week = 260 hours
Manual Labor	$10 per hour x 610 estimated hours = 610 hours
Note: We are basing the labor schedule on a very low $10/hour anticipating that Chris and Colleen will be able to do much of the work themselves, though some jobs will require professionals.
Richard Keyser, Attorney for lease review	$125 per hour x 2 hours = 2 hours
Donna Palmer, DTM, Inc. -- Web Site Designer and Consultant	$70 registration to InterNic for 2 years, $99 for one year of web server space with Hypermart, $300 for initial set up of three designed web pages for site, $100 web design program, $300 for web site maintenance instruction by designer.