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Feasibility Study; Meat Processing Facility A Collaborative Cooperative
Salmon ID, Challis ID, MacKay ID
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Project Team:
• Daniel R. Robles; PE, MBA, Director of Coengineers, PLLC, A professional engineering and business analysis corporation located in the State of Washington
• John Harper, under contract to Coengineers, University of California Cooperative Extension Mendocino & Lake Counties California
• Dr. Robert Needham; Project Manager and advisor to the Salmon Valley Meat Processing Cooperative,
• Salmon Valley Meat Processing Cooperative Steering Committee, representing the towns of Challis, Salmon, and MacKay Idaho
Reference As: Robles, D.R. 2014; Feasibility Study; Meat Processing Facility, Salmon Valley cooperative, Challis, Mackay, Salmon Idaho. Community Engineering Services, PLLC and adaptations of the following works by: (1) Hardesty, S and J. Harper 2013 University of California Cooperative Extension; Mendocino County Meat Plant Study – Staying Local; Public Domain per U.S. Department of Commerce Award No. 07 79 06702; (2) University of Idaho: Strategies to Increase Prosperity For Small Farms Through Sustainable Livestock Production, Processing And Marketing 2014. (3) Oklahoma State University, Dr. Rodney Holcomb, Templates for meat plant feasibility studies. Acknowledgements: Community Engineering Services, PLLC is especially grateful to the general openness and spirit of collaboration among small-‐scale food producers who contributed generously to this report. A large volume of data, information, knowledge, innovation, and wisdom was readily and openly available from hundreds of groups and researcher who have tried many different ways to achieve the ideal of small-‐scale meat plant production. We offer a special thanks to John Harper from the University of California Extension for consulting to this project. His deep knowledge and experience in ranching a meat processing was the ideal compliment to our engineering and operations focus. His prior work in California was a near perfect match upon which to base a feasibility document for his neighbors in Salmon Valley, Central Idaho. The following list is not exhaustive since these people all cite the experience of those who came before them, and in many cases, they cite each other’s work. The small meat processing movement is blessed with a true spirit of collaboration.
Island County Cooperation Puget Sound Meat Processing Co-‐op
CPoW Livestock Processors Coop–Odessa WA Taos Economic Development Corporation
University of California, Extension Svcs Polar King Industries
Mike Callicrate; Ranch Foods Direct TriVan Conversions
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CONTENTS: Project Team 2 Reference as 2 Acknowledgements 2 Contents 3 Executive Summary 5 Introduction 9 Analysis and Demand For USDA Processing 10 General Trends in Local/Specialty Meat 10 Demand for local Meat Processing 11 Livestock Production in Central Idaho 12 Rancher Survey of Potential Utilization 16 Cooperative Business Structure 17 What Works / What Doesn’t 17 Case Studies 20
Island Growers Farmer’s Cooperative 20 Taos County Research Institute 22 Mike Callicrate MPU 23 Puget Sound Meat Producers Cooperative 26 Cooperative Processors of Washington 29 Mendocino County Feasibility Study 30
SVC Plant Requirements 32 USDA Regulations 32 Wastewater Management 33 Composting and Rendering 34 SVC Plant Options 36
Three Phase Approach 40 Option A; Phase 1 40 Option A; Phase 2 42 Option A; Phase 3 44 Option B 45
Risk Assessment and Mitigation 47 Degree of Processing 48 Site Selection 51 Coop Shared Responsibility 52 Summary Conclusion 54 APPENDIX A: Position Descriptions; Management/Staff 51 APPENDIX B: Financials; Worksheets 62 APPENDIX C: Additional Case Studies 78 APPENDIX D: Meat Processors In Idaho 84 APPENDIX E: Resources, Training, And Consultants 87 Bibliography 91
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TABLES: Table 1-‐1: Summary Of Options 6 Table 1-‐2: Risk Adjusted Returns 6 Table 2-‐1: U.S. Retail Beef Sales between 2012-‐2013 11 Table 3-‐1 Processing Scenarios and Markets Served 15 Table 4: Cost Estimates for fixed facility, Mendocino County Feasibility Study 31 Table 5: Estimate of Upfront Start-‐up Project Costs for Two Options 39 Table 6A and 6B; Conversion Tables for EAU and total Head Count 40 Table 7: Operating Assumptions for Revenue Calculations 40 Table 8: Option A, Phase 1: Personnel Costs 41 Table 9: Option A, Phase 1: Start-‐up and Personnel Costs 41 Table 10:
