Anchondo Organic Dairy         Greg Anchondo     FMA 490 Feasibility Study        Dr. Nancy Merlino          May 24, 2012 ...
Executive Summary• Family Owned and  Operated• Cooperative with  Horizon Organic  Dairy©• Certified Organic Dairy  Supplie...
Technology Considerations                                       Dairy CostsLand47 acre land              $704,250Equipment...
Product/Service Marketplace• Market Size   – Less than 100 organic dairy farms in California• Sales Volume   – California ...
Competitive Comparison      Dairy              Strengths                  Weakness             Product(s)Anchondo Organic ...
Marketing Strategy             • World Ag Expo –               Tulare, CA                – Samples                – Brochu...
Organization & Staffing                    Owner                General                Manager     Feeding                ...
Schedule: From Cow to Consumer     Rearing    Processing      Packaging     Harvest     Lab Test        Selling     Storin...
Schedule: TransportationOur dairy travels from our barn in Porterville, CA on a 1,092 mile, 18hourjourney to Broomfield, C...
Financial• Farm Bill 2008  – Section V: Credit     •   Subtitle A: Farm Ownership Loans     •   Subtitle B: Operating Loan...
Years 1, 2, & 3Years 1, 2, & 3                               Year 1      Year 2      Year 3 Net Farm Income Operations    ...
Findings & Recommendations                  • Maintenance                  • Marketing                  • Feed & Fuel Cost...
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Anchondo family organic dairy pp cow

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Anchondo family organic dairy pp cow

  1. 1. Anchondo Organic Dairy Greg Anchondo FMA 490 Feasibility Study Dr. Nancy Merlino May 24, 2012 California State Polytechnic University Pomona
  2. 2. Executive Summary• Family Owned and Operated• Cooperative with Horizon Organic Dairy©• Certified Organic Dairy Supplier• California GA
  3. 3. Technology Considerations Dairy CostsLand47 acre land $704,250EquipmentUsed Milk Tank Truck $117,000 * 4 = $468,000Forage Harvester Used $24,500Used Free Stall Scraper $10,500Large Scale $945.92 * 2 = $1,891.84LivestockCow $2,000.00 * 30 = $60,000.00MilkingEquipment $6,000.00 * 30 = $180,000Hoses $60 * 200 = $12,000CoralPanels $197 * 100 = $19,700Gate $492 * 4 = $1,968Chute $8,700 * 4 = $34,800Crowding tub $3,178 * 4 = $12,712CleaningSupplies $ 1,259 * 30 = $ 37,770IdentificationLeg Bracelets $ 2.69 * 30 = $ 80.70EST. TOTAL $879,085 $828,923EST. GRAND TOTAL GA $1,708,007
  4. 4. Product/Service Marketplace• Market Size – Less than 100 organic dairy farms in California• Sales Volume – California Organic Dairy Sales = $133.5 million• Production Volume – California produced 18% (501.8 million lbs)• Growth Rate – Horizon Organics = 7% (2011-2012) GA
  5. 5. Competitive Comparison Dairy Strengths Weakness Product(s)Anchondo Organic Family Farm, New, No Capital, Organic MilkDairy Supply to Large Lack of Experience Organic Company, and Training rBST & rBGH freeStraus Family Only Dairy in CA to Remote Location Organic: Cream-Creamery run fully Organic in Northern top milk, ice Dairy & Creamery, California cream, yogurt sour rBGH free cream, & butterClover Stornetta 1st Dairy West of Still paying off Organic andFarms Mississippi to offer Organic Natural lines of rSBT free milk Conversion dairyMcClelland’s Dairy Large Family Farm Stick to old Complete line of since 1930 Traditional Ways Dairy of Dairy Farming GA
  6. 6. Marketing Strategy • World Ag Expo – Tulare, CA – Samples – Brochures • Client List – Email – Farm Tour • Horizon Organic Dairy – Commercials, Ads, etc. GA
  7. 7. Organization & Staffing Owner General Manager Feeding Milking Herdman HerdmanFeeder Feeder Milker Milker GA
  8. 8. Schedule: From Cow to Consumer Rearing Processing Packaging Harvest Lab Test Selling Storing Transportation GA
  9. 9. Schedule: TransportationOur dairy travels from our barn in Porterville, CA on a 1,092 mile, 18hourjourney to Broomfield, CO which is the headquarters and processing locationof Horizon Organic Dairy. GA
  10. 10. Financial• Farm Bill 2008 – Section V: Credit • Subtitle A: Farm Ownership Loans • Subtitle B: Operating Loans • Subtitle C: Emergency Loans • Subtitle D: Administrative Provisions• Cost of Milk (/cwt –hundred weight) – USDA $15.85/cwt – Horizon Organic Dairy $28/cwt GA
  11. 11. Years 1, 2, & 3Years 1, 2, & 3 Year 1 Year 2 Year 3 Net Farm Income Operations $ 148,347 $ 50,000 $ 20,000Rate of Return on Assets 9% 12% 5%Rate of Return on Equity 9% 15% 5%Operating Profit Margin 20% 25% 15%Asset Turnover Ratio 46% 45% 30%operating Expense Ratio 71% 50% 60%Depreciation Expense Ratio 1% 10% 15%Interest Expense Ratio 1% 10% 15%Net Farm income Ratio 27% 35% 25%Current Ratio 117503 1.75 1.25 Working Captial $ 107 $ 65,000 $ 32,500Debt/Asset Ratio 6% 40% 50%Equity/Asset Ratio 94% 60% 50%Debt/Equity Ratio 7% 67% 80% GA
  12. 12. Findings & Recommendations • Maintenance • Marketing • Feed & Fuel CostsFeasible? YES GA

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