Executive SummaryLocation:Iowa Fresh Farms, LLC plans to locate in    BUSINESSNorth Central Iowa.                         ...
   Dairy Demand:Worldwide demand for dairy will increase greatly in the Asian markets due to        population growth and...
BUYER ADVANTAGES: The Value PropositionIowa Fresh Farms, LLC will deliver higher value than the competition to processors,...
PROJECT: 5,000-COW DAIRY w/ on-site WASTE-TO-FUELGoals: to form a business with Asian investors to produce milk, meat, fue...
NORTHERN BIO-AG SYSTEMS                                                jim.merf@hotmail.com       Inputs: Corn, corn silag...
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Executive summary


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Executive summary

  1. 1. Executive SummaryLocation:Iowa Fresh Farms, LLC plans to locate in BUSINESSNorth Central Iowa. Iowa Fresh Farms, LLC will operate a sustainable bio-ag campus comprised of a 5,000-cow dairy operation withType of Company: waste-to-fuel renewable energy facility and waterIowa Fresh Farms, LLC will be an purification unit in north central Iowa that will supply milk,investor owned producer of milk, heifers, heifers, beef, synthetic diesel fuel, bio-char, purifiedmeat, energy, synthetic diesel fuel, water, other value added by-products and carbon creditspurified water, bio-char and other value to area markets.added by-products; developed by themanagement company of Northern Bio-Ag Systems, LLC, James and Marilyn ChallengeMerfeld, owners. World population and demand for food and energy is growing while at the same time scientists and consumersFounding Date: are increasingly concerned about sustainability. TheIowa Fresh Farms, LLC expects to begin International Dairy Federation, whose members representoperations in 2013. 82% of the world’s total milk production, considers climate change and greenhouse gas emissions to be theNumber of Employees: biggest environmental challenges facing the global dairyIowa Fresh Farms, LLC expects to st industry in the 21 century.employ 56 full time persons. SolutionLegal Representation:Dylan J. Thomas The sustainable and integrated production methods30 2nd StreetNE designed for Iowa Fresh Farms, LLC meet consumerMason City, IA50401 demands through environmentally responsible641-424-8066 approaches that contribute to the economic and social well-being of local communities. Waste-to- fuel manureAccounting/Audit: handling systems are recognized as a carbon neutralRenner &Birchem, PC approach that reduces methane emissions whileDennis Renner, CPA achieving broad environmental benefits. These systems109 2nd Street NE are recognized by AgSTAR, a program jointly sponsoredMason City, IA50401 by the U.S. EPA, U.S. Dept. of Energy and USDA.641-423-7155 MISSIONKey Investment Points: To create food and renewable energy today for a more Leading edge sustainable food and sustainable future tomorrow through creation of a bio-ag energy production system offers: campus that maintains harmony with the environment,  Economic benefits, enhances life-style satisfaction in rural Iowa, and improves economic opportunity.  Environmental benefits,  Community benefits. MARKET DRIVERS Waste-to-fuel technology designed by team of industry leaders creates value.  Sustainable System: Consumers, processors and Dairy technology proven in the Midwest othersin the values chain are considering the carbon supports production efficiencies. footprint and other sustainability measures of products they buy. Professional management provides experienced leadership.  Energy Demand: Synthetic diesel is a high octane/low sulphur renewable fuel that meets EPA/DOT Highly supportive feedback from State th specs and has a -20 degree gelling temperature. Senator Merlin Bartz(6 Distict of IA), Scott Jones, R&D Engineer, Marion Mixers and Spenser Rahm, financial advisor, EdwardJones.
  2. 2.  Dairy Demand:Worldwide demand for dairy will increase greatly in the Asian markets due to population growth and increased standard of living.  Quality Products: Customers value high quality reliable suppliers of milk, beef, renewable synthetic fuels, bio-char fertilizer and value added by-products. COMPELLING BUSINESS OPPORTUNTIY  Modern Sustainability:The bio-ag campus systems are designed to reduce undesirable environmental impacts while producing human benefits.  Efficiency Innovations: The bio-ag campus concept drives production and energy efficiency through optimal scale and scope; along with recycling and full utilization of water, heat, manure and other wastes.  Managed Economic Risks: Multiple streams of revenue, state of the art technology, and professional management facilitates achievement of production goals and reduces the impacts of price volatility.  Market Access: Nearby interstate, railroad, gas pipeline, and electrical grid provide access to multiple milk, dairy heifer, energy, beef, and by-product markets.  Community Benefits: The business is aligned with local community goals to create good jobs, attract young people, increase local investment, and enhance quality of life in rural areas.  Strategic Partnerships:Relationships have been established with technology providers such as Marion Mixers, Renewable Energy Resources, Landmark Commercial Builders and product buyers such as Swiss Valley Farms Company.INVESTOR ADVANTAGES: The Business CaseIowa Fresh Farms, LLC will deliver higher returns on investment than the competition through aboveindustry average efficiency and attention to economic, environmental and community sustainability. Thebusiness will employ professional and experienced managers who will maximize use of technology andfacilities to become a reliable producer of milk, replacement heifers, beef, synthetic diesel fuel, bio-char,purified water, other value added by-products and carbon credits.Profitability and sustainability are highly influenced by milk quality and feed efficiency. The new bio-agcampus will be built for modern cow comfort and allow for efficient milking, veterinary care and feedhandling processes. Iowa Fresh Farms, LLC will prioritize management of milk quality to generate qualitypremiums, increase cow productivity/efficiency and reduce cost of production.The bio-ag campus will include leading edge technology and systems approaches to enhanceenvironmental sustainability through biogas recovery systems, reduced energy use, and full utilization ofwater, heat, compost and other wastes; while utilizing natural biological processes to produce a broadscope of products. Iowa Fresh Farms, LLC will measure environmental impacts through Life CycleAssessment methods and prioritize management to reduce negative effects.Northern Iowa is an especially appropriate area to consider establishing a large dairy operation. People inthe region generally respond positively to economic development opportunities involving agriculturalproduction, processing and value-added activities. Iowa Fresh Farms, LLC will manage for favorable farmand community cooperation as an integral part of a sustainable agricultural system.
  3. 3. BUYER ADVANTAGES: The Value PropositionIowa Fresh Farms, LLC will deliver higher value than the competition to processors, utilities, farmers andother customers through above industry average quality, volume and sustainability.MANAGEMENT TEAM / STATUSIowa Fresh Farms, LLC will be an investor owned Limited Liability Company owned by multiple investorswith representation on a Board of Directors. Northern Bio-Ag Systems, LLC, owned and operated byJames and Marilyn Merfeld, is a management company that is providing development and managementleadership and services to put together the management team, conduct the investment offering, andoversee implementation of the Iowa Fresh Farms, LLC business plan.Iowa Fresh Farms, LLC will be operated by professional and experienced management. The GeneralManager will be assisted by five mid-level managers in the areas of: Finance, Marketing, HumanResources, Dairy Production and Energy Production. The Dairy Production Manager will be assisted byan additional four mid-level managers in the areas of: Veterinary Care, Dairy Herdsmanship, Nutrition,and Maintenance. These ten professionals will serve as the management team of Iowa Fresh Farms,LLC. They will be responsible for carrying out the strategy and operational goals of James and MarilynMerfeld and the investor owners as directed by the Board of Directors.FINANCEThe bio-ag campus will require $42 M to locate, build and begin dairy operations, including $21 M (50%)in owner equity. Total dairy sales revenue is projected at $17 M in Year 1, growing to $ 22 M in Year 3when the business is fully operational. The waste-to-fuel portion of the campus will require $22M toconstruct a closed-loop reactor system to process biomass into synthetic diesel fuel and bio char fertilizer.This process will generate an additional $15M annually for the bio-ag campus.
  4. 4. PROJECT: 5,000-COW DAIRY w/ on-site WASTE-TO-FUELGoals: to form a business with Asian investors to produce milk, meat, fuel, soil amendment and variousby-products in Iowa for shipment by containers via rail and ship to Asia. Provide jobs in both Iowa and inAsia. Provide food and energy to the rapidly growing Asian population.Products (Dairy): Whole Milk – dried here and shipped for further processing into fluid whole milk, cheese, yogurt,ice cream – products of end-user choice. Beef – Dairy Steers and culled Milk Cows slaughtered & quartered here then shipped inrefrigerated containers for further processing of meat & hides in Asia.Manure- A constant, consistent supply of feedstock for “Waste-to-Fuel” production.Dairy heifers-Use if sexed-semen enables birth to 80% heifer calves for replacement milkers in USproduction and heifers sent to Asia Dairy project.Products (Waste-to-Fuel): Fuel- synthetic diesel fuel through microwave depolymerization. 1. Used for generation ofelectricity for dairy. 2. Sell to local jobber. 3. Ship to Asia for use as is or for further refinement asdemand requires. Fuel is high octane, low sulphur, low gelling point and less than $1/gallon to produce.12,000 gal/day Bio-char- High quality soil amendment for commercial sale in the U.S. or overseas. 1. Qualitycontrol retains N, P & K from feedstock. 2. Holds nutrients for plant use and does not leech from the soil.3. Improves soil quality and production. Holds water, reduces chemical runoff, increases crop yields,reduces fertilizer needs. Carbon is sequestered in the soil. Income potential of $500/ton.45 tons/day. Distilled Water- for use in dairy reducing the need for excess groundwater.End Results: Job Creation-both direct and indirect jobs in Iowa(production) andin China(further processing). Duplication- Multiple dairy/fuel projects in Iowa and in Asia. Food Production- Milk & meat for an ever more rapidly expanding world population. Reduce Waste -Organic waste products (manure, stover, grass, sawdust, hulls, waste paper, etc.)Renewable Fuels & Bio-char- Energy from waste materials. Transportation: Trucking, Rail Containers, Ocean liners.
  5. 5. NORTHERN BIO-AG SYSTEMS jim.merf@hotmail.com Inputs: Corn, corn silage, hay, distillers grains, hulls, stover, various dry matter. 5,000 COW WASTE-TO- MANURE DAIRY Consistent Feedstock FUEL 150Tons/day Distilled Water MILK MEAT 48,000 gal/day JOBS 3 JOBS 30 permanent 10 SYNTHETIC DIESEL Renwable 15 part-time 3 High Octane/Low Sulphur Economically produced Low temp gel properties Use current infrastructure Further refinement-jet fuel Meets or exceeds EPA/DOT specs bb 12,000 gal/dayBENEFITS:New market for Iowa farm productsReduce dependence on foreign oilFood production for a growing world populationReduce greenhouse gas emissionsCreate permanent jobsEconomic multiplier effectIncrease soil fertility by retention of nutrients BIOCHAR Enriches Soil Retains N-P-K from feedstock All N-P-K available to plants Holds N-P-K for plant absorbtion Filters rain water Figures are for a 2-module system Reduces leeching Daily production per module: 75T of Lessens fertilizer costs feedstock=6,000gal/fuel & 22.5 T/biochar 45Tons/day