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Setting up a Mini Processing Facility
- 1. Setting Up a Mini Processing Facility Kathy Keylor Kathy’s Kitchen Virginia, IL
- 2. The Basics • Setting Up a Mini Processing Plant • Equipment and Facilities • Quality Control • Pricing • Records • Marketing • Distribution
- 3. If You Build It They Will Come Works Only If You’re In “A Field of Dreams” Or Happen to be Kevin Costner! But It’s O.K. to Have a Dream
- 4. Getting Started • Finding Your Niche • And Be Very Good at doing It Find Something People Need Or Something They Think They Need
- 7. Getting It Right Right From the Start Local Health Departments State Health Department FDA Better ProcessControl School
- 8. Determining Which Agency Has Oversight Local – County or City State - Health Dept or Dept of Ag Federal – FDA or USDA
- 9. The Physical Plant Facility Location Zoning Water and Sewer Expansion Deliveries Parking
- 12. Acquiring the Tools Tools Aimed at Producing Quality PH Saline Sweetness
- 25. Raw Ingredients Seasonal? What do you do if demand exceeds supply?
- 37. Labor Quality versus quantity Family and Friends Rules
- 38. LABOR COSTS Wages, Social Security Medicare State Unemployment Federal Unemployment Withholding Quarterly Reports Annual reports
- 39. Business Costs • Ingredients • Supplies • Repairs and Maintenance • Labor and Employment taxes • Utilities • Insurance • Taxes
- 40. General Guidelines for Expenses Raw Ingredients 35% Labor 35% Overhead 15% Repair and Replace/New 4% Losses 1% Profit? 10%
- 41. More Costs • Office and Printing and labels • Advertising and Marketing • Distributors’ Charges • Equipment purchases • Farm and Fleet (replace and repair)
- 44. ITEM Size Each Dozen ITEM Size Each Dozen Apple Butter Pint $3.00 $36.00 Beet Pickles Pint $2.75 $33.00 Apple Butter 1/2Pt $2.50 $30.00 Blue Ribbon Sweet Chips Pint $2.75 $33.00 Apple Jelly 1/2Pt $2.50 $30.00 Bread & Butter Pickles Pint $2.75 $33.00 Apricot Preserves 1/2Pt $2.50 $30.00 Chili Sauce Pint $2.75 $33.00 Blackberry Jam 1/2Pt $2.50 $30.00 Chow Chow Pint $2.75 $33.00 Blackberry Jelly 1/2Pt $2.50 $30.00 Corn Relish Pint $2.75 $33.00 Blk Raspberry Jam &Jelly 1/2Pt $2.75 $33.00 Corn Salsa Pint $2.75 $33.00 Blueberry Jam 1/2Pt $2.50 $30.00 Dill Pickles Pint $2.75 $33.00 Blueberry Jelly 1/2Pt $2.50 $30.00 Dilled Asparagus Tips Pint $4.00 $48.00 Blueberry Preserves 1/2Pt $2.75 $33.00 Dilled Broccoli Pint $2.75 $33.00 Boysenberry Jam & Jelly 1/2Pt $2.75 $33.00 Dilled Brussel Sprouts Pint $2.75 $33.00 Cherry Jelly 1/2Pt $2.50 $30.00 Green Tomato Pickles Pint $2.75 $33.00 Cinnamon Apple Jelly 1/2Pt $2.50 $30.00 Green Tomato Relish Pint $2.75 $33.00 Corn Cob Jelly 1/2Pt $2.50 $30.00 Jalapeno Pepper Relish Pint $2.75 $33.00 Gooseberry Jam 1/2Pt $2.50 $30.00 Lime Pickles Pint $2.75 $33.00 Gooseberry Preserves 1/2Pt $2.50 $30.00 Mexican Salsa Pint $2.75 $33.00 Grape Jelly 1/2Pt $2.50 $30.00 Mild Salsa Pint $2.75 $33.00 Jalapeno Jelly 1/2Pt $2.50 $30.00 Mildly Hot Salsa Pint $2.75 $33.00 Peach Butter 1/2Pt $2.50 $30.00 Pickled Garlic 1/2Pt $2.75 $33.00 Peach Jelly 1/2Pt $2.50 $30.00 Pickled Mixed Veggies Pint $2.75 $33.00 Peach Preserves Pint $2.50 $30.00 Red Cinnamon Pickles Pint $2.75 $33.00 Pear Honey 1/2Pt $3.00 $36.00 Salsa Verde Pint $2.75 $33.00 Plum Jam & Jelly 1/2Pt $2.50 $30.00 Spicy Cauliflower Pint $2.75 $33.00 Pumpkin Butter Pint $3.00 $36.00 Sweet Basil Peppers Pint $2.75 $33.00 Pumpkin Butter 1/2Pt $2.50 $30.00 Sweet Pepper Relish Pint $2.75 $33.00 Red Raspberry Jam 1/2Pt $2.50 $30.00 Sweet Pepper Rings Pint $3.00 $36.00 Red Raspberry Jelly 1/2Pt $2.50 $30.00 Sweet Pickle Relish Pint $2.75 $33.00 Red Tomato Preserves 1/2Pt $2.50 $30.00 Sweet Salsa Pint $2.75 $33.00 Rhubarb Preserves 1/2Pt $2.50 $30.00 Vidalia Mustard Relish Pint $2.75 $33.00 Rhubarb - Strawberry Pres. 1/2Pt $2.50 $30.00 Vidalia Onion Relish Pint $2.75 $33.00 Strawberry Jam 1/2Pt $2.50 $30.00 Watermelon Pickles Pint $2.75 $33.00 Strawberry Jelly 1/2Pt $2.50 $30.00 Zucchini Pickles & Relish Pint $2.75 $33.00
- 45. And the Paper Piles Up • Labor • Retail Sales • Wholesale Sales • Receipts, Receipts, and more Receipts
- 48. In Summary • Think it Through • Test the Waters • Try Your Best • Tackle the Challenges • Track the Success (and failures) • Trust • It’s O.K. to Start Small but Think Tall
Editor's Notes
- We’ll try to cover these items, not necessarily in this order, or in any order.
- A Proccessing Plant takes al lot of planning and thought. Not to mention a lot of work and commitment.
- What is your specialty crop? What can be made from it that adds value to your bottom line? For us it was a matter of evolution. We really built the reputation locally as a winning cook and it took off from there. Must have consistent quality Locally made not synonymous with quality.
- Department of Agriculture, University Cooperative Extension
- Build it by the Book Close to Home, but maybe not attached (odors and acid)
- Supply fluctuates means you have to do a whole lot in a short period of time and may have to find additional suppliers Your cost may fluctuate but you are expected to remain somewhat stable Some ingredients are purchased (vinegar, sugar, spices)
- What do you do if you’ve built a business and your apple crop looks like this?
- Pallets are 8 ft tall - approx 70,000 jars $.25 per jar plus lids $.15 (approx 30,000 lids to a pallet) 14 ft ceiling
- Social Security .124 (12.4% Medicare .029 (2.9%) State Unemployment (Dept of Employment Security) .0065 FUTA .008
- How much does it cost you to grow or acquire?
- Overhead includes utilities, taxes, insurance
- Things to think about when considering labels, durability, Cost, variety of products Distributor Cost = around $2.00 - $3.00 per case
- Easier said than done