Agenda - 12-11-2007-3d - Laserfiche WebLink

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Executive Summary From June to November 2007, a feasibility study was conducted on establishment of a regional shared use food and agricultural processing center serving Alamance, Chatham, Durham, and Orange counties by Mr. Smithson Mills of Mars Hill College. Contracted deliverables included measuring community demand, identifying suitable physical sites for project development, and identifying organizations and individuals able to lead development of the project. Estimated overall cost of project development and ongoing operational costs after the facility is open for food processing were also determined. The four-county area has several positive characteristics for the development of a regional value added food and agricultural processing facility, including: • A strong entrepreneurial presence; • An existing local food production, distribution and sales system; • Awell-established "buy local" movement; • A culinary education program at the community college level; • A lack of available approved manufacturing space for entry-level food businesses; • Measured strong demand from potential facility clients. Over a three month period, 62 valid surveys were returned from small businesses and individuals wishing to commercially manufacture food products at a shared use facility. These include farm-based producers, restaurateurs, caterers, and food entrepreneurs manufacturing shelf stable foods for wholesale distribution. The quantity and quality of the survey responses indicates that the region has sufficient demand for development of a regional facility with a wide range of food processing equipment and that is scalable for future expansion. Business development support and education, especially training in starting afood-based business, developing business plans, and meeting food safety requirements, are needed components of a shared use facility. Based on survey responses, client use at the facility is estimated at 142 production hours per week after the end of the first year of operation. On a 50-week basis and at an average use fee of $22 per hour, the facility maybe able to generate more than $150,000 in fees in its second or third year of operation. In the same timeframe, gross income for clients manufacturing at the facility should range between $800,000 and $1.2 million per year. Survey responses show demand for the most commonly used equipment found in regional shared use food processing centers throughout the country. Equipment needed for first phase acquisition is listed and priced at $354,756. This cost may be substantially reduced with donated equipment from area supermarkets and restaurants. Sixteen farm-based local meat producers requested value added meat processing at a shared use facility. Because regulatory oversight for meat processing is quite demanding 4