6/5 draft given to Dan, Denis and Nelson for their = reviewed

From: Subject: 6/5 draft given to Dan, Denis and Nelson for their reviewed Date: Fri, 7 May 2010 11:08:54 -0400 MIME-Version: 1.0 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Content-Location: http://web.archive.org/web/20040821035952/www.csrees.usda.gov/newsroom/newsletters/smallfarmdigest/fall99.html X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.5579 6/5 draft given to Dan, Denis and Nelson for their = reviewed

VOLUME 3, NO. 1 =96=20 FALL 1999
REVISED VERSION = =96=20 9/2/99

Small Farm = Digest=20 is published three times a year by the Cooperative State = Research,=20 Education, and Extension Service, United States Department of = Agriculture=20 (USDA), Washington, D.C. 20250-2220.

The Secretary of Agriculture has determined that = this=20 periodical is necessary in the transaction of public business = required by=20 law.

Dan Glickman,=20 Secretary
U.S. Department of Agriculture

I. Miley Gonzalez, Under = Secretary
Research, Education, and = Economics

Charles W. Laughlin,=20 Administrator
Cooperative State Research, Education, = and=20 Extension Service

Stephanie = Olson, Editor=20 (202-401-6544)

Dave = McAllister, Staff=20 Writer/Editor (202-720-7185)

Arabella = Juarez, Art=20 Director (202-720-4338)

Readers wishing to contribute items to Small Farm Digest may send = their=20 submissions to Stephanie Olson, Editor, Small Farm Digest, CSREES, = USDA,=20 Mail Stop 2220, 1400 Independence Ave., S.W., Washington, DC = 20250-2220 (or=20 call 202-401-6544; fax 202-401-1602; e-mail solson@reeusda.gov). = Unless=20 otherwise stated, information in this publication is public property = and may=20 be reprinted without permission.

Reference to any commercial product or service is = made with=20 the understanding that no discrimination is intended and no = endorsement by=20 the U.S. Department of Agriculture is implied.

Small Farm = Digest=20 is available on the CSREES home page (www.reeusda.gov/smallfarm).=20

Subscriptions to Small Farm=20 Digest are available to the public at no charge. To = subscribe=20 to Small Farm Digest, = discontinue a=20 subscription, or change an address, contact Small Farm Program, = Plant and=20 Animal Systems, U.S. Department of Agriculture, Mail Stop = 2220, 1400=20 Independence Ave., S.W., Washington, DC 20250-2220 (or call 202-401- = 6861 or=20 1-800-583-3071; fax 202-401-5179). For an address change, please = include=20 your Small Farm Digest = mailing=20 label.

Small Farm = Digest=20 is printed with soy-based ink on paper containing a minimum of 50 = percent=20 waste paper. Small Farm = Digest is=20 recyclable.

CSREES Small Farm Program=20 Staff

Denis = Ebodaghe=20 National Program Leader(202-401-4385 or=20 debodaghe@reeusda.gov)

Enrique "Nelson" = Escobar=20 National Program Leader/IPA (202-401-4900 or = eescobar@reeusda.gov)=20

Stephanie = Olson=20 Editor, Small Farm Digest (202-401-6544 or = solson@reeusda.gov)=20

William Scott = Office=20 Automation Assistant (202-401-4640 or = wscott@reeusda.gov)

The U.S. Department of Agriculture (USDA) = prohibits=20 discrimination in all its programs and activities on the basis of = race,=20 color, national origin, gender, religion, age, disability, political = beliefs, sexual orientation, and marital or family status. (Not all=20 prohibited bases apply to all programs.) Persons with disabilities = who=20 require alternative means for communication of program information = (Braille,=20 large print, audiotape, etc.) should contact USDA=92s TARGET Center = at=20 202-720-2600 (voice and TDD).

To file a complaint of discrimination, write = USDA,=20 Director, Office of Civil Rights, Room 326-W, Whitten Building,=20 14^th and Independence Ave., S.W., Washington, DC = 20250-9410, or=20 call 202-720-5964 (voice or TDD). USDA is an equal opportunity = provider and=20 employer.

Should You Get Into = Value-Added Food=20 Products?

Economic forces, federal farm policies, and = consumer=20 choices are causing small farmers to look at the business of farming = in new=20 ways. Today=3Ds = successful farmers=20 are, of necessity, increasingly becoming small business=20 entrepreneurs.

Many small farm experts and policy makers across = the nation=20 believe that local value-added agricultural food production =96 = where farmers=20 assume more processing steps and sell through direct marketing = techniques =96=20 is a critical strategy to sustain many small farmers and their = communities.=20

The world=92s agricultural trade is rapidly = shifting from=20 commodities to products. Consumers are demanding products with = traits to=20 meet their specific needs. Global competition is intense. =

To survive in today=3Ds dynamic market, small = farmers must=20 interpret market signals accurately. They must carefully consider = what mix=20 of crops and other agricultural products will maintain crop = diversity and=20 flexibility, and provide more value-added farm income. =

Value-Added = Defined.=20 Value-added means adding features =96 desirable to customers =96 = to a raw=20 agricultural, marine, aquacultural, or forestry material used to = make a=20 product. Drying, canning, juicing, combining ingredients, = handcrafting, and=20 unique packaging and marketing techniques can add value. =

Everyone who adds value to a product as it goes = from farm=20 to consumer gets paid. Vertical integration =96 the farmer doing = production,=20 processing, and distributing =96 can be good for those farmers who = are willing=20 and able.

Many farmers have not gone into value-added food = products=20 because they are concentrating on what they have traditionally done = best =96=20 producing a commodity. Doing more of the processing and marketing = activities=20 involved in the marketing chain takes time, skill, and extra labor.=20

Value-added examples include:

Producing a tomato herb barbecue sauce may = earn more=20 profit for a producer than selling tomatoes and herbs=20 separately.
23 rancher members of the Rocky Mountain Beef=20 Cooperative in Colorado do a growing business by producing = USDA-certified,=20 all-natural beef for discerning customers, high-end restaurants, = and=20 health food supermarkets.

Customer Preference=20 Trends. Today=3Ds=20 customers want taste, nutrition, freshness, variety, and convenience = in=20 foods. Baby Boomers want products that promote health. Ethnic = populations=20 want foods from their cultural heritage. Kosher, halal, and organic = foods=20 are increasingly in demand. Knowing food preferences of particular = customer=20 groups can help farmers target products to specialized=20 markets.

Pros and Cons. = Direct=20 marketing, niche markets, and value-added processing offer farmers a = share=20 of the 50 percent of the food dollar now going to so-called = "middlemen."=20 Value-added based food is the fastest growing segment of the food = industry.=20

Unique value-added products can be marketed to = select=20 groups willing to pay higher prices for quality. The key is finding = a unique=20 niche for your specialty product and a customer base. =

Getting a new product into the highly competitive = retail=20 market is difficult. Food processing giants have an edge on = processing=20 efficiency and production costs. At least two out of every three new = food=20 products introduced fail, due mostly to lack of customer appeal. = Only one in=20 five new businesses succeeds for more than three years. Failure to = develop=20 and analyze cash-flow statements is a leading cause.

It takes time to sell a new product concept to = retailers.=20 Can you afford to invest in a new product for about three years = before=20 making a profit? This is often the length of time needed to break = even.=20

Market success depends on many factors, including = finding=20 new ways to add value to products, having a good product customers = want,=20 using appropriate technology to save processing costs or increase = quality,=20 and finding new markets.

RESOURCES FOR NEW VALUE-ADDED = FOOD=20 PRODUCERS

Taking an old family recipe or new food = innovation into the=20 marketplace requires technical and marketing assistance and capital=20 investment.

Your Land-Grant = University=20 Resource. For information on how to process and market an = agricultural product, turn to the small farm coordinator or = value-added=20 agriculture specialist at your state land-grant university. To = access=20 directories, see the CSREES Small Farm Program website=20 (www.reeusda.gov/smallfarm).

Many land-grant universities have food processing = centers=20 specifically designed to promote value-added processing. Examples = include=20 the Institute of Food Sciences in Arkansas-Fayetteville at the = University of=20 Arkansas, the Food and Fiber Center at Mississippi State University, = the=20 Food Processing Center at the University of Nebraska-Lincoln, and = the=20 Oklahoma Food and Agricultural Products Research and Technology = Center at=20 Oklahoma State University.

Through entrepreneurial assistance programs, = center=20 specialists offer a wide range of advice, free or for a small fee, = on site=20 or in regional short courses, to those developing new food=20 products.

Most centers are equipped with scaled-down = versions of=20 industry food processing facilities for meats, cereals, dairy = products,=20 fruits, and vegetables, including specialized equipment for thermal=20 processing, drying, freezing, packaging, milling, baking, and = fermentation.=20 University food scientists can assist producers with processing, = testing,=20 and product development on a small scale.

These centers allow small entrepreneurs to work = with=20 university technical staff to develop new products, evaluate = ingredients,=20 test new equipment, or explore other manufacturing techniques = without=20 investing in equipment.

The Food Processing Center at the University of=20 Nebraska-Lincoln offers a unique service =96 the Customer Processing = Network.=20 This is a confidential database of existing food processors, their=20 capabilities, down time or excess processing capacity, and contract=20 information. The Center puts entrepreneurs and existing food = manufacturers=20 in contact with processors; helps source ingredients, containers, = and new=20 and used equipment; advises about packaging; and helps find = available=20 buildings for processing facilities.

Other = Resources.=20 Organizations like the Agricultural Utilization and Research = Institute=20 (AURI) in Minnesota, a nonprofit corporation, offer similar = marketing=20 assistance and processing facilities to food and non-food = entrepreneurs.=20

University Discoveries = of New Food=20 Products. New value-added products, businesses, and jobs = can=20 result when university researchers investigate new plant and animal=20 products. University researchers work with farmers in field trials = of=20 promising agricultural products and partner with industry and = farmers when=20 an idea merits commercialization.

Four Oklahoma State University researchers = utilized the=20 heart-healthy properties of pecan oil and its potential for salad = dressings=20 while investigating oil extraction of pecans to extend shelf life. = They=20 worked with the Oklahoma Pecan Growers Association to identify Bob = Knight,=20 an innovative small farmer who agreed to experiment with new = products in the=20 university food processing facilities.

Knight plans to begin test-marketing a variety of = pecan oil=20 products under his Knight Creek Farms label.

Business=20 Resources. Each state has a development center = under the=20 Small Business Administration (SBA) that offers help to expand=20 agriculturally related businesses. These centers are listed in your = phone=20 directory government pages.

SBA also funds the Service Corps of Retired = Executives=20 (SCORE) =96 retired and active executives who offer free expertise = to small=20 businesses. State chapters are listed in your telephone business = pages.=20 State economic development agencies, chambers of commerce, = manufacturers and=20 suppliers of small business products and services, and small = business or=20 industry trade associations offer help to = entrepreneurs.

CONSIDERATIONS FOR A NEW FOOD = ENTREPRENEUR=20

Market Research. = Is there=20 a market for your product? Identify your competition and = potential=20 customers. Then decide what to produce, what ingredients to use, and = how to=20 package and market your product.

Business Structure. Will you be the sole owner, = have a=20 partnership, belong to a community-owned cooperative, or have = another form=20 of business?

Business = Plan. Develop a=20 business plan that details company information, product or service=20 description, operations and marketing plan, management team, time = line,=20 critical risks, community impacts, and a financial plan. =

Liability. = Carefully=20 consider insurance for product, premise, and employer=3Ds liability, and for = physical=20 damage.

Regulations. = Contact your=20 state to learn about current registration, licensing, and zoning=20 requirements from federal, state, county, and city agencies for your = type of=20 operation.

Technology. Keep=20 up with technological advances relating to your = product.

Food Safety. = Food has a=20 legal and regulating structure of its own that sets it apart from = any other=20 business because it is so directly related to consumer health. Food = safety=20 is a major issue.

The U.S. Department of Agriculture regulates meat = and=20 poultry products. The U.S. Food and Drug Administration regulates = other=20 products. Contact your state department of agriculture to find out = current=20 rules. Understand relevant health and regulatory issues before = identifying=20 appropriate processing procedures for your food product. Hazard = Analysis=20 Critical Control Points need to be identified and monitored to = ensure that=20 food safety requirements are met and liability risks are minimized. = See=20 websites below for information.

www.foodsafety.gov/

Gateway to Government Food Safety Information =96 = from=20 federal, state, and local government agencies.

vm.cfsan.fda.gov=20

FDA Center for Food Safety and Applied Nutrition = =96=20 information on food additives and pre-market approval, food labeling = and=20 nutrition, the 1999 Food Code, and food labeling questions and=20 answers.

www.fsis.usda.gov/

Food safety rules for meat, poultry, and seafood = as=20 detailed in the Hazard Analysis Critical Control Point (HACCP) rules = accessed through USDA=3Ds Food=20 Safety and Inspection Service at phone 202-720-9113 or this=20 website.

Confidentiality=20 Agreements. A lawyer can draw up a confidentiality = agreement,=20 which allows you to discuss your idea with others from whom you need = advice=20 or services, while protecting your idea from theft.

Processing Regulations.=20 Processing regulations vary among states. State health=20 departments, university food science departments, and food tech = centers can=20 describe processing rules.

Trade Name Searches, = Patents, and=20 Copyrights. Do a trade name search before giving your = product a=20 name to be sure that no other business is already using it. = Infringing on a=20 trademark or copyright can result in substantial legal liability. = Consider=20 protecting your product by trademark and/or patent, and protecting = your=20 intellectual property (sales brochures, for example). Lawyers or = librarians=20 can advise.

Home = Kitchens.=20 Regulations relating to producing food products in home kitchens = vary among=20 states. Many state laws specify that food products made from = farm-raised=20 products must be produced in a commercial kitchen approved by the = state=20 department of health. Contact your local health department for = rules.=20

Commercial = Kitchens. Setting up your own processing facility is costly. = Consider=20 renting time to manufacture your food product in a local commercial, = inspected kitchen.

Co-Packers. = People who=20 can manufacture a food product for you are called co-packers or = contract=20 packers. Consider hiring one or more to make your product until you = can=20 finance your own processing facility. Get legal advice on what a = product=20 contract should include.

To produce in quantity, your recipe must be = broken down=20 into the Standard Manufacturing Procedure (SMP), which includes = every step=20 in a manufacturing process and preparation instructions.

Selling Your Family=20 Recipe. To produce and market large quantities, = consider=20 selling your product idea and recipe outright to a manufacturer.=20

Setting Up Your Own = Processing=20 Facility. Research local and state laws. Expect to = pay=20 $50,000 to $100,000.

Packaging = Materials.=20 Non-glass, well-sealed plastic jars or bags are good containers for = food=20 products. Extension specialists and university food processing = centers can=20 refer you to packaging companies.

Regional Product=20 Identity. Labels and packaging design should emphasize = the unique=20 aspects of your product=3Ds regional=20 and cultural identity. Many state departments of agriculture offer = grants to=20 help farmers develop labels and packaging that promote regional=20 products.

Labeling = Rules. U.S. Department of Agriculture rules govern meat = products.=20 U.S. Food and Drug Administration rules govern labels for products = other=20 than meat.

Know the latest state and federal labeling = requirements for=20 agricultural products. Study the Nutrition Labeling and Information = Act=20 (NLEA) of 1990. See Title 21 of the Code of Federal Regulations, = Part 101=20 (21 CFR 101), available in public libraries.

For help with label content, consult your state = cooperative=20 extension specialist. Ask if your state university can analyze = product=20 content in campus laboratories. Food consultants and many commercial = laboratories also do this as part of their business.

Bar Codes. Bar codes are needed on labels to scan = product=20 prices at checkout counters. Bar code rules and how to obtain one = for your=20 product are available from the Universal Product Council, Inc., at = http://www.uc-council.org/ = or by=20 calling 937-435-3870.

Label and Packaging Design. Design your own = labels and=20 packaging or hire a designer. Designers can be found through local = chapters=20 of the American Institute of Graphic Arts.

Pricing. = Cover=20 your production, packaging, delivery, and overhead costs.

Marketing. = Farmer=20 entrepreneurs are experts in growing and producing products but may = need=20 marketing advice. Businesses often fail because of lack of marketing = knowledge and management skill, not for lack of a good product. Take = your=20 business plan, business card or brochure, professional invoices, = product=20 samples, and production records when you meet potential clients. = Have a fax=20 and answering machine.

Local = Networking.=20 Creative community networking links up local labor to process, = package, and=20 market products in the region where made.

Marketing = Outlets. Will=20 you sell your product directly to customers through a roadside = stand,=20 farmers market, a community-supported business, a mail order = catalogue,=20 website, delivery service, cooperative direct mail advertising, or = to chefs=20 in independent restaurants? What about trade associations, = cooperatives,=20 local retailers, or wholesalers?

Locally owned food stores are a good place to = start.=20 Consider high-end grocery and natural food chains, and purchasing = agents for=20 specialty stores in airports, cruise ships, hotel chains, health = food stores=20 and cooperatives, and warehouse stores. Major food chains are more = difficult=20 places to establish a foothold.

Today=3Ds=20 successful small farmers are small business entrepreneurs who are = producing=20 a variety of higher-value, processed products made on-farm and sold=20 increasingly by a variety of direct marketing techniques rather than = through=20 a middleman. The agribusiness that adds desirable features to a = farm-raised=20 product that customers want is the business that will=20 prosper.

Selected references:

Entrepreneur Assistance Program at the Food = and Fiber=20 Center at Mississippi State University. Call 662-325-2160 or write = Food=20 and Fiber Center, Mississippi State University, Box 9642, = Mississippi=20 State, MS 39762-9642. For the free Mississippi Specialty Foods = Newsletter,=20 call Ann Sansing, Editor at 601-325-2160, or see website=20 www.ext.msstate.edu/ecrd/ffc/ffc.html.

Food Processing Program at the Institute of = Food Science=20 and Engineering at the University of Arkansas-Fayetteville. See = website=20 www.uark.edu/depts/ifse/, or write Institute of Food Science and=20 Engineering, 272 Young Avenue, Fayetteville, AR 72704. Call = 501-575-4040=20 to order their free newsletter.

Entrepreneurship Assistance Program at the = Oklahoma Food=20 and Agricultural Products Research and Technology Center at = Oklahoma State=20 University, 148 FAPC, Stillwater, OK 74078 (or call Rodney Holcomb = at=20 405-744-6272). See website www.okstate.edu/OSU_Ag/fapc. =

National Entrepreneur Assistance Program, = University of=20 Nebraska-Lincoln Food Processing Center, Lincoln, NE. For = information=20 about the program=92s Custom Processing Network and other = services, write=20 Arlis Burney, UNL Food Processing Center, 143 Filley Hall, = Lincoln, NE=20 68583-0928 or call 402-472-8930). E-mail aburney1@unl.edu; website = foodsci.unl.edu/fpc/market/ent.htm.

Delta Enterprise Network, an evolving group of = farmers,=20 entrepreneurs, and others interested in creating new business = ventures and=20 cooperatives in the Delta regions of AR, IL, KY, LA, MS, MO, and = TN. To=20 discuss an idea for an agri-business, see website = www.deltanetwork.org/ or=20 contact Jim Worstell at e-mail jvworstell@futura.net, or write to = Delta=20 Land and Community, 920 Highway 153, Almyra, AR 72003 (phone=20 870-673-6346).

Small Farm Specialist =

Joins USDA/CSREES

Dr. Enrique "Nelson" Escobar, from Langston = University in=20 Oklahoma, joined the Cooperative State Research, Education, and = Extension=20 Service (CSREES) Small Farm Program in January for a one-year = assignment.=20

Such an exchange allows a land-grant extension = specialist=20 to recommend ways to meet the needs of small farmers. In return, the = specialist gains a national perspective of small farm = issues.

Dr. Escobar provides leadership for extension = goat=20 production programs at Langston University and is recognized = nationwide for=20 his leadership in extension programs for small ruminants. He serves = as=20 statewide coordinator for sustainable agriculture for the Southern = Region=20 SARE.

Your Small Farm = Neighbors

Earnie and Martha Bohner:=20

Marketing a Taste of the = Ozarks

Earnie and Martha Bohner, owners of Persimmon = Hill Berry=20 Farm =96 experts in value-added food products =96 began their Ozarks = farm=20 business as a u-pick blueberry operation on 75 acres near Branson,=20 MO.

One of the Bohners=92 success secrets is being = willing to=20 diversify and try new things until they hit on what makes money. At = each=20 stage of their developing business, the Missouri Alternatives Center = consistently provided marketing and production information. =

AWhenever we have=20 problems with our value-added products, we consult Dr. Doug Holt, = Director=20 of the Office of Value-Added Agriculture Outreach at the University = of=20 Missouri. Doug takes current research concepts and applies them to = on-farm=20 processing. He explains the rules and regulations pertaining to = producing=20 products on-farm,@ they=20 said.

Two factors stimulated the value-added part of = the business=20 in 1983 =96 a hungry tourist and Earnie Bohner=3Ds desire to use everything = grown on the=20 farm, located 12 miles = off a major=20 highway near a children=3Ds camp=20 that draws hundreds weekly.

One day a parent from the camp wandered up to = Bohner and=20 said, AI=3Dm hungry. Do you have = anything to=20 eat?@ Bohner replied, = ANot now, but we will next = year.@

With that clue to their future market, the = Bohners began=20 making berry products in rented kitchens before building their own = licensed=20 processing kitchen on the farm in 1992. They started with Thunder = muffins =96=20 "huge Texas-style blueberry muffins,@ they explain, Ain erratic shapes like = thunderhead=20 clouds.@

Lured by the blueberry muffins, customers bought = other=20 value-added products made and sold on the premises. Soon visitors = were=20 coming from all over the country.

The Bohners teamed up with a local chef to = develop a line=20 of gourmet food products, now numbering 15 =96 four different jams, = apple=20 butter, barbecue sauces, shiitake mushroom starter kits, and = mushrooms.=20 Unique products like "croutakies," crushed dry shiitake mushrooms to = flavor=20 soups and salads, and "blazons" (dehydrated blueberries) are very = popular.=20

They added gift packs with mushroom sauce, or = buttermilk=20 biscuit mix and jam, a "Best of the Ozarks" gift field crate = featuring a=20 product mix, a hand-crafted blueberry design cobbler dish, and a = Persimmon=20 Hill Berry Farm berry cookbook.

Sold by e-mail order, by catalogue, and in = several local=20 stores, their products proudly display the Agri-Missouri logo. Visit = Persimmon Hill Berry Farm=3Ds=20 website at www.branson.com/persimmonh= ill/.=20

Diana McCown:

Goat Cheese = Entrepreneur

Diana McCown, an instructor at Wesleyan = University in=20 Lincoln, NE, is also a small farmer who runs a dairy goat operation = on five=20 acres of land near Martell, NE, outside Lincoln.

The only goat cheese producer in her area, McCown = makes six=20 different goat cheeses for her business, Greenglade Farm Specialty = Goat Milk=20 Products. She grows the herbs for the cheeses on her farm. =

Feta cheese making =96 McCown=92s specialty =96 = was part of her=20 grandmother=92s Greek heritage. She perfected her own version of = Greek feta=20 and even toured cheese plants in Greece to compare the taste of her = cheese=20 with feta cheese made in Greece.

McCown began with dairy goats 21 years ago. AI started my cheese business = 10 years=20 ago by taking an entrepreneur program at the University of=20 Nebraska-Lincoln=3Ds = Food Processing=20 Center. The food scientists there worked with me on an individual = basis,=20 guiding and making suggestions, while I worked at perfecting my = cheeses."=20

McCown experienced hurdles in getting her dairy = facility=20 licensed by the state, as the laws had changed and there was no = precedent=20 for a goat milk dairy. She tackled all the barriers until the = license was in=20 hand, and Greenglade became the only licensed goat dairy in=20 Nebraska.

She pays an annual fee for her license, and her = facility is=20 inspected every two months. She processes all her milk into cheese = at the=20 Food Processing Center cheese plant at the University of=20 Nebraska-Lincoln.

"Using the university's processing equipment = saves me=20 money," says McCown, "because most entrepreneurs like me do not have = the=20 capital =96 $50,000 to $100,000 =96 to set up their own processing = plant. The=20 Center has machinery to do every kind of food processing, and a = range of=20 specialists, including food industry marketing consultants, is on = staff. For=20 a fee, any processor can experiment with a new product on a small=20 scale.

McCown sells her cheese through three local = stores in=20 Lincoln and at a huge farmers market. She also markets her cheese = through=20 one of two new commercial wineries in Nebraska. McCown is content to = keep=20 her operation small even though a local supermarket offered to carry = her=20 cheese. She sells all she produces to local customers.

CERVANTES=20 REWRITE

Emma Jean Cervantes: = Third-Generation=20 Chile Entrepreneur

Third-generation chile farmer entrepreneur and = manufacturer=20 Emma Jean Cervantes continues the tradition of chile cultivation = introduced=20 to the Rio Grande region by Spanish settlers in 1600 on land that = has been=20 in her family for many generations.

She runs Cervantes Enterprises, Inc., = Agribusiness and=20 Apodaca Farms in La Mesa, NM, with the assistance of her children, = New=20 Mexico State University graduates in business and = marketing.

AMost = of the hot=20 sauces you see on the grocery store shelf,@ Cervantes says proudly, = Aare grown in New Mexico and = many on my=20 farm. Our farm produce is very diversified.

"We constantly rotate our crops and grow 12 = varieties of=20 chiles, corn, pecans, and vegetables like lettuce, onions, garlic = and=20 cabbage. We computerize our crop rotation and were pioneers in this = valley=20 in drip irrigation, chile transplants, and chile = research.

"We process fresh chile for four months of the = year and=20 process our value-added chile products through all stages. All of = our=20 processing is customized =96 the buyer dictates recipe = specifications.=20

"Many times we experiment in our quality control = licensed=20 lab with a combination of different peppers, spices, vinegar, salt, = and the=20 aging/fermenting process, which really changes the characteristics = of our=20 product.@ =

Cervantes also has contracts for joint ventures = with=20 surrounding farms that grow chile for her processing company. The = chile=20 grown and processed on the farm is distributed nationally and=20 internationally.

AOur = biggest=20 market tool is customer referrals," she says. "We also work through = brokers=20 and sell to local restaurants. The hot sauce market is rapidly=20 growing.

AThe = biggest=20 challenge in New Mexico agriculture is water =96 the lifeblood of = agriculture=20 =96 and global competition. We work very closely with our county = extension=20 service about what products to grow, product pricing, and new = technology=20 that can benefit our operation. We collaborate with New Mexico State = University to improve New Mexico chile = productivity."

MITNICK = REWRITE

Robert Mitnick: =

Hawaii Taro Company = Owner

AIdeas for new=20 products are all around us,@ says=20 Robert Mitnick, an innovative entrepreneur in Haiku, Maui, HI, and = inventor=20 of "The Maui Taro Burger."

Hawaiians have historically made taro into "poi," = a healthy=20 staple food. Since frying pans, they have made patties out of the = taro root.=20 Mitnick expanded this concept into a healthy, no-saturated-fat,=20 no-cholesterol, no-preservative, wheatless, nutritious patty for the = health-conscious consumer.

After creating the basic recipe, Mitnick = consulted with=20 island chefs, who gave him valuable feedback about ways to cook it. = He=20 experimented with cooking procedures and ingredients until he was = happy with=20 his product.

Mitnick=92s first business obstacle was a = possible low taro=20 supply. He contacted the Hawaii Small Business Development Center = (SBDC),=20 where director David Fisher worked closely with him.

AThe = Center helps=20 entrepreneurs by analyzing their product. We help them see strengths = and=20 weaknesses of what they propose and review market threats. The taro = burger=20 idea was great,@ says = Fisher.=20

Fisher referred Mitnick to a taro expert at the = University=20 of Hawaii for information about taro as a crop; to the Maui Economic = Opportunity for small business start-up loans; and to Robert Chase, = director=20 of the Rural Economic Transition Assistance Hawaii (RETAH) project = in the=20 Hawaii SBDC.

Chase connected Mitnick with taro farmers on the = islands of=20 Hawaii and Kauai, where he was able to secure a reliable taro = supply.=20 Through Chase, Fisher helped Mitnick get a federal grant and = suggested=20 further loans from the Hawaii Community Loan Fund.

Mitnick says, "In Hawaii we get 90% of our food = from the=20 mainland, and we want to put a dent in that trade deficit. I believe = that=20 our economy needs to rely more on value-added = agriculture."

The Maui Taro Burger is catching on with both = vegetarians=20 and non-vegetarians. Positive customer response in the islands and = on the=20 mainland indicate that Mitnick has a successful = product.

He recently won contracts to supply it to the = military,=20 hospitals, the School Lunch Program, and to a Neiman Marcus = Restaurant in=20 Oahu. He says he will produce 8 million Maui Taro Burgers annually = for=20 starters and is building his own processing facility.

RESOURCES

Ag Innovation News. = A=20 quarterly newsletter of the Agricultural Utilization Research = Institute=20 (AURI), a state-funded, nonprofit corporation, which focuses on new = uses and=20 markets for agricultural commodities and value-added products. Free. = To=20 order, write to Dan Lemke, Communications Director, Agricultural = Utilization=20 and Research Institute, PO Box 251, Waseca, MN 56093 (or call=20 1-800-279-5010).

AgVenture Services Business = Plan Kit: A=20 Program for Development of Value-Added

Agribusinesses. Information from the Florida = Department of=20 Agriculture about turning agribusiness ideas into value-added = business=20 enterprises. $50. To order, call Les Harrison, Division of Marketing = and=20 Development at 850-487-4322.

Farming = Alternatives.=20 Cornell=3Ds Agricultural = Development=20 and Diversification Program newsletter focuses on sustainable = agriculture=20 and diversification in the Northeast. To order, send $10, $20, or = $30=20 contribution payable to Cornell University to Farming Alternatives = Program,=20 Department of Rural Sociology, Warren Hall, Cornell University, = Ithaca, NY=20 14853 (phone 607-255-9832).

Starting a Food = Processing Business.=20 Business and food safety considerations involved in food=20 processing. $40 cost includes updates for 5 years. To order, make = check out=20 to Cooperative Extension Service and mail to Business Office, = Cooperative=20 Extension Service, PO Box 391, Little Rock, AR 72203.

This = Hawaii Product=20 Went to Market: The Basics of Produce, Floral, Seafood,=20 Livestock, and Processed-Product Businesses in Hawaii. Basic = business advice=20 about developing a successful small agricultural-related business. = $11 plus=20 $4 s & h, payable to: Hawaii Farm Bureau Federation, 2343 Rose = Street,=20 Honolulu, HI 96819 (or call 808-848-2074; fax=20 808-848-1921).

Ten Tip = Sheets from=20 USDA=3Ds Sustainable = Agriculture=20 Research and Education (SARE) Program lists free and low-cost = resources on a=20 range of agricultural topics. Especially see Tip #2 - Add

Value Through Marketing. Access on website = www.sare.org or=20 via Valerie Berton, SARE Communications Specialist, 2121 Ag-Life = Sciences=20 Surge Building, University of Maryland, College Park, MD 20742-3358 = (call=20 301- 405-3186).

GRANTS

USDA=3Ds Sustainable Agriculture = Research and=20 Education (SARE) Program offers grants to=20 eligible applicants in four regions (Northeast, North Central, = Southern, and=20 Western).

North Central Region = SARE=20 Program (IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD,=20 WI).

For information, contact NC Region SARE, UNL, 13A = Activities Bldg., Lincoln, NE 68583-0840 or call 402-472-7081. =

Professional = Development=20 Program. Educators, = including=20 farmers, may apply to set up sustainable agriculture training for=20 agricultural educators in select agencies. Proposals must be = postmarked by=20 1/20/00.

Northeast Region SARE = Program=20 (CT, DE, ME, MD, MA, NH, NJ, PA, RI, WV, VA, VT, =

DC). For information, contact NE Region SARE, = Hills=20 Building, University of Vermont, Burlington, VT 05405-0487 or call=20 802-656-0471.

Research and = Education=20 Grants. Institutions, nonprofits,=20 researchers, and others may apply for funds to support integrated,=20 whole-systems projects. Proposals must be postmarked by = 1/20/00.

Farmer = Grants.=20 Commercial farmers and growers may apply for funding = to=20 implement innovative, environmentally sound, and potentially = profitable=20 production and marketing strategies. Proposals must be postmarked by = 12/6/99.

Southern Region SARE=20 Program (AL, AR, FL, GA, KY, LA, MS, NC, OK, SC, TN, = TX,VA, PR,=20 U.S. VI). For information, contact John C. Mayne, Ph.D., Southern = Region=20 SARE Program, 1109 Experiment St., Griffin, GA 30223 or call=20 770-412-4787.

Producer=20 Grants. Producers and = producer=20 organizations may apply for funds to conduct research, education, or = marketing projects that promote sustainable agriculture. Proposals = are due=20 1/28/00.

Western Region SARE=20 Program (AK, AS, AZ, CA, CO, GU, HI, ID, MO, MT, NV, NM, = MP, OR,=20 UT, WA, WY). For information, contact Western SARE Program, Utah = State=20 University, Agricultural Science Bldg., Rm. 322, 4865 Old Main Hill, = Logan,=20 UT 84322-4865 or call 435-797-2257.

Farmer/Rancher=20 Grants. The effort supports = producer-directed=20 research and community development activities. Calls for proposals = are=20 released in mid October 1999 and are due in January 2000. =

Upcoming=20 Events
Oct. 12-15
2^nd National Small = Farm=20
St. Louis, MO
Troy Darden - 573-681-5587, or
Conference = www.luce.lincolnu.edu/nsfc

Oct. 15-16
Fall Garden Day at Truck Crops =
Crystal=20 Springs, MS
Richard Snyder - 602-892-3731
Experiment = Station=20

Nov. 2
Farmstead Dairy Day =
Mosinee,=20 WI
Norm Monsen, Wisconsin Farm Center - = 1-800-942-2474lbauer2@unl.edu

Marketing Skills for the New = Millennium=20 Conference,

North Central Region = SARE

Jan. 8 North Florida Small Farm Live Oak, FL = Mickie Swisher=20 - 352-382-1868

Conference and Trade Show =

Feb. 8 New Mexico Chile Conference Las Cruces, NM = Sonja=20 Serna - 505-525-6649 New Mexico State = University=20

Feb. 8 Tools and Rules for Value- Eau Claire, WI = Ed Weber -=20 715-832-9672

Added Agriculture = Conference

See Small Farm website = (www.reeusda.gov/smallfarm) for the=20 most up-to-date listing of events. We welcome submissions of events = from our=20 subscribers that would be of interest to the small farm community so = that=20 our Upcoming Events listing reflects a diversity of events from all = regions=20 of the country. Please send submissions to Stephanie Olson, Editor, = Small Farm Digest, CSREES, USDA, = Mail Stop=20 2220, 1400 Independence Ave., S.W., Washington, DC 20250-2220 = (phone:=20 202-401-6544; fax: 202-401-5179; e-mail solson@reeusda.gov).=20