2003 Annual Report for LNE00-140
Microdairy: Creating a Profitable Five-Cow Dairy
Summary
The goal of this project is to design and construct an on-farm milk processing trailer (MicroDairy) that meets the requirements of the Pasteurized Milk Ordinance. Once the unit has been constructed it will be operated for two years to demonstrate the profitability of small-scale animal husbandry. This unit will contain all of the facilities required to milk cows and to store, pasteurize, and process the milk into a variety of products including fluid milk, flavored milk drinks, ice cream, and cultured dairy products such as cheese and yogurt. It will also contain a retail sales area for on-farm sales.
Objectives/Performance Targets
To build a complete MicroDairy, including required equipment, that meets regulations. This eliminates a major obstacle to farmers beginning small-scale, on-farm processing.
To make the MircroDairy affordable, with a target cost from $40,000 to $75,000. Because it is a transportable system it could be leased (like a tractor) without a down payment.
To make the Micro Dairy economically viable. The project will demonstrate that a farm can be profitable with as few as five cows, and can reach median US farm income with ten cows or less.
By the end of the third year, 300 farmers and extension personnel and fifteen regulatory personnel will have toured the demonstration farm, and five MircoDairies will have been built based on plans developed by this project.
Accomplishments/Milestones
While we are very excited about the progress we made in many areas, there have been additional delays in obtaining final approval of site plans to allow the permanent installation of the MicroDairy trailer. We have been able, on a temporary basis using purchased milk, to operate many of the MicroDairy components and as a result have been able to test a variety of recipes in several product categories and develop products that we believe will be commercially viable. These include flavored milk drinks, hard and soft cheeses, and flavored milk drinks using both cow and goat milk.
We are also very happy with the response we have received to the equipment that we have designed from regulatory personnel, farmers and potential users. The equipment functions well and we continue to make enhancements to improve productivity.
As we begin the commercial phase of dairy production we have every reason to be optimistic.
Impacts and Contributions/Outcomes
The MicroDairy has been built, although delays in obtaining final site plan approval have postponed permanent installation.
It appears that the commercial cost of the MicroDairy system will be in the range that was expected, although ancillary costs in site preparation such as civil engineering, water treatment, wastewater handling,regulatory fees, and time requirements were significantly higher than expected.
32 people have toured the system including regulatory, extension personnel, farmers and potential farmers.
The project coordinator has assisted three individuals in developing feasibility plans including facilities, equipment and marketing plans.
Processing equipment built on the MicroDairy design concept, including pasteurizer, cheese and yogurt production, and bottle filling components, will be installed on a goat farm in February.