Project Descriptions: Summaries of the NLPA Sheep & Goat Fund ProjectsProject
#1 -- Lamb Feeding Facility The 60-foot by 360-foot, two-story, curtain-sided barn is divided into 32 separate pens with the lambs standing on the top floor (approximately 10 feet off the ground), allowing waste to fall to ground level through woven wire panels for cleaner pelts and fewer labor requirements. Lambs are fed a whole corn and alfalfa pellet ration in self-feeders on a flex auger delivery system controlled by a computerized weighing and mixing device that can put a different ration in each pen, if necessary. The barn's long narrow design, allows for prevailing winds to keep animals cool during the summer without fans. The roof is insulated and the ridge is open for additional comfort, yet sides can be closed for year round feeding. The facility's owner said the project would add value to animals that have the potential to become premium quality products. The services the facility provides will be under contractual agreement with a major packer, targeted toward high-end retail grocery chains in metropolitan areas with amounts that will represent 5 percent of the packers' total lamb kill volume. This loan was established with a sheep dairy in upstate New York to purchase milking equipment. The dairy recently began its first full season of milk production. The main goals of the dairy are to be milking 250 ewes and producing over 75,000 pounds of Grade A milk in 2003. The sheep milk will be bagged and frozen in an on-site, walk-in, blast freezer, and then trucked to the Albany-area cheesemaker. Market lambs are sold locally to New York State consumers. The domestic market for sheep-milk products is extremely strong, particularly in the Northeast. The dairy, which is operated by an individual with extensive experience as a shepherd and dairy farm worker, has contracted to sell its milk to a New York State cheesemaker. There has been considerable interest in the dairy among (cow) dairy farmers in the region, where many are looking for financially viable alternatives to traditional dairying. The success of this sheep dairy project will serve as a model for those looking for a profitable alternative to the marginally viable dairy farms of the region.
This loan was established with a slaughter facility for lambs and goats in Pennsylvania, which is using funds for building and equipment upgrades in order to increase the facility's slaughter capacity. The facility has been in operation since 1986 and since then the owners reported an increase in sales. The facility's customer base is in the Cleveland, Pittsburgh, New Jersey and New York City areas. The facility is also the sole supplier of premium lamb carcasses and primal parts to a business that processes value-added lamb products. The funded project consists of two-phases. First an additional 1550 square feet will be added to the slaughter area. With this increased area, the facility owners will be able to install an inverted pelting system in the future without having to conduct major renovations. The second phase of the project will be to incorporate a new 1660 square foot facility for processing case ready/cryovaced lamb products.
This loan was established with a lamb processing/fabricating operation in Pennsylvania to expand its physical building and add equipment to increase its volume of high quality, branded lamb products sold to high-end restaurants. The company purchases contracted lamb carcasses from a slaughter facility and processes them into a consistent product that is geared toward five-star eating establishments in areas such as New York, Pittsburgh, New Orleans and San Francisco. The facility owner's goal is to provide an added value product to consumers, which will in turn reward the farmers for producing a better, more consistent product. The new building and processing equipment have allowed the company to triple its production quantity. The expansion has increased the company's ability to commit to processing a greater number of contracted lambs.
This loan was established to allow a wool marketing and supply cooperative for 11,000 sheep producer/owners located in 25 states to secure warehousing facilities at several locations, inventory wool and sheep supplies, and secure working capital to maintain operating levels. The funds will help the cooperative in several ways. First, it will allow the cooperative to reduce operating expenses and improve the return to producers in its consignment program. Second, the cooperative will be able to continue to be a major part of the domestic wool industry; the cooperative marketed 9 percent of the U.S. clip in 1998. Third, the cooperative can maintain its state-of-the-art wool grading facility. Fourth, through the grading line in Ohio and Kansas, producers can individually receive a complete grading report showing what they are producing, allowing producers with lots too small for individual producer laboratory testing to be recognized for the wool they produce and be paid a higher price than the producer who throws wool in a bag without preparation. Finally, the funds prevent the possible closure of two of the cooperative's western warehouses, which would leave many producers with only one bid for their wool throughout the Midwest.
Three lamb-breeding operations in Western Nebraska have secured loan funds in order to increase their operations to better supply replacement Polypay ewes for the out-of-season lamb production market. The combined goal of the three projects is to perfect the genetics in these sheep that have the capability of lambing out of season and have the lean carcass qualities that are considered desirable in today's market. The operations noted two challenges facing the issue of out-of-season lambing. First, the continual decline of the number of sheep producers in the United States and, second, the limited availability of flocks possessing the genetics to supply lamb on a year round basis. The loan monies are being used to purchase equipment and facilities to achieve the rapid expansion needed to meet the potential market demand.
This loan was used to purchase state-of-the-art wool scouring equipment and installation of such will allow a Texas hat company to replace 1940 vintage equipment. This acquisition will allow them to keep the first stage of wool processing, scouring, competitive in this country, allowing the production of the best quality. Loan funds were used to purchase equipment that will add value to the operation in several ways. First, the grease recovery plant will allow the company to extract the lanolin and sell it, instead of disposing of it. Second, the equipment will produce a far better product through better blending, better prescouring dirt and veg removal, and more even bowl temperatures and water flow, which will allow for better cleansing of the fiber, heavier squeeze presses and a more precise moisture control system on the dryer, which will allow for more even moisture content. All of these features are critical to compete with the rest of the world in today's challenging market place. Modernized scouring equipment assures U.S. wool producers of having a domestic processor, thereby adding value to the marketability of their clips.
This loan was established to help a goat dairy in north central New Mexico to complete USDA Grade A certification and become a viable cheese-making operation. The facility had been working toward meeting this certification for the past four years, during which it has acquired a Grade A qualifying dairy goat herd, buildings and equipment and built the financial stability to pursue certification. With the loan from NLPA's Sheep & Goat Fund, the facility will be able to complete all of the certification requirements within a few months and would be ready for the certification inspections. Upon certification of Grade A status, the dairy will become a viable cheese-making operation, opening the door to a market where demand is high, and local (New Mexico) supply is extremely limited.
This loan was established with a Texas processing and fabrication facility to fund the purchase of equipment needed for fabrication of lamb and goat carcasses and the construction of the building to house the fabrication plant. The fabrication addition is a 10,000 square foot building that includes coolers, freezers, a fabrication retail room and a loading dock. The building will also house the latest in packing and carcass fabrication equipment. This new fabrication facility will allow for the development of new products by the company and will increase sales of American lamb by making a wider variety of products from each carcass available, thus providing more products to the consumer. With case-ready packaging, retailers will be provided with an attractive product for display, which is appealing to the customer and will have a shelf life superior to traditional packaging procedures at the retail level.
This loan provided funding for an upgrade in milking equipment, cheese processing and handling equipment and road access to the cheese ripening cave, as well as, working capitol to support higher operating costs until financial benefits of the expansion are received and refinancing of current debt at a considerably reduced rate. This cheese company produces and markets a trademarked product, a specialty sheep cheese widely regarded as one of the best cheeses in the country. They have received numerous awards since 1993, most recently, the prestigious "Best of Show" award at the 2000 American Cheese Society's competition in Sonoma, CA and best U.S. Sheep Cheese in the 2001 U.S. Championship Cheese Contest. They work with a guild of five farms in Vermont and New Hampshire to produce their award-winning cheeses.
This loan provided funding for upgrade in feed handling and processing equipment and refinanced current retrofitting of barn facilities including feed processing and handling equipment. The funding will allow this operation to function with a lower cost structure and cash flow more efficiently. This operation works in cooperation with two other vertically integrated systems, currently funded through the NLPA Sheep and Goat Fund, to provide a high quality lamb fed for specific established markets. Aligning with these established processors and producers of high quality finished lamb, allows them to produce a brand name, high quality product in an economically positive environment. Their goal is to increase the demand for a better tasting, high quality lamb, thus improving the interest in domestic lamb production and sales.
This loan provided funding for purchase of an aircraft, needed repairs to the aircraft being purchased and repair to one of the existing aircraft currently owned by the association. One of the services the association provides to the industry is an integrated animal damage control program in cooperation with USDA/APHIS - Wildlife Service. The aircraft owned by the association are leased to USDA/APHIS - Wildlife Service through a cooperative agreement. All of these aircraft are outfitted for predator control. The association's aircraft are well maintained and are top rated aircraft for their particular design and use. This program has been in existence since 1982 with the latest cooperative agreement dated June 1998. This program has proven to be very beneficial to Idaho lamb and wool producers with revenues received from the leasing of these aircraft covering all costs related with the program.
The funding received by this fiber mill will be used for building, equipment and working capitol to expand processing capabilities of the mill. The operators plan to help smaller rural farmers process wool in amounts of 50 pounds or less. By expanding their operation to handle 38,000 pounds per year it will be possible to process wool at a cost that makes wool profitable in today's global market. This expansion and upgrade will allow the mill to become a place for universities, farms and cooperatives to study as a model for value-added agriculture. They hope to develop new innovative processing and continually share this technology, along with best practices, to smaller farmers in the wool industry. The funding received by this wool warehousing and marketing facility will be used to refinance existing financing and to establish a line of credit to be used in the normal operations in marketing wool of the producers using the services of this facility. The primary trade area served by this market includes Montana, Wyoming, South Dakota and portions of North Dakota and Nebraska. They are the only remaining producer-driven warehouse left in this entire region. The anticipated volume for 2002 is 5million pounds, an approximate increase of 1.5 million pounds over 2001. The funding of this loan will have a far reaching influence on the financial stability and profitability of the regional sheep numbers for wool production. In additional to warehousing and marketing, this operation offers wool quality improvement, grading and core testing, storage, market information and export capability. Due to the lower interest rate acquired through this funding not only will their cash flow situation be improved but also the staying power to allow this group to remain in the wool business will be strengthened.
Project
#22 -- Livestock Merchandising Center Project #22 -- Goat Dairy Product Expansion This funding will be used by a LLC formed by a group of Grade A goat dairies in Michigan to purchase an existing facility to accommodate future growth and purchasing and installing equipment needed to allow for expansion of its product lines from high quality cheese and yogurt products to include butter and ice cream. The impact of this project on the goat industry in Michigan is evidenced by the expansion in the number of farms shipping their milk to this facility for processing and the ever-growing demand for the quality based, value-priced goat dairy products. They market through distributors and also market directly to some select stores and chains. Their niche market are health conscious shoppers who are aware that they are choosing to support small-scale farms and upscale gourmet product buyers who choose to buy the best regardless of cost. Project #23 -- Goat Association The a breed-specific goat association is working to take a leadership role in an effort to consolidate the Boer goat industry. They hope to bring together all of the Boer goat associations with the goal of forming a united front to build a strong industry with a successful and viable future. The funds received will be used to finance their headquarters building and equip this association to effectively use their newly acquired state-of-the-art registry program. They also plan to incorporate additional programs of promotion, sales and services for members. Project #24 -- Sheep Meat Supplier Funds for this loan will be used to create the infrastructure to develop a business plan for a sheep operation in Oklahoma. The operation is the largest sheep or goat operation in two counties, according to the county's Farm Service Agency’s County Executive Director. This business is located in an agricultural area that is approximately 98 percent cattle ranches. After extensive research it was determined that there was a need to develop a sheep business to supplying a whole carcass product for a niche market in this area of the state. The demand for this product is growing in the area especially because of the growing ethnic communities in the Dallas area. They have achieved a level of production where they supply a desirable, marketable product that is name recognizable. Project #25 -- Weed Control and Fire Protection This loan was made to a Montana-based business developed using sheep to perform the much-needed service of weed control and fire protection. As the life style in Montana changes from farms and ranches to a more urban setting the need to control noxious weeds and undesirable grasses without the constant use of chemical herbicides is constant. This service is available to subdivisions, community parks, and any small acreage where there is a weed problem. This funding will be used to purchase and maintain fencing and equipment and increase the scope of their business. This business works closely with local weed boards, homeowner groups, county governing groups, Montana State University, county extension agents, Montana Wool Growers Association and the Montana Department of Wildlife and Parks to determine where this service can be most effective. Because of the urban locations of where this service operates they are in a position to educate the public on the sheep industry. Project #26 -- Custom Fiber Processor A custom fiber
processing business in California is using funds to enhance the
service they provide to fiber animal producers and hand spinners
by taking smaller lots of fiber and providing scouring, picking,
carding and custom blending of fleece sent to us to process. It
is their goal is to provide these value-added services to give their
customers a substantial gain in their quality fiber product that
will allow them to take their processed fiber and enter new markets
with access to more customers and therefore realizing a greater
profit margin. Project
#27 -- Goat Dairy |
