Presentation on theme: "2014 Ag Economic Outlook Conference Cornell University – Ithaca, NY"— Presentation transcript:
12014 Ag Economic Outlook Conference Cornell University – Ithaca, NY Craigs Station Ventures Farm Partner in WNY Enterprise LLC d/b/a Craigs Station Creamery2014 Ag Economic Outlook ConferenceCornell University – Ithaca, NY
2Craigs Station Ventures Family owned and operated dairy farms located in the western New York milkshedProducing high quality raw milk productsMore than 13,000 cows housed on dairies located within 25 miles of the plantProducing approximately 110,000 gallons of milk/day for delivery to local processors
4Craigs Station Ventures Noblehurst Farms, YorkLawnel Farms, York1,650 cows1,500 cows; two sitesMulligan Farm, AvonCoyne Farms, Avon1,200 cows1,000 cows
5Craigs Station Ventures Synergy, WyomingSouthview Farm, Castile2,100 cows2,000 cows, two sitesBaker Brook Dairy, AtticaMcCormick’s Dairy, Bliss1,600 cows2,300 cows
6Craigs Station Ventures Craigs Station was a stop on the DL&W (Delaware, Lackawanna and Western) railroad. It was located about a mile to the east of the plant site.Dairy farmers used to bring milk and cream in 10 gallon cans to stations like this one for collection. The train would transport those cans to a creamery for bottling and shipment to New York City, Boston, and other Northeast cities.
7WNYE/CSC Joint Venture Dairy Farmers of America (DFA) and Craigs Station Ventures (CSV) formed JV in mid-2013DFA is nation’s largest dairy cooperativeCSV comprised of eight cow dairy farms located in the heart of western NY milkshedBroke ground in mid-September 2013 on cold milk separation facilityCommissioned early October 2014Operational on October 17, 2014
15Products It all starts with consistent, high quality farm milk Grade A rBST-freeSkim milk / Standardized milk40% butterfat heat-treated creamCold bowl separatedReduced protein denaturing (standardized/skim)Enhanced cream functionalityKosher certifiedProduct fortification available (i.e. Vitamin D)
16Attributes Locally produced New York milk All eight farms located within 25 miles of WNYE/CSCTraceability back to these farmsDFA Gold-standard-plus productionWNYE powered by on-farm green energyReduced carbon footprintLow hauling miles, green energy, modern/efficient milk production and processing
17SustainabilityMembers committed to sustainable, efficient farming practicesOne of the CSV member farms has largest on-farm digester in New York stateNoblehurst operates anaerobic digester next to milk plant that:Recycles facility’s waste effluentProvides green energy to facilityReduces plant’s carbon footprintSynergy Biogas1.4 MW Bigadan A/S owned and operated on-farm co-digestion plantAlso processes local dairy plant effluent (whey)Future expansion to 2.0 MWNoblehurst Green Energy440 kw on-farm co-digestion plantArranged to accommodate 2nd digester and doubling of energy output
18Operational Efficiencies Tanker washing capability at WNYE/CSCMilk scheduling advantages100% loads at 60,000+ lbs milk per loadQuality checked loads before shipmentReduced shrinkage at buyer’s plant
19RelationshipFarm-direct relationship with the added protection of a $12 billion dairy cooperativePeriodic meetings with WNYE/CSC plant management and CSV farmer representativesRelationship with DFA, America’s leading dairy cooperativeKey New York state regulatory relationshipsGlobal business connectionsPrice risk management opportunitiesImproved price predictabilityReduced price volatilityBetter performance to budgets
2033 DFA Affiliated Plants Nationwide Ingredients–CheeseIngredients–ProteinContract ManufacturingConsumer BrandsFluid Milk and Ice CreamTurlock, Calif.Beaver, UtahWest Middlesex, Pa.New Wilmington, Pa.Hughson, Calif.Fort Morgan, Colo.Schulenburg, TexasSpringfield, Mo.Cabool, Mo.Mechanicsburg, Pa.Ventura, Calif.Winnsboro, TexasGoshen, Ind.Reading, Pa.St. Albans, Vt.*Houston, TexasCedarburg, Wis.Zumbrota, Minn.Fargo, N.D.Farmington, Minn.Winthrop, Minn.Minneapolis, Minn.Portales, N.M.Fallon, Nev.New Britain, Conn.Rochester, Minn.Frederick, Md.Cass City, Mich.Adrian, Mich.Middlebury Center, Pa.Linwood, N.Y.Plymouth, Wis.Portland, Maine* The plant in St. Albans, Vt., is a St. Alban's Cooperative Creamery plant. St. Albans is a member cooperative of DFA.
21WNYE/CSC Joint Venture Why? (cooperative perspective)Increasing demand for high quality milk components in the Northeastern U.S. dairy marketConsumers/retailers calling for more traceability and sustainability from their suppliersIn dairy, much of this falls back to the farm levelDFA customers focusing more on marketing and product development and less on manufacturingThis JV offers those customers a supply chain partner
22WNYE/CSC Joint Venture Why? (farmer perspective)Expand local dairy marketing opportunitiesDiversify direct investments beyond the farmProvide a different opportunity to work with like-minded producersReduce the cost of hauling farm milk to marketConnect food, cows, milk, farmers and family farms with consumers’ families
23Industry Response So was this! We understand that some say this project is:Non-traditional, out-of-the-box, or even riskyOthers will say this is:Disruptive to orderly milk marketingSo was this!
24Next Steps Northeast Dairy Market Development Catalyze add’l dairy processing investments (particularly small to medium sized operations) using the milk supplies from this facilityHarnessing value for milk/plant attributesAdditional investmentNiche opportunities within existing footprintPhase II expansion