1. Placer County USDA Inspected Harvest and Processing
Roger Ingram, UCCE County Director and Farm Advisor
Josh Huntsinger, Placer County Agricultural Commissioner
Sierra Foothills Meat Company, Inc

2. Timeline

3. Board Members Met 12 times Developed mission statement
Participated in Dakota Global Site Visit by hosting tours of ranches, stores, and a restaurant featuring locally grown meat
Provided input on animal numbers, facility, design, and other aspects of the report
Passed motion to adhere to Dakota Global recommendation of 2/3 cash and 1/3 loan for financing facility

4. Support for Getting Grant Deliverables Completed
Placer County match funding of $50,000
Josh Huntsinger, Placer County Agricultural Commissioner
Erik White, Placer County Air Pollution Control District
Joel Joyce, Placer County County Executive Office
Dave Snyder, Placer County Office of Economic Development
Roger Ingram, UCCE County Director and Farm Advisor

5. Sierra Foothills Meat Company Mission Statement
In 5 years, Sierra Foothills Meat Company, Inc. will be a thriving and profitable state of the art business that is:
Clean and attractive;
Gives quality customer service;
Environmentally responsible;
Provides career opportunities; and enhances the regional economy as well as the local community

6. Sierrafoothillsmeat.com

7. Facility Description
4800 square feet facility with additional 900 sq feet of holding pens.
Harvest and process approximately 1200 large animal units (cattle) and 800 small animal units (hogs and sheep/goats) per year.
Custom Service Provider of harvest into carcasses, cooler space for dry aging (64 head), processing to individual packages, and value-added products (ham, sausage, etc).
USDA Food Safety Inspection Service Inspected for both harvest and processing.

8. Animal Welfare
Facility design will stress animal welfare and low-stress livestock handling will be stressed.
Principles of corral handling facility design developed by Dr. Temple Grandin will be incorporated.
Humane slaughter principles will be implemented according to best practices developed by Dr. Temple Grandin.
All requirements of the Humane Slaughter Act will be fulfilled.

9. Facility Design

10. Facility Equipment

11. Capital Requirements
Item Cost
Property ,000
Permitting ,000
Plant ,500
Equipment ,773
Total PPE ,585,273
Pre-operating Capital (20%) ,055
Total Pre-operating Capital ,902,328
33% Financed ,768
Pre-operating Capital to be raised ,274,559
Working Capital Needed (20%) ,912
Total Capital to Be Raised ,529,471
Total Cost (Pre-operating Capital
+ Working Capital) ,157,240
Preoperational Capital includes design, consulting, utility prepayments, site testing, etc..
DISCLAIMER: The costs represented are estimated only at this point and have not been finalized by an engineer or contractor. Sewer and water connection costs are not included.

12. First 3 Years – Livestock Processing Numbers

13. Processing + 35% Margin Species Processing Cost Cost + 35% Margin Beef
$593
$801
Pork
$141
$191
Sheep
$112
$151
Goat
Cull Cows
$586
$791
These costs are competitive within the region.

14. Cash Flow Revenue Annual Financial Summary Year 1 2 3
Year 1 2 3
Number of animals processed
1,110
1,375
1,740
Revenue
Custom Fed Beef, Slaughter
288,407
360,509
496,701
Custom Pork, Slaughter
38,292
47,865
57,438
Custom Lamb, Slaughter
38,593
45,404
52,971
Custom Cull Cow, Slaughter
236,520
295,650
370,549
Value-added Processing
290,730
375,543
507,175
Beef Hides
7,200
9,000
12,400
Total Revenue
899,743
1,133,972
1,497,234
Total Cash Receipts
810,201
Cash Flow Revenue

15. Cash Flow Expenses Costs of Goods Solda 622,934 747,516 906,482
622,934
747,516
906,482
Total Costs of Goods Sold
Gross Margin
187,267
386,456
590,752
Gross Margin Ratio
23.1%
34.1%
39.5%
Expenses
Direct Plant Labor
223,309
286,420
356,470
Plant Direct Costs G & A
399,625
461,096
550,012
Property Taxes
15,000
Office Supplies
1,200
Professional Fees
12,000
Accounting Fees
Meals and Entertainment
Marketing Costs
6,000
Administrative Labor
180,000
185,400
190,962
Office/Utilities/phone/Internet
Postage
Travel Expenses
2,400
Miscellaneous Expenses
Total Operating Expenses
861,134
991,116
1,155,644
Cash Flow Expenses

16. Profit/Loss Annual Financial Summary Year 1 Year 2 Year 3
Total Cash Receipts
810,201
1,133,972
1,497,234
Total Operating Expenses
861,134
991,116
1,155,644
EBITDA
38,609
142,856
341,590
Interest Expense
36,381
33,467
30,373
Depreciation Expense
73,716
66,396
56,588
Net income (loss), $
-71,488
42,993
254,629
Investing Activities
Equipment Replacement
-4,800
Plant, Property, and Equipment purchase (PPE)
-101,964
Financial Activities
Loan Principal payments
-47,255
-50,167
-53,263
Line of credit available
19,998
50,000
Line of credit balance
33,963
Total Cash Out
1,051,534
1,181,514
1,346,044
Profit/Loss
-241,333
-47,542
151,190
Working Capital
254,912
13,579
Cash at End of Period
104,628
Profit/Loss

17. Energy Demand

18. Solar Energy

19. Anaerobic Digester
Reduces waste stream by converting offal to energy.

20. Anaerobic Digester

21. Woody Biomass

22. Woody Biomass

23. Parcel Needs to Identified
Sheridan – Need to be located east of wastewater treatment plant
Lincoln – Discussions with Western Placer Unified School District and Lincoln High School Farm about potential for siting plant on 7.5 available acres on a larger piece of vernal pool mitigation ground.
If Lincoln site was viable, well would need to be drilled ($41,000) and need to connect to sewer or identify alternative option.
Perception that an identified parcel would make the project seem more real when discussing wuth producers and outside investors.

24. Next Steps Review anaerobic digester and woody biomass reports
Meetings
Need Identified Parcel
Outreach to Producers
Attend California Cooperatives Conference to learn more about the agricultural cooperative corporation
SFMC Board will keep meeting