æTurnkey" Mini Dairy Plants Catching On Fast

æTurnkey" Mini Dairy Plants Catching On Fast 27-5-9 Most farmers can sell raw products directly to consumers in one way or another, but dairy farmers have no choice. They have to process their products before they sell them. Setting up even a small processing plant is expensive, time consuming and a regulatory nightmare. And getting a lender to sign off on the idea can be even tougher. Some dairy producers have made the problems simpler with a turnkey system called the Pladot Mini Dairy. "We don't just sell equipment, we sell a complete business," says Ofra Cohen, general manager, U.S. operations for Pladot, an Israeli company. Cohen and her husband, Dr. Gad Cohen, help customers develop a business plan and work with lenders and inspectors. They bring a dairy food scientist to teach customers how to run the equipment and make the product. And finally, they work with each producer on marketing plans and ideas. "Like any small business, it takes lots of blood, sweat and tears," say Cohen. "We tell customers to start small and grow. They have to master the equipment, the recipes and the marketing. Once you do that, you can work on getting bigger." A mini dairy needs at least 50 head of cows supplying milk. Cohen says a 500-cow herd with 100 dedicated to the mini dairy is ideal. The larger size allows future expansion while maintaining a separate income source during startup and expansion. The Pladot Mini Dairy can be as simple or as complex as the buyer wants. You can produce milk only, or milk plus soft cheese, butter, yogurt, ice cream, bottled milk, sour cream, and more. "We have had some installations that started out with too many products, only to learn they needed to be more focused," she says. The average facility runs about $250,000 without a building and can process 4,000-5,000 lbs of milk per day. How fast a system begins to make a profit depends on the individual. Cohen cites one organic ice cream and milk on-farm installation in Vermont that was in the black from day one. Included in the cost is advice on necessary equipment for the chosen product mix, building setup, customized assembly, integration and test-running of all equipment as well as operation and maintenance training. "They even came for meetings with our lender and our contractor," says Mike Minar, of New Progue, Minn., who's family bought a Pladot Mini Dairy as a way to expand their New Prague, Minn., family farming operation. Mike's parents, Dave and Florence, own the operation. Mike runs the plant while other siblings handle home delivery, run the on-farm store and manage the website (www.cedarsummit.com). Mike Minar is very satisfied with Pladot service. "Technical support has been good, the installation was very efficient, and the training program was thorough," he says. "Pladot has helped us through minor problems on both the equipment and the food tech side. They have been very supportive." There are more than 340 Pladot system installations worldwide. So far, there are only 12 in the U.S., but more are in planning stages. Early success has opened the door for others, adds Cohen. She points to two eastern U.S. Pladot systems that now sell all the milk, butter, yogurt and ice cream they can produce to Kroger stores in their area. Contact: FARM SHOW Followup, Ofra Cohen, Transmark Corp., 6521 Wilmett Rd., Bethesda, MD 20817, (ph 301-493-5963; email: mail2tmc@comcast.net).

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