Dairy Value Added Helpful Resources · Who you may encounter during this step: • UMN Extension • Small Business Administration • Neighborhood development agencies •African

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Printed on recycled and recyclable paper with at least 10 percent postconsumer waste material.

By Nathan J Hulinsky: Contact him for electronic version: [email protected] - 320-203-6104

FINANCING 1. Funding opportunities from Minnesota Dept of Ag Funding:

a. https://www.mda.state.mn.us/business-dev-loans-grants/agri-value-added-feasibility-study-grant

b. https://www.mda.state.mn.us/funding?field_category_target_id=5

c. https://www.mda.state.mn.us/business-dev-loans-grants/agri-value-added-grant-program

2. Knowing your financial ratios: https://www.cffm.umn.edu/Publications/pubs/FarmMgtTopics/FarmFinanceScorecard.pdf

3. How much does it cost to start a food business: http://gredio.com/blog/cost-to-start-a-food-business/#.Wo7M4ExFyhe

4. Kickstarter – Crowdfunding: https://www.kickstarter.com/

5. Farm Service Agency loans: https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/

LICENSING 6. Licensing your Food Business

a. Guide to Regulations for Local Food Entrepreneurs – 2015 (MN Institute for Sustainable Agriculture – MISA): http://misadocuments.info/LocalFoodEntrepreneurs_Regulations_Guide.pdf

b. Food Licensing in MN (Minnesota Dept of Ag): https://www.mda.state.mn.us/food-feed/food-licenses (Note that for shared commercial kitchen space producing a packaged food, your business will need to be licensed independently of the location as a wholesale food manufacturer)

7. MN Farmers Market (Cottage Food Law): https://mfma.wildapricot.org/CFL (This is relevant as you are exploring bringing an item to consumers at a very small scale, particularly in the Farmer’s Market – style arenas)

8. UMN Food Safety resources: http://www.extension.umn.edu/food/food-safety/

9. Basic Food Safety video: https://www.youtube.com/watch?v=F-qeFLMkEng

10. USDA Food Safety Education

MARKETING 11. Food Business Development - new markets: https://www.mda.state.mn.us/business-dev-loans-grants/food-

business-development-new-markets

12. Directories of available production space: (MN Dept of Ag)

a. Commercial Kitchens: https://www.mda.state.mn.us/shared-commercial-kitchen-directory b. Co-manufacturers: https://www.mda.state.mn.us/minnesota-co-packer-directory

Dairy Value Added Helpful Resources

EDUCATION 13. Starting a Business in MN (MN Department of Employment and Economic Development – DEED):

https://mn.gov/deed/assets/a-guide-to-starting-a-business-minnesota-37th-ed-2019_tcm1045-155254.pdf

14. Small Business Development Centers (MN Department of Employment and Economic Development – DEED): https://mn.gov/deed/business/help/sbdc/

15. Launching a Food Startup:

a. Part 1: https://nx-food.com/2018/01/advice-on-launching-a-food-startup-part-1/

b. Part 2: https://nx-food.com/2018/02/advice-launching-food-startup-part- 2/?mc_cid=b65788187a&mc_eid=e79d952f3d

16. Food Finance Institute – Business Model Consultants and Insights: https://foodfinanceinstitute.org/edible-alpha-insights-newsletter/

17. Crafting a business model and why it is important: https://www.entrepreneur.com/article/276079 (Lean Business Model Canvas attached)

18. Startup Tips from Small Businesses in an Incubator Program: https://www.specialtyfood.com/news/article/6-tips-startups-chobani-incubator/

19. Foster long-term economic benefit for Minnesota through value-added agricultural products. https://www.auri.org/

20. University of Minnesota Extension: https://extension.umn.edu/

21. Business Planning Resources:

a. Ag Plan: https://agplan.umn.edu/

b. Small Business Administration: https://www.sba.gov/tools/business-plan/1

RESOURCES 22. A local foods network: http://www.local-feast.org/

23. Midwest Pantry – a network of food entrepreneurs in Minneapolis: http://www.midwestpantry.com/ (note that their upcoming events page is always highlighting their twice monthly Entrepreneur meet-ups, which is a great way to meet other like-minded individuals and explore answers to your questions from a set of peers)

24. Grow North MN (A resource and connection hub for Minnesota's food and agriculture entrepreneur ecosystem): https://www.grownorthmn.com/

25. Starting a Small Dairy Processing Plant: The Basics: https://www.mda.state.mn.us/sites/default/files/2018-07/On-Farm%20Processing%20-%20Getting%20Started%20Document%204%2024%2018.pdf

26. Agritourism:

a. https://www.misa.umn.edu/publications/agritourism

b. http://umash.umn.edu/agritourism/

c. https://www.misa.umn.edu/publications/comeandgetit

d. https://farmcommons.org/come-get-it-farm-food-service-minnesota

© 2019 Regents of the University of Minnesota. All rights reserved. University of Minnesota Extension is an equal opportunity educator and employer. In accordance with the Americans with Disabilities Act, this material is available in alternative formats upon request. Direct requests to 612-624-122

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Driver’s Ed: Learn the Basics Business Planning Parking Lot

START HERE

Food Safety Regulations and InformationFunding and Financing

Additional Resources Scanning the Horizon

• Establish a support system.• Research the basics of financing and resources

available to you. • Consider other aspects of commercialization.

Are you interested in starting your own food business? This map is a great place to start! Even though the Roadmap is designed to look like a step-by-step guide, keep in mind this process is not linear, and you can expect to revisit stops throughout your journey. This list provides many resources that you might find helpful, but is not intended to be an exhaustive list. Review all of the stops on the roadmap before starting your food business.

• Complete a cost analysis. • Conduct market research to define your

target market. » What is your product? » Where do you want to sell it? » What makes your product unique?

• Learn about food safety regulations, limitations, and necessary training related to your business.

• Make a food risk management strategy (HACCP, allergens, etc.).• Create a Food Safety Plan and Recall Plan.

• Meet with your banker to discuss financing.• Research other grant and loan opportunities.

• Identify other resources to help you start your food business. • Meet with your inspector.• Review your business and food safety plans regularly.• Decide if and how you will scale your business.

Knowing what licensing you will need can be a confusing process. Depending on your food business, you may require training and/or licensing from MDH, MDA, and/or federal and local delegated agencies.• Most food products that are served and eaten on site (for instance, food trucks, restaurants,

caterers) require a license from MDH.• Most retail and manufactured food products require a license from the MDA.• Some types of food businesses may require licensing or training from federal agencies or

local delegated agencies.

Plan for Production

• Decide where you will produce your product.• Find where and how you will source ingredients,

equipment, and other supplies.• Think about ways to use local ingredients.

Food Licensing Round-About

Starting a Food Business Roadmap

Delegated Agencies

Federal

LIBRARY

FOOD

TRUCK

MDA

MDH

Who you may encounter during this step:

• UMN Extension• Small Business Administration• Neighborhood development agencies• Food advocacy organizations• Universities & Other Educational Institutions

21 Things to Research Before Starting a Business www.smarta.com/advice/starting-up/starting-your-own-busi-ness/21-things-to-research-before-starting-a-business

9 Things to Research Before Starting a Food Business quickbooks.intuit.com/r/am-i-ready/9-things-research-start-ing-business

Basic Plan For Success - for you, the entrepreneurcfvc.foodscience.cals.cornell.edu/getting-started/plan-success

Building a Sustainable Business www.misa.umn.edu/publications/buildingasustainablebusiness

Business Planning: Cornell Universitycfvc.foodscience.cals.cornell.edu/getting-started/steps-start/business-planning

James J Hill Center Business Reference Library jjhill.org/research-guides

Small Business Development Portalmn.gov/deed/business/help/sbdc

Specialty Food Learning Centerlearning.specialtyfood.com

Starting a Business in Minnesotawww.sos.state.mn.us/business-liens/start-a-business

WE Startwestart.mn

How to Write a Business Plan How to Write a Business Plan www.entrepreneur.com/article/247575

Small Business Administration Webinar Training: How To Write A Business Planwww.sba.gov/tools/sba-learning-center/training/how-write-business-plan

Small Business Starter Kit: Business Plan Options 99designs.com/resource-center/small-business-starter-kit/write-a-business-plan

Writing A Business Planwww.sequoiacap.com/article/writing-a-business-plan

Who you may encounter during this step:

• Economic Development Centers• Business consultants• University of Minnesota (UMN) Extension• Food advocacy organizations• Educational institutions

Food Business OrganizationsAURIwww.auri.org/focus-areas/food

Grow Northwww.grownorthmn.com

Midwest Pantrywww.midwestpantry.com

Food Business Basics21 Things to Research Before Starting a Business www.smarta.com/advice/starting-up/starting-your-own-busi¬- ness/21-things-to-research-before-starting-a-business

9 Things to Research Before Starting a Food Businesshttps://quickbooks.intuit.com/r/am-i-ready/9-things-research-starting-business/

Glossary of Wholesale Terminologyhttps://medium.com/shelf-life/glossary-7b4020bdc9ff

Pros & Cons Of Starting A Food Businesscfvc.foodscience.cals.cornell.edu/getting-started/pros-cons

Food Business for Entrepreneurs https://ag.umass.edu/sites/ag.umass.edu/files/food-science/introduction-for-food-entrepreneurs-8-14-2014.pdf

Business Planning Parking Lot

Market ResearchHow to Research Your Marketwww.entrepreneur.com/article/175276

Market Readiness Research Protocolfic.oregonstate.edu/food-innovation-center/product-develop-ment/market-research-market-readiness-mktrd-protocol

Business and Tax Registration Business Structure Comparison www.uwcc.wisc.edu/whatisacoop/BusinessStructureCompar-ison

Business Taxesmn.gov/deed/business/starting-business/taxes

How To Calculate Sales Tax99designs.com/resource-center/small-business-starter-kit/calculate-sales-tax

How To Choose Your Business Structure for Registration99designs.com/resource-center/small-business-starter-kit/choose-a-structure

How to Register Your Businesswww.sos.state.mn.us/business-liens/start-a-business/how-to-register-your-business

IRSwww.irs.gov

MN Department of Revenue www.revenue.state.mn.us/businesses/Pages/Business-Center.aspx

MN Secretary of Statewww.sos.state.mn.us/business-liens/start-a-business/how-to-start-a-business-in-minnesota

Sales & Use Tax Instructionswww.revenue.state.mn.us/Forms_and_Instructions/sales_tax_booklet.pdf

Unemployment Insurancehttp://www.uimn.org/uimn

Workers’ Compensation Informationwww.dli.mn.gov/business/workers-compensation-businesses

Economic Development and Business SupportAfrican Development Center of MNadcminnesota.org

African Economic Development Solutionsaeds-mn.org

Asian Economic Development Association (AEDA)aeda-mn.org

Community Reinvestment Fund (CRF USA)crfusa.com/crf_mission_values

DEEDmn.gov/deed/business/starting-business

Edible Alpha + Newsletterfoodfinanceinstitute.org/edible-alpha-insights-newsletter

Latino Economic Development Centerledc-mn.org/index.php/en/home

Metropolitan Economic Development Association (MEDA)meda.net/services-2

Neighborhood Development Centerwww.ndc-mn.org

Small Business Administration Local Assistance Toolwww.sba.gov/tools/local-assistance/map/state/mn

Northside Economic Opportunity Networkneon-mn.org

UMNced.d.umn.edu

What Is Your Product? Building Your Brand99designs.com/resource-center/small-business-starter-kit/build-your-brand

Marketing 101: Small Business Administration Trainingwww.sba.gov/tools/sba-learning-center/training/market-ing-101-guide-winning-customers

MN Cottage Foods Lawwww.mfma.org/CFL

Food Packaging and Labeling AURI Clean Label Guidewww.auri.org/research-reports/clean-label-guide

FDA Food Labeling Guidewww.fda.gov/downloads/food/guidanceregulation/ucm265446.pdf

Food Packaging https://www.fda.gov/Food/IngredientsPackagingLabeling/

Packaging Supplier Listhttps://cfvc.foodscience.cals.cornell.edu/kitchens-supplies/packaging-supplier-list

Product Labelingcfvc.foodscience.cals.cornell.edu/getting-started/steps-start/product-labels

Product Labeling for MNhttp://www.health.state.mn.us/divs/eh/food/fs/foodlabelfs.pdf

Where Should You Sell? Farm to Schoolwww.extension.umn.edu/food/farm-to-school

Marketing Decisions - Cornell Universitycfvc.foodscience.cals.cornell.edu/getting-started/steps-start/market-decisions

Specialty Food Association Education Resourceshttps://learning.specialtyfood.com/?_ga=2.237834114.300896724.1540835613-704626038.1540835613

Driver’s Ed: Learn the Basics

Who you may encounter during this step:• Federal, state, local food safety agencies

• Universities & academia

• Educational institutions

• Food innovation centers

• UMN Extension

FSMA Food Safety Modernization Actwww.fda.gov/food/guidanceregulation/fsma/ucm247559.htm#Registration

FSMAwww.fda.gov/Food/GuidanceRegulation/FSMA/default.htm

FSMA Preventive Controls Rulewww.fda.gov/Food/GuidanceRegulation/FSMA/ucm334115.htm

FSMA Coverage & Exemptions/Exclusions Flow Chartwww.fda.gov/downloads/FoodGuidanceRegulation/FSMA/UCM472499.pdf

FSMA Produce Rule Fact Sheet www.fda.gov/downloads/Food/GuidanceRegulation/FSMA/UCM472887.pdf

Recalls FDA Recall Industry Guidancewww.fda.gov/Safety/Recalls/IndustryGuidance/ucm129259.htm

Food Recall Templates & Other Helpful Templates www.ifsh.iit.edu/fspca/fspca-materials

USDA Recall Plan Guidebook www.fsis.usda.gov/shared/PDF/RecallPlanBooklet_0513.pdf

Food Safety AURI www.auri.org/focus-areas/food

Cottage Food Law FAQswww.mda.state.mn.us/food/cottage-food-law-guidance

FDA “What You Need to Know About Establishment & Maintenance of Records”www.fda.gov/Food/GuidanceRegulation/ucm292745.htm

Food Equipmentwww.nsf.org/services/by-industry/food-safety-quality/food-equipment-certification/standards-certification

Food ingredients that may cause allergies www.mda.state.mn.us/food/food-ingredients-may-cause-aller-gies

Food Safety Regulations and Information

Food Safety & Defense Task Forcemn.foodprotectiontaskforce.com

Food Safety Information & Resourceswww.mda.state.mn.us/food/food-safety-information-resources

Food Safety Preventive Controls Alliance www.ifsh.iit.edu/fspca

Hand Hygiene for Food Handlers www.health.state.mn.us/handhygiene/food/index.html

MDA Produce Safety Program https://www.mda.state.mn.us/food-feed/produce-safety-pro-gram

MDH Canning http://www.health.state.mn.us/foodsafety/store/canning.html#canning

MDH Food Code www.health.state.mn.us/divs/eh/food/code/index.html

Open Source Food Safety www.opensourcefoodsafety.org

Produce Safety Program www.mda.state.mn.us/food/safety/producesafetyprogram.aspx

Retail Meat & Poultry Processing Training www.mda.state.mn.us/food/retail-meat-and-poultry-process-ing-training-modules

ServSafe www.servsafe.com

U of MN Extension Food Safety Training https://extension.umn.edu/food-health-and-nutrition#food-safety

U of MN GAPs Program safety.cfans.umn.edu

University of Minnesota Food Safety Factsheets www.extension.umn.edu/food/food-safety

What is a HAACP? www.22000-tools.com/what-is-haccp.html

Processing Authority Support Acidified Foods Overviewucfoodsafety.ucdavis.edu/Food_Processing/Acidified_Foods

Better Process Controls & Acidified Food Courses ucfoodsafety.ucdavis.edu/Better_Process_Control_Schools

Processing Authority Approval www.afdo.org/foodprocessing

UMN Extension Information for Food Processors https://extension.umn.edu/food-safety/food-processors

Funding and Financing

$

Who you may encounter during this step:

• Local economic development agencies & municipalities

• Banks & financial institutions

• State economic development agencies

• Funding & grant organizations and agencies

Learn the Basics of Funding Financing Training Moduleswww.sba.gov/tools/sba-learning-center/ search/training/financing

How To Find Fundinghttps://99designs.com/resource-center/small-business-starter-kit/find-funding

New Funding Sources For Food-Related Businesseshttp://foodsystems.msu.edu/uploads/ files/food_business_funding.pdf

Real Food MBA Resources & Funding Lists http://realfoodmba.com

Slow Money MNwww.slowmoneyminnesota.org

Exporting Export Financing through the MN Trade Office mn.gov/deed/business/exporting/export-financing

Food Export Association of the Midwest Branded Program www.foodexport.org/programs-services/ increase-market-share/branded-program

US Commercial Servicewww.foodexport.org/programs-services/ increase-market-share/branded-program

Grants and Loans Compeer - Emerging Markets, Local Food, and Non-Traditional Ag Loans https://compeer.com/Home/Agriculture/Ag-Financing/Emerg-ing-Markets-Program

Farm Opportunity Loanwww.mda.state.mn.us/business-dev-loans-grants/farm-oppor-tunity-loan-program

Good Food Access Grantswww.mda.state.mn.us/grants/grants/gfapequipmentgrant

MDA AGRI Value Added Feasibility Study Grants www.mda.state.mn.us/business-dev-loans-grants/agri-val-ue-added-feasibility-study-grant

MDA AGRI Value Added Grants www.mda.state.mn.us/business-dev-loans-grants/agri-value-added-grant-program

MN DEED Business Loan Basicshttps://mn.gov/deed/business/financing-business/guidance/biz-loan-basics.jsp

USDA Microloan Program www.fsa.usda.gov/programs-and-services/ farm-loan-programs/microloans/index

USDA Value-Added Producer Grantswww.rd.usda.gov/programs-services/ value-added-producer-grants

Crowd Funding Barnraiserwww.barnraiser.us

Foodstart www.foodstart.com

Kabbage www.kabbage.com

Kickstarterwww.kickstarter.com

Kivawww.kiva.org

Pieshellwww.pieshell.com

Initiative Funds Greater MSPwww.greatermsp.org

Minnesota Initiative Foundationswww.greaterminnesota.net

Accelerators 301 Incwww.301inc.com

Accel.mnhttps://westart.mn/resources/accel-mn

Agthentic food tech and ag-tech accelerators resources.agthentic.com/#

Gener8torwww.gener8tor.com

Kemp’s / Dairy Farmers of America Accelerator http://sprintaccel.com/accelerator-program

Land O’ Lakes Dairy Acceleratorhttps://dairyaccelerator.landolakesinc.com

Red Wing Ignitewww.redwingignite.org/about-us

Techstars Farm-to-Fork Acceleratorwww.techstars.com/farm-to-fork-program

Plan for Production

Where you produce your product will influence your licensing requirements.

Who you may encounter during this step:• Co-packers

• Shared commercial kitchens

• Food processing facilities

• Cottage food advocates and experts

• Wholesalers, suppliers, ingredient sources, local farms

On FarmCome & Get It!www.misa.umn.edu/publications/comeandgetit

Cottage Food Resourceswww.misa.umn.edu/resources/local-food-sales-resources/cottage-food

FSMA Coverage & Exemptions/Exclusions Flow Chart www.fda.gov/downloads/FoodGuidanceRegulation/FSMA/UCM472499.pdf

FSMA Produce Rule Fact Sheetwww.fda.gov/downloads/Food/GuidanceRegulation/FSMA/UCM472887.pdf

Local Food Fact Sheetswww.misa.umn.edu/publications/local-food-fact-sheet-series

At HomeCottage Food Resourceswww.misa.umn.edu/resources/local-food-sales-resources/cottage-food

Shared KitchenCommercial Kitchen Guidewww.misa.umn.edu/publications/commercialkitchenguide

How To Find & Rent A Commercial Kitchenwww.youtube.com/watch?v=M2Qn-r0zZ_o

Kindred Kitchenwww.kindredkitchen.org

Kitchen on the Bluffwww.kitchenonthebluff.com

The Good Acrethegoodacre.org

Shared Kitchen Directorywww.mda.state.mn.us/shared-commercial-kitchen-directory

Co-PackerChoosing and Using a Co-Packerhttps://hortintl.cals.ncsu.edu/content/choosing-and-using-co-packer

Co-Packer Directory www.mda.state.mn.us/minnesota-co-packer-directory

Specialty Food Association Co-Packer Directory www.specialtyfoodresource.com/get-started/find-a-business-resource/copackers

Using A Co-Packer: Resources ucfoodsafety.ucdavis.edu/Food_Industry_Contacts/Co-Packers

OtherFDA inspection Guidewww.fda.gov/ICECI/Inspections/InspectionGuides/ucm074988.htm#SECTION 1

Good Manufacturing Practiceswww.fda.gov/Food/GuidanceRegulation/CGMP/ucm110877.htm

UMN Dept. of Food Science and Nutrition Research & Serviceshttps://fscn.cfans.umn.edu/research-services

UMN Dept. of Food Science and Nutrition Pilot Planthttps://fscn.cfans.umn.edu/research-services/pilot-plant

FOOD

TRUCK

Who you may encounter during this step:

• Business accelerators

• Business incubators

• Co-packers

• Trade organizations

5 Tips to Re-Evaluate Your Company’s Goals www.ballantine.com/5-tips-to-re-evaluate-your-company-goals

How to Conduct a SWOT Analysis for Your Small Businesswww.thebalance.com/swot-analysis-for-small-busi-ness-2951706

Manufacturing Flowchartwww.lucidchart.com/pages/examples/flowchart/produc-tion-flowchart-template

Local Food ProcurementDirectorieswww.misa.umn.edu/resources/local-food-sales-resources/local-food-directories

Minnesota Grownminnesotagrown.com

WholesalersFresh Connectwww.lcsc.org/Page/549

Red Market redmarketmn.com

Sproutsproutmn.com

The Good Acrethegoodacre.org

Useful Tools to Help You StartLicensing Wizardwww2.mda.state.mn.us/webapp/foodlicensingwizard

Food Licensing Liaison Line651-201-6081 or [email protected]

Who you may encounter during this step:

• Minnesota Department of Health

• Minnesota Department of Agriculture

• Delegated agencies

• Federal agencies

MDA InspectedCottage Foodwww.mda.state.mn.us/licensing/licensetypes/cottagefood.aspx

Exemptionswww.mda.state.mn.us/food-licensing-exclusions-and-exemp-tions

Food ingredients that may cause allergieswww.mda.state.mn.us/food/food-ingredients-may-cause-al-lergies

Food Licenseswww.mda.state.mn.us/licensing/licensetypes/foodhandler.aspx

Food Safety Information & Resourceswww.mda.state.mn.us/food/food-safety-information-resources

Plan Review - Retail Food Establishmentswww.mda.state.mn.us/planreview

Produce Safety Programwww.mda.state.mn.us/food/safety/producesafetyprogram.aspx

Retail Food Licensing & Inspections Delegated Agencies www.mda.state.mn.us/retail-food-handler

Retail Meat & Poultry Processing Training www.mda.state.mn.us/food/retail-meat-and-poultry-process- ing-training-modules

Various License One Pagerswww.mda.state.mn.us/licensing/licensetypes/foodhandler.aspx

MDH Inspected2011 “Church Lady” Lawwww.health.state.mn.us/divs/eh/food/pwdu/fsp/cookcrowd

Chili or Soup Cook-Off Fundraisers www.health.state.mn.us/divs/eh/food/pwdu/fsp/cookoff/index.htmll

Farmer GroupsLand Stewardship Projectlandstewardshipproject.org

MN Farm Bureauwww.fbmn.org/farm-fresh

MN Farmers Unionwww.mfu.org

MN Farmers’ Market Associationwww.mfma.org

Sustainable Farming Association www.sfa-mn.org

Product DevelopmentCornell University Steps To Test Productscfvc.foodscience.cals.cornell.edu/getting-started/steps-start/product

Farm to Schoolwww.extension.umn.edu/food/farm-to-school

K-State General Considerations for Food Product Developmentwww.ksre.k-state.edu/kvafl/development.html#screen

Marketing Decisions - Cornell Universitycfvc.foodscience.cals.cornell.edu/getting-started/steps-start/market-decisions

MN Grocers Association Fancy food Shows Ed. Sessionswww.specialtyfood.com/shows-events/winter-fancy-food-show/education/education-program-winter

Food Business Fact Sheetswww.health.state.mn.us/divs/eh/food/fs/index.html

Hand Hygiene for Food Handlerswww.health.state.mn.us/handhygiene/food/index.html

Licensing - Food, Pools, and Lodging Serviceswww.health.state.mn.us/divs/eh/food/license/index.html

MDH Delegated Agencies: Jurisdiction Map & Directory www.health.state.mn.us/divs/eh/food/license/index.html

Minnesota Certified Food Managerwww.health.state.mn.us/divs/eh/food/cfm/index.html

Mobile Food Unitwww.health.state.mn.us/divs/eh/food/license/mfureview.pdf

Mobile Food Unit, Seasonal Temporary Food Stand, and Seasonal Permanent Food Stand Construction Guide www.health.state.mn.us/divs/eh/food/license/mfusea-conguide.pdf

Special Licensingwww.health.state.mn.us/divs/eh/food/license/special.html

FDA / USDA InspectionsGuide to Regulations for Local Food Entrepreneurs https://www.misa.umn.edu/publications/guidetoregulations-forlocalfoodentrepreneurs

FDA Registration Guideswww.fda.gov/Food/ResourcesForYou/Industry/ucm322302.htm#subject

Overview of Food Regulations www.gaccmidwest.org/fileadmin/ahk_chicago/White_Paper/BTL_FoodRegulation.pdf

Who regulates what? www.eater.com/2017/3/24/15041686/fda-usda-differ- ence-regulation

Inspected By Someone Else (Delegated Agencies)MDH Delegated Agency Bookwww.health.state.mn.us/divs/eh/food/license/locals.pdf

Scanning the Horizon

LIBRARY

Who you may encounter during this step:• Federal, state, and local food safety agencies

• Food advocacy organizations

• Universities & Other Educational Institutions

• UMN Extension

• Small Business Administration

• Neighborhood development agencies

• Food advocacy organizations

Grow Northwww.grownorthmn.com/resource-navigator

Local Foods Advisory Committeewww.misa.umn.edu/resources/local-food-advisory-committee

Food Safety Partnership of Minnesotawww.health.state.mn.us/divs/eh/food/pwdu/fsp/index.html

Additional ResourcesFood Licensing Round-About

Delegated Agencies

Federal

MDA

MDH

In accordance with the Americans with Disabilities Act, this information is available in alternative forms of communication upon request by calling 651-201-6000. TTY users can call the Minnesota Relay Service at 711. The MDA is an equal opportunity employer and provider. File Name: Starting a Food Business Roadmap.indd 1.29.19

ANY dairy farmers depend on a milk check as their only source of income and must ride the roller coaster of fluctuating milk prices.

When prices fall, farm owners are forced to make tough choices. Can they cut costs, or should they expand and make investments that will hopefully benefit the dairy in the future?

For some producers, adding a new revenue stream to the business is what allows them to keep dairy farming at their current or smaller herd size. The farms included in this Round Table headed in dif-ferent directions to diversify their operations. These dairies sell products such as apples, eggs, and pumpkins, and run businesses varying from road-side stands to bed and breakfasts. Read on to learn why these farms chose to stay small and instead add these creative enterprises.

What are your additional revenue sources beyond the dairy herd?

Brand Farms: We run an apple orchard, and we also have a large flock of laying hens. The lay-ing hen business began in 2005 after I (Aaron) returned from college. I started with 50 hens to lay eggs for family members. The eggs from those 50 hens slowly became too many, so I put a farm fresh egg sign by the road. The rest is history. We expanded to 300 hens, then 500, then 800, to where we sit today with 2,100 hens.

We built a state-of-the-art hen house in 2016. Since then, production, egg quality, bird health, and overall ease of daily operations have im-

proved. We are getting about 160 dozen eggs per day. They are sold either at the farm, at farmers’ markets, or at the four grocery stores we deliver to. We also supply eggs to five restaurants.

The apple orchard business fell into my hands, so to speak. The apple orchard I worked at in high school closed and was purchased by a new owner. I happened to be looking for something extra at the time, so I ended up running it.

We were open a few years and quickly realized that there weren’t enough trees left at the prop-erty, so tree planting began on the home farm in 2009. To date, we have the original 6 acres at the old orchard, and now we have 10 acres planted at the home farm to keep up with demand.

All apples are sold either off the farm, at farmers’ markets, at a couple select grocery stores, or they are made into value-added products at the farm like pies, crisps, cider, and apple chips. Last season was our first time partnering with a school district. We now supply 15 schools with apples for lunch.

Eccardt Farm: In 2005, we started selling composted manure. The manure is from the heif-ers and steers that are bedded with sawdust. We stockpile the manure in windrows and turn them weekly for one year. Once compost is a year old, it is sold for use in gardens and lawns. Every spring we sell out of what we have finished composting, which is roughly 500 to 600 yards.

In 2009, we opened a farm store where we sell our raw milk, lamb, pork, and grass-fed beef. We also fill our farm store with locally made and grown goods like eggs, honey, maple syrup, and ice

cream. The farm store is completely on the honor system, and we all work to keep it stocked through-out the day. The sales have been consistently grow-ing to the point that the revenue is almost half of the revenue generated from the dairy cows.

Sandy raises the lambs from her ewes every summer, and we purchase piglets in the spring to raise for pork. The beef is from our bull calves, and we have a Hereford bull that breeds all the replace-ment heifers so we can get more “beefy” crosses.

We raise two to three bull calves per month and typically have 60 steers between weaning and 28 months of age. We started selling sides and whole beef cattle as well as three sizes of assorted beef cuts as a much smaller alternative.

Gunter Farms: In 2001, we started growing pumpkins. We had been hosting summer school groups for several years, and in 2001, we let the students plant their own seeds. That fall we had pumpkins to pick, so we started selling them. Lloyd and Jane’s daughter, a kindergarten teacher, brought her classes out to the farm also.

In 2003, we added the corn maze. It has con-tinued to grow to where we are today with over 5,000 people visiting the farm each fall. It takes our entire family to make the pumpkin patch a success. We hire a few extra people during this time but rely heavily on our extended family to help on the weekends.

Valley Springs Farm: Valley Springs Farm Bed and Breakfast started the fall of 2013. Lodging is available in three bedrooms with private or shared bath options, a scenic front porch, a patio and camp-

They added revenue, not cowsThese dairy farms chose to stay small while adding income through unique business opportunities.

68th Annual HOARD’S DAIRYMAN ROUND TABLE

A little over a decade ago, the Ec-card family decided to reduce the size of their 200-head herd and in-stead add new revenue sources to help cover expenses. Today, they are milking about 95 Holstein and crossbred cows twice a day in a double-6 herringbone parlor. The herd averages 22,000 pounds of milk while maintaining a 60,000 so-matic cell count. The milking herd is housed in a freestall barn, with another barn and two bedded packs used to house heifers and steers.

The Eccards started selling com-posted manure in 2005. Four years

later, they opened a farm store to sell their own milk and meat in ad-dition to other locally sourced goods. They sell items on an honor system, and in the summer, up to a 100 peo-ple may visit the store daily.

George Eccard is part owner and president of the Washington, N.H., farm; his wife, Sandy, is the treasurer. Their son, Ryan, is part owner and vice president, and their daughter, Kristi, also works on the farm part-time. Pictured are (L to R): Sandy Eccard, Mitch Crane, Kristi Eccard, Julia Eccard, George Eccard, and Ryan Eccard.

Eccardt Farm, Washington, N.H.

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Located near the Twin Cities in Farmington, Minn., the Brand family decided that diversification was a better option for them than expansion. When Aaron returned to the farm after college in 2005, he started an apple orchard and an egg laying business. Both have grown over the years, and although it keeps the family very busy, they feel these enterprises complement their 70-cow dairy herd well.

Their Holstein cows are milked in a 50-cow tie stall barn. The switch cows are housed in a freestall barn adjacent to the stall

barn. The tie stalls are bedded with sawdust, while the freestalls are sand bedded. The herd main-tains a 24,000 pound rolling herd average on twice a day milking.

In addition to Aaron, family members John, Greg, and Richard are all actively involved with the dairy, egg, and apple businesses. During apple harvest season, 18 part-time employees are hired to pick and sell the fruit, which is sold on the farm, at farmers’ markets, and through local grocery stores. Pictured are the father and son duo of Aaron and John Brand.

Brand Farms, Farmington, Minn.

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Don Harms purchased the farm from his parents in 1978. Since then, he has farmed with his wife, Dorothy, on their Reedsburg, Wis., dairy. Through the years, they fo-cused on maintaining high produc-tion though genetics and nutrition.

Looking to make the workload more manageable, they reduced the herd size a few years ago. They are currently milking 37 Black and White and Red and White Hol-steins in their tie stall barn. The herd averages 27,073 pounds of milk with 3.81 percent fat and 2.98 percent protein on 2x milking.

To supplement their income, and to utilize Dorothy’s hospitality skills, the Harms opened Valley Springs Farm Bed and Breakfast in 2013. They offer lodging in the upstairs of their remodeled farm house, and they allow guests to spend time out in the barn learning from Don.

Four years ago, the Harms also added Red Angus cattle to the farm. The beef is sold through direct mar-keting. Don and Dorothy, pictured here, have enjoyed diversifying their dairy farm and the opportunities to communicate with the public that have become available.

Valley Springs Farm, Reedsburg, Wis.

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Gunter Farms in Conway, Mo., is operated by Lloyd and Jane Gunter, their son, David, his wife, Courtney, and their three children. The family provides all the labor for the dairy, with the help of one part-time hired employee.

The Gunters are milking 90 Brown Swiss twice a day in a dou-ble-4 herringbone parlor. The cows are housed in a compost-bedded pack barn with a feed alley along one side that was built in 2017. The move from a pasture-based system to the compost-bedded pack barn has improved milk produc-

tion, somatic cell count, and cow cleanliness. Today, the cows aver-age 19,000 pounds of milk with 4.6 percent fat and 3.7 percent protein.

Looking to add a revenue stream that was compatible with dairy farming, the Gunters decided to start a pumpkin patch in 2001. Two years later, they added a corn maze, followed by an area for games and picnics. Their agritourism venture has grown, and last fall more than 5,000 people visited the farm. Pic-tured are (L to R): David, Jackson, Lloyd, Jane, Hannah, Courtney, and Noah Gunter.

Gunter Farms, Conway, Mo.

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fire area, and hiking trails. Farm-to-table breakfast is served featuring Dorothy’s garden-fresh veggies and locally sourced eggs, cheese, and meat.

Guided dairy farm tours are available for guests to bottle feed calves and see cows being milked. We really want to have that conversation with them about how farmers care for their herds.

Dorothy is the “innkeeper,” managing the guest accommodations, and Don is the “out keeper” who keeps the farmstead neat and tidy. Our bed and breakfast business has grown to be occupied most all weekends during the summer and fall with weekdays becoming more popular as well.

Valley Springs Farm fresh beef began when we purchased our first four Red Angus heifers in 2014 and added seven more in 2015. From that base, our herd has grown to 30 cows that will freshen this spring. We had existing spring-fed pastures to begin with but have converted some of our crop acres to accommodate a grass-based beef system. We work with a local-inspected processor to mar-ket beef halves, quarters, and mixed bundles.

We adapted a CSA (community supported agri-culture) model to market beef that fits into con-sumers’ freezers and budgets. Our business has grown to direct sell everything we have raised.

What motivated you to diversify?

Brand Farms: Our location motivated us. With housing developments less than a mile away, we thought it best to spread our wings into different enterprises. Over time, we have realized this was a good decision because of where we are located.

Eccardt Farm: The diversification happened through necessity more than anything else. When milk prices started becoming more volatile around 2007, we sold 50 cows. We were milking around 200 cows at the time.

In 2009, we started dropping our cow numbers further and added new revenue sources to help pay the bills. Basically, we were avoiding having

all of our eggs in one basket. In 2013, we were down to about 55 cows; since then, we have slowly built the herd back up to the 95 we are at today.

We also wanted to make the cow numbers more manageable for ourselves because we had trouble finding enough help. This herd size allowed us to spend more of our time managing the cows.

Gunter Farms: We were looking for a way to add income that would be compatible with dairy farming. We already had hosted some summer school groups on the farm, and after visiting some other agritourism businesses, we decided on a pumpkin patch and later added a corn maze.

Valley Springs Farm: We needed to figure out new ways to earn income from our existing farm-land base. Dorothy’s love of cooking and gardening, a well-kept farmstead, and three empty bedrooms when our grown children had moved away — it all added up to opening a bed and breakfast. The farm stay venture allows us to tell agriculture’s story to the general public in a hands-on way.

Today’s travelers are choosing authentic local ex-periences. What is more authentic when traveling in Wisconsin than staying at a dairy farm? An added benefit that we didn’t expect was viewing the beauty and wonder of farming through our visitors’ eyes.

While we still operate our dairy, we have down-sized the number of milking Holsteins and intro-duced Red Angus cattle in a cow/calf operation. We believe that small farms can and will continue to exist. You just need to be willing to reinvent your-self. We were not interested in getting bigger to con-tinue to farm, so we had to become entrepreneurs.

What research or training did you do? Brand Farms: Back in high school, I worked at

an apple orchard. I gave customers wagon rides out to pick apples. I also did some spraying in the summertime. I received a large amount of the or-chard training from the management there.

Since then, orchard practices have changed. To

stay current, we attend fruit expos, and we are part of the Minnesota Apple Growers Association.

Eccardt Farm: We did not do a lot of research; the enterprises mostly came along organically and grew slowly into what they are today. We have al-ways started small to avoid any heavy financial losses if things did not work out.

The market basically dictated how quickly or slowly we have grown our different enterprises. In that way, we did not need to do a lot of market research or training to start a big, new venture. Most of the important lessons were learned along the way. For example, we learned a lot about the entire butchering process and the best way to pro-cess the beef so that it sells efficiently by the cut.

Gunter Farms: We kind of started on our own but have been very involved in Missouri’s agritour-ism meetings. We have been on the Farm Bureau’s agritourism committee, and we have hosted their annual conference.

Valley Springs Farm: As a member of the Wisconsin Bed and Breakfast Association, Dorothy started with their Aspiring Innkeeper Workshop and continues to learn at the annual conference. Other innkeepers have been very gracious in shar-ing their experiences with us.

Dorothy has also utilized Wisconsin Milk Market-ing Board (WMMB) dairy educational materials to hand out to families who stay with us.

We have become members of the Wisconsin Grass-fed Beef Co-op to learn about the grass-fed beef market. We look for ways to continue learning about “marketing your brand” and opportunities to improve websites, blogging, and social media.

What changes did you make to accom-modate your new enterprises?

Brand Farms: We haven’t made too many changes on the farm yet because of the orchard business. Apples are seasonal, so everything we use gets set up temporarily and can be taken down

Used by permission from the February 25, 2019, issue of Hoard’s Dairyman.Copyright 2019 by W.D. Hoard & Sons Company, Fort Atkinson, Wisconsin.

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to make way for storage of tractors and equipment.Over time, we have purchased apple pack-

ing equipment, an orchard compact tractor, skid loader, equipment for cooling the fruit, and spray-ing equipment. We also added anything related to apple sales from tables, tubs, bags, signage, and of course, apple trees.

When we started the orchard, we hired one part-time employee. Now we have 18 part-time employ-ees who help with apple picking and packing, run-ning farmers’ market stalls, and bookkeeping.

With customers coming onto the farm property, along with requirements from farmers’ markets, we had to purchase additional insurance through an umbrella policy.

Eccardt Farm: The composting enterprise re-quired a large flat area with solid ground to work and decompose the windrows. Around a half acre of our closest hayfield was sacrificed for this purpose and set up with gravel and stone as a base. Our summer crop helper turns the windrows once per week, and George and Ryan load the customers’ ve-hicles with a skid steer or the wheel loader.

The farm store was built in 2009 in the driveway of the farm. It was filled with chest freezers and upright display freezers.

Since we had milked 200 cows and had 200 head of young stock in the past, the space already ex-isted for the beef steers. A stock trailer was pur-chased to bring animals to the butcher.

Sandy brings the animals to the butcher and brings the meat home. Then George and Ryan keep the store stocked with the meat. Kristi fills the milk bottles, both plastic jugs and refillable glass bottles. Sandy handles all of the ordering of prod-ucts that come from other sources and also picks up any goods that are not shipped or delivered.

The only part of the enterprise that required ex-tra insurance was the sale of raw milk, which is legal in New Hampshire.

Gunter Farms: In 2004, we realized we needed a building in case of inclement weather. We built a 60-foot by 109-foot metal building that we use when the pumpkin patch is open for games and a picnic area. We use it to store machinery and do repair work the rest of the year.

We carry additional liability insurance for the pumpkin patch.

Valley Springs Farm: Our biggest challenge was securing the local and county permits needed to run a bed and breakfast. We needed to rezone from exclusive ag zoning to general ag zoning, and that required a special use permit hearing. We also needed another set of state inspections for both the bed and breakfast and the retail beef.

In the house, we remodeled the bedrooms to update them, and we added smoke detectors and carbon monoxide detectors to meet the codes. For the retail beef, we purchased two freezers dedi-cated to the inventory of whole beef.

As both businesses have grown, our daughter, Beth, and her husband, Shawn Fry (who live just down the road), have provided additional labor as needed. Our granddaughters, Erika and Au-brey, help out with housekeeping and waiting on guests. These ventures may be the path for our farm to be passed on to the next generation.

Additional liability insurance was added to our umbrella liability coverage.

How do you promote your business? Brand Farms: Facebook is a large player in our

promotions. It has worked well for us. We have not moved to Instagram or other social media platforms as we simply haven’t had time.

Eccardt Farm: Our most consistent and reli-able source of promotion has been word of mouth. However, we have advertised on Facebook and through local newspapers occasionally. Getting people to come to the farm is the toughest part because we are in a town of about 1,000 people,

and customers have to travel to get here. That is where multiple enterprises can benefit

from each other. People come to buy compost, see we have a store, and then stop and buy more prod-ucts. Our Facebook page is updated when we bring home new meat, which always causes a rush for the store to get the best cuts before they are gone.

One thing that helped us was the fact that we have an open door policy, and the road runs right through our farm. In the summer and during nice weekends, we can have 100 people come and go throughout the day. They love to visit the calves and watch milking. We also have a menagerie of other animals like horses, goats, sheep, pigs, rab-bits, peacocks, pigeons, and doves for people to see.

Gunter Farms: We mainly use social media for advertising. We also put out a lot of fliers at many local businesses within about a 50 mile radius.

Valley Springs Farm: We have a website for our bed and breakfast (www.valleyspringsfarmbb.com). We are also listed on the websites of local chambers, the state’s bed and breakfast associa-tion, AirBnB, and Facebook.

Our beef enterprise also has a website (www.valleyspringsbeef.com). Within two weeks of go-ing online, we received our first online beef sale. We also use the local food fair, word of mouth, and Facebook. Donating to local charities has also turned into new customers for us.

We initially thought the beef business would be primarily local sales, but we have been pleasantly surprised how well it has companioned with the bed and breakfast. Serving our all beef summer sausage at breakfast has sent several small cool-ers of beef along with guests driving home.

We really look to co-market with neighboring rural entrepreneurs, including a winery, a flower farm, and a farm-to-fork restaurant. We have been “featured farmers” at a local restaurant’s farm-to-table night showcasing our beef. For the past two years, we are one of 13 hosts for the Hill and Valley Exploration Tour. The tour is an op-portunity for small farms and rural businesses to invite the public to explore their operations.

Meanwhile, have you made changes on the dairy that benefited your income?

Brand Farms: We built a small pole building and put 30 freestalls in it to house our switch cows from the milking herd. These stalls are bedded with sand. By doing this, we have improved cow comfort and cow cleanliness, and it has lowered our SCC (somatic cell count).

Eccardt Farm: We have not made many changes to increase income. Instead, we focus on lowering costs while maintaining production lev-els and a steady income.

Gunter Farms: In the fall of 2017, we built a compost-bedded pack barn. Before this, we were using a pasture-based system. We built the barn with cow comfort in mind.

Since building the barn, our heat detection has improved because the cows are closer to us now. Our somatic cell count has also leveled off. It dropped when the cows moved into the barn, and we no longer see the ups and downs we used to when cows were housed outside.

We bed with kiln-dried sawdust, so that helps maintain the lower somatic cell count. Curtain sidewalls and fans run on thermostats, which also keep the pack dry. In addition, feeding the cows a TMR compared to just grain in the barn and alfalfa hay and corn silage outside improved our milk production per cow.

Valley Springs Farm: For our entire farming career, we have lived and worked by the old adage, “If you take care of your cows, they will take care of you.” This has served us well for many years.

However, current dairy and beef markets force you to look at your farm differently. For the past two years, we have sold fresh first and second lac-

tation cows to gain value from the genetics and cow care we have employed for many years. We are also using beef genetics on some of our dairy cows as those calves have added value in current markets.

On the other hand, have you made changes that reduced costs or labor?

Brand Farms: We have turned to putting up a lot of baleage. We purchased our own wrapper a few years ago. This has made our haymaking easier and more cost effective. We still chop some haylage but not anywhere close to what we used to. It’s much faster, and baleage requires less help, equipment, and time than making haylage.

Eccardt Farm: One major change we made was to discontinue growing corn for silage. Our heavy, wet soil led to poor corn yields, so we tran-sitioned our cornfields into a grass and clover mix, which has reduced our forage costs signifi-cantly. We have gotten more feed from those fields than we had gotten with corn, and it has been much more reliable and consistent.

We have been able to greatly reduce our medi-cation costs in multiple ways. Cows are no longer dried off with antibiotics unless they have had a mastitis issue in that lactation, which is not very common. Just three cows were dry treated in 2018. This has not had a negative effect on our mastitis overall. Only two cows were treated for mastitis in 2018, and we are maintaining a cell count around 60,000.

For the last 10 years, we have been using quite a few polled bulls to save on dehorning costs and reduce stress on the calves. It is a slow process but grows exponentially once it gets rolling, and at this point, around half of our heifers are polled.

Gunter Farms: We have cut down on our feed waste drastically by feeding the cows a TMR in-stead of free-choice round bales. In addition, the manure from the bedded pack will serve as a great fertilizer source on our fields, cutting down on commercial fertilizer costs.

Valley Springs Farm: Reducing the herd size and converting crop acres into pasture has “right-sized” our operation so we can continue working with our first love — the dairy cow.

What advice do you have for others?Brand Farms: Do your research. Also, do not

be afraid to try something new. If it fails, keep your head up and go in a different direction.

Eccardt Farm: We would advise anyone look-ing to add another enterprise to start small and slow. Think things through before diving in head-first, because it is amazing how everything on a dairy farm is connected. If you add something, it normally takes away from something else, so ensuring a symbiotic relationship between your dairy and new enterprises is essential. Lastly, do not fear failure, and be patient.

Gunter Farms: If any dairy farmer is looking for a way to supplement their income, we recom-mend asking questions, going to conferences, and visiting other places that are currently doing what you are interested in. If you do something, make sure it complements your farm, and don’t expect to get rich quickly.

Valley Springs Farm: Assess your time and talents. Is this an opportunity to transfer labor or bring additional family into the farm business?

We have found these to be two keys to success:1. Determine who is going to handle the mar-

keting of the new enterprise.2. Identify your ideal customer so you can target

your marketing efforts.For something like a bed and breakfast, investi-

gate the local zoning and permits needed to oper-ate. Also, recognize that your personal space and life is now shared with the public. You really have to maintain a happy face on the farm even on the days when things aren’t going well.

Used by permission from the February 25, 2019, issue of Hoard’s Dairyman.Copyright 2019 by W.D. Hoard & Sons Company, Fort Atkinson, Wisconsin.