anchondo family organic dairy pp cow
TRANSCRIPT
Anchondo Organic Dairy
Greg AnchondoFMA 490 Feasibility Study
Dr. Nancy MerlinoMay 24, 2012
California State Polytechnic University Pomona
GA
Executive Summary
• Family Owned and Operated
• Cooperative with Horizon Organic Dairy©
• Certified Organic Dairy Supplier
• California
GA
Technology ConsiderationsLand47 acre land $704,250
EquipmentUsed Milk Tank Truck $117,000 * 4 = $468,000Forage Harvester Used $24,500Used Free Stall Scraper $10,500Large Scale $945.92 * 2 = $1,891.84
LivestockCow $2,000.00 * 30 = $60,000.00
MilkingEquipment $6,000.00 * 30 = $180,000Hoses $60 * 200 = $12,000
CoralPanels $197 * 100 = $19,700Gate $492 * 4 = $1,968Chute $8,700 * 4 = $34,800Crowding tub $3,178 * 4 = $12,712
CleaningSupplies 1,259$ * 30 = 37,770$
IdentificationLeg Bracelets 2.69$ * 30 = 80.70$
EST. TOTAL $879,085 $828,923EST. GRAND TOTAL $1,708,007
Dairy Costs
GA
Product/Service Marketplace
• Market Size– Less than 100 organic dairy farms in California
• Sales Volume– California Organic Dairy Sales = $133.5 million
• Production Volume– California produced 18% (501.8 million lbs)
• Growth Rate– Horizon Organics = 7% (2011-2012)
GA
Competitive ComparisonDairy Strengths Weakness Product(s)
Anchondo Organic Dairy
Family Farm, Supply to Large
Organic Company,rBST & rBGH free
New, No Capital, Lack of Experience
and Training
Organic Milk
Straus Family Creamery
Only Dairy in CA to run fully Organic
Dairy & Creamery,rBGH free
Remote Location in Northern California
Organic: Cream-top milk, ice
cream, yogurt sour cream, & butter
Clover Stornetta Farms
1st Dairy West of Mississippi to offer
rSBT free milk
Still paying off Organic
Conversion
Organic and Natural lines of
dairy
McClelland’s Dairy Large Family Farm since 1930
Stick to old Traditional Ways of Dairy Farming
Complete line of Dairy
GA
Marketing Strategy
• World Ag Expo – Tulare, CA– Samples– Brochures
• Client List– Email– Farm Tour
• Horizon Organic Dairy– Commercials, Ads, etc.
GA
Organization & Staffing
Owner
General Manager
Feeding Herdman
Feeder Feeder
Milking Herdman
Milker Milker
GA
Schedule: From Cow to Consumer
Rearing
Harvest
Storing Transportation
Lab Test
Processing Packaging
Selling
GA
Schedule: Transportation
Our dairy travels from our barn in Porterville, CA on a 1,092 mile, 18hour journey to Broomfield, CO which is the headquarters and processing location of Horizon Organic Dairy.
GA
Financial
• Farm Bill 2008– Section V: Credit
• Subtitle A: Farm Ownership Loans• Subtitle B: Operating Loans• Subtitle C: Emergency Loans• Subtitle D: Administrative Provisions
• Cost of Milk (/cwt –hundred weight)– USDA $15.85/cwt– Horizon Organic Dairy $28/cwt
GA
Years 1, 2, & 3Years 1, 2, & 3
Year 1 Year 2 Year 3Net Farm Income Operations 148,347$ 50,000$ 20,000$
Rate of Return on Assets 9% 12% 5%Rate of Return on Equity 9% 15% 5%Operating Profit Margin 20% 25% 15%Asset Turnover Ratio 46% 45% 30%operating Expense Ratio 71% 50% 60%Depreciation Expense Ratio 1% 10% 15%Interest Expense Ratio 1% 10% 15%Net Farm income Ratio 27% 35% 25%Current Ratio 117503 1.75 1.25Working Captial 107$ 65,000$ 32,500$
Debt/Asset Ratio 6% 40% 50%Equity/Asset Ratio 94% 60% 50%Debt/Equity Ratio 7% 67% 80%
GA
Findings & Recommendations
• Maintenance• Marketing• Feed & Fuel Costs
Feasible? YES