Setting Up a MiniProcessing Facility

Kathy Keylor

Kathy’s Kitchen

Virginia, IL

The Basics

• Setting Up a Mini Processing Plant

• Equipment and Facilities

• Quality Control

• Pricing

• Records

• Marketing

• Distribution

If You Build It They Will Come

Works Only If You’re In “A Field of Dreams”

Or Happen to be Kevin Costner!

But It’s O.K. to Have a Dream

Getting Started

• Finding Your Niche

• And Be Very Good at doing It

Find Something People NeedOr

Something They Think They Need

Getting It Right Right From the Start

Local Health Departments

State Health Department

FDA

Better ProcessControl School

Determining Which AgencyHas Oversight

Local – County or CityState - Health Dept or Dept of AgFederal – FDA or USDA

a

The Physical Plant Facility

Location

Zoning

Water and Sewer

Expansion

Deliveries

Parking

Acquiring the Tools

Tools Aimed at Producing Quality

PHSaline

Sweetness

Raw Ingredients Seasonal?

What do you do if demand exceeds supply?

Labor

Quality versus quantity

Family and Friends Rules

LABOR COSTS

Wages,

Social Security

Medicare

State Unemployment

Federal Unemployment

Withholding

Quarterly Reports

Annual reports

Business Costs

• Ingredients

• Supplies

• Repairs and Maintenance

• Labor and Employment taxes

• Utilities

• Insurance

• Taxes

General Guidelines for Expenses

Raw Ingredients 35%

Labor 35%

Overhead 15%

Repair and Replace/New 4%

Losses 1%

Profit? 10%

More Costs

• Office and Printing and labels

• Advertising and Marketing

• Distributors’ Charges

• Equipment purchases

• Farm and Fleet (replace and repair)

ITEM Size Each Dozen ITEM Size Each DozenApple Butter Pint $3.00 $36.00 Beet Pickles Pint $2.75 $33.00Apple Butter 1/2Pt $2.50 $30.00 Blue Ribbon Sweet Chips Pint $2.75 $33.00Apple Jelly 1/2Pt $2.50 $30.00 Bread & Butter Pickles Pint $2.75 $33.00Apricot Preserves 1/2Pt $2.50 $30.00 Chili Sauce Pint $2.75 $33.00Blackberry Jam 1/2Pt $2.50 $30.00 Chow Chow Pint $2.75 $33.00Blackberry Jelly 1/2Pt $2.50 $30.00 Corn Relish Pint $2.75 $33.00Blk Raspberry Jam &Jelly 1/2Pt $2.75 $33.00 Corn Salsa Pint $2.75 $33.00Blueberry Jam 1/2Pt $2.50 $30.00 Dill Pickles Pint $2.75 $33.00Blueberry Jelly 1/2Pt $2.50 $30.00 Dilled Asparagus Tips Pint $4.00 $48.00Blueberry Preserves 1/2Pt $2.75 $33.00 Dilled Broccoli Pint $2.75 $33.00Boysenberry Jam & Jelly 1/2Pt $2.75 $33.00 Dilled Brussel Sprouts Pint $2.75 $33.00Cherry Jelly 1/2Pt $2.50 $30.00 Green Tomato Pickles Pint $2.75 $33.00Cinnamon Apple Jelly 1/2Pt $2.50 $30.00 Green Tomato Relish Pint $2.75 $33.00Corn Cob Jelly 1/2Pt $2.50 $30.00 Jalapeno Pepper Relish Pint $2.75 $33.00Gooseberry Jam 1/2Pt $2.50 $30.00 Lime Pickles Pint $2.75 $33.00Gooseberry Preserves 1/2Pt $2.50 $30.00 Mexican Salsa Pint $2.75 $33.00Grape Jelly 1/2Pt $2.50 $30.00 Mild Salsa Pint $2.75 $33.00Jalapeno Jelly 1/2Pt $2.50 $30.00 Mildly Hot Salsa Pint $2.75 $33.00Peach Butter 1/2Pt $2.50 $30.00 Pickled Garlic 1/2Pt $2.75 $33.00Peach Jelly 1/2Pt $2.50 $30.00 Pickled Mixed Veggies Pint $2.75 $33.00Peach Preserves Pint $2.50 $30.00 Red Cinnamon Pickles Pint $2.75 $33.00Pear Honey 1/2Pt $3.00 $36.00 Salsa Verde Pint $2.75 $33.00Plum Jam & Jelly 1/2Pt $2.50 $30.00 Spicy Cauliflower Pint $2.75 $33.00Pumpkin Butter Pint $3.00 $36.00 Sweet Basil Peppers Pint $2.75 $33.00Pumpkin Butter 1/2Pt $2.50 $30.00 Sweet Pepper Relish Pint $2.75 $33.00Red Raspberry Jam 1/2Pt $2.50 $30.00 Sweet Pepper Rings Pint $3.00 $36.00Red Raspberry Jelly 1/2Pt $2.50 $30.00 Sweet Pickle Relish Pint $2.75 $33.00Red Tomato Preserves 1/2Pt $2.50 $30.00 Sweet Salsa Pint $2.75 $33.00Rhubarb Preserves 1/2Pt $2.50 $30.00 Vidalia Mustard Relish Pint $2.75 $33.00Rhubarb - Strawberry Pres. 1/2Pt $2.50 $30.00 Vidalia Onion Relish Pint $2.75 $33.00Strawberry Jam 1/2Pt $2.50 $30.00 Watermelon Pickles Pint $2.75 $33.00Strawberry Jelly 1/2Pt $2.50 $30.00 Zucchini Pickles & Relish Pint $2.75 $33.00Zinfandel Wine Jelly 1/2 Pt $3.50 $42.00 Piccalilli Pint $2.75 $33.00

And the Paper Piles Up

• Labor

• Retail Sales

• Wholesale Sales

• Receipts, Receipts, and more Receipts

Recycle

PlasticMetalGlassPaper

Compost

In Summary

• Think it Through• Test the Waters• Try Your Best• Tackle the Challenges• Track the Success (and failures)• Trust

• It’s O.K. to Start Small but Think Tall