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Ag
Tag 2001
Strengthening
Value-Added Enterprises and
Markets in Tennessee
Pertinent to the development
of value-added foods projects has been the evaluation and consideration
of a commercially-inspected and regulatory-approved food processing
facility (often referred to as a commercial kitchen). While
there are certainly some characteristics of a commercial kitchen
facility that are specific to certain projects (location, products,
management) a majority of the issues facing entrepreneurs considering
such an operation are similar. For example, a minimum set
of construction, inspection, operation and approval criteria apply
broadly to commercial kitchen facilities. In addition, the overall
assessment of production and processing within these facilities
(in terms of cost evaluation, break-even analysis and market evaluation)
is the same. The consideration of a commercial kitchen facility
as a value-added enterprise has been historically pertinent to crop
producers (mainly fruits and vegetables) and those who participate
in advanced marketing methods such as farmers' markets, green grocers
and road-side stands. Therefore, consideration of commercial
food processing facilities by these typical implementers should
include a fairly standard set of criteria as well as advanced circumstances
based on business specifics. However, despite the overwhelming
demand for such information, no such general "feasibility" study
is available. The current Ag Tag project will match a USDA-funded
market development study that seeks to remove distribution barriers
facing fruit and vegetable growers by developing a feasibility study
of a commercial kitchen facility. This is a natural match
for the USDA-funded study which, among other activities, surveys
and evaluates the operation, design, management and shopping patterns/preferences
for green grocers, farm markets and road-side stands. In essence,
the project proposed here seeks funds to support the development
of a feasibility analysis for a hypothetical commercial kitchen
facility as a potential value-added enterprise for fruit and vegetable
growers/marketers and to support the establishment of value-added
resource centers (information centers) that will be stocked with
educational materials that enhance the growth of Tennessee's value-added
agriculture industry and placed in 100 locations across the state
(primarily in county Extension offices). An electronic version
of the resource centers will also be available at the CPA's web
site.
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