Center for Profitable Agriculture

PROJECT HIGHLIGHTS | PRODUCTS ON THE MARKET

Value-Added Projects — Project Highlights — 8

	Goat/Sheep Processing and Marketing
	Hillcrest Orchard, R-GROW, Cookson Creek, Dotta Sue's
	Horse Manure Compost
	Hot Sauce and Salsa Marketing
	Hunting Operations: Improving Income for Hunting Operations
	Hydroponic Greenhouse

Goat/Sheep Processing & Marketing

Operation of a meat slaughtering and processing business often requires a balance of suitable inputs, efficient production, low cost operation and viable markets. A shortfall in any one of theses critical links could contribute to an overall stress to the business. Adequate coordination of the various success factors may require significant control of inputs, adoption of technologically-advanced processes, availability of operating funds, appropriate distribution and niche markets.

Hillcrest Orchard, R-GROW, Cookson Creek, Dotta Sue's

Several previously completed projects continue to make strides in their business and market development efforts. To increase traffic at their on-farm market during a historical “slow” cycle, Hillcrest Orchard is beginning a Farmers’ Saturday Market as a place for other local growers to market fresh produce. R-Grow Organic Soil Conditioner continues to expand its market borders by stepping up calls on Lowes Home Improvement Stores (where R-Grow is now an approved vendor), Home Depot and new retail stores in East Tennessee. The Cookson Creek Farm has opened a new retail facility (off the farm) on a major U.S. highway. The new market will include a grocery store and deli which features local produce. Dotta Sue’s Original Bake Shop is expanding its product line to include a new tasty treat.

Horse Manure Compost

Composted horse manure is expected to yield very low nutritional values for nitrogen, phosphorus, and potassium. In addition, manure obtained from a variety of horse barns is expected to provide inconsistent levels of nutrients from farm to farm. Therefore, composted horse manure sold as a potting mix or a general soil medium may be a better marketing angle than selling it as a fertilizer or soil conditioner. Bag and bulk sales are possible, but specific target markets will have to be identified and developed for either to be successful. The marketing challenge is two-pronged. First, the public must be educated on the benefits of using manure-based products. Many have misconceptions regarding odor and weed content of such products. Second, the majority of sales of composted materials are of unbranded products. Producers need to build product recognition in the marketplace. This task may be easier to accomplish with bags as packaging versus bulk sale.

Hot Sauce and Salsa Marketing

The initial investigation of the local hot and spicy specialty sauce market reveals significant potential. There are more than 150,000 households in the preferred market area that possess demographic characteristics similar to those of the hot and spicy specialty sauce consumer. The primary market outlets for special recipe hot products are specialty and gourmet food shops, gift basket companies, trade shows and related events, the Internet, direct mail and specialty food brokers. A relatively new company offering new products should concentrate on informing customers that its products exist, while building name recognition and both company and product images. Marketing resources should be focused on developing promotional materials, exhibiting at a few select trade shows or related events, calling on regional specialty and gourmet food stores and getting products listed in mail order catalogs.

Improving Income for Hunting Operations

The CPA provided an investigation into various value-added fee-hunting activities. Considerations ranged from construction and operation of an executive lodge and conference center to minor changes in the farm's existing lease arrangements. Various research, analysis and survey techniques were utilized in the development of an actual short-term, income-improvement strategy. The data collected for this project have proven to be valuable and essential to the decision-making process which included determination of a non-feasible option and selection of a combined-option approach.

Developing a Hydroponic Lettuce Enterprise in Tennessee

Successful hydroponic lettuce production can provide steady supplies of locally-grown lettuce. In addition, the lettuce also offers labeling opportunities that target niche-markets interested in the “hydroponically-grown” products. Hydroponic greenhouse systems can support a 35-day floating-to-harvest window on a 400 heads-per-day harvest schedule. While a limited, local, niche, retail market likely exists, a large-scale production schedule such as 400 to 1,000 heads per day should include a sales agreement with wholesale buyers. While wholesale produce buyers are available in most areas of the state, informal survey results with a sample of wholesale buyers indicate only a limited market for hydroponic lettuce in Tennessee–a diversified hydroponic product line and a marketing plan with diversified sales channels should, therefore, be evaluated.