• Welcome to CheeseForum.org » Forum.

Venture Capital Funding Of Artisan Cheese Making Businesses

Started by Cheese Head, September 16, 2009, 07:58:02 PM

Previous topic - Next topic

Cheese Head

Noticed this news article, mostly about investing but one section 1/2 way down is on Slow Food oriented Venture Capitalists funding a small Cheese Maker in US state of New Mexico.
QuoteSome farmers are just as anxious. Ed and Michael Lobaugh make artisan cheeses from Nubian goat milk on their New Mexico farm, the Old Windmill Dairy. In the past year, they have taken three small loans from local investors, totaling about $15,000, to build cellars for aging the cheese. But they now need $50,000 for a pasteurizer and other equipment.
They like the Slow Money concept but worry that it may be more cumbersome than a traditional bank loan. Specifically, they fear deep-pocketed local investors will demand a say in management decisions. Equally perilous: small-sum investors swamping the Lobaughs with requests for tours and samples, and interminable inquiries about the goats.
May be an idea for some members . . .

FRANCOIS

I know two cheesemakers that have lost their shirts with business deals like that.  Actually both of them have been wiped out more than once for various reasons. Artisan cheesemaking is very difficult to make aliving at, let alone returns that an investor will be expecting.

wharris

This is why i am looking at this 20years prior to retirement.  I would like to have my talent and equipment in place to produce a reasonable amount when i retire from my real job.

FRANCOIS


wandailab

Hi I am from Puerto Rico, and this January I will be attending The National Mastitis Council at Albuquerque New Mexico. I am starting a cheese making factory and will like to visit yours. How far you are from Albuquerque?

Thanks,
Wanda
wandailab@coqui.net

Cheese Head

Hola wandailab, welcome to the forum.

None of the poster's in this thread have a cheese making factory near Albuquerque. The quote was from a newspaper article of someone in New Mexico. Sorry!

Likesspace

A few nights ago I started looking around for information concerning the local requirements for setting up an artisan cheese making business.
Like Wayne, I am still 20 years away from this dream becoming a possible reality, but I would like to start getting things in order a little at a time.
Although I was unable to find any information, (if anyone can point me in the right direction concerning cheese making in Illinois, I would greatly appreciate it), I am certain that it would require a dedicated building for the processing as well as a site dedicated to aging.
I have access to lots of acreage on my family farm so the ground is not a problem.
I've also done a lot of plumbing work and in fact work for a wholesale plumbing/oilfield/industrial supply company which gives me access to the materials at a nice price.
My brother is an electrical engineer so that part is covered as well. I figure that the main things that I need to come up with are the buildings and equipment and like Wayne said, the experience.
Eventually I'd like to start putting something together to make this dream a reality.
I wouldn't want my cheese making to turn into a job but I really think that I could enjoy doing this 3 to 4 days a week.
My focus would be on doing one cheese, but doing it well. I mean the kind of cheese that makes people, (and businesses) seek out my unique brand.
Maybe it's a pipe dream, but it's a nice one.
I just recently found out that a nearby family does have a registered Holstein dairy operation, so I'm hoping for access to a raw milk supply, soon. My only problem with this is that dairy producers are so paranoid about breaking the law, that I don't know that I will be able to convince them to sell me milk. Evidently Illinois has some pretty strict laws concerning what a dairy producer can and cannot do concerning selling to the general public.
Of course if I become licensed by the State of Illinois then that will be totally different from trying to purchase as a member of the general public. Still, I'd like to have access to raw milk NOW and not 10 - 15 years down the road.
I plan on contacting them this week to see what can be worked out, so hopefully something good will come from this.

Dave

Likesspace

Quote from: Likesspace on January 13, 2010, 01:38:38 AM
I just recently found out that a nearby family does have a registered Holstein dairy operation

Oops, that should have read, registered Jersey diary operation, not Holstein.

Minamyna

Ugh I have been looking and looking and looking for local regulations for cheesemaking. I know people in the Charcuterie business often find a commercial kitchen and use it in their off hours.

I just wish I could find the regulations for Wyoming!

Sailor Con Queso

Ask your local health department. There is probably a "milk safety" branch in your state government that controls cheese making.

TroyG

Start-up costs are ugly! Not getting around that. With that said if you do it our of pocket over time it sure does help. Has taken me three years to get where I am today. Starting slow and growing slow was the key for us. We try to make sure our demand exceeds what we can produce or borders right on the edge. Nothing worse than watching product go to waste. If this year continues to go well we will have over 20 goats in milk come March of next year. At that time  Michelle will retire from her day job and run the farm full time.   

All I can say is baby steps worked for us. Oh and we have zero debt by doing things this way.

Minamyna

I got that American Farmstead book and it is excellent!!! I think it's a good starting point for ideas.