Farm with Niche Food Manufacturing Opportunity

Situation

Owners of a third generation family farm in Illinois contacted us to conduct a feasibility study for a niche value-added food manufacturing business.

Problem

The family has been growing a specialty crop for many years. The crop is in high demand, but pricing and profits are low. The family recently became interested in adding a manufacturing operation to their farming business. The manufacturing opportunity appeared to be very attractive because the value-added product sells for much more than the raw product, and market demand seems to be growing.

Solution

We concluded the project is feasible with very large revenue potential.

We encouraged the family to scale back their operations by 50% and start with a smaller manufacturing facility and just one shift. With these changes, they will have much more control over the project, lower their risk, and have a much easier time obtaining financing.

Benefit

The family is going ahead with the manufacturing facility armed with a careful study based on facts. Conservative financial projections indicate the new manufacturing business will generate $5 million in annual revenue within a few years.

For more information, contact Andrew Clarke at 312-498-4071 or [email protected].