Genesee County Agricultural and Farmland Protection Plan

APPENDIX C: AGRICULTURAL DEVELOPMENT CASE STUDY SUMMARIES
Top quality milk at the farm level has long been a hallmark of TCCA. In 1984, a quality
incentive program was instituted and updated in 1999. The latest program pays 10 cents
per hundred pounds of milk to any producer who ships milk with less than 5,000 raw
bacteria count, 5,000 pre-incubated bacteria, 300,000 somatic cell counts, and for number
one grades on sediment, flavor and odor. Each month, nearly one-half of TCCA
production qualifies for this premium. In 1987, a somatic cell/high cheese yield milk – as
much as 40 cents per hundredweight premium was put in place.
The biggest decision of the TCCA was reached in 1999. This was the decision to build a
new satellite cheese plant in Boardman, Oregon. Deciding a satellite plant had to be built
was not an easy decision. Yet, market conditions forced the decision upon TCCA. The
demand for Tillamook cheddar had increased dramatically over the past several years,
and some of the best customers became even bigger through mergers and acquisitions.
Tillamook had to expand its production to meet the ever-expanding customer demands.
If Tillamook could not fill the shelves, a competitor would. Buyers for these chains buy
for all their stores or none. Tillamook cheese must be available in all. So the decision
was made to build a new satellite cheese plant.
The TCCA makes a major decision every 3-4 years concerning expansion such as their
new feed mill, storage facilities, satellite cheese plant, etc. The Board takes a very
conservative approach to expanding their operations, which they realize they have to do,
but their decisions are approached incrementally. They are not making numerous major
decisions all at one time, but are taking one step at a time, which has reflected upon their
success. In asking the Senior Vice President about an East Coast presence, the answer
was no, but this falls in line with their decision making process. Two to three years from
now, if TCCA was approached with a well thought out business plan, their answer might
be different.
Brand name recognition, top quality products, strong board and good dairy farmers are
the key to TCCA’s success. If there’s anything in the Tillamook model that can be
replicated 100 years later, it is quality products, according to their Senior Vice President.
The Senior Vice President recommends to dairy farmers today to develop a business plan
and operational financial model and then manage the plan.
Plant Size
46-acre site
145,000 sq. ft.
Cheese manufacturing: 11,500 sq. ft.
Starter room: 1,000 sq. ft.
Cheese packaging: 14,600 sq. ft.
Cheese cooler: 60,600 sq. ft.
Dry storage: 28,225 sq. ft.
Water
Municipal water source. Waste treatment on-site system that handles 200,000 gallons
per day with a two stage extended aeration process.
Copyright©, 2000: Agricultural & Community Development Services, Inc, Columbia MD 10