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Genesee County Agricultural and Farmland Protection Plan

Genesee County Agricultural and Farmland Protection Plan

APPENDIX C: AGRICULTURAL

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

APPENDIX C: AGRICULTURAL DEVELOPMENT CASE STUDY SUMMARIES Shipping 25 tractors and 44 trailers. Full service shop for maintenance of company’s 36 owned vehicles. Raw Milk Supply Raw milk supply of 175,000 gallons/day. Five contract haulers collect milk from 150 members that have herds averaging 135 cows. 40 loads are collected each day. Contacts: Jim McMullen, Sr. Vice President, TCCA www.tillamookcheese.com (503) 815-1300 Troy Downing Dairy Extension Agent Tillamook County (503) 842-3433 Summary compiled from comments provided by Jim McMullen, Senior Vice President, TCCA; Troy Downing, Dairy Extension Specialist in Tillamook County; and Public/TCCA Information Packet and The Tillamook Way a history of the Tillamook County Creamery Association a farmer owned cooperative by Archie Satterfield. Copyright©, 2000: Agricultural & Community Development Services, Inc, Columbia MD 11

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