Happy Cows Creamery

Raising 100,000 for expansion to meet growing customer base and retail footprint

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Business Plan for Phase II Expansion
Happy Cows Creamery

Executive Summary
This plan will outline the strategy and financial needs for an expansion of our existing dairy processing business in Southwest Ohio-Happy Cows Creamery. The primary owners are Donald and Jackie Bickel. Donald Bickel is the owner of the family dairy (New Horizon Farm and Dairy, LLC) from which the milk is sourced for this enterprise. Happy Cows Creamery will be formed as a DBA under New Horizon Farm and Dairy with Jackie Bickel as the managing owner.

The primary goal of the Happy Cows Creamery expansion is to continue providing an additional on-farm income source that offers more stability to the milk price that the family dairy business currently receives for its commodity fluid milk. The dairy (New Horizon) and the creamery (Happy Cows) operates as separate businesses, with the creamery paying the dairy for the milk that it uses for processing milk. This arrangement will continue as yogurt and soft cheeses are added to the Happy Cows Creamery product line.

Business Concept, Mission and Goals
Farmstead Situation
Donald and Jackie Bickel currently operate their family farm, New Horizon Farm and Dairy, shipping the fluid milk from their registered herd of Holstein and Ayrshire cattle through the Scioto Milk Producers co-op that is not used for on-farm processing with Happy Cows Creamery. They are familiar with the routines and needs of an on-farm dairy processing operation. 
Donald is a key player in the physical processing of the milk and his role will continue as the manager of the existing dairy farm, including the 285-acre hay and grain operation. If time and interest allows, he may assist in the development and marketing of the expansion of creamery products.

Jackie currently works full-time as the General Manager for Levin Service Company. She also manages the marketing of the creamery, as well as facilitating the home delivery route that encompasses 22 counties in Southern Ohio. She will continue her role off the farm in tandem with her responsibilities at the creamery through the implementation of the expansion phase. 

Happy Cows Creamery operates on-site at New Horizon Farm and Dairy, processing regular and flavored whole milk for retail. Milk is packaged in a variety of serving sizes to appeal to the individual needs of the consumers.

Stage of Development
The creamery business is in the expansion phase to meet the demands of the growing customer base and existing retail partners.

General Growth Plan Description for Expansion
• Research and development
• Construct facility to house cold storage on-site
• Renovate existing creamery space to accommodate a second, larger pasteurizer 
• Obtain equipment needed to process yogurt and soft cheese on the farm
• Solidify investor opportunities
• Establish a bar-coding system to allow for product sales in major grocery stores located 
throughout Southern Ohio
• Expand product line to include value-added items that maximizes fluid milk produced on the 
farm
• Outline wholesale/retail production/marketing needs
• Develop financial strategy to implement wholesale/retail production/marketing needs

Facility Needs for Expansion
Cold Storage Unit
The creamery currently uses 3 commercial coolers to house milk once it is bottled. Current capacity is 180 gallons. With the growth experienced in the last two years, a separate room is needed to store milk and milk products until delivered to customers. Unit needs to be large enough to accommodate enough inventory to fill multiple orders over the span of a couple days.
Larger Vat Pasteurizer
The creamery currently uses a 45-gallon vat pasteurizer. Initially, this accommodate the creamery. Currently, the creamery is processing three batches a milk every day to fill orders. With a larger, 100-gallon vat pasteurizer, the creamery could double production and take on additional customers and wholesale contracts. 
The installation of a larger vat will require the existing creamery space to be enlarged to accommodate the footprint of the additional equipment. The existing vat will then be used for small batches of flavored milk and yogurt.
Delivery Vehicle
To date, the creamery fulfills deliveries using large ice chest coolers or milk crates covered with thermal pallet blankets. This process limits the quantity of milk that can be delivered to a customer, as well as the 
distance traveled, in order to keep all items at the correct temperature. The addition of a reefer truck and/or trailer will allow the creamery to deliver larger orders and partner with retailers located further away from the farm. 
Cheese Table
Adding a cheese table will provide the creamery with an opportunity to process soft cheeses such as cheese curds, farmstead cheese and mozzarella, all of which have been requested by many customers.

Continued Source of the Raw Milk
Licensed dairy processors must receive milk from a licensed and inspected dairy producer or milk plant (New Horizon Farm and Dairy meets this requirement). The creamery operation is separate from the dairy operation and pays the dairy a flat rate for the milk once a month. The dairy is a Grade A operation that consists of pasture-raised registered Holsteins and Ayrshires. The cows average 16,700 pounds/year on a typical 300-day lactation cycle. 

Additional Facility Considerations
Balancing Milk Volumes 
Currently, Donald ships New Horizon’s milk through Scioto Milk Producers. This is a cooperative with members located throughout Southern Ohio. Currently, the creamery is purchasing 65% of the fluid milk produced on the farm. By adding yogurt and cheeses to the product offerings, the creamery will be using more fluid milk, creating a need to purchase more lactating cows to keep up with the increased demand for fluid milk. The field rep, Ronald Fenton is fully aware of the expansion plans and supports us.

Personal and Business Mission Statement
To develop, produce and sell Grade A, farm-fresh dairy products from local milk that is of the highest quality with a creamery operation that is viable and sustainable.

Goals and Objectives
The strategy of the Happy Cows Creamery is described by the continuum of the following tasks (not in necessarily in this order):
• Complete a business and management plan for the expansion of the creamery business
• Develop a financial package and identify all key players
• Create a marketing infrastructure, including the development of agreements with distributors
• Source grant opportunities to augment financial needs
• Secure funding for all phases of business development during the expansion
• Secure necessary permits and licenses
• Process and sell dairy products, in addition to bottled milk

Short Term Objectives
• Expand the existing 14’ x 32’ creamery to accommodate a 90-gallon vat pasteurizer and cheese table
• Construct a 12’ x 10’ cooler room to house inventory
• Purchase a delivery truck/trailer for increased delivery quantities and further distances
• Hire two new employees to process new products as a result of the expansion

Long-Term Objective
• To eliminate debt associated with the expansion of the creamery business within 24-months

Business Concept, Mission and Goals

The Industry
Fluid milk and dairy product consumption has fluctuated greatly over the last ten years. With the introduction of plant-based alternative dairy products, consumers have a larger selection to choose from at the dairy cases in the grocery and traditional milk and milk-based products are experiencing more competition in today’s markets. However, the desire of consumers to know where their food comes from has elevated, creating a niche for small creameries that didn’t exist a decade ago. With the heightened exposure of animal abuse at mega dairy farms, the consumer trend to avoid products from “factory operations” has increased. That being said, it is an opportune time to produce and market dairy products straight from the farm, giving consumers a chance to be educated about agriculture, and specifically the dairy industry.

The Niche
Farmstead milk (and other dairy products) are increasing in popularity. This is due, in part, to the consumer’s interest in supporting local food sources that counter the commodity foods produced today and their willingness to pay premium retail prices for such products. People want their “farm fresh” products to be sourced from the “small family farm” where animals can be seen on rolling green pastures. Grant giving bodies, Departments of Agriculture and educational institutions have been promoting on-farm dairy processing as an alternative sustainable farming option for today’s dairy farmers.

The reality of on-farm processing is that it will offer one or two members of the farm “family” an income source and will help stabilize the market price for commodity milk. Dairy processing at this scale is labor intensive, yet markets are ready to pay well for these items that are produced in a more “traditional” way. 
While Ohio is ranked 11th in the nation for dairy herds, there are only a few dozen farmstead/artisan creameries in the state. In the wake of the popularity of “farm to fork” food, there is a growing demand for locally-produced products from chefs and consumers in the state. In southern Ohio, a farmstead creamery operation that bottles milk, produces yogurt and offers soft cheeses has unlimited marketing opportunities, since the majority of Ohio’s creamery operations are located farther north, where there is a greater concentration of dairy farms and sources for milk.

Background Information

Business Structure
The primary owners are Donald and Jackie Bickel. Donald Bickel is the owner of the dairy from which the milk is sourced for this enterprise. The creamery currently is a DBA and will be become a Limited Liability Company (LLC), as advised by our accountant and lawyer. Donald and Jackie have two adult daughters, Emma & Maggie, who assist with deliveries and order fulfillment.

Government Regulations
Processing at the creamery is the responsibility of Donald Bickel. The creamery is currently a Grade A facility licensed to bottle fluid milk and process cheese. The Ohio State Inspector has been overseeing expansion plans. Jackie handles all the paperwork that needs to be sent in monthly to Ohio Ag & Markets and the Federal Order in respect to monthly production. A check off fee is assessed to handle national marketing, as outlined by law.

Management Issues
Jackie Bickel will act as Manager of the Happy Cows Creamery expansion, with Donald actively assisting in all facets of the operation. Responsibilities include:
• Maintain all regulatory paperwork
• Make high-end products from the farm milk
• Maintain inventory
• Develop marketing plan and sales strategy
• Implement marketing plan and sales strategy
• Keep high-level of cleanliness in the facility
• Maintain supplies
Donald Bickel will continue as the Manager of New Horizon Farm and Dairy. His responsibility will be to supply the creamery operation with the best quality milk that the herd can produce from the Grade A milking facility. 

Organizational Matters

Advisory Team
Ronald Fenton
Field Manager
Scioto Milk Producers
Hillsboro, OH 
Eric Schaefer
Dairy Sanitation Program Specialist
Ohio Department of Agriculture
Columbus, OH
John Moran
Milk Inspector
Ohio Department of Agriculture
Columbus, OH

Managing Human Resources
Production capacity has been limited to what the family can do on their own within the limitations of the existing creamery equipment. With the expansion, there will be a need to hire two part-time employees to work in the creamery and a part-time delivery driver.

Risk Management
Debt
New Horizon Farm and Dairy leases the ground and buildings from Donald’s father. The creamery is also located on leased property from the farm and the expansion will require additional land to accommodate the additional cooler room and the renovations made to the existing creamery building. Donald and Jackie currently have zero debt associated with the creamery and will not borrow more than can be reclaimed from the sale of livestock and equipment. 

Insurance
A $1.2 million Liability Insurance policy is maintained for the creamery. This is on top of the Umbrella Farm coverage for the farm. To further reduce personal liability, the business will become a LLC, as advised by our lawyer and accountant. 

Current Products Description
Whole Milk
Non-homogenized (cream on the top) milk is low temperature vat pasteurized in small batches to maintain its natural nutrients and great flavor. The milk is only from the cows at New Horizon Dairy. Milk will be available in white and chocolate daily with one additional flavor featured monthly. Available in gallon, half gallon and pint plastic containers. 

Description of Products to be Added in the Expansion
Greek Yogurt 
A creamy and tangy probiotic yogurt made simply in the most natural gentle culturing process for hours to obtain substantial amount of probiotics per serving. We don’t use thickeners, preservatives, powder milk or protein. Enjoy in many delicious ways from marinating, cooking, and baking to enjoying with toppings like fresh fruit or honey. Yogurt will be packaged for sale in pint and half-pint containers.
Soft Cheeses
Farmstead Cheese A soft cheese produced in small batches from fresh, non-homogenized whole milk. After culturing and coagulation, curds are drained and lightly salted. Farmstead Cheese is a versatile cheese that can be used in either sweet or savory dishes. It has a pleasant tangy taste that pairs well in savory dishes with eggs, on flat breads or pizza, in pasta sauce, with vegetables, and in dips or spreads. Its flavor is mild enough to be used in desserts as a sweetened thick cream, mixed with honey or maple syrup, in a cheesecake or simply paired with fresh fruit. It can be substituted for chevre, sour cream, cream cheese or yogurt in recipes. Farmstead Cheese will be available in half-pound and pound containers.
Cheddar Curds (some call them squeakers) Fresh cheddar cheese curds is just cheese that hasn’t been aged. Fresh Cheddar Curds are good on salads, on pizzas, Panini sandwiches, in omelets, in soups or just for a snack. Curds will be packaged in half-pound and one-pound bags. Flavors such as white cheddar, garlic, Cajun, Italian, sweet basil garlic, ranch and dill will be offered fresh each week. 
Mozzarella The most known Italian cheese. There are two main categories of Mozzarellas. One is better consumed fresh and served cold. The other has better melt-ability and transforms dishes when heated Low-Moisture Mozzarella is made by souring fresh Mozzarella just a little longer, and then carefully drying it out. Due to the lower moisture content, it has a longer shelf life and saltier flavor. The lower moisture also lends the cheese better browning and stretching abilities when heated, which makes it a popular choice for any number of dishes. Fresh Mozzarella is a pillowy soft, bright white cheese that is usually made in different size ball formats. Packed in water at the production facility or hand-wrapped fresh in plastic wrap, it is made with a high moisture content and should be consumed within 7 days of production. This style is best eaten cold and fresh. Both cheeses will be will be packaged in half-pound and one-pound units.
The Happy Cows Creamery is open to customers to visit the cow herd when purchasing milk and cheese. Several displays showcase how the cows are cared for, what they eat, where they live, benefits of dairy products and other topics to educate consumers. The cows on the farm drink fresh, filtered water, eat a balanced diet of nutritious ingredients and live a healthy, comfortable lifestyle. Here, enhanced milk quality, cow comfort and nutrition of modern dairy farming meets old fashion, small-scale milk processing methods. This allows Happy Cows and New Horizon to partner in producing a premium product. That’s good for the cows and good for the customers

The Marketing Plan

Features/Benefits
The selection of Happy Cows Creamery products is done based on the consumer interest in specific
dairy items that taste great and ease of production for the creamery. While there has to be a significant amount of consumer education, knowledgeable consumers that are concerned about the environment, sustainable agriculture, conserving the family farm and preserving traditional foods are the primary focus. 
In addition, Happy Cows selects a local not-for-profit each month to benefit from sales. As a local creamery, Happy Cows is committed to supporting the community that is purchasing their products. It is believed that the product mix, giving back to the community and management techniques will set the Happy Cows Creamery apart from the competitors.
Life Cycles/Seasonality
All products are available year-round, except for eggnog. The creamery currently offers seven different flavors of milk and eggnog during the holidays. The addition of yogurt and cheeses will also be available year-round.

The Market Analysis
Customer Analysis
Initial inquires have been done with area farmer’s markets, an on-line-fresh foods site, local bakeries, friends, family and individuals who have approached New Horizon about adding yogurt and cheese to the creamery operation. The marketing plan and promotional program will be developed through the first six months after the completion of the expansion. 
Currently, 50% of sales are via direct marketing to local customers through the farm store and regional farmer’s markets. 25% of sales are generated from on-line sales and 25% of sales are the result of wholesale agreements with bakeries and local restaurants. The percentages of sales is not projected to change with the addition of yogurt and cheeses.
Competitive Analysis
National
Happy Cows Creamery is not marketing dairy products on a national level, alleviating the need to research and understand the competitive market on this scale.
Regional
Currently, Ohio is ranked 11th in the nation for the production of dairy products, with 80% of fluid milk shipped to schools and grocery stores. Most of Ohio’s creameries are located in Northern Ohio and will not be direct competition for Happy Cows. Snowville Creamery and Indian Creek Creamery are both larger creameries producing milk that is distributed in the Southern Ohio area. Their focus is specifically on fluid milk sales made in large quantities and sold throughout the upper southern half of the state. 
Local
Swallow Hill Jersey Dairy is direct competition, being located within 30 miles of Happy Cows Creamery. They specialize in bottled milk and yogurt, relying strictly on word of mouth to promote their products with no structured strategic plan or concentrated efforts in marketing to potential new customers. Often, we see customers from Swallow Hill come to Happy Cows due to products being our of stock.

Market Potential
Year One of Expansion
Product will be sold within the 27-county marketing area where we handle home deliveries and wholesale clients. It is expected that 75% of sales will be retail and 25% will be wholesale for the first year.
Year Two of Expansion
Marketing will be extended into the rest of Ohio, concentrating on wholesale accounts with retailers. 

Sales Volume Potential (Current and Growth)
Wholesale Accounts
Currently, the creamery is processing 300,000 pounds of milk annually or 65% of New Horizon’s milk production. Marketing is time consuming with Jackie doing all of the work. Currently, the creamery has the following wholesale commitments, which comprises 70% of the creamery’s business. With the addition of new products, the ability to bar code and a delivery vehicle that can travel further/transport larger orders, we project that this percentage will change: 
• Market Wagon (online farmers market reaching Columbus,Cincinnati and Dayton areas
• Whites Bakery (Hillsboro, Ohio
• Miami Market (Milford, Ohio
• Hirsch Fruit Farm (Chillicothe Ohio
• Findlay Market (Cincinnati, Ohio) 
• Sunny Maple (Washington Court House, Ohio) 
• The Old Home Place (Frankfort, Ohio) 
• Terry’s Grocery (Lynchburg, Ohio) 
• MamaBear’s Mac (Batavia, Ohio) 
• Irwin Farms (West Union, Ohio)
Retail Sales
Direct to consumer sales require the most time. With the creation of an on-farm store combined with an eCommerce web site, sales are currently 18,750 pounds of dairy product a week or about 30% of total production. The on-farm store offers the ability to balance other sales and create a “destination experience” for consumers who visit the farm to purchase dairy products. 

Production Prior to Opening the Creamery
$127,500 annually
50 cows at 50 pounds per day for 305 days = 750,000 pounds of milk produced annually
Milk sold to co-op at $17 per 100-pound weight = $127,500 annually
Prior to processing, New Horizon Farm shipped all milk through Scioto Milk Producers, receiving pay per 100-pounds for fluid milk. The break-even price New Horizon needs to realize is $18.30 per 100-pounds. 2018 was the fourth straight year for dairy pricing to be at an all-time low, reflecting pay-outs comparable to the early 1980s. 2019 saw an increase in dairy prices, but not enough to compensate for the prior years, which is what motivated Donald and Jackie to begin bottling on the farm.

Current Production with Creamery in Operation $251,476 annually
450,000 pounds of milk sold to milk co-op $ 76,500
300,000 pounds of milk for Creamery $174,976
As indicated, processing dairy products with an on-farm creamery generated revenue that is comparable to receiving $33.53 per 100-pounds, which is almost twice what is seen with strictly the commodity milk sales.

Marketing Strategies
Regional distribution of product will be done by Jackie Bickel with the goal to establish a relationship with a number of distributors into various marketing areas. Ideally, marketing will be done by Jackie and sales will be done by the distributor.
Southern Ohio will be broken down into Urban metro areas. High-end restaurants, natural food stores and markets will be identified. Product samples, literature and initial personal contacts will be made by both Donald and Jackie Bickel. After a particular urban marketing area is established, Jackie will move onto the next area.
A weekly print-out of online orders will be requested with follow-up calls and store/restaurant visits made periodically. It is especially important that the product is delivered to the store in good shape and that the product is presented in a way that makes it appealing to the consumer.
Stores that are not selling product at their potential will be contacted to see if they are interested in demonstration days, product sampling and point of purchase sales material. A list of “Places to find our Products” will be posted on a web site and a blog with daily “happenings on the farm” will be advertised. This will give stores and restaurants a way to educate consumers about the farm, management of animals and to see what goes into a day at the farm.

The Marketing Plan
Each month, Happy Cows will select an area non-profit to benefit from the sales of bottled milk at Happy Cows. The creamery will provide information about the non-profit on the bottles, as well as creating a social media campaign that will generate sales for the creamery, which will result in support of the chosen community organization. This strategy will cultivate new customers that will continue purchasing the dairy products after the promotion if they are pleased with their purchases. By changing the non-profit each month, the Creamery will have a new target market every 30 days.
Recipes using Happy Cows milk, yogurt and cheese will be developed for food service and direct consumers with the support of the American Dairy Association-Mideast. Experience has shown that people are more willing to purchase products if they know what to do with them. 
Happy Cows will also provide small farm tours for schools, community organizations and other groups interested in learning how milk is bottled and soft cheeses are made. This tactic will provide a venue for consumers to interact with the cows and calves at the farm and become more educated on where dairy products come from and how the farm cares for the environment, the cattle and the community.

Managing Books and Records
Accounts are maintained using Quick Books. Jackie and Donald both maintain the books. Mike Plieman, CPA evaluates the books twice a year. Ag & Markets have a series of laws pertaining to maintenance of records. Monthly production reports are sent to Ag & Markets and the Marketing Administrator. Failure to send in these records will result in a fine and loss of license.

Budgets and Assumptions
The dairy location is desirable for on-farm retail. It is less than 30 minutes from I-71 and is only an hour from Dayton, Columbus or Cincinnati. There is a college campus with events that attract a year-round supply of tourists. Located 10 minutes from Hillsboro and 10 minutes from Wilmington, Happy Cows is 5 minutes off the main thoroughfare connecting the two towns. 
Specific key issues need to be addressed to take advantage of on-farm retail sales and to prepare for wholesale to regional grocery store chains. The strategy is described by the continuum of the following tasks: 
• Develop a HACCP Plan and Recall Plan as required to market to grocery store chains 
• Establish a Distribution system
• Develop an eCommerce website for on-line sales and marketing

Expansion Needs 
14’ x 18’ Building addition for creamery to house second vat $13,000
Excavation for new building $ 1,000
Poly-Max (glass-board) walls & ceiling $ 800
Vinyl flooring $ 798
Contract Labor $ 3,080
10’ x 12’ Cooler Room $18,025
90-gallon vat pasteurizer $18,000 Chart recorder $ 4,400
Cheese table and press $ 3,100
Tube pump $ 3,200
Reefer Van $59,990
Cooler box for existing truck $ 7,404
2 part-time employees $26,000
Supplies for new product packaging $ 1,200
Marketing and Advertising $ 3,640
1 Refrigerated display unit $ 800
UPC Code $ 1,500 
HACCP plan $ 1,800 
Recall Plan FDA approved $ 2,000 
Total $169,737

The Financial Plan

Wholesale Grocery Chains
There is mild interest from Wilmington Kroger’s to have our milk in their stores. The process can take up to a year to get product into one of those stores. The following is a list of things that have to be done and average costs associated with this market:

eCommerce Web Site
Online ordering and internet sales will allow the cheese business to market to customers interested in good quality farmstead cheeses. By setting up a site for local restaurants and stores to do their ordering will also streamline sales. This kind of web site will also allow the Creamery to put information about the farm, including a virtual tour, sustainable agriculture and propaganda about the consolidation of the food
industry and how supporting small farms helps rural economies. Jackie has her Master’s Degree in Graphic Design & Marketing and is able to design and maintain the website. 

Income/Expenses Projection
The goal is to generate enough revenue to pay off the equipment and facility expenses in full within three years, as well as purchasing milk for New Horizon Farm and Dairy each month. Projections are based on sales staying consistent, with the expectation of growth. There will be no income realized from grocery store chains until the 12-month approval process is complete.

Current Expenses
Bottling expenses (caps, bottles, cups, lids, bags) $ 20,456
Cleaning and sanitation supplies $ 2,400
Purchase of milk from New Horizon (based on market) $ 51,000
Flavorings and ingredients $ 4,430
Outside labor $ 6,160
Permits/licenses $ 1,120
Utilities $ 8,919 
Total Expenses $ 94,485
Income
Bottled milk sold wholesale $ 81,720
Bottled milk sold retail $ 37,980 
Total Income $119,700
Current Profit/Loss $ 25,215

Expansion Income/Expenses Projection
Projections are based on the expectation of a 25% growth of revenue with expansion. There will be no income realized from grocery store chains until the 12-month approval process is complete.

Projected Expenses
Bottling expenses (caps, bottles, cups, lids, bags) $ 24,750
Cleaning and sanitation supplies $ 2,900
Purchase of milk from New Horizon (based on market) $ 61,710
Flavorings and ingredients $ 5,360
Permits/licenses $ 1,355
Utilities $ 8,919
Expansion Plan expenses* (see page 15 for details) $109,747
* Cost of the van is not included , since it will be financed
Monthly payments on delivery van $ 8,100 
Total Projected Expenses $222,841

Projected Income
Bottled milk $ 139,625
Yogurt (Greek and drinkable) $ 34,887
Cheese curds (Greek and drinkable) $ 42,477
Farmstead and Mozzarella cheese $ 39,126 
Total Projected Income $256,115
Expansion Profit/Loss $33,274

Project Timeline
Goals and Objectives
The strategy of the Happy Cows Creamery is described by the continuum of the following tasks
September 2022
1 Complete a business and management plan for the expansion of the creamery business
1 Develop a financial package and identify all key players 
November 2022
10 Complete grant opportunities to augment financial needs
30 Create a marketing infrastructure, including the development of agreements with distributors
December 2022
1 Begin the expansion of the existing 14’ x 32’ creamery 
January 2023
1 Begin hiring process for two new part-time employees
5 Apply for product UPC codes and create Recall Plan for FDA approval
30 Identify and communicate with regional retail outlets about stocking creamery products
February 2023
1 Secure funding for all phases of business development during the expansion
28 Purchase vat pasteurizer, pump, chart recorder, cheese table and open shelves for inside storage
March 2023
1 Secure necessary permits and licenses from ODA and the Clinton County Health Department
15 Launch Marketing and Advertising Campaign for introduction of new products
30 Purchase and install refrigerated cooler unit for storage
April 2023
1 Begin processing and selling new dairy products, in addition to bottled milk
5 Purchase reefer van and cooler box for delivery purposes
May 2023
1 Follow-up/confirm regional retail outlets commitment to stock creamery products
5 Purchase reefer van and cooler box for delivery purposes
June 2023
1 Plan a Customer Appreciation Day at the Creamery to invite the community for an open house consisting of farm tours, creamery demonstrations, kids activities and other agri-tourism events
15 Complete the 6-month Dairy Business Builder Grant survey and evaluation
December 2023
15 Complete the 12-month Dairy Business Builder Grant survey and evaluation

The Financial Plan
Price Comparisons 
Retailer Item Brand Cost
Walmart Gallon Whole Milk Great Value $3.09 
Garelick Farms $4.72 
Great Value Organic $6.70
Kroger Gallon Whole Milk Kroger $3.49 
Simple Truth $6.89 
Swallow Hill Gallon Whole Milk Swallow Hill $6.00
Happy Cows Gallon Whole Milk Happy Cows $5.00
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Walmart Half Gallon Whole Milk Great Value $2.45 
Dairy Pure $3.58
Kroger Half Gallon Whole Milk Kroger $2.79 
New Horizon $5.79
Swallow Hill Half Gallon Whole Milk Swallow Hill $4.00
Happy Cows Half Gallon Whole Milk Happy Cows $4.00
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Walmart Gallon Flavored Milk TruMoo $4.98
Kroger Gallon Flavored Milk Kroger $4.99
Swallow Hill Gallon Flavored Milk Swallow Hill $7.00
Happy Cows Gallon Flavored Milk Happy Cows $6.00
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Walmart Half Gallon Flavored Milk TruMoo $3.98
Kroger Half Gallon Flavored Milk Private Selection $4.19
Swallow Hill Half Gallon Flavored Milk Swallow Hill $5.00
Happy Cows Half Gallon Flavored Milk Happy Cows $4.00
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Walmart Pint Plain Greek Yogurt Great Value $4.47 
Greek Gods $5.48
Kroger Pint Plain Greek Yogurt Chobani $6.99 
Kroger $5.79
Happy Cows Pint Plain Creek Yogurt Happy Cows $6.00 
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Walmart Half Pint Greek Yogurt Fage $5.38
Kroger Half Pint Greek Yogurt Greek Gods $4.79 
Oikos $4.59
Swallow Hill Half Pint Greek Yogurt Swallow Hill $6.00
Happy Cows Half Pint Greek Yogurt Happy Cows $5.00 
Highest Price 
Lowest Price 
Happy Cows Price
Happy Cows Creamery | 22


Production Cost Per Unit
The objective is to keep prices competitive with other products offered by retailers in our target demographic while maintaining a profit that is 200% of the cost to produce.

Item Unite Size Cost to Produce Retail Price Profit
Whole Milk Gallon $2.56/Gallon $5.00/Gallon $2.44
Whole Milk Half-Gallon $1.83/Half-Gallon $4.00/Half-Gallon $2.17
Whole Milk Pint $1.23/Pint $2.50/Pint $1.27
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Chocolate Milk Gallon $2.91/Gallon $6.00/Gallon $3.09
Chocolate Milk Half-Gallon $1.96/Half-Gallon $4.00/Half-Gallon $2.04
Chocolate Milk Pint $1.30/Pint $3.00/Pint $1.70
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Flavored Milk Half-Gallon $2.06/Half-Gallon $6.00/Half-Gallon $3.94
Flavored Milk Pint $1.40/Pint $4.00/Pint $2.60
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Greek Yogurt Pint $2.96/Pint $6.00/Pint $3.04
Greek Yogurt Half-Pint $2.10/Pint $5.00/Half-Pint $2.90
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Cheese Curds Pound $3.30/Pound $7.00/Pound $3.70
Cheese Curds Half-Pound $1.95/Half-Pound $4.00/Half-Pound $2.05 
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Farmstead Cheese Half-Pint $2.75/Half-Pint $6.00/Half-Pint $3.25
Farmstead Cheese Pint $4.70/Pint $10/Pint $5.30


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