Buy Local Food In Kitsap

Project Description and Summary For
The Purchase of a WSDA Certified Mobile Poultry Processing Unit and
Related Infrastructure Improvements

This Stevens County MPPU Is A Model For The PSMPC Proposed Unit

The KCAA is a Washington Not-For-Profit corporation. We are all volunteers with a paid membership base of 145 persons as of September, 2009. Some 30 volunteers work within our task force on a variety of projects described in our Task Force Outline. The  Task Force meets regularly to coordinate projects that advance the goal of building a local food network in Kitsap County.

Register below to receive more information about the Puget Sound Meat Producers Cooperative Mobile Poultry Processing Unit.

A.Mobile Poultry Processing Unit

I.Executive Summary
The Puget Sound Meat Producers Co-op seeks to acquire a mobile processing unit for poultry processing. The 100 From 500 Campaign is a cooperative effort among the Kitsap Community and Agricultural Alliance (KCAA), the Puget Sound Meat Producers Co-op (PSMPC), Farmer George, Minder Meats, a group of peninsula farms, the Olympic College Culinary Arts Program, a group of restaurants and chefs on the peninsula and other partners for specialized needs.

The project as described will 1) construct a mobile poultry processing unit to be operated by the Puget Sound Meat Producers Co-op, making it possible for local farmers to produce packaged poultry under WSDA certification for sale to customers through CSAs, farmers markets as well as other wholesale and retail channels; and 2) make loans to other companies or individual farmers to help finance the development of physical infrastructure to process poultry and meat through to the retail food outlets.

Seattle Marine Construction of Port Orchard would produce the trailer unit with the equipment installed. A tow vehicle would be leased, purchased or borrowed on an as needed basis from a Kitsap County dealer or private party.

Making this unit available will enable dozens of Kitsap County and other Puget Sound County farmers and small producers to immediately begin raising chickens, geese, ducks, turkeys and rabbits to be sold potentially through wholesale and retail outlets under approval from the WSDA. The regulatory annual production limit would be 20,000 equivalent chicken units per producer. The Mobile Unit may serve multiple producer sites.

Funds are sought to purchase a mobile poultry processing unit along with assorted equipment and facilitate development of WSDA and USDA slaughtering sites in Kitsap County as well as other equipment and facilities to hold, process and distribute products under USDA and WSDA regulations.

Participants will purchase shares of stock and/or memberships in the Puget Sound Meat Producers Co-op. Full details for membership and downloadable forms are available here at http://www.psmpc.com/join.html. The PSMPC board has authorized issuance of $500 single shares for meat producers (e.g. cattle, hogs, sheep and goats) and $100 single shares for producers of poultry. Shareholders may include producers and anyone else who simply want to see the Co-op supported. Share purchasers may purchase any amount of shares. Memberships require annual dues but provide scheduling preferences for use of Co-op equipment and services.

The PSMPC has developed the administrative and contractor infrastructure to own, operate and maintain the equipment, charge user fees and repay dividends or interest to the shareholders and to make funds available later for other initiatives.

Interior View of Stevens County MPPU

II.     Proposal Objectives
All proposals and activities initiated by the KCAA are measured against objectives developed by the board and our task force that we have determined would develop a local food network in the shortest time and in a healthy manner. The are:
a.They would increase local food capacity and production.
b.They would increase local food consumption.
c.They would extend the growing season.
d.They would extend the selling season.
e.They would leverage existing resources and efforts.
f.They would mitigate constraints to open new markets for farmers or value added vendors.
g.They would increase the incomes of local farmers.
h.They have a probability of paying back funds used with a return of and a return on investment.
i.They create or increase specialized finance or marketing resources for farmers, vendors, distributors and retailers of local food in Kitsap.

III.Risk Factors
Participants should be prepared to risk the loss of their entire contribution. The Puget Sound Meat Producers Co-op is an early stage cooperative with no significant operating history. Other details relative to risks are provided by the Puget Sound Meat Producers Cooperative in their shareholder disclosure documents.
IV.Proposal Advantages
a.This proposal utilizes the funds requested in the form of low cost debt to the entities carrying it out. Re-paid principle and interest will be used to fund future farm infrastructure improvements.
b.Acquiring a mobile poultry processing unit will open up retail and wholesale markets for potentially thousands of producers greatly increasing potential income to a wide base of Kitsap residents.
c.The proposed relationships leverage existing resources and networks. Management of the procurement and operation of the equipment does not require any new organizations to be developed.

V.Amount Sought
$50,000  in shares from private individuals and companies.

VI.Source of Funds
Private Investment: $50,000

VII.Use of Funds
a.Trailer Construction Cost Estimate Range:
i.Used equipment package estimate:              $27,000
ii.Basic New Equipment Package:        $33,000
iii.Enhanced New Package:        $48,300
b.Other Costs
Funds left over from the MPPU would be used, as available,  to meet County Health Department requirements for on-site slaughter, improvements for product handling and storage and other uses.
VIII.JV Partners
a.KCAA – Jim Freeman, Volunteer
KCAA would promote the project proposal and coordinate with the PSMPC and Seattle Marine Construction for construction and delivery of the mobile unit.

b.PSMPC – Cheryl Ouellette
Cheryl has indicated that she has facilities to store and maintain the Mobile Processing Unit unit and 2-3 operators to transport it and carry out processing on site.

c.Minder Meats of Bremerton
Minder Meats is already certified to deliver USDA certified meat products and is a founding member of the PSMPC. Jim Carlson, Tawnya Hayes, the meatcutters, warehouse personnel and drivers are working to  offer their services and facilities to growers so they can deliver USDA certified products, vegetables and fruit from the farm to retail outlets through Minder.

d.Farmer George’s of Port Orchard
Joe Keehn, owner of Farmer George is a founding member of the PSMPC and shareholder.

e.Olympic College Culinary Arts Program
Chef Chris Plemmons is working hard to purchase from local suppliers of protein and other farm products through a common distribution channel.

f.Harbour Pub – Jeff Waite
The Harbour Pub has indicated their desire to procure local food products for the Pub and Pegasus Coffee House in Winslow. Jeff and Jocelyn are members of the PSMPC and have purchased stock.

g.WSDA-Fred Berman
Fred has provided a great deal of supply and demand data used in these project descriptions and has pledged consultancy and technical assistance in the processing of permits for the various projects.

h.Seattle Marine Construction (Port Orchard) – Shannon Wagner
Seattle marine Construction is an experienced manufacturer of equipment for the fishing fleet at Fisherman’s Terminal in Seattle. Shannon Wagner and his crew have a great deal of experience with food handling equipment and facilities. They are available to submit proposals to provide some of the mobile units detailed in these requests.

IX.Proposed Implementation Schedule
Intervals Calculated From Award of Contract For construction
a.Secure Funding
There is no deadline to raise the funds. KCAA is dedicated to continue promoting the project until sufficient money is raised. Share purchase money provided by initial supporters for the Poultry Unit will be held in a separate account for PSMPC and subject to their by-laws and organizational documents. These will be provided to prospective shareholders upon request. These documents will contain details of voting rights, if any; financial reporting; returns on shares, if any.
b.Award Contract For Construction 2 weeks
c.Build Unit 60 days
d.Delivery and Checkout 1 week
e.Begin Operations

X.Permit Status
The unit anticipated would be a very near copy of a unit built for Stevens County that is currently in operation. It would require WSDA certification. Fred Berman of the WSDA would assist the co-op with compliance, inspection and permitting.

XI.Current Constraints To Implementation
The primary constraints holding back implementation relate to concluding details for contractual arrangements among the parties and obtaining firm agreements. Growers would be recruited during the construction and delivery period to begin growing birds which is a seasonal activity. If award of financing request is delayed much longer it may be difficult to obtain delivery of chicks from hatcheries for the 2009 season and possibly purchase bulk feed for those who would choose to attempt larger volumes. The growing cycle for standard Cornish Cross variety of birds is typically nine weeks from chick to bagged chicken.

Birds housed under cover can remain in production throughout the year. If sufficient freezer storage can be developed in the county, locally produced frozen birds can be made available year round with production slowing from mid-September through mid-May.