Dairy Science Department
BS in Dairy Science
The objective of this study was to determine how an artisan cheese producer could be successful in California’s current economy. The significance of location, product type, and pro forma financials were examined in order to construct a complete business plan. A business plan was created using an outline of financial proposals, desired terms, use of funds and equity contributions. A company description was originated with a brief history, description of products, description of customers, business location, key strengths, mission statement, goals and objectives. Lastly, an analysis of the industry was made, focusing on main characteristics, the size of the market, competition, barriers to entry, and opportunities.
The results of this study showed that Santa Barbara County in California was a feasible location for an artisan cheese business, and the highest form of revenue would come from a locally made and aged artisan organic gouda, made from pasteurized cow’s milk. Advertising for this specific product would be best through social media and by sampling it to the public.
It was determined that building an artisanal cheese producing business required $63,000, which is including start-up costs and a summary of one year worth of expenses. Minimal debt could be accrued through strategic funding, and a low cost price paired with a premium market price. Furthermore, if the market price for the cheese was priced at $11.99 per pound, the business could start making a profit after one year. With the minimal production of 2,400 pounds of cheese per year, the results indicated that an artisanal gouda cheese producer could survive in the current economy.