Farmhouse cheese manufacture

Background

Both members of this partnership have experience in the cheese industry, having worked for a major English food company for several years. It was this background in the food industry, and cheese production in particular, coupled with the relatively small size of their beef and sheep farm that led to the idea of diversifying into cheese-making.

However, whilst a good idea is important, it is vital that there is a market for your product or service and in this case the Supply Chain Division of the Department Of Agriculture and Rural Development had identified that there was great potential for farmhouse cheese production in N. Ireland. In order to fill this gap in the market a Farmhouse Cheese Making Programme was implemented at Loughry College in 1999.

It was the partnership’s experience that whilst cheese-making is a specialised task, which can be taught to anyone with an interest, the knowledge of how to grade and market the finished product is something which cannot be taught overnight. This, they feel, is an area where many inexperienced newcomers will find extremely difficult.

It was with these thoughts in mind that the partnership are setting up a small traditional cheese making plant near to their farm to produce a distinctive high quality product aimed at the premium end of the market. Ideally this plant should have been built on the farm but, due to the high start-up costs this would not have been feasible, and as such they are leasing a new business "start-up" unit in a local community and business centre.

Questions asked

The partnership felt that the following information was required:

Research existing farmhouse cheese producers in RoI and England.
Who were the target customers with a view to finalising the marketing strategy for first sales in summer 2001?
Due to the high price of new equipment, it was decided to source second hand equipment in RoI and England.

Conclusions

Unfortunately due to FMD restrictions the partnership were not able to visit producers in RoI and GB at the time
The product was to be aimed at the tourist market but as the FMD demonstrated the market might not always be available. However contact had been made with potential customers and this was to be followed up when the situation improved.
Whilst the partnership was able to source suitable machinery in N.I and GB at competitive prices, it is important to investigate costs beforehand, including transport cost

It is also important to be aware of the statutory regulations in N.I regarding building control, hygiene etc.

Due to the Foot and Mouth Disease restrictions during 2001 these intended actions were severely hampered.

Lessons learned from the study

The main advice offered by the partnership would be:

Plan very carefully and seek expert help with business planning etc.
Don’t take NO for an answer.
Speak with as many people as possible that have experience in the business you wish to start.
Contact all the legislative bodies that may need input into your business.
Keep talking about your plans for the future.
Ensure you have the support of your family and friends.
Take advantage of all the help that is being offered but don’t be afraid to say NO occasionally.

Important note

The information within these case studies is for general information only. It is not necessarily complete and is not intended to address all issues relating to the proposed diversification ideas. Market and circumstances may change substantially and thus this information should not be used directly within the development of other business cases for diversification without checking its validity at the present time and directly to your particular project and circumstances. Further research is recommended before embarking on any new enterprise.