Source: SCOTCH HILL FARM submitted to NRP
INCREASING RURAL IMPACT & SUSTAINABILITY OF FARMSTEAD SOAP PRODUCTION
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0197416
Grant No.
2003-33610-13946
Cumulative Award Amt.
(N/A)
Proposal No.
2003-04080
Multistate No.
(N/A)
Project Start Date
Sep 15, 2003
Project End Date
May 14, 2008
Grant Year
2003
Program Code
[8.6]- (N/A)
Recipient Organization
SCOTCH HILL FARM
910 SCOTCH HILL RD
BRODHEAD,WI 53520
Performing Department
(N/A)
Non Technical Summary
Traditional farm families are capturing value-added dollars in goat milk by making soap on a small scale. Yet volume production possible from even a small herd greatly exceeds what a farm family can comfortably, efficiently and physically produce in a household kitchen. These families must juggle demands of milk production and farm - caring for animals, maintaining buildings, providing grain, meeting equipment costs, providing veterinary care, producing other crops. Goat milk soap-makers must also meet production and marketing expenses. Operating the two enterprises can become as complicated and difficult as working off-farm. Producing a high quality, value-added product and tapping solid markets attuned to specific characteristics pose additional challenges for farm families. Major commercial soap manufacturers have started producing their own lines of "natural" products. Soap-making with natural ingredients, including purchased goat milk, has also become a cottage industry and popular pastime with the general public. How can farmstead producers effectively compete, adapt their products to market changes, and successfully sell their goat milk soap? This project develops a farmstead production and marketing model that achieves a profitable scale of income from goat milk soap to help sustain a family farm and promote the well-being of traditional farms. It tests feasibility, production and market potential of a producer and marketing cooperative and a training guild of dairy goat milk soap-makers toward effective function without government assistance.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
5113820301040%
5125340301020%
5125340310020%
6046299308020%
Goals / Objectives
Farmstead soap adds value to goat milk, greatly exceeding gross returns on raw milk ($21/100 wt). More than 60 3.5-ounce bars can be made with a soap recipe requiring 1 gallon of milk and other ingredients. Traditional farm families trying to capture these returns face many challenges to volume production and marketing. Phase I is researching and testing feasibility of high-volume farmstead soap production and sales. In less than 1 year of the project, a farmstead operation has constructed a versatile, economical commercial soap kitchen; cut production costs; sourced wholesale and bulk ingredients; boosted production, and increased farmstead soap income from $3,000 to $13,600 in gross returns. This production is helping to diversify the farm's direct market fresh vegetable and subscription garden operation and income. It is also helping to integrate small-scale, land-based livestock with intensive vegetable crop production. The project is further tracking and identifying production costs and investments necessary and testing new and existing milk soap markets. The project has laid Phase II groundwork to (1) research and develop a line of personal care goat milk products; efficient, economical and lightweight soap milling devices; effective packaging and promotional materials; and additional markets; (2) train a core group of up to 10 Wisconsin and N. Illinois dairy goat producers in milk soap production and marketing; (3) establish a training guild and soap-making marketing cooperative; testing joint marketing potential to duplicate the Phase I model operation.
Project Methods
R&D of farmstead milk soap will increase income, diversify and add value, enhance sustainability, improve ecology of farming practices. Phase II will engage 10 producers in R&D trial to duplicate the Phase I soap-making model independently on their farms over 2 years. These producers will then mentor additional cooperative members in Phase III. The project will strengthen producers' abilities to tap local markets, while jointly pursuing broader soap markets (skin health care, spa, athletic club, benefits, institutions). It will promote agro-tourism and direct marketing, develop a line of personal care products, milling devices for quality premiums, and encourage dairy industry growth with training tools, publications and a video.

Progress 09/15/03 to 05/14/08

Outputs
OUTPUTS: Dairy goat producers and mixed crop and livestock farms successfully developed farmstead milk soap operations with instruction, workshops, a production guidebook and record-keeping forms the lead farm provided. Five cooperators in their first production year achieved gross milk soap sales surpassing the lead farm's first production year. Six topped the lead farm's record in the 3rd year of the study. All producers were satisfied with returns on investment and labor in their soap-making enterprises. All invested in farmstead soap-making equipment and soap kitchens on-farm. Cooperators tracked farm and soap production expenses and shared comparative sales results. Cooperators attended production and sales workshops as a farmstead milk soap guild. Six of 10 farms initially recruited completed the 3-year study. Four additional farms were recruited to replace 4 who dropped out because of personal or health problems. Life circumstances all farm families face (working multiple jobs, caring for children and aging parents, health and financial problems); also rapidly rising fuel costs; and difficulties traveling to winter meetings hampered business cooperative formation. Organizational details bogged down cooperative efforts and hindered joint marketing. Advisers suggested the lead farm shift focus in the last study year to building market demand for a producer pool. Cooperators responded well to this prospect; it let them sell independently locally, while working to build wider market demand collectively. It did not obligate them legally, bind them to a formal business structure, or require individual time and financial investment before a wider market is secured. Scotch Hill Farm led this project. It developed new milk and natural ingredient products for cooperators (liquid soap/shampoo; lotion butter; lip balm; all-organic ingredient healing salve, bar and liquid milk soap; all-natural ingredient insect repellant; and bar and liquid dog shampoo). Hand-crank and mechanical milling devices were designed and fabricated, cutting milling time from 5 hours to 10 minutes. Five farms bought and tested prototypes. A new electronic shopping cart (www.cleanharvestsoap.com ) will sell the devices to help maintain web site and marketing. Scotch Hill also developed markets for the guild/producer pool. It made 6-minute, 18-minute and 25-minute films as sales, guild and winter market promo tools. A winter farmers market benefit sale for farm crisis funding was organized; more than 65 farmstead producers (cheese, meat, canned goods, flour, woolen goods, hoop house greens, etc.) took part; this grew to 52 markets held in 20 Iowa, Illinois and Wisconsin cities in winter 2007. Local and regional food benefit meals were added at 16 of these annual winter markets in 2007. Benefit sales with goat milk soap were also tried successfully at 14 schools. The lead farm marketed at trade shows. It developed a farmstead product catalog for mailing to more than 5,000 school and non-profit contacts in Wisconsin. Whole sale price lists for all natural ingredient, all organic ingredient and natural ingredient pet products were developed and tested in 4 other markets. PARTICIPANTS: Tony Ends, PI and applied marketing research; sales tips to farmstead producers in this project; writing of technical report; as Co-owner of Scotch Hill Farm. Dela Ends, product and packaging development, milling device design and testing of prototypes, farmstead milk soap-making instruction, workshops and training as Co-owner of Scotch Hill Farm. Don Schuster, oriented farmstead producers and cooperators in project to record keeping and tracking expenses with goat budget he developed; reading and providing feedback on technical report, UW CIAS Outreach Specialist. Claire Mikolayunas, documenting 9 dairy goat producers' achievement of objectives and evaluating their operations for technical report, UW Madison Animal Science and Agronomy graduate student on loan to this project from Wisconsin Department of Agriculture, Trade and Consumer Protection Dairy Goat Initiative and Agriculture Development and Diversification program. Karen Zapatosky, applied research assistant in product development, data collection and record keeping, hands-on instruction of dairy goat cooperators and farmstead producers in this project with Dela Ends. TARGET AUDIENCES: Small and mid-size farms that need to diversify and increase farm production and income; need to extend cash flow and income over winter months; want to encourage enterprise among family members, especially sons and daughters to make room for them in family farm business; want to integrate crop and livestock production by means of adding value and direct marketing; and need to cut down on off-farm employment. Also young adults seeking vocations in agriculture, other than large scale operations that require sizable money down on land, livestock or facilities in specialized agricultural operations. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Four of the farmstead producers who took part in this multi-year project acquired dairy goats in order to participate. All learned livestock and value-added production skills in the project. All continue to raise goats, diversify their production with goat milk products and benefit economically and ecologically from adding value to their goat milk production with soap and integrating crops and livestock. The other five producers were already raising dairy goats. All but one continue to do so. Goals of the project included formation of a guild for professional development and affiliation, ongoing learning and artisan advancement, also possible formation of a business cooperative. The former has proven beneficial to the 9 farmstead milk soap producers. However, the latter has been put on hold for now. This has been in favor of the lead farm in the study pursuing wider markets for the group in a producer pool of "raw batch" or "first batch" soap. The goal is to develop and demonstrate wider markets for the producer pool first before a legal business entity is formed as a cooperative. This has proven more attractive and less risky for farmstead producers; seven of eight continue to look to the lead farm for this leadership. The project has strengthened the ability of each farm family to derive extra income on-farm, rather than driving away to supplement farm income with non-farm work. Several producers have been able to cut livestock numbers and reduce overall production expenses by adding value to raw milk with farmstead skin care products, by selling products directly to the consuming public, and by increasing efficiencies in the guild and producer pool. The project also demonstrated in advantages in affiliating across farmstead product lines in (a) a winter farmers market that extended cash flow beyond seasonal outdoor markets in parish hall events that also featured meals of local and regional foods, (b) benefit sales efforts with schools, non-profits and churches.

Publications

  • Stevens, Andrew; January 2007 "Valuing Labor and Improving Efficiency on an Integrated Farm" American Small Farm.
  • Heinen, Tom; November 2007 "Markets assisting farmers: Faith groups' events focus on local products" Milwaukee Journal Sentinel.
  • Schuster, Don; December 2004 "Valuing Labor and Improving Efficiency on an Integrated Farm" Research Brief No. 72, University of Wisconsin Center for Integrated Agriculture.
  • Massey, Jim; February 2005 "The Missing Link: Projects use churches to connect producers, consumers" The Country Today.
  • Caspers-Simmet, Jean; December 2005 "Harvesting Hope" Agri News.
  • Hasheider, Mary K.; June 2008 "Direct Marketing Producer to Consumer: Profile Tony and Dela Ends" Wisconsin Local Food Marketing Guide.
  • Project Leader Tony Ends has contracted with Big Earth Publishing to write a 128-page handbook on sustainable farmstead production, set to be released in winter 2008.