U.S. Department of Agriculture (USDA) officials visited the St. Albans Cooperative Creamery Friday to announce a new $250,000 federal grant that will expand the Cooperative’s powdered milk market. The grant caps off USDA’s celebration of National Cooperative Month, an annual recognition of the important role played by cooperatives in bolstering the rural economy.
“Across rural America, cooperatives have helped farmers and small businesses band together to accomplish more than they could on their own – enabling individual farmers and businesses to realize larger returns and bigger opportunities,” said USDA Rural Development State Director Ted Brady. “This grant will benefit every one of the Co-ops 350-plus members by increasing the market for powdered milk without putting the burden of the large investment on any one farm. As a result, our rural communities will grow a little bit stronger.”
USDA Secretary Tom Vilsack designated October as National Cooperative Month in recognition of the many ways that cooperatives help to bring about a stronger rural America by building the rural economy, strengthening rural communities and increasing rural jobs. These user-owned, user-controlled businesses generate an estimated $650 billion in annual revenue benefiting their approximately 350 million members nationwide.
The St. Albans Cooperative Creamery will use the $250,000 grant to process and package one ton powdered milk totes. The Cooperative is purchasing new equipment with their own funding to increase the size of their milk powder packaging from 50 pound bags to 2,000 pound totes after market research indicated that industrial consumers sought the convenience of the larger product size. St. Albans Cooperative Chief Executive Officer Leon Berthiaume noted that the packaging will allow the Cooperative to access new markets and increase sales to existing buyers. Berthiaume said that the project would increase the cooperative’s margins and provide a greater return for its member farmers.
The Cooperative’s grant was one of six Value Added Producer grants totaling $818,135 Brady announced Friday for Vermont and New Hampshire producers. The program provides farm, forestry and fishery businesses with capital to develop products out of a raw commodity in order to enhance the farmers’ profit. Producers may use grant funds either for business planning and feasibility study activities or for working capital to manufacture, market and distribute value added products. They must match the grant funding dollar for dollar. Brady announced that the following farms received Value Added Producer Grants in addition to the St. Albans Cooperative:
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M & C Family Farm (Charlotte, VT) – A $75,000 planning grant to invest in the development of pelleted fertilizer from manure effluent.
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Heffnernan Family Sugarworks (Bristol, VT) – A $49,999 grant to produce, can and market birch sap as a beverage.
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Open View Farm (New Haven, VT) – A $30,000 planning grant to research the feasibility of using wool as an environmentally friendly building insulation.
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Green Mountain Harvest (Waterbury, VT) – A $250,000 grant to process and market locally grown greens.
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Brookford Farm (Canterbury, NH) – A $163,136 grant to produce, sell and distribute beef and dairy products.
In September, Brady announced that two other Vermont farms received Value Added Producer Grants. Snug Valley Farm in Hardwick received $199,154 to process and market pasture-raised cattle and swine meat products. Sweet Rowan Farm in Glover received $49,550 to promote their creamery products.
USDA, through its RD mission area, administers and manages housing, business and community infrastructure programs through a national network of state and local offices. Rural Development has an active portfolio of $215 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural areas. For more information on Rural Development visit the Vermont Rural Development website (www.rd.usda.gov/vt ) or contact USDA RD at (802) 828-6000.