Things were a lot different when Preston Mitchell started his business 18 years ago. That year he sold three thousand dollars of green chile. Also, he was only 15 years old when he started his business. The next year he sold thirty-five thousand dollars of Hatch chile. Since then his business has continued to grow every year.
Today he has 30 to 40 employees working for him manufacturing various chile products from chile rellenos to frozen green chile. During harvest time the number of employees nearly doubles.
Every year he tries to advance his business with new chile products. But to do so he needed more capital, and that’s when he heard about the various programs offered by USDA Rural Development from a professor at New Mexico State University (NMSU).
Soon he was applying for a Value-Added Producer Grant (VAPG). The funding from this program is perfect because it allows him to market the products his company was producing. He says once the funding came through, his business thrived even more. Why? Because the money allowed his company to increase production and become more profitable.
A VAPG grant can be used for planning activities or for working capital expenses related to producing and marketing a value-added agricultural product. The VAPG can also be used for planning activities which includes feasibility studies and developing business plans for processing and marketing the proposed value-added product.
To stay competitive Mitchell says he has to come up with new chile products. Recently 4-A Packing began selling its green chile infused bacon. Once again VAPG funds were instrumental in the marketing of this product. And this year 4-A Packing has started manufacturing Hatch Green Chile Stew. The stew is frozen then freeze dried into cubes. To enjoy the stew the buyer drops the cube into a mug filled with hot water and in just a short time a hot cup of Hatch green chile stew is ready to be eaten.
4-A Packing products can be found on the shelves of various stores in New Mexico as well as other locations across the nation. 4-A Packing ships a lot of the food they make to Florida and throughout the United States. Mitchell says many people go to Florida to retire, and on top of that we have service men and women stationed at our various military bases here in New Mexico. And when they’re transferred to another base, they want to continue enjoying New Mexico’s green chile products they’ve learned to love while they were stationed here in the Land of Enchantment.
OVERVIEW
Obligation Amount: $250,000 Value Added Producer Grant (VAPG) 2023
$250,000 Value Added Producer Grant (VAPG) 2022
$250,000 Value Added Producer Grant (VAPG) 2021
$250,000 Value Added Producer Grant (VAPG) 2020
Date of obligation: For 2023 Obligation is September 19, 2023
Congressional District: Representative Gabe Vasquez 2nd, Martin Heinrich, Ben Ray Lujan Senators
Demographics: Of the 14,835 residents living in Deming, N.M. 29.2% had an income below the poverty level in 2022, which was 39.8% greater than the poverty level of 17.6% across the entire state of New Mexico.
Impact: This funding has allowed 4-A Packing the opportunity to grow by providing more products and creating new jobs.