Dairy Hub Feasibility Study
Food21
Food21 seeks to support dairy farmers and regional milk producers in southwestern Pennsylvania and sees an opportunity. The region needs more dairy processing capacity to help farmers reach existing and new markets. It also needs a dedicated space to test agricultural innovations. Creating a dairy hub seems like a logical and efficient solution to address these needs, but Food21 and potential funders want to assess whether the model is feasible before proceeding with implementation.
Our Approach
Food21 hired Fourth Economy to study the feasibility of establishing the Dairy Hub and its five key ventures: an UHT milk processing plant, an artisanal cheese processing facility, an on-site digester, an AgTech facility, and an on-site demonstration farm.
Fourth Economy is assessing the feasibility of a Dairy Hub through desk top research, data collection, and stakeholder engagement. Through this combination of activity, we’re assessing whether the supply chain and market exists for each of the five proposed ventures and the hub as a whole. After establishing supply and demand, Fourth Economy is examining whether the model is financially feasible given current prices and outcomes from similar models.
The Results
This feasibility study found that Southwestern Pennsylvania has the supply and demand necessary to support the Southwestern Pennsylvania Dairy Hub. This study is supporting Food21 as it conducts additional research and engages stakeholders to validate startup assumptions and identify strategic partners for implementation, including pitching the Dairy Hub to potential tenants and working to gather capital investment.
Location
Westmoreland County, PA