Summaries of Projects Financed by
the NLPA Sheep & Goat Fund

MEAT-RELATED PROJECTS

Project #3 -- Sheep & Goat Slaughter Facility

This loan was established with a slaughter facility for lambs and goats in Pennsylvania, which is using funds for building and equipment upgrades in order to increase the facility's slaughter capacity.

The facility has been in operation since 1986 and since then the owners reported an increase in sales. The facility's customer base is in the Cleveland, Pittsburgh, New Jersey and New York City areas. The facility is also the sole supplier of premium lamb carcasses and primal parts to a business that processes value-added lamb products.

The funded project consists of two-phases. First an additional 1550 square feet will be added to the slaughter area. With this increased area, the facility owners will be able to install an inverted pelting system in the future without having to conduct major renovations. The second phase of the project will be to incorporate a new 1660 square foot facility for processing case ready/cryovaced lamb products.

Project #4 -- Lamb Processing/Fabricating Operation

This loan was established with a lamb processing/fabricating operation in Pennsylvania to expand its physical building and add equipment to increase its volume of high quality, branded lamb products sold to high-end restaurants.

The company purchases contracted lamb carcasses from a slaughter facility and processes them into a consistent product that is geared toward five-star eating establishments in areas such as New York, Pittsburgh, New Orleans and San Francisco. The facility owner's goal is to provide an added value product to consumers, which will in turn reward the farmers for producing a better, more consistent product.

The new building and processing equipment have allowed the company to triple its production quantity. The expansion has increased the company's ability to commit to processing a greater number of contracted lambs.

Project #11 -- Lamb and Goat Meat Fabrication Plant

This loan was established with a Texas processing and fabrication facility to fund the purchase of equipment needed for fabrication of lamb and goat carcasses and the construction of the building to house the fabrication plant.

The fabrication addition is a 10,000 square foot building that includes coolers, freezers, a fabrication retail room and a loading dock. The building will also house the latest in packing and carcass fabrication equipment.

This new fabrication facility will allow for the development of new products by the company and will increase sales of American lamb by making a wider variety of products from each carcass available, thus providing more products to the consumer. With case-ready packaging, retailers will be provided with an attractive product for display, which is appealing to the customer and will have a shelf life superior to traditional packaging procedures at the retail level.

Project #13 -- Lamb Feeder / Processor

This loan provided funding for upgrade in feed handling and processing equipment and refinanced current retrofitting of barn facilities including feed processing and handling equipment. The funding will allow this operation to function with a lower cost structure and cash flow more efficiently. This operation works in cooperation with two other vertically integrated systems, currently funded through the NLPA Sheep and Goat Fund, to provide a high quality lamb fed for specific established markets. Aligning with these established processors and producers of high quality finished lamb, allows them to produce a brand name, high quality product in an economically positive environment. Their goal is to increase the demand for a better tasting, high quality lamb, thus improving the interest in domestic lamb production and sales.

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Project #18 -- Value-Added Goat Meat Processing Facility

This loan will provide funding for the construction of a building to process value-added goat meat products. This company began leading the industry in the introduction of goat meat, in July 2002, introducing three styles that are preferred by the American consumer; ground goat meat, ground goat patties and goat steaks. NLPA approved a loan to this company in December 2002. Construction of the facility is scheduled for completion in the summer of 2003.

Project #20 -- Case-Ready Lamb Processing Facility

The funding received by this lamb processor in Iowa was used to expand exiting facilities by 10,000 feet in order to house the plant's case-ready program. Funds were also used to purchase case-ready processing equipment in order to meet the growing demand for case-ready meats in the Midwest. The company has more than 100 employees throughout the harvesting and processing facility; five to 10 were added as a result of the case-ready expansion. The company is one of the largest lamb processors in the United States. It is partially owned by lamb producers - there are 13 owner/producers. Another 500 producers in 14 states provide 430,000 live lambs annually. By controlling the product from live lamb to case-ready cuts, the company can give more detailed feedback to its producer-owners.

Project #24 -- Sheep Meat Supplier

Funds for this loan will be used to create the infrastructure to develop a business plan for a sheep operation in Oklahoma. The operation is the largest sheep or goat operation in two counties, according to the county's Farm Service Agency’s County Executive Director. This business is located in an agricultural area that is approximately 98 percent cattle ranches. After extensive research it was determined that there was a need to develop a sheep business to supplying a whole carcass product for a niche market in this area of the state. The demand for this product is growing in the area especially because of the growing ethnic communities in the Dallas area. They have achieved a level of production where they supply a desirable, marketable product that is name recognizable.

Project #29 -- Sheep Operation

A sheep operation in Illinois is using funds to purchase equipment, expand its feeding facilities and to increase its working capital. The business is recycling hog facilities and constructing hoop buildings to increase the size of the operation.

Project #32 -- Meat Pie Production

A food processing company in Utah is using funds to introduce Lamb Aussie-style Pies using sub-primal cuts of lamb (ground lamb) and primal cuts of lamb as a Ready-to-Eat product for marketing, sales and distribution on a local, regional and national basis. Capital is being used to purchase automated equipment and to provide working capital to increase its market share on a national level.

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Project #34 -- Lamb & Goat Processing Plant

A group of producers in Kentucky formed a business to purchase a recently renovated USDA meat processing plant. NLPA Sheep & Goat Funds have been used to help with the purchase of the plant. The business will focus on identifiying needs within the Hispanic and Muslim consumers in the area that are not currently being met. It will also focus on working with local producers to help add value to their products.

Project #37 -- Lamb Finishing Operation

A farm in Ohio used funds to enhance its lamb finishing operation. The farm has a marketing relationship with custom processing companies and needs to maintain an adequate supply of lambs and working capital to grow this relationship and better meet the demand for custom-fed lambs.

Project #41 -- Lamb & Goat Feedlot

This loan was established with a goat and lamb feedlot in Tennessee.  The Tennessee goat/sheep industry needs a facility such as this because some producers, for whatever reason, lack the ability to, or means to market the most desirable size.  Lighter weight animals will be purchased and carried to a more demanding weight.

The funds are being used to build a large barn consisting of 30 inside pens with each pen having access to outside paddocks.  In addition, large creep feeders, hay mangers and troughs will be acquired.

The advantage of this facility is that the animals will be on hand when the demand is peak, which will maximize profits.  One other advantage is the ability to purchase animals when supply is heavy and demand is low, thereby creating a more stable market for area producers.

Project #43 -- Lamb Cooperative

This loan was established with a Cooperative in the lamb industry. The Cooperative was formed to allow lamb producers the opportunity to participate in a vertically integrated lamb fabrication and distribution model.

The primary use of the funds will allow the Cooperative to significantly reduce annual debt service requirements over the next several years by extending maturity date and reducing interest rates.

The advantage of this loan is that by reducing debt, and thus freeing up more working capital, the Cooperative will be able to reach out to more producers and potential producers as the opportunities present themselves.

Project #45 -- Lamb Processing

This loan was established with a lamb on-farm processing plant. The funds will be used to build the plant which will process meat for weekly fresh lamb stores and restaurants. A commercial kitchen will also be included for value-added lamb products and ready to serve products, which in turn will broaden their customer base.

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