Abstract #140

# 140
Cheese processing: Opportunities and considerations for dairy farmers.
B. Jones*1, A. Hawkins1, J. Costa1, 1University of Kentucky, Lexington, KY.

The current fluid milk market creates a difficult financial environment for many dairy producers, driving them to investigate alternatives for their milk with the objective of increasing profit margins. In the United States, cheese consumption per capita has steadily increased, while fluid milk consumption has decreased from 1995. This change in consumer preference provides an opportunity for dairy farmers to invest in milk processing, as cheese manufacturing. In fact, an online survey of farmers that process milk on-farm, found that 64% of respondents have started in the past 10 years, with cheese being the most popular commodity produced (69% of respondents; Smith et al., 2013). The advantages of starting a cheese operation in comparison to other dairy products include creating a less perishable product, maintaining control of the quality, and by-product whey can be used in animal feed or sold. Unlike other on-farm processing options, cheese requires patience and skill. This usually results in developing your own ability through continued education or hiring skilled labor. Cheese is not exempt from considering the cow in the development of a product. The quality and components of milk influence cheese quality. Raw milk with a somatic cell >100,000 has been found to reduce cheese yields and those >400,000 can have an effect on texture and flavor of the cheese (Murphy et al., 2016). The percent of the total herd milk that would be utilized for cheese making can also be a limiting factor. Establishing a mission and goals through a business plan and funding are critical in creating a successful business. Startup costs for a facility can be substantial and strict government regulations on inspections must be followed. A set plan for marketing must also be developed before the cheese operation begins. Direct sale through farmers markets, on farm retail locations or distribution through local restaurants, educational institutions, or agritourism stops may be used. Starting an on-farm processing facility and business can be challenging but also presents a unique opportunity for the producer to have control of their market and product.

Key Words: milk price, production alternatives, family farm