In our community of homesteaders, some people raise milking animals for their personal use, and others make an income by starting a micro-creamery out of their homestead.
We’re fortunate because we have a great, third-generation micro-creamery and meat farm nearby, so we can enjoy homemade dairy goods.
Having an established dairy to reach out to can make starting your own much easier. But many people aren’t that fortunate. If you’re hoping to start a micro-creamery, consider this your friendly, neighborhood advice for getting started.
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What is a Micro-Creamery?
A micro-creamery or micro-dairy is a small-scale dairy business. Mirco-creameries can produce milk, cream, butter, cheese, yogurt, or other dairy products. Sometimes, they produce unique products like kefir, creamy popsicles, milk soaps, or ice cream.
Whatever the products, dairy items sold at a micro-creamery are produced from the milk of animals kept by the dairy owners so they are locally raised. They’re often offered sustainable, grass-fed, or organic food.
At a micro-creamery, the dairy herd is kept small and manageable. Micro-creameries are small-scale family farms. Herd size maxes out at ten animals or so. Sometimes, micro-creameries have only a few animals.
The product amount is limited by the size of the dairy and is usually sold either on-site or at a local farm stand or farmer’s market.
Because everything is so small, buying from a micro-creamery gives you a chance to get to know your local farmer. You know how the animals are raised and the products are made, and you can see the production from beginning to end.
Plus, you get to know the people making your products. Regular customers often spend time talking about their lives, diets, beliefs, and goals. Picking up dairy becomes less of an errand and more of a social opportunity.
Whether you’re raising cows, goats, sheep, or any other dairy animal, keeping a micro-creamery could be a great way to produce a little extra income, build community, and offer quality food to your neighbors.
How Much Can You Earn From A Micro-Creamery?
If you’re looking for a way to help support your homesteading lifestyle, a micro-creamery can help a lot. Depending on your location, a gallon of fresh, raw milk can sell for anywhere from $5-12.
If you’re also offering yogurts, cheeses, butter, and cream, your creamery has a few options to offer at a slightly higher price point.
Offering yogurts, butter, cheeses, or sour creams for sale is also a great way to extend the shelf life of your products. If you’re selling fresh milk, and it isn’t selling quickly enough, you can make products that freeze well or have a longer shelf life.
Many micro-creameries can make $4,000-10,000 each year. If you’re running the dairy to pay for feed and animal expenses, that extra $4,000 can make homesteading much more accessible to afford.
What Do I Need to Get Started?
The first thing you need to get started with a micro-creamery is a plan. Start by determining the laws, codes, and licensing you need to sell dairy products in your state.
Right now, about two-thirds of states in the US allow the sale of raw milk. If you’re in one of those states, you’ll need to understand how, where, and to whom you can sell. If your state forbids the sale of raw dairy, you’ll need to understand the pasteurization process.
A great way to fully understand the laws in your area is to meet with your local USDA office. Come up with a list of questions you can ask before your appointment, and expect to have a long conversation with a lot of data.
Questions to Ask At the USDA or Farm Bureau:
If you don’t know the dairy laws of your state, start by asking about those.
Can I sell raw dairy? Can I sell homemade food products? Where can I sell them? Can I use a CSA to sell pasteurized or raw dairy? What types of dairy products can I sell at my farm? Why types can I sell at a farmer’s market? Can I sell at local stores?
Then, consider other questions about distribution. What sort of containers can I use to hold my dairy products? Do they need to be glass? What sort of labeling is required? What information is essential on my labeling? Can I reuse containers?
Licensing is also an important subject to ask about. Each state, and often even different counties within each state, will have different licensing requirements. Make sure you understand them.
Probe further if the answers seem vague or confusing. Your farm bureau agent is there to help you. As frustrating as it feels to have to run your business plan by a government agent, that agent is there to give you the information you need to succeed.
Understanding these requirements now will save you years of frustration later. Running an unlicensed dairy could ruin your chances of running a successful micro-creamery in the future.
Clean Equipment and Housing
Often, homesteaders raise goats or cows casually for years before branching out into a micro-creamery business. When they decide to go into business, often old equipment has to be improved, sinks and milk storage have to be upgraded.
Depending on your region, a variety of changes might have to happen so the production setup is ready for inspection.
A licensed dairy, no matter how small, will be inspected regularly. Inspections should be easy as long as you know what the inspectors will be looking for by understanding the local requirements.
Inspectors want to ensure your animals are well cared for, healthy, and clean. They also need to make sure that your milk storage area is clean, your storage containers are sterile, and that your milk processing conforms to state requirements.
Quality, clean equipment is one of the most important investments you’ll make as a micro-creamery, so research well and invest in quality basics. Don’t get tempted by quick-fix, additional equipment that you won’t use or that is difficult to clean.
Choosing A Dairy Animal
If you don’t have a family cow or goat but want to start a creamery, now is the time to look into all the varieties of dairy animals. Most micro-dairies in the US tend to focus on either cows or goats. But you can also raise sheep for milk.
Specialty dairies can be quite popular. Some people raise both cows and goats, to have two types of milk for sale. Others seek out unique animals to attract attention or offer something special at the market.
While cows and goats are the most popular options, sheep, camels, water buffalo, or yaks can make fascinating dairy animals. A micro-creamery specializing in camel milk probably won’t have as many customers as one specializing in cow’s milk, but it will probably have more devoted customers.
The most important aspect is choosing an animal you enjoy working with. If you’re uncomfortable handling camels, you won’t enjoy raising them. If cows bore you, you’ll quickly lose passion for your new business.
Choose an animal you want to raise and build a market for that animal instead of finding a market and choosing an animal based on anticipated profit.
If, however, you’re already raising cows, and want to transition to camels, move slowly. It’s ok to start a cow’s milk micro-dairy with the herd you have and gradually transition to the more exotic animals. Just be careful to warn your customers in advance!
Financing Your Micro-Creamery
Even if you’ve been raising dairy animals for years, stepping into business with them can be expensive. New equipment costs money. If you need to upgrade your herd or barns, that will cost even more. If you’re building your business from the ground up, there are land, animal, feed, and other expenses.
Containers, labels, licensing fees, farmers’ market fees, and any marketing you do can also be costly. Look closely at your projected expenses and make a business plan. If you don’t have the capital to get started, don’t worry.
There are a few lending institutions that do make loans for micro-creameries. Make a few appointments with trusted banks and credit unions to see if they offer small business loans like this. If not, there are other options.
In the United States, there are a few agricultural institutions that offer financial help to small-scale farm start-ups. Check out the USDA’s Farm Service Agency, Rural Development, and the Natural Resources Conservation Service for financial help.
Also, consider visiting your local agricultural fair and walking around to the information booths. There are usually a few state-specific organizations that can help point you in the right direction.