A business feasibility tool for artisan cheese operation start-up Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/bn999930z

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  • The objective of this study was to develop a decision making tool to determine economic feasibility of artisan cheese operations. A survey of current Oregon artisan cheese companies was used to gain knowledge of the fixed and variable costs associated with cheese production and business start-up. The data from this survey was used to design a business model within Microsoft Excel 2010 that effectively describes the business environment in which an artisan cheese company could exist. Economic feasibility was determined through net present value (NPV) and Internal Rate of Return (IRR) of the investment. The model estimates size of the production and aging facilities based on production volume and cheese types produced. The application of the tool is demonstrated in this study through testing of several scenarios within each area of investigation: impact of milk pricing, cheese styles, product retail price, and geographical location of the creamery. The model also predicts the minimum product retail pricing necessary to ensure a positive NPV of the potential venture at several sizes of production and across several different styles of cheeses.
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