Heritage Cheese House, Ltd.
Ninety percent of the milk produced in the county goes into local cheese production. Heritage Cheese creates award-winning cheese and cheese curd with all natural Amish milk harvested by hand, the old-fashioned way. The Heritage Cheese retail store, which has a separate parking lot for horse drawn carriages, sells cheese and carries a wide variety of products produced and purchased by the Amish community.
In July 2006, the Heritage Cheese plant suspended its production of cheese and stopped taking milk from 95 Amish families. The owner of Heritage Cheese had decided to sell the business because of the competitive market for cheddar cheese and his desire to spend more time with his family. The closure of Heritage Cheese, a relatively large employer in the county and the primary market for Amish milk, would result in a significant loss of income for the farmers.
The farmers realized the severe impact the closure of the cheese plant would have on their community, and decided to take action. Because the Amish in the Heuvelton community do not believe in direct ownership of businesses for religious and cultural reasons, they voted unanimously to form a trust to collectively purchase the business. Three trustees were engaged to oversee the operation of the cheese plant through the Amish-backed Heuvelton Community Irrevocable Trust.
Michael Davis, recently appointed to the Heuvelton Community Irrevocable Trust (HCI Trust) and charged with developing a business plan, contacted the Canton SBDC in August 2006. The business plan would be used as a financing proposal and operating guide. Mr. Davis contacted the Saint Lawrence County IDA and was referred to the SBDC at SUNY Canton.
Canton SBDC Director Dale Rice met with members of the Heuvelton Community as well as representatives from the Amish Community to discuss the project. As in most business transactions, there were several obstacles to be overcome and Heritage Cheese had many unique challenges. The primary challenges were the need to build relationships between the local residents and the Amish Community and to raise approximately $600,000 in financing. Another challenge was to ensure the purchase of the plant did not conflict with the Amish lifestyle.
The Canton SBDC worked with the stakeholders of the trust and developed a business plan with financial projections. Once the plan was completed, the SBDC worked closely with the County IDA, agriculture leaders and investors to raise the needed capital. The Amish community invested $100,244 in cash, the County IDA provided a low interest loan for $80,000 and a private investor contributed $427,500 to the project.
The Heritage Cheese plant is fully operational and is beginning to show a profit. Saving the plant enabled the community to save three jobs and create 12 new ones. The plant purchases all of the milk the Amish can produce and also is fast becoming a driving force in the county’s agri-tourism efforts. Many tourists are coming to Heritage Cheese House not only for the cheese products, but the Amish-made goods sold at the store.
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