MISSISSIPPI STATE UNIVERSITY EXTENSION SERVICE FOOD

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Mississippi State University Extension Service
Food and Fiber Center Steve Murray,
Ph.D. Business Analyst stevem_at_ext.msstate.edu Dec
ember 2002
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Food Fiber Center

• Funded by legislature in 1974
• Wholly owned by Extension - no formal teaching or
  research responsibilities
• Enterprise Community Resource Development
  (ECRD) program area

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Mission

• . . .to improve the economic, social, and
  cultural well-being of all Mississippians, by
  providing research-based information and
  educational programs and applying appropriate
  technologies to issues and needs of the food and
  wood products manufacturing industries of the
  state.

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Multi-disciplinary Task Force
Management
Industrial
Economist
Specialist
Engineer
TASK FORCE
Food Technologist
Business Analyst
Marketing/Distribution
Small Business Specialist

Specialist
Program Assistant
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Business Analysis

• Existing business
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• New business

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Types of business

• Catfish processing
• Feed mills
• Wood treating
• Manufacturers of fertilizer/soil amendments
• Fruit/vegetable processing
• Specialty foods

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Referral

• County extension offices
• State economic development authority
• General economic developers
• Small business development centers

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Initial client contacts

• Site visit (preferred)
• Campus visit by client
• Other phone, mail, etc.

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Be sure to.

• Stress confidentiality
•  Be sensitive to the clients position and needs
•  Remember people usually dont call us for
  advice on how to spend their profits
•  Remember that people need hope
•  Recognize that situations that appear shaky can
  recover
•  Numbers are important but they dont convey
  everything.

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Problems people have

• 1. No money
• Dr. Canterbury says to Bronco Billy, Billy, I
  perceive you have the greatest problem known to
  man..no money.

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We dont have any loan or grant money.

• But we will try to tell you who does

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Information needed

• Current financial statements
• Historical sales and income data
• Management information
• Operational information

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Expectations of the client

• Suggestions for survival
• Improved profits
• Wisdom about all things agricultural

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What do you bring to the table?

• Accounting
• Legal
• Managerial
• Technical
• Computer/software knowledge

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Problems

• Limited time and resources
• Travel considerations
• Pricing of your services

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Suggestions

• Take a camera
• Take a laptop
• Produce something written

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Suggestions

• Collaborate with other Extension people
• Market your program as providing services to
  agribusiness

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About yourself

• What can you do in a limited amount of time?
• What can you add that likely is the best
  information?
• What should you defer on?

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Financial Statement Analysis

• Income statement
• Balance sheet
• Cash flow statement

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Additional Financial Documents

• Inventory records
• Raw materials
• Finished products
• Production records
• Bills of materials
• Costed BOM
• Single and multi-level BOM

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Inventory

• How much raw material do you keep on hand?
• How do you schedule your production
• How many times a year do you turn your inventory?
• Do you ever run out of raw material or finished
  goods?

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Payroll

• Are your payroll taxes current?
• Who handles your payroll?
• Do you assign payroll expenses to departments?

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Production

• Do you track your labor and material costs?
• Do you use an ERP or MRP system to schedule your
  production?
• Who schedules production

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Creative Bakeries, Inc.
Creative Bakeries, Inc. offers a broad line of
pastries, cakes, pies, cookies and other assorted
desserts that are produced at its baking facility.
For the six months ended 6/30/02, net sales fell
23 to 1.5 million. Net loss from continuing
operations fell 5 to 99 thousand. Results
reflect decreased sales volume, offset by lower
selling, general, and administrative expenses and
a 40 thousand gain on the forgiveness of debt.
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How are things changing?

• Expectations of quick turnaround
• Knowledge of some technology software

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A few real projects

• Adding value to broiler litter
• Catfish processing
• Livestock sale barn
• Freshwater prawns
• Specialty foods

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Poultry litter
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Catfish processing
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Cooperative Planned For

• Mize, MS

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Freshwater prawns
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Audiences

• Entrepreneurs (ideas, start-ups)
• Small businesses (all phases)
• Large businesses (productivity, management
  issues)
• Economic Developers (recruitment, planning)
• University community

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Focus Areas

• Feasibility studies/economic analyses
• Business/financial management
• Quality assurance (SPC, HACCP)
• E-business
• Industry overviews

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Green Industry Seminars
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Catfish Processors Conference 2001

• This year marked the 28th Mississippi State
  University
• Catfish Processors conference.

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Hunt Construction Company

• Ackerman, MS

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Economic Impact of the Mississippi Poultry
Industry at the Year 2002

• What is in the Report?
• Structural Evolution
• Economic Impact
• Broiler Production
• Size of the Industry
• Broiler Processing Further Processing
• Employment
• Egg Production
• Major Poultry Producing Countries
• Poultry Exports from Mississippi Ports

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Mississippi Specialty Foods
A Taste of Mississippis Finest
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Mississippi State
University Extension Service
Food Fiber Center

• Assisting Agribusiness Industries
• In Mississippi By Providing
• Educational, Technical and Developmental Services