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Maple Field Milk received support under the Enterprise Support project.
Specialist Enterprise Support objective:
to enable 200 community based food enterprises across England to develop and thrive.
Date of support:  February-June 2011
Consultant:   Jane Ryall – Success for social enterprise
 

Short background and circumstances of Maple Field Milk
Maple Field Milk (MFM) is a new community-owned micro-dairy, established to revive small-scale dairy farming. Using low-cost processing facilities, it will produce and sell full-flavoured milk directly from the farm. It will encourage new farmers without the necessary capital into dairying, and raise public awareness about how milk is produced.

MFM is owned and managed by the community, including those with a direct interest in dairying plus local consumers. Set up as a social enterprise and Community Interest Company, MFM is unique as it will enable interested individuals to become actively involved as members in developing the dairy business.

Details of original request for support
1. Establish the business case for MFM
2. Identify the most appropriate governance structure
3. Assist with fundraising for start-up costs.
 

What we liked about Maple Field Milk
• The passion, knowledge and experience of the founder, Nick Snelgar
• Micro-dairies have been rarely developed in the UK
• As a community-owned business, it is a unique idea
• Multiple objectives – job creation/training, easy access to capital (land and equipment for new entrants to dairying), local food development and education about dairying
• Huge interest from a wide range of stakeholders – namely, the local community as the consumers of milk, farmers (existing and new), schools and colleges, DEFRA, industry leaders e.g. Dairycrest, and funders
 

What we did
1. The priority was to establish whether MFM could be viable – initial discussions with others who practice in the dairy industry challenged the high costs (especially processing and labour costs) and likely income of this venture. Clearly there is a need to add value to the milk and associated products. This entailed addressing all likely costs, meeting all the necessary regulatory requirements and exploring best practice from elsewhere, in what was relatively unknown territory. It was important for Nick to record his own passion for the micro-dairy and so he was asked to write the initial business plan text, which was subsequently edited. ES took the responsibility of preparing a detailed 3 year cash flow, which required Nick researching many costs.
2. Once it was established that Maple Field Milk could be feasible, we felt confident enough to write a funding bid to the Prince’s Countryside Fund.  The application received very positive interest, with the final selection process involving face-to-face meetings and a visit with senior staff from Dairycrest, a dairy industry leader in the UK. Capital funding of £45,000 was awarded in July 2011. A real success and boost for the project, not only financially but also in terms of raising profile.
3. A considerable amount of time was spent by the ES consultant researching the most appropriate legal structure. This is an unusual mix of social enterprise – a strong founder, substantial potential for financial investment by a limited number of individuals, and a wide range of stakeholders with varying degrees of interest. In the end we agreed to establish Maple Field Milk as a Community Interest Company Ltd by Shares – the main reason being that Maple Field Milk seeks an asset lock; it wishes to offer dividends to some of its investor members in the form of milk, beef products etc;  a CIC is relatively affordable, well known and easy to form and it is attractive to funders. We chose a CIC by Share small membership as we wanted it to be simple to manage. We also wanted to avoid the potentially complex FSMA regulation if we sought to issue larger number of shares. We decided against becoming an IPS, as this seems to fit best where sizeable numbers of people are investing quite small sums, as in community owned shops. CICs appear to work well where a small number of connected people are investing variable amounts and where there is a strong leader, as in the case of Maple Field Milk.
What Maple Field Milk gained from the support and what changes they were able to make
Ultimately, MFM were able to translate a brilliant idea into potential reality! Namely, MFM is now a well-researched business case, which has the support of outside funding and the strong legal foundations as a Community Interest Company to go forward.
 

What was the most valuable element of the support – this from Nick Snelgar.

“Thank you for all your fab work and endless patience. Without you there would be no grant and Maple Field Milk would have been so much more difficult to get under way…………..
I think you are so accurate and thorough in your work – you deserve a gold medal. Plunkett need to know just what a very good and enthusiastic ‘mentor’ you are and how the world of CIC’s and smallscale this and that is a far richer and safer place thanks to you!”
 

What future actions were committed to by Maple Field Milk
The micro-dairy will be established and in full operation by the end of 2011.
A “Friends of Scheme” will be considered to encourage fellow consumers of Maple Field products to support the cause of micro-dairying.
Further technical legal support will be required to make the CIC share offer when the time is appropriate.
 

What happens next – a great deal!
2011
Begin dairy construction and install dairy equipment

Commission and test prototype 2 berth outdoor milking bail, which will be low cost and mobile

Begin marketing and training

Final clearance & certification provided by Environmental Health and DEFRA Dairy Hygiene Inspector

Begin milk production

Sale of milk to customers, from dairy and by delivery

Recruit additional membership – especially local herdsmen & customers

Establish “cow ownership” – 3 individuals already interested

CIC share ownership prospectus finalised

2012
Host first training weekend at farm for prospective dairy farmers and herdsmen

Host first school/agricultural college farm visit

Additional dairy products developed and available for sale e.g. cheese, yoghurts and raw unpasteurised milk

Other CIC members become involved with dairying, using Maple Field Milk facilities

Arrange work experience for agricultural students

2013
Dairy products become available for sale through local small-scale outlets

Establish “Rent a Cow” – to allow new entrants to enter the dairy industry without having to buy cows or grazing