| system | initial cost ($ + hrs) / unit | annualized cost ($ + hrs) / unit | sqft building | sqft land | revenue | market cost | benefits | | ------------------- | ----------------------------- | -------------------------------- | ------------- | --------- | ------- | ----------- | ---------------------------------------------------------------- | | Parmesan Production | $425k + 1500 hrs | $177k + 4460 hrs | 2000 | 0 | $780k | $1.2M | Premium cheese production, revenue generation, skill development | #### Assumptions - Production capacity: 24,000 lbs/year of aged Parmesan - Milk usage: 240,000 gallons/year (10 gallons milk per 1 lb cheese) - 18-24 month aging process - Climate-controlled aging room - Quality comparable to mid-tier Italian Parmesan - Internal resource costs: - Milk: $0 (community surplus) - Power: $0.08/kWh - HVAC: $2/sqft/year - Maintenance: $3/sqft/year #### Market Solutions $1.2M/year Premium Parmesan retail: - 24,000 lbs × $50/lb = $1.2M #### Labor 4160 Hours/year | Task | Hours/Year | Notes | |------|------------|-------| | Cheese Making | 2080 | 8 hrs/day, 5 days/week | | Aging Room Management | 520 | Daily monitoring, turning | | Quality Control | 520 | Weekly testing | | Cleaning/Sanitation | 780 | Pre/post production | | Equipment Maintenance | 260 | Regular service | | Total labor | 4160 | ~2 people full-time | #### Operating Costs $92k/year | Component | External Cost ($) | Internal Cost ($) | Notes | | --------------------- | ----------------- | ----------------- | --------------------- | | Cultures/Rennet | $35,000 | 0 | Specialty ingredients | | Packaging | $25,000 | 0 | Premium materials | | Power | 0 | $12,000 | Climate control | | HVAC | 0 | $4,000 | Temperature/humidity | | Maintenance | 0 | $6,000 | Equipment upkeep | | Testing/Certification | $10,000 | 0 | Quality assurance | | Total Annual | $70,000 | $22,000 | | #### Initial Costs $425k + 1500 hrs -> $85k + 300 hrs/year | Component | Initial Cost ($ + hrs) | Lifespan (Years) | Annual Cost ($ + hrs) | Notes | | ------------------- | ---------------------- | ---------------- | --------------------- | ---------------------- | | Cheese Vats | $150k + 400 hrs | 5 | $30k + 80 hrs | 500-gallon capacity | | Aging Room | $175k + 600 hrs | 5 | $35k + 120 hrs | Climate control system | | Testing Lab | $50k + 200 hrs | 5 | $10k + 40 hrs | Quality control | | Drainage/Sanitation | $50k + 300 hrs | 10 | $10k + 30 hrs | Food-grade systems | | Total Initial | $425k + 1500 hrs | - | $85k + 300 hrs | | #### Production Process 1. Milk Preparation - Standardize fat content - Pasteurize at low temperature - Cool to 93°F 2. Curd Formation - Add starter cultures - Add rennet - Cut curds - Cook to 125°F 3. Molding & Initial Aging - Press curds in molds - Salt for 20 days - Initial aging room (65°F) 4. Long-term Aging - Move to aging room - 18-24 months at 57°F - 85% humidity - Weekly turning #### Quality Control Points - Milk testing: bacteria, somatic cells - Curd pH monitoring - Salt concentration checks - Aging room climate monitoring - Regular taste testing - Final grade assessment #### System Outputs | Output Type | Weekly Units | Annual Units | Internal Cost/Unit | Notes | |-------------|--------------|--------------|-------------------|--------| | Premium Parmesan | 460 lbs | 24,000 lbs | $3.83/lb | 18-24 month age | #### Revenue $780k/year | Market | Price/lb | Volume (lbs) | Revenue | Notes | |--------|----------|--------------|---------|--------| | Direct Retail | $45 | 8,000 | $360k | Local sales | | Restaurant | $35 | 12,000 | $420k | Regional accounts | | Community | $10 | 4,000 | $60k | Internal use | #### Critical Success Factors 1. Temperature/Humidity Control - Precise aging conditions - Backup power systems - Daily monitoring 2. Milk Quality - Low bacteria counts - Proper fat content - Fresh processing 3. Expertise Development - Initial expert training - Process documentation - Quality assessment skills 4. Market Development - Restaurant relationships - Premium positioning - Local food networks