Fiber Processing Capacity Expansion
Battenkill
Fibers seeks to expand operations, but lacks the financial resources to do so.
Funding for new equipment was sought through the 2012 NYS Regional Economic
Development grant program; and while the Capitol Region economic development
council ranked our project very highly and recommended it for funding, Governor
Cuomo decided to focus limited ag economic development funds elsewhere in the
region. We have a commitment for matching funds in place from an area ag
lender, but can only access those funds if we can obtain other funding first.
Expansion
plans include the addition of an opening machine and a large capacity scouring
line; and working capital to purchase fiber. This expansion will enable
Battenkill Fibers to make more efficient use of our existing full-size high-capacity
fiber processing machinery including a 7' Davis and Furber card, a 4-head
Warner Swassey pin-drafter; and a 60 spindle Gaudino spinning frame. As a result of adding this capacity, we
will be better able
to utilize more local fiber in manufacturing yarn for national customers; and
be more competitive in bidding on these jobs. As such, farms will have a better
market for their lower quality fleeces. We will also be able to provide higher
quality value-added products for our farm-based customers. Once this expansion
is complete, we anticipate creating 1-2 new full or part-time positions - adding
to our current workforce of 12 and creating new local employment opportunities in southern Washington County.
Final
design has been completed and estimates have been received for all
manufacturing equipment and related installation costs for the expansion
project. Landlord approval has been obtained for necessary building
rehabilitation activities; and a new dedicated wash water source (20
gallon/minute well) went on-line in mid-Dec. 2012. Fiber farms that produce the
grease wool targeted for purchase have been identified. As such, we are poised
to launch our expansion phase but we lack the financial resources to undertake
the building renovations and equipment purchase; and we don't have sufficient
working capital to purchase large quantities of fiber at one time.
Battenkill
Fibers experienced an unexpected financial setback early in its existence as a
result of a catastrophic fire in June 2010 that burned the building in which
the business began to the ground and destroyed most of the manufacturing
equipment and purchased fiber. While the machinery and fiber was insured at
purchase value, replacement machines were more costly, fiber couldn't be
replaced until another shearing season, and there was no business interruption
insurance nor insurance for salvaging and moving equipment and rehabilitating
the current space from an abandoned warehouse to a manufacturing facility. This
depleted all sources of start-up or expansion funds. Current sales/income
exceed expenses, but with a high debt load there are only limited corporate
savings to finance the expansion phase.
Letters
of support for this project were received from Cornel Cooperative Extension
Capital Area Livestock Program leader, Executive Director Agricultural
Stewardship Association, and President Washington County Local Development
Corporation. The project supports
Recommendation #5 of "¨the Washington County Agricultural and Farmland
Protection Plan: "Promote the Economic Development of Agriculture."
The project specifically addresses the following aspects of this recommendation
as detailed on pages 57 and 58 of the plan:
·
"Promote and support agriculture, including higher returns to
producers;
·
County economic development efforts [should] include the
promotion, production and marketing of specialty and value-added products;
·
Attract agricultural processing and manufacturing plants to
Washington County."
Mission and History
Battenkill Fibers Carding and
Spinning Mill, Inc. is located in a 6000 square foot commercial building in Greenwich,
NY and manufactures artisan quality natural-colored and kettle-dyed premium
knitting yarns using traditional semi-worsted milling machinery. Services
offered include providing value-added, custom carding and spinning for fiber
farms and manufacturing yarn and fiber products for wholesale and retail
markets.
Battenkill Fibers was
founded in 2009 by owner Mary Jeanne Packer and began production in 2010 after
receiving start-up funding from a loan from the Washington County LDC, a loan
from Glens Falls National Bank, two angel investors, and owners capital. After
two years in operation, the Phase I- Start up of Battenkill Fibers business
plan has been accomplished "“ the mill has established a strong regional market
for custom processing of premium fibers for fiber farms and has obtained and
filled some large national orders and completed several indie dyer projects. Battenkill
Fibers has 12 full-time and part-time employees, including mill manager Karin
Kennedy who is also an area sheep farmer.
To date, Battenkill
Fibers has a farm-based customer list of about 350. Many farmers who ordered
processing services in 2010 and 2011 and were very satisfied with with our
work; and placed more substantial re-orders following their 2012 shearing
season. Over two dozen indie dyers are sourcing their breed-specific base yarn
from Battenkill Fibers and another dozen estimates have been furnished; and orders
are pending.
In 2012, Battenkill
Fibers received a 700 lb order, and two subsequent smaller re-orders, from a
large international yarn distribution company that was responding to its retail
customers' requests to furnish locally-sourced and spun yarn. This contract
placed Battenkill Fibers squarely in the national spotlight in yarn consumer
and trade media such as Yarn Market News
and Vogue Knitting; and as a result,
inquiries are coming from all over North America for breed-specific locally-sourced
premium knitting yarns.