Company Profile:
Ely Farms LLC of rural Grafton, NE (population 167) is a small food manufacturing business engaged in producing and marketing a gourmet pickled asparagus product, Ely Farms Pickled Asparagus Spears.  This product is currently carried in approximately 90 retail grocery, gourmet, specialty and gift, and liquor stores throughout the state of Nebraska and surrounding states.  The primary target market is the specialty food industry.  Additional pickled vegetable products are under consideration and/or in the process of being developed.

Situation:
In the Spring of 1999, 8^th grader Neal Ely of Grafton, NE conceived the idea of planting and marketing fresh asparagus for a high school Future Farmers of America (FFA) project.  Neal harvested his first fresh asparagus crop in the Spring of 2000, selling 500 pounds at the local Farmers Market.  Neal’s mother, Tami, pickled some of the asparagus using a family recipe.  The pickled asparagus became an instant hit at the Farmers Market and soon Neal decided to form a business around the value-added product.  For assistance in launching this business, Neal turned to The University of Nebraska Food Processing Center, a partner of the Nebraska Manufacturing Extension Partnership.

Solution:
As part of his research process for the new value-added business, Neal attended the “From Recipe to Reality” seminar.  This seminar is phase 1 of the nationally recognized Food Entrepreneur Assistance Program.  The seminar is specifically designed to provide entrepreneurs with an understanding of the key issues they will need to consider when starting a food business.

Following the seminar the Neal chose to proceed to the 2^nd phase of the program, “From Product to Profit”.  During this phase he received comprehensive one-on-one assistance in the development of his value-added product and company from business development consultants and food scientists.  Specific technical assistance included product re-formulation and assistance in establishing an on-farm processing facility, package and label development, costing and promotional strategies.

 Results:
As a result of the assistance he received, Neal formed a limited liability corporation—Ely Farms LLC—with his parents and expanded the fresh asparagus business to include a value-added gourmet product, Ely Farms Pickled Asparagus Spears.  The value-added pickled asparagus product is produced in a small, licensed commercial kitchen building on location at Ely Farms LLC.  Neal and his father renovated an existing building on their farm to meet all regulatory requirements for a licensed commercial kitchen and to function as their processing facility.  A total of $15,000 was invested in renovation and processing equipment costs.

The production of Ely Farms Pickled Asparagus Spears has been a profitable venture for Ely Farms LLC.  In 2001 when Ely Farms LLC produced and marketed 500 jars of pickled asparagus and sold 3 acres of fresh asparagus, gross sales were $3,676.  In 2006, Ely Farms LLC generated gross sales of $30,310 on pickled asparagus alone; using approximately 7,500 pounds of fresh asparagus to produce 9,000 jars of pickled product.  Currently, Ely Farms LLC sells Ely Farms Pickled Asparagus Spears in approximately 90 outlets—primarily gourmet, specialty and gift stores—throughout the state of Nebraska and surrounding states. 

As the market for the pickled asparagus product continues to grow, Neal sees an opportunity to grow other products [fresh green beans and bell peppers] on the family farm and capitalize on the value that can be added through the acidified foods (pickling) process.  Just as the value of the asparagus increases nearly $3.75 per pound when it is processed into a value-added product, Ely Farms LLC expects the value added to the fresh green beans and bell peppers to be about the same percent.

Neal Ely will graduate from the University of Nebraska in December 2007 with a degree in Agribusiness.  With the aid of his parents, Neal has operated Ely Farms LLC on a part-time basis while attending college full-time.  Upon graduation, Neal plans to return to his hometown to operate Ely Farms LLC.  His goal is to take over ownership of the business from his parents and create a full-time employment opportunity for himself.  Last year, the business had 6 year-round, part-time employees as well as approximately 18 seasonal employees that assisted with harvesting the asparagus and/or manufacturing the pickled asparagus.  As the business expands in the future, the number of employees will also increase.

Through the assistance provided by The Food Processing Center and the Nebraska Manufacturing Extension Partnership, the state of Nebraska has added a new business and positively impacted economic growth and job creation.  In addition, statistics show that since the Food Entrepreneur Assistance Program started in 1989, 58 percent of business startups assisted through the program are still in business today.

Testimonial: 
“As a young entrepreneur and student at the University of Nebraska-Lincoln, I have learned just how important it is to use valuable resources and the broad network these resources can provide.  The staff at the University of Nebraska-Lincoln Food Processing Center has been a true asset to Ely Farms LLC.  The UNL Food Processing Center has been my most valuable asset, and has assisted me in new product development, production, marketing, sales, and quality control.  They have been excellent!”

Neal Ely
Ely Farms LLC
Senior, University of Nebraska-Lincoln