Is $5.5M enough for a material impact? My reference point is the fact that setting up a single new farming operation that is profitable, can set you back by millions.
> Using RFSI funding, the Tennessee Department of Agriculture will fund projects that increase access to commercial kitchens and co-packing facilities. Additional funded projects will expand processing capacity, including adding product types, increasing production volumes, and supporting new wholesale/retail product lines. The state’s priorities are informed by stakeholder engagement and outreach to underserved producers to better understand their needs.
Looks like it costs 15k-250k to set up a commercial kitchen: https://www.kitchenall.com/blog/commercial-kitchen-cost.html
A new product line is 85k-175k: https://www.foodresearchlab.com/blog/new-food-product-develo...
I imagine they are doing grants that cover part of the costs not the whole thing. If they covered 50% of the cost and each project cost 100k, that would mean 110 projects, which is a lot in one state.
I see 22 commercial kitchens in TN currently: https://www.thekitchendoor.com/kitchen-rental/states/tenness... so if half of the projects were commercial kitchens, that would be a 250% increase.
I’d think this is going to help producers upgrade or replace some existing equipment. Probably a good thing. $5.5M more than the market had, right?
I do wonder if there is some low hanging fruit on more efficiently connecting different stages of food production. Like a traveling salesman problem with getting food producers to packing.
That 15k is a bit of a misnomer, a vent hood plus fire suppression is going to be $20k+ installed (or more depending on how much ductwork is needed).