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Kentucky Corn
Utilization Corporation
Project Scope:
Kentucky Corn Utilization
Corporation (KCUC) is a for profit subsidiary corporation
formed by the Kentucky Corn Growers Association in November
2005.
What does KCUC consist of?
- 665 Acres of strip mined
land suitable for grass production only.
- 6 hog finishing building
with a total capacity of 5760 head.
- Hog expansion
opportunities of a minimum of an additional 3,000 head
- Grass will initially be
utilized for beef cattle production.
- Possibility for future
dairy, poultry operations exist.
- Initial capital investment
of $1,005,000.00
Overview: Why did KyCGA
create the Kentucky Corn Utilization Corporation?
- Provide market for corn.
- Increase livestock
production within the state
- Foster the cooperative
business concept.
- Create the opportunity for
grain producers to benefit from livestock production
without the day to day management required.
How Does This Fit into
KyCGA Goals?:
#1 – The KyCGA adopted the
following statement as part of their Strategic Plan of
Action in 2003:
Long Term Animal
Agricultural Stability:
The KyCGA recognizes the importance of the
livestock industry as a market for
Kentucky Corn Producers. The KyCGA will
explore methods to sustain and grow the number of
livestock within the state. Purchasing large tracts of
land or purchasing options on large tracts land that could
be used for livestock production should be considered.
This is a long term project that may require many years
before it is fully implemented. The end goal is to provide
a long term market for Kentucky Corn Producers.
#2 – KyCGA adopted this
“Vision Statement” in 1999:
To be an innovative
organization that provides dividends, benefits and
services that meet the needs of our producers and members
in a changing industry.
The $1 Million + investment
into the Christian Co. livestock production operation fits
the KyCGA plan of action and vision statement. We are
working to develop a model farm for corn producers looking
to diversify their operations or to grow Kentucky’s animal
production industry. Our goal is to provide dividends to
future producer investors from this investment.
Only 40-45 percent of
Kentucky’s corn production is sold for livestock feed,
compared with the national average of 55-60 percent. There
is huge potential to increase Kentucky’s livestock industry,
especially in the poultry, swine & dairy production. A
strong livestock market is vital to the success of
Kentucky’s corn producers.
#3- Foster development of
cooperatively owned business by Kentucky’s farmers.
Our goal is to encourage
producers to jointly invest in businesses that create demand
for Kentucky corn. To foster the joint ownership concept and
get farmers working together while expanding livestock and
corn demand within the Commonwealth of Kentucky. Many states
such as South Dakota and Minnesota have utilized cooperative
business models to startup; Ethanol Production Facilities,
Livestock Ventures, Feed Manufacturing Facilities and other
joint ventures. The KyCGA wants to encourage KY Producers to
consider forming new cooperatively owned business ventures.
The Kentucky Corn Utilization Corporation will sell a
minimum of 50% ownership in this cooperative livestock
venture to individual producers in order to implement this
concept and provide a working model for producers to benefit
from.
#4- Provide suitable land and
environmental conditions for future livestock production.
The KyCGA recognizes the
importance that livestock production plays in providing
markets for corn, jobs, and overall economic benefits to
corn producers in the state of Kentucky. With an ever
increasing demand that livestock production be conducted in
locations that do not cause environmental concerns such as;
odor, ground water contamination and unsightly views the
KyCGA want to ensure that we have adequate opportunities to
expand livestock production into the future. By setting
aside land in areas that meet the environmental requirements
needed for future livestock production we can make a
contribution to this worthy goal.
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