By JIMMY LAWTON

CANTON -- Plans for a $2.5 million “food hub” in St. Lawrence County have been expanded to now focus initially on construction of a meat processing facility.

United Helpers CEO Stephen Knight said he still envisions the hub as a facility capable of processing, marketing, storing and selling other agricultural products, which was the original plan.

But plans for the facility have changed to first create a meat processing market because that will allow the hub to establish itself without overreaching financially in the early stages and position it for growth into other markets down the road.

In 2013, United Helpers and North Country Pastured were awarded a $350,000 grant Empire State Development grant through the North Country Regional Economic Development Council to create the food hub. The idea received high praise from economic developers and the governor’s office.

Knight said North Country Pastured is no longer involved in the plan and while the project is still eligible for funding, no grant money has yet been received.

Room to Grow

If the model is successful, Knight envisions growing the hub into something that could also slaughter goats, pigs and cattle raised for beef. He said the facility should also be capable of storing and marketing produce in the future, which is more in line with the original goal of the food hub.

The goal is to establish a business model that is sustainable and trustworthy with near limitless possibility for expansion. He said the food hub is a natural fit for St. Lawrence County, which is flush with agricultural products.

As the hub grows he is hopeful it will encourage entrepreneurs to become part of the chain. He said providing a place for livestock processing and food storage may encourage more people to raise livestock and grow produce. He said additional profits could be obtained through animal hides.

“I don’t think we have to provide every aspect of this. My hope is that someone will decide they want to process the hides.”

The food hub is expected to create 12 jobs in the first year with potential for more depending on the market. He said this does not include contracted services that would be needed to make the facility work.

Knight said that’s the true goal of the food hub, to provide a resource that can stimulate the economy by creating opportunities for farmers and entrepreneurs.

Starting Small

The project will be handled through United Helpers’ for-profit management company Sparx, which is based in Canton. In the most optimistic scenario Knight said the food hub could be shovel-ready this spring, but no official time frame exists.

“There are a lot of moving parts,” Knight said. “We don’t want to pull the trigger before it’s ready.”

Although Sparx is a branch of the non-profit United Helpers, Sparx’s holdings are on the tax roll. Knight said the plan also calls for establishing the food hub as a taxable entity, because the food hub is about stimulating the local economy.

While early ideas for food hub focused on producers bringing products to be stored, processed and marketed, the current plan calls for targeting an existing supply of culled dairy cows, which are cows that are sent to slaughter by dairy farmers. Knight says this would allow the food hub to tap an existing population of cattle rather than relying on new producers to supply the slaughterhouse.

“You need to establish legitimacy,” he said. “Producers have to be able to trust you before they invest in raising animals. If you promise someone you will buy x number of cows for x amount of money, you have to be able to deliver on that.”

Putting it Together

Knight said United Helpers is partnering with others including Renzi Foods, Watertown, Cornell Cooperative Extension and SUNY Canton to make it all work. Although the other entities are not financially invested in the project Knight says they will play a pivotal roll in its success.

United Helpers has the business experience and ability to manage operations, run a pay roll and balance a budget, but the hub requires much more.

He said Cornell Cooperative Extension has extensive knowledge in agriculture and will be a valuable resource for people hoping to grow or raise products that can be sold to the food hub. He said the extension’s knowledge will help people maximize their profits by using efficient and proven methods to improve quality and yields.

SUNY Canton and other area colleges will also play a role. He is hopeful that the schools can provide training for the sort of jobs that will grow from and be created by the food hub.

And Renzi, a food distributor that serves more than 7,000 customers, will be able to guide the hub in finding buyers and distributing products.

Knight says using these existing established entities will help ensure the success of the food hub.

The biggest hurtle facing the company at this time is money. With a $350,000 grant for a $2.5 million project the food hub is well short of its funding goal. Knight says he is currently working with banks and showing its pro-forma based solely on the culled cow model.

Knight said he realizes the investment is big, but he says it’s a project that is vital to the North Country.

“We think there is a real market for it and we think it’s a real worthwhile investment in the community, but we need make sure it’s viable,” he said.

Why a Food Hub?

Knight said at a 2009 meeting at United Helpers meeting he learned that 20 percent of North Country children grow up below the federally established poverty line. He said rural areas like St. Lawrence County are finding it tougher to hang on to jobs as large employers continue to locate in metropolitan areas.

“Rural areas have a tough time economically and I don’t think that is a trend that is going to change,” Knight said.

He said the economic disadvantage negatively impacts community health and even mortality rates.

“St. Lawrence County has a huge social need going unmet,” he said.

Knight say the food hub has the potential to breathe new life into the county, because it takes advantage of the area’s rural nature and offers farmers, growers and entrepreneurs to build on it.

“We really think this could open doors for people,” he said.