WATERLOO, Wis. — Debbie Crave won't forget the day her husband, George, told her he was thinking about building a farmstead cheese plant on the 600-cow dairy that he and his brothers Charlie, Thomas and Mark own and operate in south central Wisconsin.

On the one hand it was a bit of a shock because it hadn't been something that was part of the business plan, she says. On the other hand, it wasn't a complete surprise since the Crave brothers have constantly been on the lookout for ways to continue building their dairy business.

Raised on a 40-cow dairy farm near Beloit, Wis., the Crave brothers began farming together in 1978 in Mount Horeb, Wis., milking 57 cows on a rented farm. They purchased their present farm in Waterloo in 1980 with the goal of building a successful agribusiness. Over the years, their herd has grown to its present size of 600 cows, most of them Holsteins. With a herd average of 30,000 pounds of milk a year, it's arguably one of the most successful dairy operations in the state, and the family's numerous awards have included being named the Wisconsin Dairy Farm Family of the Year in 1993.

However successful the farm was, though, the brothers saw the potential for even more success, and in 1999, they began talking about ways they could add value to their present operation. There were several trigger points to the discussion. These included the growth of farmstead and organic dairy products as well as low milk prices, George says. The price of milk hasn't really changed since the brothers started farming together though costs have risen substantially, he notes.

The brothers tossed around several ideas and ultimately settled on exploring a cheese factory. Debbie, an employee with the Wisconsin Milk Marketing Board at the time, knew it wouldn't be easy. So did her husband and her brothers-in-law. They started exploring, though, to see what opportunities there were and exactly what challenges they would face.

"George is a good visionary," Debbie says of her husband, telling about how he talked to many different people and read several dairy publications to determine if the idea was feasible.

A lot of support came from Dan Carter Inc., a Mayville, Wis.-based specialty cheese marketing firm which provided the Crave brothers insight into the market and what types of cheese they could produce. With that input, as well as support from the University of Wisconsin, the family made the decision to enter the cheesemaking business with three cheeses in a 6,000-square-foot plant on their farm.

The business, known as Crave Brothers Farmstead Cheese LLC, recently began producing its first regular batches of cheese and made its grand debut at the International Dairy-Deli-Bake (IDDBA) Show in Orlando, Fla., earlier this month.

At the show, George, who manages the cheese operation, and Debbie, who handles marketing, were kept on the go by a steady stream of potential customers who came by to sample the cheeses and learn more about the fledgling company. Business associates, family and friends also will get the opportunity to learn more about the company at a grand opening celebration at the factory today and tomorrow.

The company is making three cheeses: Crave Brothers Farmstead Classics Mascarpone, Crave Brothers Farmstead Classics Fresh Mozzarella and Crave Brothers Farmstead Classics Le Frères, the latter of which, pronounced "lay frair," is a European-style, rind-washed cheese developed to reflect the brothers' Irish-French heritage. While all of the cheeses are considered "specialty," the Craves say that they worked with the university to develop Le Frères as the company's own particular specialty.

Though the cheese is "farmstead" — that is, using only milk from the family's own farm — the Craves have focused on building a highly-efficient, professional operation. Instead of making the cheese in a tiny building right next to the cows, milk is pumped 320 feet through insulated pipes under the ground to the brand new cheese factory where it is then pasteurized before being made into cheese. Beyond the cheesemaking equipment, the plant features office space and a conference room.

The Craves' focus on professionalism is a theme that has carried over from the family's dairy operation. In some circles, larger farms are criticized in favor of smaller farms. However, George says the Craves have "nothing to apologize for" with their herd of high-producing cows and their efforts to operate a dairy farm with a crisp, clean look to it. This also works to the cheese company's advantage when it comes to marketing to buyers.

"We can tell the story of modern dairying," George says.

The plant just ran its first batch of cheese in February and has only been regularly making cheese in the past month or so. Though they don't expect to offer a lot of tours, the Craves recognize that the farm and cheese factory give the public a chance to learn more about dairying and cheesemaking. To accommodate visitors, they have installed viewing windows where the cheesemakers work. A couple of groups of schoolchildren from Beloit already have come to see the dairy and cheese being made.

For now, two cheesemakers are in charge of making the cheese. Jim Purcell, formerly of Specialty Cheese Co., joined the company shortly after the groundbreaking last year and worked with George on equipment selection. Kurt Premo, formerly of Bresse Bleu, joined the company when the equipment was installed. Both George and Debbie have taken the University of Wisconsin cheesemaking short course, and George plans to become a licensed cheesemaker.

The cheese company operates as a separate business from the dairy herd although the four brothers are equal owners in both enterprises.

And if someone thinks that having your own supply of milk makes cheese production less expensive or that farmstead cheese is an extremely lucrative outlet for milk, George is quick to correct them.

"This isn't going to save your family farm," he says.

It's not that he wants to discourage other farmers, he says. However, the project has been a big investment of both time and money.

Not only is there the cost of building the factory and installing the equipment, some of which George and his brothers did themselves, there's also the cost of marketing.

"You have to have a pretty good budget just for overnight shipping," George says.

There's also the cost of the milk. Because the family operates the dairy farm and the cheese business as two separate entities, the cheese company buys the milk from the farm at the real market value, George says.

It's been a learning experience for the family already, George says, but so far he's enjoying it.

"It's exciting. Some days can't get much more exciting," he adds with a smile.

George credits the family's team approach to the business to making the transition to owning a cheese company as smooth as it has been. His brothers and a herd manager have shifted responsibilities, which has allowed him to focus on the cheese factory. He believes that managing and increasing a dairy herd's size through market volatility has given the brothers a good foundation for managing this latest enterprise.

"The adversity of managing a growing herd has developed our skills," he says.

The cheese side of the business is going to go slowly at first, he adds, noting that a successful cheese operation doesn't happen overnight. With a herd that produces roughly 18 million pounds of milk annually, not all of the milk is going to be used for cheesemaking. George's immediate focus is on making high-quality cheese and gradually increasing the market for it.

"The goal in the next couple of years is to use half of our milk," George says, noting this would make approximately 1 million pounds of cheese a year. The cheese factory has been built with the capacity to use all of the farm's milk when the time comes, but George says that he doesn't have specific goals on how soon that will occur.

"There's no defined goal on the time line, only the goal to make a good product," he says.

CMN