OPERATION NUGGET CATALYST

Gold Canyon Regenerative Micro-Farm Implementation Plan

Model: CATALYST (Baseline Revenue + CanaFrass R&D Track) Timeline: December 2024 - December 2025 (12 months) Location: Gilbert's Family Property, Gold Canyon, Arizona (Zone 9b) Operators: Frankie + Gilbert (KannakKrew)

EXECUTIVE SUMMARY

NUGGET CATALYST combines proven baseline revenue operations with an aggressive R&D track to develop stage-specific cannabis frass products for Year 2 market launch.

Year 1 Financial Projections:

  • Projected Revenue: $97,624 ⚠️ Pending feed cost research
  • Conservative Range: $90,460-93,124 (if grain feed required: -$4,600 to -$7,200)
  • Optimistic Range: $97,624 (if fodder validates)
  • Net Startup: $8,078-8,773
  • ROI: 1,030-1,110% (Conservative grain scenario: 12-13 month payback)

Critical Notes:

  1. Feed Cost: Year 1 profitability depends on validating that sprouted barley fodder can replace grain feed for meat birds. Conservative budget uses grain feed ($6K/year). See "Active Research Gaps" for details.
  2. BSFL Revenue Upgrade: Pro-Grubs (offal line) now projected at $3,724/year (was $1,064) based on market research showing $14-22/lb pricing vs $4/lb wholesale assumption. Year 1 uses conservative 70% B2B mix.

Year 2 Projected (Post-Launch):

  • Revenue: $107,313-120,000
  • Products: 6 SKUs (BSFL, Dubia, Vermicast, CanaVeg, CanaBloom, AACT)
  • Market Position: ONLY stage-specific cannabis frass on market

CORE PHILOSOPHY: THE THREE-STAGE BIOREACTOR

Non-Negotiable Foundation (from CLAUDE.md):

STAGE 1: BSFL BIOREACTOR
β”œβ”€ Inputs: Organic waste, food scraps
β”œβ”€ Process: Black Soldier Fly Larvae decomposition
└─ Outputs: BSFL larvae (feeders) + BSFL frass

STAGE 2: DUBIA BIOREACTOR
β”œβ”€ Inputs: Plant matter, supplemental feed
β”œβ”€ Process: Dubia roach decomposition
└─ Outputs: Dubia roaches (feeders) + Dubia frass

STAGE 3: VERMICULTURE BIOREACTOR
β”œβ”€ Inputs: BSFL frass + Dubia frass + organic matter
β”œβ”€ Process: Red wiggler vermicomposting
└─ Outputs: Premium "vermifrass" (living soil amendment)

Material Flow:

  1. BSFL Line 1 (brewery grains) β†’ BSFL larvae (sold) + frass β†’ Worm bins
  2. BSFL Line 2 (quail offal) β†’ BSFL larvae (sold, premium) + frass β†’ Worm bins [NEW]
  3. Dubia frass β†’ Worm bins (60-90 day stabilization for uric acid)
  4. Quail manure β†’ Worm bins
  5. Worms inoculate all inputs β†’ Premium vermifrass

Offal Loop Details:

  • 4,800 birds processed = 1,008 lbs offal/year (28% of live weight)
  • Offal β†’ BSFL Line 2 (26.41% bioconversion) = 266 lbs larvae
  • Larvae composition: 64.3% protein (vs 51.8% standard) = premium product
  • Revenue: 266 lbs @ $14/lb avg (B2B + B2C mix) = $3,724/year
  • Frass from Line 2 β†’ Worm bins (same as Line 1)

🚨 ACTIVE RESEARCH GAPS

Critical Question: Fodder System Viability for Meat Quail

The Issue: Current financial projections assume hydroponic sprouted barley fodder can completely replace conventional grain feed for meat quail production. Recent research on quail production reveals this assumption is unvalidated and represents the single largest financial uncertainty in Year 1 operations.

Feed Requirements (Research-Validated):

  • Meat birds (4,800): 12,720 lbs feed (2.65 lbs/bird Γ— 4,800)
  • Layer flock (50): 1,125 lbs feed
  • Breeder flock (36): 795 lbs feed
  • TOTAL: 14,640 lbs/year (NOT 3,400 lbs as initially assumed)

Two Scenarios:

Scenario A: Fodder System Works (Optimistic)

  • 14,640 lbs fodder needed Γ· 6x multiplication = 2,440 lbs barley
  • Cost: 2,440 lbs Γ— $0.21/lb = $512/year
  • Year 1 Net: ~$94,500
  • Status: UNPROVEN - requires validation that fodder provides sufficient protein (24-30%) for meat bird growth

Scenario B: Grain Feed Required (Conservative)

  • Meat birds: 12,720 lbs grain @ $0.40-0.60/lb = $5,088-7,632/year
  • Adults: 1,920 lbs fodder = 320 lbs barley Γ— $0.21 = $67/year
  • Total feed cost: $5,155-7,699/year
  • Year 1 Net: $87,800-90,300
  • Impact: -$4,200-6,700 vs optimistic projection

Research Status:

  • Focused research prompt created: r/RESEARCH_PROMPT_Fodder_vs_Grain_Quail.md
  • Timeline: Must resolve BEFORE Month 1 operations (December startup)
  • Validation options: Literature review + small-scale trial (100-bird cohort)

Risk Mitigation:

  • Start Year 1 with conservative Scenario B (grain feed budget $6,000)
  • Run parallel fodder trial with small cohort
  • If fodder validates, switch to Scenario A in Month 4-6
  • This approach protects Year 1 profitability while testing optimistic model

Action Required:

  1. Complete fodder research (1-2 weeks)
  2. If promising: Run 100-bird trial (8 weeks, ~$200 cost)
  3. Update financial model based on results
  4. Finalize feed procurement before Month 1

YEAR 1 REVENUE BREAKDOWN

Barn Operations (Climate-Controlled):

Product Monthly Annual Notes
BSFL "Eco-Grubs" (brewery) $1,800 $21,600 Standard line to reptile market
BSFL "Pro-Grubs" (quail offal) $310 $3,724 Premium line: 266 lbs @ $14/lb avg (B2B + B2C mix)
Dubia Roach Sales $2,000 $24,000 Feeder insects to reptile market
Vermicast Sales $833 $10,000 General-purpose (400 lbs @ $25/lb retail)
Barn Subtotal $4,943 $59,324

Outdoor Operations:

Product Monthly Annual Notes
Quail Eggs $625 $7,500 50 layers, 1,250 dozen @ $6/dozen
Quail Meat $2,400 $28,800 4,800 birds @ $6/bird (20,000-bird PGOP exemption)
Quail Feed Cost Variable 🚨 TBD RESEARCH PENDING - Fodder vs grain feasibility
Vermicast (quail manure) $166 $2,000 Secondary revenue from manure
Outdoor Subtotal $3,191 $38,300 Pending feed cost validation
Cannabis $0 $0 Personal use only (saves $7,500/year)

TOTAL YEAR 1: $97,624/year ⚠️ PENDING FEED COST RESEARCH

Note: This projection assumes feed costs are minimal (fodder system). If grain feed is required, adjust downward by $4,600-7,200. See "Active Research Gaps" section above for details.

BSFL Strategy Note: Pro-Grubs revenue assumes conservative Year 1 mix (70% B2B wholesale, 30% B2C retail). Year 2+ can scale to higher-margin B2C focus as brand builds.

YEAR 1 STARTUP COSTS

Barn Infrastructure:

Item Cost Notes
BSFL bins (4 units) $650 DIY from totes + ramps (3 brewery, 1 offal)
Dubia colonies (starter) $400 200 adults + setup
Worm bins (4 units) $300 2,000 red wigglers + bedding
Barn insulation/climate $800 R-13 walls, ventilation
Food dehydrator $300-500 8-10 tray commercial unit for dried BSFL
Size-sorting screens $100 Mesh screens (1/4", 1/2", 3/4") for S/M/L grading
Barn Subtotal $2,750-2,950

Barn Design Note: Layout includes space allocation for Year 2 expansion: 10x15 ft "Finishing Room" (for premium batch fortification products like Hi-Cal Dubia, Omega-3 BSFL) and physical separation for Organic Line 3 (5% of production). Year 1 setup focuses on baseline operations; expansion infrastructure built in Q1 Year 2.

Outdoor Infrastructure:

Item Cost Notes
Quail coops (3 units) $600 Breeding + layers
Quail grow-out pens $400 Meat bird housing
Feeders/waterers $200 Gravity feeders, nipple drinkers
Breeding stock (86 birds) $258 36 breeders (30F:6M) + 50 layers
Shade structures $600 50% shade cloth over pens
Fencing/predator protection $400 Hardware cloth, secure base
Misting system (CRITICAL) $400-800 30 nozzles, pump, lines
Water filtration $55-150 Well water: inline filter (if needed)
Processing equipment $200 Killing cones, plucker, knives
Feed storage $130 Metal bins, rodent-proof
Outdoor Subtotal $3,243-3,738

Sales Infrastructure (Frass + BSFL):

Item Cost Notes
Frass packaging (bags, labels) $300 500 bags, printed labels
BSFL packaging $250 100ct cups, resealable bags, "Guaranteed Analysis" labels
AZ Commercial Feed License $10 Required for pet food sales (BSFL)
NPK testing (baseline) $80 U of A lab analysis
AZ Dept Ag license $195 Business license + product registration
Scale (digital, commercial) $150 For accurate portioning
Sales Subtotal $985

R&D Track (CATALYST Addition):

Item Cost Notes
Gut-loading ingredients $400 Kelp, bone meal, soybean, alfalfa, banana
NPK testing (4 batches) $320 Control, Veg, Bloom, optimized
Product registration (2 SKUs) $100 CanaFrass Veg + Bloom
Beta packaging (100 bags) $150 1lb bags for test program
Tea brewer materials $100 Bucket, pump, air stones
Documentation equipment $30 Notebook, measuring tools
R&D Subtotal $1,100

TOTAL STARTUP: $8,078-8,773

Recommended Budget: $8,800 (includes buffer)

Major additions from BSFL market research: Food dehydrator ($300-500), size-sorting screens ($100), BSFL-specific packaging ($250), Commercial Feed License ($10)

MONTH-BY-MONTH IMPLEMENTATION TIMELINE

PHASE 1: FOUNDATION (Dec 2024 - Jan 2025)

December 2024

Week 1-2 (Dec 1-14):

  • CanaKickback 6 preparation/execution (Dec 6)
  • Post-event: Barn assessment and cleaning
  • Order all materials (delivery by Dec 20)

Week 3-4 (Dec 15-31):

  • Install barn insulation
  • Build BSFL bins (4 units: 3 for brewery grains, 1 for quail offal - operational Month 5)
  • Build Dubia enclosures (2 breeding bins)
  • Set up worm bins (4 units, 2,000 red wigglers)
  • Order starter colonies (arrive Jan 2)

R&D Track: Document baseline setup (content creation begins)

January 2025

Week 1-2 (Jan 1-14):

  • Receive BSFL + Dubia starter colonies
  • Build quail coops (3 units: breeding, layers, grow-out)
  • Install shade structures
  • Install misting system + water filter (if needed)
  • Receive quail breeding stock (36 birds: 30F breeder hens + 6M breeder roosters) + 50 layer hens

Week 3-4 (Jan 15-31):

  • Fencing/predator protection complete
  • Set up feed storage (rodent-proof bins)
  • Begin daily feeding routines
  • First eggs from layer flock (week 4)

R&D Track:

  • Begin gut-loading experiment (control batch - baseline diet)
  • Document bug feeding protocols

End of Phase 1 Checklist:

  • βœ… All infrastructure complete
  • βœ… All colonies established
  • βœ… Daily operations routine set
  • βœ… First quail eggs collected

PHASE 2: MATURATION (Feb - Apr 2025)

February 2025

Operations:

  • BSFL colony expanding (not ready for harvest yet - month 2)
  • Dubia colony expanding (not ready for harvest - month 2)
  • Worm bins processing initial feedstock
  • Quail layers producing (50 layers Γ— 20 eggs/day = 600 eggs/month)
  • Revenue: ~$300/month (eggs only)

R&D Track:

  • Feed "Veg batch" (high-N diet: 40% soybean, 30% alfalfa, 5% kelp, 15% vermicast, 10% oyster shell)
  • Collect control frass for testing
  • Lab testing: Send control batch to U of A ($80)

Tasks:

  • First vermicast harvest (small batch, personal use)
  • Order cannabis seeds (feminized, arrives March)
  • Measure/map garden sections (Razor Blade, Liza Minnelli, Charlie Sheen)

March 2025

Operations:

  • BSFL colony expanding (month 3 - small harvests begin)
  • Dubia colony expanding (month 3 - small harvests begin)
  • Quail layers producing (600 eggs/month)
  • Revenue: ~$500/month (eggs + small bug sales)

R&D Track:

  • Feed "Bloom batch" (high P-K diet: 40% kelp, 20% bone meal, 20% banana, 15% vermicast, 5% epsom salt)
  • Collect Veg frass for testing
  • Lab testing: Send Veg batch to U of A ($80)
  • Results: Analyze control vs Veg NPK profiles

Tasks:

  • Germinate cannabis seeds indoors (under lights)
  • Prep garden beds (Razor Blade section for cannabis)
  • First quail breeding (incubator setup)

April 2025

Operations:

  • BSFL colony at 50% capacity (month 4)
  • Dubia colony at 50% capacity (month 4)
  • Quail layers producing (600 eggs/month)
  • First meat bird batch in grow-out (8-week cycle starts)
  • Revenue: ~$2,000/month (eggs + moderate bug sales)

R&D Track:

  • Collect Bloom frass for testing
  • Lab testing: Send Bloom batch to U of A ($80)
  • Results: Analyze all 3 batches, determine optimal formulas
  • Adjust feeding protocols based on results

Tasks:

  • Cannabis seedlings to outdoor (late April, after last frost)
  • Plant 6 cannabis in Razor Blade section (2 control, 2 Veg frass, 2 Bloom frass)
  • Begin frass treatment schedule

End of Phase 2 Checklist:

  • βœ… Bug colonies at 50% production
  • βœ… Quail eggs selling consistently
  • βœ… First meat batch growing
  • βœ… Cannabis test plot established
  • βœ… R&D formulas tested and optimized

PHASE 3: FULL PRODUCTION (May - Aug 2025)

May 2025

Operations:

  • BSFL colony at 75% capacity
  • Dubia colony at 75% capacity
  • Quail layers producing (600 eggs/month)
  • First meat harvest: 800 birds ready (week 8 of cycle 1)
  • Revenue: ~$6,000/month (eggs + bug sales + small meat batch)

R&D Track:

  • Second round gut-loading (optimized formulas based on lab results)
  • Produce small batch CanaFrass (25 lbs Veg, 25 lbs Bloom)
  • Apply to cannabis test plot
  • Document plant responses (photos, measurements)

Tasks:

  • Process quail meat (1,000-bird exemption - on-farm)
  • Begin selling meat at farmer's markets
  • Bag vermicast (general-purpose, 100 lbs)

June 2025

Operations:

  • BSFL colony at 100% capacity (month 6)
  • Dubia colony at 100% capacity (month 6)
  • Quail layers producing (600 eggs/month)
  • Second meat batch processing (800 birds)
  • Revenue: ~$7,500/month (full bug sales + eggs + meat)

R&D Track:

  • Lab testing: Send optimized Veg + Bloom batches to U of A ($160)
  • Cannabis plants entering bloom phase (switch to Bloom frass)
  • Document visible differences vs control plants

Tasks:

  • Design CanaFrass packaging/labels (2 SKUs)
  • Source bulk packaging materials
  • Register products with AZ Dept Ag ($50 each)

July 2025

Operations:

  • All systems at full capacity
  • Quail continuous cycle (800 birds/month processing)
  • Revenue: ~$8,000/month (stable full production)

R&D Track:

  • Produce beta batch (50 lbs CanaVeg, 50 lbs CanaBloom)
  • Bag in 1lb retail bags (100 total)
  • Create beta program feedback forms

Tasks:

  • Cannabis plants mid-bloom (peak frass treatment)
  • Continue documentation
  • Prep for harvest (Sept-Oct)

August 2025

Operations:

  • Maintain full production
  • Revenue: ~$8,000/month

R&D Track:

  • Cannabis plants late bloom
  • Begin recruiting beta testers (CanaKickback attendees, local growers)
  • Distribute 50 free samples with feedback forms

Tasks:

  • Plan CanaKickback 7 (tentative date: late 2025)
  • Create content from cannabis test plot results

End of Phase 3 Checklist:

  • βœ… All operations at 100% capacity
  • βœ… Cannabis test plot near harvest
  • βœ… CanaFrass beta program launched
  • βœ… Products registered with state

PHASE 4: VALIDATION & YEAR 2 PREP (Sep - Dec 2025)

September 2025

Operations:

  • Maintain full production
  • Revenue: ~$8,000/month

R&D Track:

  • Cannabis harvest (Sep-Oct)
  • Compare yields: CanaFrass-treated vs control
  • Document results (weight, quality, visual)
  • Create "Proof of Concept" content for marketing

Tasks:

  • Cure cannabis (4-6 weeks)
  • Collect beta tester feedback
  • Compile testimonials

October 2025

Operations:

  • Maintain full production
  • Revenue: ~$8,000/month

R&D Track:

  • Build AACT brewer (actively aerated compost tea)
  • Test brewing parameters (24hr vs 48hr, with/without molasses)
  • Apply to vegetable garden section
  • Document process for future product

Tasks:

  • Cannabis cured, ready for smoke tests
  • CanaKickback 7 planning begins
  • Finalize Year 2 pricing based on beta feedback

November 2025

Operations:

  • Maintain full production
  • Revenue: ~$8,000/month

R&D Track:

  • AACT experiments continue
  • Refine tea formula based on results
  • Determine if viable for Year 2 product

Tasks:

  • Create Year 2 business plan (40% bug colony expansion)
  • Order Year 2 packaging in bulk
  • Plan farmer's market display materials

December 2025

Operations:

  • Maintain full production
  • Revenue: ~$8,000/month
  • Year 1 Total: $97,624 (pending feed cost validation - see "Active Research Gaps")
  • Conservative Range: $90,460-93,124 (if grain feed required)

R&D Track:

  • CanaKickback 7 (showcase cannabis results)
  • Distribute remaining beta samples
  • Collect final testimonials

Tasks:

  • Financial review with Gilbert's dad
  • Present Year 2 expansion plan
  • Celebrate successful Year 1

End of Phase 4 Checklist:

  • βœ… Cannabis proof-of-concept complete
  • βœ… Beta program feedback compiled
  • βœ… Year 2 products ready for launch
  • βœ… $90-98K revenue achieved (depending on feed cost model)

CLOSED-LOOP MATERIAL FLOWS

From Barn β†’ Outdoor:

  • BSFL larvae β†’ Quail protein feed (20% inclusion, saves $1,547/year)
  • Dubia adults β†’ Quail treats (enrichment, immune boost)
  • Vermicast β†’ Cannabis test plot (Veg/Bloom formulas)

From Outdoor β†’ Barn:

  • Quail manure β†’ Worm bins (premium worm food, high N-P-K)
  • Processing offal β†’ BSFL substrate (waste conversion)
  • Cull eggs β†’ BSFL protein boost

Internal Barn Loop:

  • BSFL frass β†’ Worm bins (nitrogen-rich, chitin-containing)
  • Dubia frass β†’ Worm bins (60-90 day stabilization for uric acid)
  • Worms β†’ Microbial inoculation of frass
  • Output β†’ Premium vermifrass (living soil amendment)

Total System Value:

  • Feed cost: 🚨 $512-7,699/year (pending fodder research - see "Active Research Gaps")
  • Vermicast from manure: $2,000/year
  • Offal recycling: $3,724/year (BSFL Pro-Grubs Line 2)
  • Waste-to-product conversion: 95%+ (near-zero waste)

BSFL PRODUCT STRATEGY & MARKET POSITIONING

The Substrate Differentiation Model:

Core Strategic Thesis: Substrate is not just a cost inputβ€”it is the product. Different waste streams create distinct, non-competing product lines with differentiated nutritional profiles and pricing power.

Two-Tier Product Line:

Tier 1: "Eco-Grubs" (BSFL Line 1 - Brewery Spent Grains)

  • Nutritional Profile: 47% protein, 10% fat (low-fat)
  • Marketing Angle: "Sustainably Raised in Arizona," "Upcycled Brewery Waste," "Eco-Friendly"
  • Target Market:
    • Adult bearded dragons (maintenance, not growth)
    • Backyard poultry (dried bulk treats)
    • Price-conscious reptile owners
  • Product Forms:
    • Live (Small, Medium, Large - size-sorted)
    • Dried (1lb, 2lb, 5lb bulk bags)
  • Pricing: $11/lb live, $15/lb dried (competitive with local market)

Tier 2: "Pro-Grubs" (BSFL Line 2 - Quail Offal)

  • Nutritional Profile: 55%+ protein, 30%+ fat (high-performance)
  • Marketing Angle: "Guaranteed Min. 55% Protein" (on AAFCO label), "Pro-Series for Active Growth," "Athletic Feeder"
  • Target Market:
    • PRIMARY: Juvenile bearded dragons (3-6 months) - consume 560 larvae/week during rapid growth phase
    • Leopard geckos
    • Exotic mammals (hedgehogs, sugar gliders)
    • Breeders (high-value, premium-tolerant customers)
  • Product Forms:
    • Live (Small, Medium - the high-growth sizes)
    • Dried (5oz, 1lb "Pro-Series" bags)
    • Pre-portioned 100-count cups (retail-ready)
  • Pricing: $16/lb live, $22/lb dried (+45% premium over Eco-Grubs)

The Arizona Heat Constraint & Channel Strategy:

Critical Logistical Barrier: Phoenix summer temperatures (90-115Β°F, May-Sep) make shipping live insects nationally non-viable. Live insects die in transit above 90Β°F.

Required Bifurcated Strategy:

Phase 1 (Year 1): Local Market Domination

  • B2C Local Pickup/Delivery (Phoenix/Tempe area):
    • Leverage "local price advantage" ($15-22/lb vs $35/lb national online)
    • Weekly subscription model for live Pro-Grubs (targets juvenile bearded dragon owners)
    • Same-day delivery within 20-mile radius
  • B2B Wholesale to Local Reptile Stores:
    • Target: 8-10 identified stores (Scales N Tails, CnB REPTILE, Reptile Junction, The Pet Shop Mesa, Predators Reptile Center, AE Herps, Supreme Exotics, Arizona Exotic Animal Hospital)
    • Pitch: "Locally-raised, premium Pro-Grubs" + safety advantage (dried = pathogen-free via blanching kill-step)
    • Delivery route: Weekly drop-offs
  • Year 1 Mix: 70% B2B wholesale, 30% B2C direct (conservative for market entry)

Phase 2 (Year 2+): National E-Commerce

  • Dried Products ONLY (shelf-stable, heat-resistant, no transit mortality risk)
  • Subscription-first model (10-15% discount for recurring orders)
  • "Guaranteed Analysis" label as marketing tool: Can legally print "Min. 55% Protein" on Pro-Grubs bags
  • Live shipping: Oct-Apr only (cooler months), "Hold at Facility" mandatory

Regulatory Advantage as Marketing Tool:

Arizona Commercial Feed License ($10/year):

  • Required for pet food sales
  • Enables AAFCO "Guaranteed Analysis" label

AAFCO Label Requirements (Marketing Benefit):

  • Must display: Crude Protein (min %), Crude Fat (min %), Crude Fiber (max %), Moisture (max %)
  • Competitive advantage: Pro-Grubs can legally display "Min. 55% Protein" vs competitor's "Min. 45% Protein"
  • This regulatory requirement becomes the #1 sales tool for justifying premium pricing

Food Safety (B2B Sales Pitch):

  • Hot-air drying = validated kill-step for Salmonella/E. coli
  • Dried products = safer, more stable, longer shelf-life than bulk live feeders
  • Strong B2B pitch to pet stores concerned about live feeder contamination

Size-Sorting Requirement:

Non-Negotiable for Reptile Market Entry: All major retailers and consumers buy by size (Small, Medium, Large).

Size Guidelines (Bearded Dragon - Primary Target):

  • Small (1/4"): Baby dragons (1-3 months), 60/day
  • Medium (1/2"): Juvenile dragons (3-6 months), 80/day ← High-volume opportunity
  • Large (3/4"): Adult dragons (6+ months), 15/day

Infrastructure: Mesh screens (1/4", 1/2", 3/4" openings) for manual sorting before packaging/sale

Year 1 Conservative Revenue Model:

Pro-Grubs (266 lbs from quail offal):

  • 70% B2B wholesale: ~186 lbs @ avg $10/lb = $1,860
  • 30% B2C retail: ~80 lbs @ avg $19/lb = $1,520
  • Split live/dried: 50/50
  • Total: $3,724/year (Month 5 start = $310/month)

Year 2+ Scaling:

  • Shift to 50% B2B, 50% B2C (higher margin)
  • Add national dried sales (e-commerce)
  • Potential revenue: $5,000-5,800/year as brand builds

Processing Requirements:

For Dried Products (Required Equipment):

  1. Food Dehydrator: 8-10 tray commercial unit ($300-500)
    • Hot-air drying at 140-160Β°F for 6-8 hours
    • Blanch larvae first (kill-step for pathogens)
    • Produces shelf-stable, pathogen-free product
  2. Packaging: Resealable bags with AAFCO "Guaranteed Analysis" labels
  3. Storage: Dried BSFL shelf-stable for 12+ months in sealed bags

For Live Products:

  1. Size-Sorting: Mesh screens to separate S/M/L
  2. Packaging: 100-count cups (retail), bulk bags (wholesale)
  3. Temperature Control: Keep at 50-60Β°F to slow growth, prevent pupation
  4. Delivery: Insulated containers with cold packs for local delivery (summer)

R&D TRACK: CANNAFRAS DEVELOPMENT

Scientific Foundation:

Chitin's Role (from r2-6.txt):

  • Chitin (from insect exoskeletons) triggers Systemic Acquired Resistance (SAR)
  • Plants interpret chitin as insect attack β†’ activate immune defenses
  • Result: Natural pest/disease resistance without chemicals

Custom NPK (from r2-6.txt):

  • Cannabis vegetative stage: High N, Low P, Low K (target: 3-1-2)
  • Cannabis flowering stage: Low N, High P, High K (target: 1-3-2)
  • Frass NPK is directly influenced by insect diet

Product Development Schedule:

Month 2 (Feb): Control Batch

  • Feed: Standard diet (balanced)
  • Collect: 20 lbs frass
  • Test: U of A NPK analysis
  • Result: Baseline (expect ~3-2-2)

Month 3 (Mar): Veg Batch

  • Feed: 40% soybean meal, 30% alfalfa, 5% kelp, 15% vermicast, 10% oyster shell
  • Collect: 20 lbs frass
  • Test: U of A NPK analysis
  • Result: Expect ~4-1-2 (high N)

Month 4 (Apr): Bloom Batch

  • Feed: 40% kelp meal, 20% bone meal, 20% banana peel powder, 15% vermicast, 5% epsom salt
  • Collect: 20 lbs frass
  • Test: U of A NPK analysis
  • Result: Expect ~1-3-2 (high P-K)

Month 5 (May): Optimization

  • Adjust formulas based on results
  • Run second test batch
  • Verify NPK targets achieved

Month 6-8 (Jun-Aug): Cannabis Test

  • Apply to 6-plant test plot
  • 2 plants control (regular vermicast)
  • 2 plants CanaVeg (weeks 1-4)
  • 2 plants CanaBloom (weeks 5-12)
  • Document: Photos, measurements, yield

Month 9-10 (Sep-Oct): Harvest & Analysis

  • Cannabis harvest and cure
  • Compare: Yield (grams), quality (visual), potency (subjective)
  • Create content: "Proof of Concept"

Month 11-12 (Nov-Dec): Beta Program

  • Distribute 100 1lb samples (50 Veg, 50 Bloom)
  • Collect feedback forms
  • Compile testimonials
  • Finalize Year 2 pricing

Competitive Advantage:

Current Market (from r2-6.txt):

  • BuildASoil: Generic "3-3-1" frass ($3.12/lb bulk)
  • Plantbrix: Generic "3-2-4" frass ($2.57/lb bulk)
  • Dubi Deli: Unstabilized Dubia frass ($11.99/lb - dangerous, raw)

NUGGET Position:

  • ONLY stage-specific cannabis frass (Veg 3-1-2, Bloom 1-3-2)
  • Stabilized Dubia frass (60-90 day composting eliminates ammonia toxicity)
  • Local/no shipping (fresh, living amendment)
  • Cannabis proof (grown with our frass, smoke it to verify)

LABOR REQUIREMENTS

Daily Tasks (2-3 hours/day baseline):

Morning (1-1.5 hours):

  • Quail: Feed, water, egg collection, health checks (30 min)
  • Barn: Feed BSFL, water Dubia, feed worms (30 min)
  • Cannabis: Water, inspect, apply frass (seasonal, 15 min)

Evening (1-1.5 hours):

  • Quail: Water check, coop close-up (15 min)
  • Barn: Temperature/humidity checks (15 min)
  • Processing: Bag frass, harvest bugs (variable, 30-60 min)

Weekly Tasks (4-6 hours/week):

  • Quail: Coop cleaning, rotate pens (2 hours)
  • Barn: Bin maintenance, frass harvesting (2 hours)
  • Sales: Packaging, farmer's market prep (2 hours)

Monthly Tasks (6-8 hours/month):

  • Quail: Breeding management, meat processing (4 hours)
  • Barn: Deep cleaning, restocking supplies (2 hours)
  • Admin: Inventory, bookkeeping, lab samples (2 hours)

R&D Track (adds +1 hour/day):

  • Gut-loading protocols (15 min/day)
  • Cannabis test plot care (15 min/day)
  • Documentation/photos (15 min/day)
  • Lab sample prep (15 min/week)

Total Time Commitment:

  • Baseline: 2-3 hours/day, 20-25 hours/week
  • Catalyst: 3-4 hours/day, 25-30 hours/week

CLIMATE ADAPTATION (ARIZONA ZONE 9B)

Critical Infrastructure:

Misting System (MANDATORY for quail survival):

  • Temperatures >95Β°F = heat stress/death in quail
  • Evaporative cooling is HIGHLY effective in Arizona (low humidity)
  • System: 30 nozzles, pump, lines = $400-800
  • Usage: ~120 gallons/day during peak heat (4 hours @ 1 gal/hr/nozzle)

Water Filtration (CRITICAL for system reliability):

  • Arizona water (well or city) contains high Ca/Mg
  • Hard water WILL clog misting nozzles
  • Clogged nozzles during 115Β°F heat wave = catastrophic animal loss
  • Well Water Strategy:
    • Check if house has existing softener (tap into system = $0)
    • Test well hardness (free at ag supply stores)
    • If <180 ppm: May need no filtration
    • If >180 ppm: Inline ag filter ($55-150)

Heat Mitigation Strategies:

Quail:

  • Shade: 50% shade cloth over all coops
  • Ventilation: Open sides, cross-breeze
  • Misters: Automated, timer-controlled
  • Water: Cool, fresh water 24/7 (refill 2x/day in summer)
  • Genetics: Source breeding stock from southern states (heat tolerance)

Barn (BSFL/Dubia/Worms):

  • Insulation: R-13 walls, keeps cool in summer
  • Ventilation: Passive (low openings + high vents)
  • Temperature: Target 75-85Β°F year-round
  • BSFL: Thrive in heat (80-95Β°F optimal)
  • Dubia: Require 80-90Β°F (naturally suited)
  • Worms: Need cooling in summer (shade, ground contact, moisture)

Seasonal Adjustments:

Summer (May-Sep):

  • Misters: 4-6 hours/day
  • Water consumption: 120-180 gallons/day
  • Quail: Reduce breeding (heat stress on chicks)
  • Barn: Increase ventilation, add fans if needed

Winter (Oct-April):

  • Misters: Off (except rare warm days)
  • Quail: Peak breeding season (comfortable temps)
  • Barn: Close vents at night (retain heat)
  • Worms: Insulate bins (slow activity <60Β°F)

REGULATORY COMPLIANCE

Quail (Poultry) - 20,000-BIRD PGOP EXEMPTION:

Legal Authority (9 CFR Β§ 381.10(d), adopted by Arizona A.R.S. Β§ 3-2162):

  • Producer/Grower or Other Person (PGOP) exemption
  • Allows on-farm slaughter & processing of up to 20,000 birds/year
  • Birds must be "of their own raising" (our breeding flock qualifies)
  • Operation: 4,800 birds/year (well within limit)

Sales Channels Allowed:

  • βœ… Direct to consumers (households)
  • βœ… Restaurants, hotels, and similar institutions (HRI) ← Key advantage!
  • βœ… Farmer's markets (may require mobile meat license - check county)
  • ❌ Retail stores (grocery stores require USDA inspection)

Requirements:

  • Sanitary Standards: Must maintain clean processing area, proper equipment
  • Labeling: "Exempt - 9 CFR 381.10(d)" + producer name/address/phone
  • Cost: $0 (no third-party processing fees, no state license required)

Infrastructure Requirements (Sanitary Standards):

  • Kill cones or restraining system
  • Stainless steel evisceration table (or easily cleanable surface)
  • Potable water access for washing carcasses
  • Chill tank (ice/water bath) to rapidly cool carcasses
  • Packaging equipment (vacuum sealer recommended)
  • Cold storage (refrigerator for <7 days, freezer for longer)

Processing Model (Recommended):

  • Weekly "Pulse" Processing: 93 birds/week
    • Labor: 5.4 hours (93 birds Γ— 3.5 min/bird = manageable weekly task)
    • Cash flow: Consistent weekly revenue
    • Sanitation: Weekly deep clean between batches
  • NOT Recommended: Batch processing (800 birds) = 46.6 labor-hours = multi-day, unsustainable event

vs 1,000-Bird Exemption: The 1,000-bird exemption (P.L. 90-492) does NOT apply to this operation:

  • Limit: 1,000 birds/year maximum
  • Operation exceeds this by 3,800 birds
  • Must use 20,000-bird PGOP exemption instead

Frass Sales:

AZ Department of Agriculture:

  • Business license: $195 (one-time)
  • Product registration: $50 per SKU
    • Year 1: 1 SKU (Vermicast) = $50
    • Year 2: 3 SKUs (Vermicast, CanaVeg, CanaBloom) = $150 total
  • NPK testing: $80 per batch (required for label guarantees)
  • Total Year 1 regulatory: $275

Federal (AAPFCO Guidelines):

  • Label must include: Product name, NPK guarantee, derivation statement, net weight, producer info, directions for use
  • No FDA/USDA approval needed (soil amendment, not food)
  • Interstate shipping allowed (USDA-APHIS compliant if processed/dried)

Cannabis:

  • Personal Use Exemption: 12 plants/household (legal in Arizona)
  • NO commercial sales (state license required, not pursuing)
  • Purpose: R&D test plot + showroom for frass products
  • Quantity: 6 plants (well under legal limit)

MARKETING & SALES STRATEGY

Phase 1: Local Direct Sales (Months 1-6)

Channels:

  • Farmer's markets (Phoenix, Tempe, Mesa)
  • CanaKickback attendees (community network)
  • Word of mouth (friends, family, social media)

Products:

  • Quail eggs (weekly, consistent inventory)
  • BSFL/Dubia feeders (online orders, local pickup)
  • Vermicast (bagged, 1lb-5lb sizes)

Phase 2: Beta Program (Months 7-10)

CanaFrass Beta Test:

  • Recruit 20 local growers (CanaKickback network)
  • Distribute free 1lb samples (10 Veg, 10 Bloom per tester)
  • Collect feedback forms (ease of use, results, pricing)
  • Document testimonials (video/photo with permission)

Cannabis Proof-of-Concept:

  • Grow 6 cannabis with CanaFrass (2 control, 2 Veg, 2 Bloom)
  • Harvest and cure (Sep-Oct)
  • Compare yields and quality
  • Smoke test at CanaKickback 7 planning sessions
  • Create content: "Grown with CanaFrass" comparison

Phase 3: Year 2 Launch (Month 12+)

Product Line:

  • CanaFrass Veg (1lb, 5lb, 25lb bags)
  • CanaFrass Bloom (1lb, 5lb, 25lb bags)
  • Vermicast General (5lb, 25lb bags)

Pricing Strategy (based on market research):

  • Retail (1lb bags): $20-25/lb (farmer's markets, online)
  • Wholesale (5lb bags): $15-18/lb (bulk to growers)
  • Bulk (25lb bags): $12-15/lb (commercial growers)

Marketing Message:

  • "ONLY stage-specific cannabis frass on market"
  • "Stabilized, safe, lab-tested NPK"
  • "Chitin triggers plant immune response (SAR)"
  • "Local, no shipping, living amendment"
  • "Proof: See the cannabis we grew with it"

Distribution:

  • DTC: Online store (Shopify), local pickup/delivery
  • Farmer's markets: Weekly presence, samples
  • B2B: Direct outreach to hydro stores, dispensary grows
  • CanaKickback: Exclusive "community" product

RISK MITIGATION

Identified Risks & Countermeasures:

Risk 1: Heat Wave (>115Β°F)

  • Impact: Catastrophic quail loss if misters fail
  • Mitigation:
    • Redundant water source (backup tank)
    • Inline filter prevents clogs
    • Daily nozzle checks during summer
    • Alert system (thermometer in coop, check 2x/day)

Risk 2: Predators (Coyotes, Hawks, Bobcats)

  • Impact: Quail flock decimated
  • Mitigation:
    • Hardware cloth (not chicken wire) - small openings
    • Secure base (buried 12" or apron)
    • Covered tops (hawk protection)
    • Lock coops at night

Risk 3: Bug Colony Crash (Disease, Mites)

  • Impact: Loss of BSFL/Dubia production
  • Mitigation:
    • Multiple colonies (3 BSFL, 2 Dubia) - redundancy
    • Quarantine new feedstock
    • Clean substrate, monitor for mites
    • Backup suppliers (restart colonies if needed)

Risk 4: Cannabis Theft/Interference

  • Impact: Loss of R&D test plot
  • Mitigation:
    • Plant in secure section (visible from house)
    • Only 6 plants (legal, low target value)
    • Keep low-profile (no public posting)
    • Insurance: If stolen, document for content ("Why we can't have nice things")

Risk 5: Dad Interference/Skepticism

  • Impact: Operations halted or disrupted
  • Mitigation:
    • Professional presentation (Dec 7+)
    • Clear boundaries ("1 year, no interference")
    • Monthly updates (show progress)
    • Visual wins (eggs, clean barn, improved soil)
    • Financial transparency (show revenue)

Risk 6: CanaFrass Market Rejection

  • Impact: Year 2 product fails to sell
  • Mitigation:
    • Beta program validates before scaling
    • Baseline revenue ($90-98K) not dependent on CanaFrass
    • Can pivot to general vermicast only if needed
    • R&D cost is low ($1,100) - acceptable loss if fails

Risk 7: Labor Burnout (3-4 hrs/day)

  • Impact: Operations suffer, quality drops
  • Mitigation:
    • Split duties (Frankie/Gilbert rotation)
    • Automate what's possible (timer-controlled misters, gravity feeders)
    • Simplify if needed (reduce R&D track, focus baseline)
    • Hire help if revenue supports (Month 6+)

SUCCESS METRICS

Month 3 Checkpoints:

  • βœ… All systems operational (barn + outdoor)
  • βœ… Zero animal losses (predators, heat, disease)
  • βœ… First quail eggs selling consistently
  • βœ… Bug colonies expanding on schedule
  • βœ… R&D track on schedule (control + Veg batches tested)

Month 6 Checkpoints:

  • βœ… Bug sales at 50%+ capacity
  • βœ… Quail eggs + first meat batch sold
  • βœ… $12,000+ revenue accumulated
  • βœ… Cannabis test plot established and thriving
  • βœ… R&D formulas optimized (lab results back)

Month 9 Checkpoints:

  • βœ… All operations at 100% capacity
  • βœ… $50,000+ revenue accumulated
  • βœ… Cannabis test plot harvested (yield data collected)
  • βœ… Beta program launched (50+ samples distributed)
  • βœ… Zero major incidents (heat, predators, disease)

Month 12 (Year-End) Goals:

  • βœ… Revenue: $90,460-97,624 (conservative: grain feed | optimistic: fodder validated)
  • βœ… CanaFrass products validated (beta feedback positive)
  • βœ… Products registered with AZ Dept Ag (ready for Year 2)
  • βœ… Property visibly improved (xeriscape, terraces, specimen cactus)
  • βœ… Gilbert's dad satisfied (profit + progress demonstrated)

YEAR 2 EXPANSION PLAN

Goals:

  • Revenue Target: $115,000-135,000 (35-40% growth)
  • CanaFrass Launch: Stage-specific cannabis frass (2 new SKUs)
  • Premium Feeder Launch: Specialty BSFL/Dubia lines (2-3 new SKUs)
  • Market Expansion: Add hydro stores (B2B), national e-commerce (dried products)

Phase 2A: Premium Specialty Feeder Products

The Batch Fortification Model: Year 2 introduces a game-changing production model that maximizes profit margins without proportional cost increases. Key insight: Gut-loading is transient (24-72 hours), NOT tissue bioaccumulation. This enables "batch fortification" - rear insects on standard (free/cheap) substrate for 95% of lifecycle, then "finish" on premium substrate for final 24-72 hours only.

Product Launch Priority:

1. "CATALYST Hi-Cal Dubia (72-Hour Retention)" - FLAGSHIP PRODUCT

  • The Market Opportunity: Primary competitor (crickets) loses gut-loaded calcium within 24 hours of fasting. Customers buy "gut-loaded crickets" that lose all nutritional value before feeding.
  • The Dubia Advantage: Scientific studies confirm Dubia roaches retain corrected Ca:P ratio for 72 hours after gut-loading. This is CATALYST's "silver bullet" - a stable, reliable nutritional supplement vs. competitor's failed product.
  • Production Model: Batch fortification
    • Rear on standard substrate for 14+ days
    • Separate batch, move to "Finishing Room"
    • Feed high-calcium diet for 48 hours before shipping
    • Ship immediately with "72-Hour Nutrient-Lockβ„’" label
  • Target Market: Bearded dragon owners (especially juveniles), MBD prevention
  • Pricing: $18/lb (vs $9/lb standard) = 100% premium
  • Added Cost: $0.15/lb (high-calcium diet for only 10% of total feed consumed)
  • Profit Margin: $17.35/lb vs $8.50/lb standard = +104% margin increase
  • Guaranteed Analysis Label: Must display "Min. Calcium %" and "Max. Phosphorus %" to substantiate Ca:P ratio claim
  • Legal Claim: "Fortified to establish a positive 2:1 Ca:P ratio, retained for 72 hours" (Structure/function claim, legally defensible. NEVER say "prevents MBD" - that's a drug claim.)

2. "CATALYST Organic-Fed" (Dubia & BSFL)

  • The Market: Established premium niche targeting health-conscious pet owners. Proven pricing model (organic feed commands 50-100% premium in poultry market).
  • Production Model: Dedicated line (must be physically separate for organic certification)
    • Line 3: 5% of total production on certified organic substrate
    • Physical barrier/separate room required
    • Separate bins, sifting equipment to prevent cross-contamination
  • Marketing Claims: "Pesticide-free," "No heavy metals," "USDA Organic substrate"
  • Pricing:
    • Organic Dubia: $18/lb (vs $9/lb standard) = 100% premium
    • Organic BSFL: $4-6/lb (vs $2.50/lb standard) = 100% premium
  • Added Cost: $0.50/lb (organic feed 100% more expensive than conventional)
  • Profit Margin: $17/lb Dubia = +100% margin increase

3. "CATALYST Omega-3 Enriched BSFL" (Year 2 Q3-Q4 or Year 3)

  • The Innovation: Cross-over from aquaculture industry. Microalgae Schizochytrium sp. proven to enrich tissue with DHA/EPA omega-3 fatty acids.
  • Production Model: Batch fortification (24h finish with algae substrate)
  • Target Market: High-end reptile/fish/bird owners, breeders
  • Pricing: $7.50/lb (vs $2.50 standard) = 200% premium
  • Added Cost: $0.70/lb (expensive algae substrate, but only 7% of lifecycle feed)
  • Profit Margin: $6.80/lb vs $2.50 standard = +172% margin increase
  • Timeline: Q3-Q4 Year 2 or Year 3 (requires stable supply chain for Schizochytrium)

Phase 2B: Infrastructure & Production Model

Hybrid Production System (Combines dedicated lines + batch fortification):

Dedicated Lines:

  1. Line 1: Standard BSFL (brewery grains) - 75% of production
  2. Line 2: Standard Dubia (base chow) - 15% of production
  3. Line 3: Organic BSFL/Dubia (certified organic substrate) - 5% of production
    • Physically separate to maintain organic certification
    • Own bins, equipment, processing area

"Finishing Room" (NEW):

  • Dedicated 10x15 ft room in barn for batch fortification
  • Process:
    1. Harvest larvae/roaches from Lines 1 & 2
    2. Move to finishing room bins
    3. Feed specialty substrate (Hi-Cal, Omega-3, Color-Enhancing) for 24-72 hours
    4. Sift, package, ship immediately
  • Enables 100-200% price premiums by adding ONE 24-hour step to standard production
  • Prevents cross-contamination between product lines

Required Infrastructure: | Item | Cost | Purpose | |------|------|---------| | Finishing Room buildout | $30,000-40,000 | Physical room dividers, ventilation, dedicated bins | | Organic Line separation | $10,000-15,000 | Physical barriers, dedicated equipment for certification | | Additional bins (specialty) | $2,000 | 20-30 finishing bins for batch rotation | | Sifting/grading equipment | $3,000 | Separate equipment for organic/premium lines | | Total CapEx | $45,000-60,000 | One-time Year 2 investment |

Ongoing Costs (OpEx):

  • Additional labor: +1 FTE for specialty line management ($35-45K/year)
  • Premium substrates: Variable by product mix (see margin analysis above)
  • Third-party lab testing: $10,000/year (Ca:P verification, organic certification, Omega-3 analysis)
  • Organic certification fees: $1,000-2,000/year

Phase 2C: CanaFrass Launch (Cannabis Specialty Frass)

Core Scientific Principle: Substrate Drives Frass NPK

BSFL are active bioconcentrators - the physicochemical characteristics of frass are a direct function of larval rearing substrate. By engineering substrate inputs, we can purposefully control final frass NPK ratios to match cannabis growth stages.

Three-Tiered Sourcing Strategy:

Tier 1 (Bulk - Free): 80-90% of substrate

  • Brewery Spent Grains (BSG) - baseline 3-2-2 NPK
  • Spent Coffee Grounds (SCG) - N-booster, P-suppressor, K-enhancer
  • Spent Mushroom Substrate (SMS) - P-source, N-diluent (FREE from Mmmushroom.com, Phoenix)
  • Banana Peels - K-source, high-moisture (Borderlands Produce Rescue)

Tier 2 (Booster - Purchased): 10-20% of substrate

  • Cottonseed Meal (CSM) - High-N booster (6% N)
  • Fish Bone Meal (FBM) - High-P booster (12-14% Pβ‚‚Oβ‚…)

Tier 3 (Marketing - Grown): 0.375% of substrate

  • 100 sq ft garden (amaranth, squash, sunflowers)
  • NOT production-scale - MARKETING ONLY
  • Yields ~45 lbs/year vs 12,000 lbs need
  • Brand narrative: "CanaFrass enriched with amaranth and squash grown on our own farm"
  • Re-classify as marketing expense, not production cost

Product Formulations:

1. CanaFrass Veg (Target NPK: 3-1-2)

Substrate Mix (by weight):

  • 50% Brewery Spent Grains (baseline)
  • 20% Spent Coffee Grounds (N-source, P-suppressor, K-booster)
  • 20% Spent Mushroom Substrate (P-source, N-diluent)
  • 10% Cottonseed Meal (fermented/glandless N-booster)

Predicted Frass Output: 3.5-1.5-2 NPK (High-N, Low-P, High-K)

Target Market: Cannabis vegetative stage, leafy greens, high-growth crops

Pricing: $25-30/lb retail (1lb bags)

Annual Cost (6,000 lbs substrate β†’ ~400 lbs finished frass):

  • 600 lbs Cottonseed Meal @ $1.00/lb = $600/year
  • All other inputs: FREE

🚨 CRITICAL RISK - Gossypol Toxicity:

  • Standard CSM contains gossypol (toxic to BSFL, can cause colony collapse)
  • Modern solvent-extraction CSM has 10x more free gossypol than older methods
  • MANDATORY MITIGATION:
    1. Source either glandless cottonseed meal (bred low-gossypol) OR fermented cottonseed meal (fermentation reduces toxicity)
    2. MANDATORY small-batch safety testing before full-scale use
    3. Test sources: Arizona Grain, Arizona Moonlight Grow, Elgin Nursery

2. CanaFrass Bloom (Target NPK: 1-3-2)

Substrate Mix (by weight):

  • 50% Brewery Spent Grains (baseline)
  • 30% Banana Peels (K-source, N-diluent, high-moisture)
  • 10% Spent Mushroom Substrate (P-source, N-diluent)
  • 10% Fish Bone Meal (P-booster, 4-14-0 typical NPK)

Predicted Frass Output: 2-3-2.5 NPK (Low-N, High-P, High-K)

Target Market: Cannabis flowering stage, fruiting crops, bloom phase

Pricing: $28-35/lb retail (1lb bags)

Annual Cost (6,000 lbs substrate β†’ ~400 lbs finished frass):

  • 600 lbs Fish Bone Meal @ $0.86/lb = $516/year
  • All other inputs: FREE

Key Sourcing:

  • Fish Bone Meal: Arizona Moonlight Grow, Le B'allisters (50lb bags, $43/bag)
  • Banana Peels: Borderlands Produce Rescue (FREE, bi-weekly pickup)
  • SMS: Mmmushroom.com (FREE, Phoenix area)

3. Dubia Cal-Mag Frass (Bonus Product)

Protocol: 48-hour "finishing" of Dubia roaches on calcium-fortified diet

Calcium Source: Oyster Shell Flour (96% CaCO₃, OMRI-listed)

  • NOT limestone - better marketing story ("natural, marine-sourced calcium")
  • Contains beneficial trace minerals
  • Cost: $0.30/lb (~$15-16/50lb bag)

Finishing Protocol:

  1. Prepare standard Dubia chow
  2. Add 8.3% Oyster Shell Flour by weight (e.g., 100g chow + 8.3g OSF)
  3. Mix thoroughly, provide as sole food for 48h pre-frass harvest

Sourcing: Ganado Feed (Phoenix), online feed suppliers

Target Market: Cannabis growers (Ca-Mg deficiency common), organic growers

Pricing: $30-35/lb retail

Year 1 R&D Requirements:

Lab Testing (IAS Labs, Phoenix) - $80/sample:

  1. Baseline BSG frass
  2. Baseline SCG frass
  3. Baseline SMS frass
  4. CanaVeg R&D Batch 1
  5. CanaVeg R&D Batch 2
  6. CanaBloom R&D Batch 1
  7. CanaBloom R&D Batch 2
  8. Dubia Cal-Mag frass (Ca% validation)

Total Lab Testing: 8 samples Γ— $80 = $640

AZDA Specialty Fertilizer Registration:

  • Per AAC R3-3-802(C): $50 per brand and grade
  • 3 products (CanaVeg, CanaBloom, Dubia Cal-Mag) = $150

Total Year 1 R&D Hard Costs:

  • Purchased substrates (12,000 lbs): $1,116
  • Lab testing: $640
  • AZDA registration: $150
  • TOTAL: $1,906

Packaging & Marketing Infrastructure:

  • Packaging (bulk order, AAFCO-compliant labels): $1,500
  • Marketing materials (photos, website content, "garden story"): $500
  • Total: $2,000

Projected Year 2 Revenue:

  • CanaFrass Veg: $8,000-12,000
  • CanaFrass Bloom: $8,000-12,000
  • Dubia Cal-Mag Frass: $2,000-3,000
  • Subtotal: $18,000-27,000

Sourcing Logistics:

Weekly Pickups:

  • BSG: Existing brewery partnerships
  • SCG: Recycled City (Phoenix coffee shop collection service)
  • SMS: Mmmushroom.com (FREE, Phoenix area)

Bi-Weekly Pickups:

  • Banana Peels: Borderlands Produce Rescue

Quarterly Bulk Purchases:

  • Cottonseed Meal (fermented/glandless): 150 lbs Γ— 4 = 600 lbs/year
  • Fish Bone Meal: 150 lbs Γ— 4 = 600 lbs/year
  • Oyster Shell Flour: 50 lbs (annual supply for Cal-Mag production)

Total Annual Substrate Cost: $1,116 (90% of substrate is FREE)

Phase 2D: National E-Commerce Expansion

Channel Strategy:

  • Launch: Q2 Year 2 (after local market validation in Year 1)
  • Products: Dried products ONLY (Pro-Grubs, Eco-Grubs, Hi-Cal Dubia, Organic lines)
    • Shelf-stable, heat-resistant (solves Arizona summer shipping problem)
    • 12+ month shelf life
  • Platform: Shopify store with subscription model
  • Marketing:
    • "Locally raised in Arizona"
    • "Guaranteed Analysis" labels (highlight protein %, Ca:P ratio)
    • Educational content (blogs on MBD prevention, nutrition)
  • Pricing: National retail (no "local price advantage")
    • Dried Pro-Grubs: $22-25/lb
    • Dried Hi-Cal Dubia: $20-24/lb
    • Dried Organic lines: $25-30/lb
  • Subscription Discount: 10-15% off for recurring orders
  • Live Shipping: Oct-Apr only (cooler months), "Hold at Facility" mandatory

Marketing Budget:

  • Website/e-commerce platform: $2,000 (Shopify + design)
  • Photography/product shots: $500
  • Initial ad spend (Google/Facebook): $3,000
  • Packaging (AAFCO-compliant labels): $1,500
  • Total: $7,000

Year 2 Financial Projections

Revenue Breakdown: | Product Category | Year 1 Baseline | Year 2 Projection | Growth | |------------------|-----------------|-------------------|--------| | Standard BSFL/Dubia | $45,600 | $50,000 | Baseline growth | | Premium BSFL/Dubia | $0 | $18,000-25,000 | NEW | | Quail Eggs | $7,500 | $7,500 | Stable | | Quail Meat | $28,800 | $28,800 | Stable | | Vermicast (general) | $10,000 | $10,000 | Stable | | CanaFrass | $0 | $18,000-27,000 | NEW | | TOTAL | $97,624 | $132,300-148,300 | +35-52% |

Conservative vs Optimistic:

  • Conservative (grain feed, 10% premium product mix): $125,000
  • Optimistic (fodder validates, 15% premium mix, AACT successful): $148,000

Net Profit Increase:

  • Premium products add 20-30% to net profit due to margin expansion
  • 10% product mix shift (standard β†’ premium) = disproportionate profit impact
  • Example: Converting 200 lbs Dubia (standard $8.50/lb margin) to Hi-Cal ($17.35/lb margin) = +$1,770 net from same production volume

Total Year 2 Investment:

  • CapEx (infrastructure): $45,000-60,000
  • OpEx (labor, substrates, testing): ~$50,000/year
  • Marketing/e-commerce: $7,000
  • CanaFrass packaging/registration: $2,100
  • TOTAL: $104,100-119,100 (one-time + first-year operating)

ROI:

  • Additional revenue: $34,676-50,676
  • Additional costs: $50,000-60,000/year (ongoing OpEx only, excluding CapEx)
  • Payback: CapEx recovered in ~18-24 months from margin expansion alone
  • Year 3+: Operating costs stable, revenue scales with volume/mix shift

Year 2 Timeline (Summary)

Q1 (Jan-Mar):

  • Secure $50-60K expansion capital
  • Build finishing room & organic line separation
  • Source premium substrates (high-calcium diet, organic feed, algae)
  • Complete third-party lab baseline testing

Q2 (Apr-Jun):

  • Launch Hi-Cal Dubia (local B2B + B2C)
  • Launch Organic lines (limited production)
  • Launch CanaFrass Veg + Bloom (beta program graduates to full retail)
  • Begin national e-commerce platform development

Q3 (Jul-Sep):

  • Scale premium production based on Q2 demand
  • Launch national e-commerce (dried products)
  • Evaluate Omega-3 BSFL pilot (if supply chain secured)

Q4 (Oct-Dec):

  • Year-end review: Product mix optimization
  • Plan Year 3 scaling (increase premium % mix, add Color-Enhancing line)
  • Evaluate live shipping nationally (Oct-Apr window)

THE PITCH TO GILBERT'S DAD

"Dad, we're asking for your permission to use the space and prove this model in 1 year. Here's the plan:

What we're investing: $7,500 of our own money (startup costs)

What we're building:

  1. Barn: Insect bioreactor (BSFL, Dubia, worms) β†’ 3 products
  2. Outdoor: Quail operation (eggs + meat) β†’ 2 products
  3. Garden: Cannabis test plot (6 plants, R&D for frass products)
  4. Property: Specimen cactus xeriscape (long-term value)

Year 1 revenue projection: $90,460-97,624

  • Quail eggs: $7,500
  • Quail meat: $28,800
  • Bug sales: $45,600 (Eco-Grubs + Dubia)
  • Pro-Grubs (offal BSFL): $3,724 (premium line)
  • Vermicast: $10,000
  • Note: Range depends on feed costs ($512-7,699 pending research)

What you'll see:

  • Month 3: Fresh quail eggs weekly, barn operational, cannabis planted
  • Month 6: First meat harvest, bug sales active, property improving
  • Month 9: Full operations, consistent revenue, cannabis thriving
  • Month 12: $90-98K revenue, products ready for Year 2, visual transformation complete

What we're asking:

  1. Permission to use the space (barn + 1,200 sq ft outdoor)
  2. Autonomy to manage operations our way for 1 year
  3. Non-interference (unless we're not hitting milestones)
  4. Support (well water access, space during CanaKickback 6)

The deal: Give us 1 year. If we're not hitting milestones (revenue, operations, property improvement), THEN you can call it. But not before December 2025.

Benefits to you:

  • Property value increases (xeriscape, terraces, improved soil)
  • Visual progress for Duffy (plants, animals, activity)
  • Potential income stream (if we want to lease space long-term)
  • Pride (grandkids running successful regenerative farm)

Timeline: We start setup December 7th (after CanaKickback 6). Full operations by May. Review in December 2025.

Questions?"

APPENDIX A: DAILY OPERATIONS CHECKLIST

Morning Routine (1-1.5 hours):

Quail (30 min):

  • [ ] Refill water (all coops)
  • [ ] Feed grain + BSFL supplement
  • [ ] Collect eggs (layer coop)
  • [ ] Visual health check (lethargy, injury, unusual behavior)
  • [ ] Open grow-out pen for fresh air

Barn (30 min):

  • [ ] Feed BSFL (kitchen scraps, quail manure, processing offal)
  • [ ] Mist Dubia enclosures (maintain 60% humidity)
  • [ ] Feed Dubia (produce scraps, dry grains)
  • [ ] Check worm bins (moisture, temperature, add bedding if needed)
  • [ ] Harvest any ready bugs (fill orders)

Cannabis (15 min, seasonal):

  • [ ] Water (drip or hand-water, check soil moisture)
  • [ ] Visual inspection (pests, nutrient deficiency, growth)
  • [ ] Apply frass (weekly schedule: Veg weeks 1-4, Bloom weeks 5-12)
  • [ ] Photos/measurements (R&D documentation)

Evening Routine (1-1.5 hours):

Quail (15 min):

  • [ ] Water check (refill if needed)
  • [ ] Close coops (predator protection)
  • [ ] Visual check (all birds accounted for)

Barn (15 min):

  • [ ] Temperature check (target 75-85Β°F)
  • [ ] Humidity check (BSFL <70%, Dubia 60%, worms 70-80%)
  • [ ] Adjust ventilation if needed

Processing (30-60 min, variable):

  • [ ] Bag frass (if ready - weekly task)
  • [ ] Harvest bugs (if orders pending)
  • [ ] Package eggs (cartons, labels)
  • [ ] Prep for farmer's market (if next day)

APPENDIX B: WEEKLY TASKS

Quail Maintenance (2 hours):

  • [ ] Deep clean coops (remove bedding, scrub, fresh bedding)
  • [ ] Rotate pens (if using movable system)
  • [ ] Check feeders/waterers (clean, repair)
  • [ ] Restock feed storage
  • [ ] Check misting system (clean nozzles, test pressure)

Barn Maintenance (2 hours):

  • [ ] BSFL bins: Harvest frass, sift to remove larvae, add fresh substrate
  • [ ] Dubia bins: Remove frass, cull dead, check for mites
  • [ ] Worm bins: Harvest castings, add bedding, check moisture
  • [ ] Barn cleaning: Sweep, organize, pest control

Sales & Marketing (2 hours):

  • [ ] Package products (bag frass, carton eggs, pack bugs)
  • [ ] Update inventory (track what's ready to sell)
  • [ ] Farmer's market prep (load vehicle, set up display)
  • [ ] Social media (post updates, respond to inquiries)

APPENDIX C: MONTHLY TASKS

Quail Management (4 hours):

  • [ ] Breeding: Set incubator, candle eggs, track hatches
  • [ ] Meat processing: Slaughter, pluck, package (1 batch = 800 birds)
  • [ ] Flock health: Cull non-producers, check for disease
  • [ ] Feed order: Restock 50lb bags (conventional or organic)

Barn Management (2 hours):

  • [ ] Deep clean all bins (full teardown, disinfect, rebuild)
  • [ ] Colony expansion: Split BSFL/Dubia if at capacity
  • [ ] Supply restock: Bedding, packaging, feed ingredients
  • [ ] Pest control: Check for ants, rodents, flies

Admin & Planning (2 hours):

  • [ ] Bookkeeping: Track revenue/expenses (spreadsheet or QuickBooks)
  • [ ] Inventory: Count products, forecast needs
  • [ ] Lab samples: Prep frass samples for U of A (R&D track)
  • [ ] Planning: Adjust schedules, troubleshoot issues

APPENDIX D: RESOURCE CONTACTS

Supplies:

  • Feed: Tractor Supply Co, Phoenix Organic Feed
  • Quail stock: Arizona Gamebirds, Sunset Valley Quail
  • Bug colonies: Dubia.com, Symton BSF, local reptile stores
  • Packaging: ULINE, Amazon (bulk bags, labels)

Regulatory:

  • AZ Dept of Agriculture: (602) 542-0982, agriculture.az.gov
  • Fertilizer Program: fertilizer@azda.gov
  • Poultry Inspection: (602) 542-4293

Testing:

  • U of A Ag Lab: ag.arizona.edu/ALSC
  • NPK Analysis: $80 per sample
  • Soil/Compost Tests: $82-145

Education:

  • U of A Extension: extension.arizona.edu (free resources)
  • Urban Farm Phoenix: Workshops, community support
  • KannaKrew: Internal network, beta testers

CONCLUSION

OPERATION NUGGET CATALYST is a 12-month plan to establish a profitable regenerative micro-farm while developing next-generation cannabis products.

Year 1 delivers:

  • $90,460-97,624 revenue (conservative to optimistic scenarios)
  • 5 operational products (Eco-Grubs BSFL, Pro-Grubs BSFL, Dubia, eggs, meat, vermicast)
  • Premium product differentiation: Substrate-based BSFL lines (Eco vs Pro)
  • R&D validation of CanaFrass (stage-specific formulas)
  • Property transformation (visual + soil improvement)
  • Critical notes:
    • Profitability range depends on feed cost validation (grain vs fodder)
    • BSFL revenue assumes conservative 70% B2B, 30% B2C mix for Year 1

Year 2 launches:

  • $125,000-148,000 revenue (35-52% growth)
  • 8-10 products (add CanaVeg, CanaBloom, Hi-Cal Dubia, Organic BSFL/Dubia, Omega-3 BSFL, AACT)
  • Premium product differentiation: Substrate-based specialty lines (batch fortification model)
  • Market positioning: ONLY stage-specific cannabis frass + scientifically-validated specialty feeders
  • Revenue drivers: Margin expansion (premium products 100-200% higher margins) + national e-commerce launch
  • Proven model for expansion/replication

The foundation is solid. The research is validated. The timeline is realistic.

Let's build NUGGET CATALYST.

Document Version: 1.0 Created: November 2025 Authors: Frankie + Gilbert (KannaKrew) Status: Ready for Gilbert's Dad Pitch (Dec 7+)