Cornell University's New York State Agricultural Experiment Station in Geneva, N.Y., and the University of Vermont will receive a four-year, $3.8 million grant from the United States Department of Agriculture to nurture small food-processing ventures into solid businesses by funding the Northeast Center for Food Entrepreneurship, U.S. Agriculture Secretary Dan Glickman announced Jan. 10.

"Entrepreneurship is increasing in the rural and urban landscapes of the Northeast. It is an important concept to support," says Olga Padilla-Zakour, Cornell assistant professor of food science and director of the Northeast Center for Food Entrepreneurship. "With this funding, we will be able to provide entrepreneurs with all the tools and information they need to start a food venture correctly."

Glickman unveiled plans Monday for $180 million in new USDA projects aimed at boosting the rural economy, promoting agricultural research and developing new agricultural products. About $60 million was specifically earmarked for the Fund for Rural America grants, part of which will fund the Northeast Center for Food Entrepreneurship.

While small businesses represent the largest growth area in today's economy, food processing companies and specialty food companies, in particular, represent one of the largest segments of growth. In fact, specialty food-product business earnings totaled $33.7 billion nationally in 1997, up 7 percent from 1996.

The new center nurtures small food-processing businesses by assisting entrepreneurs in business planning, regulation adherence, controlling food safety and boosting the chance of long-term success. The Northeast Center for Food Entrepreneurship also will provide help with research, education and extension information on scientific, technological and general business aspects of the food-processing business. It will ensure that the latest technological advances and safety guidelines are transferred from researchers to the individual entrepreneurs and their products and then, ultimately, to the marketplace.

In New York, Cornell now assists small food entrepreneurs through the New York State Food Venture Center, an extension program of the university's Department of Food Science and Technology. Its mission is to promote new food processing concerns by facilitating patents and licensing, establishing an understanding of safe food processing, encouraging successful business planning and guiding parties through permit procedures.

Since the New York State Food Venture Center started in 1988, it has assisted more than 1,500 entrepreneurs. In 1997 the center handled 380 general inquiries, of which more than 250 were specifically for new products. In fact, 84 new, licensed food processors and 319 new or improved products resulted from the service.

Prior to this new federal grant, Cornell's food venture center gave little, if any, marketing and business support to entrepreneurs, says Padilla-Zakour. But with federal funding and the partnership with the University of Vermont, the Northeast Center for Food Entrepreneurship will be able to offer technical and marketing expertise.

While Padilla-Zakour will serve as the center's director, Richard A. Durst, Cornell professor of food science and chair of the food science and technology department at the Agricultural Experiment Station in Geneva, will serve as the center's administrator.

Says Padilla-Zakour: "This will create new jobs in rural areas, help new food company start-ups, provide workshops and web-site information, and enhance food safety. You can't believe how excited we are to receive such a substantial grant. With it, we can go a long way in nurturing business start-ups in the Northeast."