Transcript is it hopeless ??? a discussion seeley conference

Presented by Cornell Horticultural Business
Management and Marketing Program
Risk Management
Education with NY
Horticultural Producers
Wen-fei Uva, Ph.D.
Cornell University
[email protected]
607-255-3688
Presented by Cornell Horticultural Business
Management and Marketing Program
Overview of the New York Risk
Management Program
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Research (special projects with RMA)
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AGR Case Studies and Education (2000-01)
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Specialty Crop Producer Survey (2001-02)
Education (NE Center for Risk Mgmt Ed)
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Marketing Clubs (2001-present)
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Risk Management Newsletters & Web-site (2001)
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Business Analysis and Industry Performance Benchmarks
(2002-present)
State Targeted Risk Management Grant
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Train-the-trainer Workshops & Marketing Clubs (2001-02)
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Business Planning Curriculum (2002-03)
Presented by Cornell Horticultural Business
Management and Marketing Program
Major Participants
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Dept. of Applied Economics and Management faculty
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Cornell Cooperative Extension Educators
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Dr. Jerry White
Dr. Mark Stephenson
& Other faculty and staff
Horticulture Specialists
Farm Management Specialists
Others
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Risk Management Agency
NASS-NY
Farm Credit
Farm Bureau
Presented by Cornell Horticultural Business
Management and Marketing Program
Building a Holistic Risk
Management Plan
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Production
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Marketing
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Financial
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Legal and Environmental
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Human Resources
Presented by Cornell Horticultural Business
Management and Marketing Program
Why Marketing?
2000 Food Dollar
Presented by Cornell Horticultural Business
Management and Marketing Program
Supply-Chain Movement Toward
the “Middle”
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Retailers are asking
grower-shippers to
share the majority of
functional tasks within
the supply chain
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Retailers & growershippers endorse the
resulting partnerships
Presented by Cornell Horticultural Business
Management and Marketing Program
Grower/Shipper Strategies
“Growers need to
stay flexible and
responsive
to buyer needs.”
“More coordinated
effort with buyers,
processors and
other growers”
Presented by Cornell Horticultural Business
Management and Marketing Program
WHY AGRICULTURAL FIRMS
DON’T COOPERATE?
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Independence & Fragmentation Of All Sectors
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Diversity in the industry
Options exist without cooperation
Distrust Among Various Industry Participants
A Financial Weaning Via “Survival Of The
Fittest”
Where is the Incentive?
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Is it bad enough yet?
Is there an effective leader?
Presented by Cornell Horticultural Business
Management and Marketing Program
What is a Marketing Club?
A marketing club is a group of
people who meet regularly with the
common goal of increasing their
knowledge of marketing concepts.
Presented by Cornell Horticultural Business
Management and Marketing Program
What can a Marketing Club do?
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Formal or informal discussion/sharing to
learn from each other
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Targeted and continuous learning
Real-time marketing information
Hands-on practices
Peer-support groups
Trade or Market as a Group
Others…..
Presented by Cornell Horticultural Business
Management and Marketing Program
3 Key Ingredients
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Interested Producers
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Facilitators
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15-25 -- Interested and committed
Determine goals, topics and activities
Meeting arrangements
Educational resources
Help the leader and the group
Group Leader
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One of the producers – a catalyst
Encourage participation
Coordinate planning of future programs
Presented by Cornell Horticultural Business
Management and Marketing Program
First Meeting – Interest Meeting
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A marketing workshop
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Gauge level of interest
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What is a marketing club?
Potential benefits
Brainstorm marketing issues of participants
Set a time for the next meeting to
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Prepare participants in the basics
Get participants to similar level of knowledge
Set goals & plan for future meetings
Select interested topics & activities
Pass out responsibilities
Presented by Cornell Horticultural Business
Management and Marketing Program
How did We Support the
Marketing Clubs?
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Mini-grants to horticulture extension
educators
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Flexibility is important
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7 fruits, 2 greenhouse, 1 vegetable
Provided training on organizing marketing
clubs
What would you call the group?
What would the group do?
Provide marketing resources
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Speakers
Marketing materials
Presented by Cornell Horticultural Business
Management and Marketing Program
What Did We Learn from the
Experience?
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Participants need to have a common goal
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Be workload sensitive
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Wyoming County vegetable growers
Erie County greenhouse growers
Western and Eastern NY fruit growers
No crop season meetings
Plan ahead for meetings and tours
Assign responsibility
Build leadership
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Establish ownership – self-directed
Build a future after extension involvement
Presented by Cornell Horticultural Business
Management and Marketing Program
Risk Management Web-sites
• Under the Horticulture Business Management
and Marketing Program web-site:
http://hortmgt.aem.cornell.edu/programs2.htm
 RM workshops, MC activities, RM newsletters
• Link to the NY Agricultural Risk Management
(ARM-NY) web-site: http://agrisk.cornell.edu/
 Information for dairy and field crop operations
 Considering crop insurance calculator
 Business planning curriculum (Power Point
presentations, video streaming, print materials)
Presented by Cornell Horticultural Business
Management and Marketing Program
Risk Management Newsletters
• 9 Newsletter Articles
 Subjects identified by growers and extension
educators
 Some examples:
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Managing Marketing Risks
Building a Safety Net with Crop Insurance
How Risk Tolerant Are You?
Understanding Income Fluctuations
The Big Five Types of Agricultural Risks
• Newsletters for Small Farms
Presented by Cornell Horticultural Business
Management and Marketing Program
Helping Growers Manage
Financial Risks
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Expanding the Cornell Greenhouse and Fruit
Farm Summary Programs
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Expand the greenhouse business participation and
expand the program from NY to include PA and NJ
growers
Expand the fruit farm business analysis program
from WNY to include statewide.
Goals are to help growers conduct financial
analysis & benchmark industry financial
performance
Presented by Cornell Horticultural Business
Management and Marketing Program
Participating Businesses
Contribute:
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2 – 4 hours of meeting time
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Annual cash receipts and expenses
records
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Business assets and inventory
information
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Other business operation information
Presented by Cornell Horticultural Business
Management and Marketing Program
What Does the Business Receive from
Participating in the Project?
• One-on-one meetings with a business
management specialist
• A customized business analysis report
 Financial Statements: income statement, balance
sheet, and cash flow statement
 Financial Analysis: cost and ratio analysis
 Efficiency Measurements: cost and return
efficiency
• The industry financial benchmark report
• Access to the web-based database (fall 2003)
Presented by Cornell Horticultural Business
Management and Marketing Program
frequency
Size of Greenhouses in the 2000
Summary
7
6
5
4
3
2
1
0
1,440
15,580
29,720
Size (sq ft)
43,860
More
Presented by Cornell Horticultural Business
Management and Marketing Program
Scope of Greenhouses in the 2000
Summary
Ave Size (SqFt) Ave Sales
% G.M.
All Greenhouses
38,500 $ 576,000
27%
Wholesalers
55,500 $
837,500
26%
Retailers
23,000 $
334,000
28%
Presented by Cornell Horticultural Business
Management and Marketing Program
Establishing the Square Foot Week
Concept
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Comparing different sized businesses can
be tricky.
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Volume = size * weeks of operation
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Square Foot Weeks = Sq Ft * Weeks Used.
Presented by Cornell Horticultural Business
Management and Marketing Program
Greenhouse Business Benchmarks
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Industry averages by marketing channels
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The data are also divided into quintiles
representing the top 20%, second 20%….
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Each greenhouse business can see where
they fall in each performance measure.
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Performance measures of the Top 20% of
ROA
Presented by Cornell Horticultural Business
Management and Marketing Program
Participations and Activities
• The Greenhouse Business Analysis Program
 29 greenhouses participated in 2001
 49 greenhouse participated in 2002
 NY, PA, NJ and MI participation in 2003
• The Fruit Farm Business Analysis Program
 12 farm participated in 2002
 Participation from 40 farm expected in 2003
Presented by Cornell Horticultural Business
Management and Marketing Program
Participations and Activities – cont.
• Workshops and Training
 Business analysis training was offered in 2002 NY
regional winter grower schools
 The Apple Grower Decision-Making Workbook
 In-depth business analysis course has been
requested by two NY greenhouse grower groups
 Training is planned in summer 2003 for MI
educators on using the business analysis program
to work with GH growers
• Beta Version of the Web-based Searchable
Database will be trialed in 2003
Thank you !
&
Discussion!