Transcript Advantages to the Industry

Advantages to the Industry
1.
2.
3.
Flexible: pick from many different
crops.
Short term loans: meaning 90 day
loans. In and out really quick. This
does not include equipment, land, ect.
Supply and Demand: Highly variable
prices. (price moves up & down so
quick)
Advantages to the Industry
4.
Financing (4 types)
a. Grower (himself, the grower)
b. Shipper (Packer)
c. Grower shippers (Large
companies. Vertical expansion)
d. Banks
e. Cooperatives
Early days of Vegetable
Production
1. Colonial days people produced for
themselves.
2. After the civil war, people started to
move to the cities, thus the people
with home gardens started selling
vegetables in the cities.
3. 1896 the ice car was invented and we
started to transport veg. From city to
city.
4. The development of roads made it
easy for trucks to transport the
vegetables over long distances.
Types of Vegetable Production
1.
2.
3.
Home Gardening – Encourage
stimulates awareness larger sales.
Marketing Garden – more
specialization; 3 to 4 good money
markets. Mainly local. U-Pick
Truck Farming – More extensive &
specialized. Climatic & soil factors
determine the crop grown.
4. Production for Processing
a. Large Volume.
b. Low cost of production - climate &
lower costs determines area.
c. Processors generally contract for
tonnage, certain limitations on
quality.
d. Maximum mechanization, lowers
costs.
5. Controlled Environment Agriculture
a. Total control of environment,
air, light, temp., humidity,
composition of atmosphere, &
nutrients.
b. Production out of season.
c. Heat or protection from cold.
d. Greenhouses – North
Cold Frames – South
6. Vegetable Seed Production
a. Areas determined not only by
favorable growth but seed
production and curing.
b. Mostly located in the West.
Production Regions
1. Climate
a. Temperature
b. Length of season
c. Humidity
d. Rainfall & Frost
(predictability or stability.
2. Transportation
a. Energy cost (cost of fuel).
b. Road conditions & rail ways.
c. Truck availability.
(*general rule is the nearer the
cheaper)
3. Labor availability
a. Steady work force.
b. Experienced
c. When needed, are they there to
work.
4 – Soil Requirements
Type of soil make a difference for certain
crops.
5 – Area Cost
a.
b.
Water Cost and availability.
Land value and cost.
Marketing Objectives
1. To move the product with the least
loss of quality to consumers.
2. To provide sales appeal by attractive &
convenient packaging.
3. To keep marketing cost at a minimum
4. Provide fair prices to both producers &
consumers.
Market Outlets
1. Fresh Market – Direct to Consumers
Farmers markets, Roadside stands, U-pick, ect..
2. Fresh Market – Direct to Retailers
Independent supermarkets, local farm
stands
3. Fresh Market – Direct to Wholesalers
wholesale agencies or commission house
4. Grower Cooperatives – Market directly to
wholesalers, retailers, & general public.
5. Processing – Processor. Price based on
yields & quality.
6. Specialty Vegetables – ethnic/gourmet
Changes in Vegetable Production
1.
 2.
 3.
 4.
 5.
 6.

Number & Size of Farms
Increased Veg. Productivity
Mechanization of Harvest
Labor Management
Food & Environmental Safety
Agriculture Biotechnology