Advantages to the Industry 1. Flexible: pick from many different crops. 2. Short term loans: meaning 90 day loans. In and out really quick. This does not.

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Presentation transcript:

Advantages to the Industry 1. Flexible: pick from many different crops. 2. Short term loans: meaning 90 day loans. In and out really quick. This does not include equipment, land, ect. 3. 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.

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. Home Gardening – Encourage stimulates awareness larger sales. 2. Marketing Garden – more specialization; 3 to 4 good money markets. Mainly local. U-Pick 3. 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. Water Cost and availability. b. 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. Number & Size of Farms 2. Increased Veg. Productivity 3. Mechanization of Harvest 4. Labor Management 5. Food & Environmental Safety 6. Agriculture Biotechnology