Beruflich Dokumente
Kultur Dokumente
Scale of production
How much is more important than when & how
Many growers lured by direct sale price of ultra-premium garlic
Premium pricing directly relates to small-scale, superior quality, hand finished, organic
AND as production volumes increase:
Income $/kg reduces as transition from direct to retail to wholesale
Planting intensity decreases (t/ha) as mechanical systems require wider row/bed spacing
Production effectiveness decreases (% of crop achieving retail quality)
Quality deteriorates (hand {yours versus hired} and machine impacts on $/kg)
Complexity of production, labour & contractor co-ordination increases
Operational cash demand & risk increases for 12-16 month crop return
Capital investment demands are high for high volume production
Creole
Scaling-up
Why growers fail
If you FAIL to PLAN then PLAN to FAIL
Run out of time - wont have access to labour/contractors
Run out of money wont be able to finish the season
Runaway weeds will reduce/destroy crop yield
Disease or mineral deficiency will reduce/destroy crop yield
Insufficient water during bulbing will reduce crop yield
Excess water will cause disease, stem/basal/storage rot & remove skins
Late harvest will reduce bulb/skin quality & storage
Human/machine damage can be significant reducing yield
Poor curing/storage could dramatically reduce quality/destroy bulbs
Over estimating income from premium pricing
Failing to realise a FINITE LIMIT to volume sold direct to public or local retail
GARLIC GROWING MAP
LABOUR SALES CHANNELS
PAYROLL / TAX CONTRACTS
SUPERANNUATION MARKETING RELATIONSHIP MANAGEMENT
PAYG CERTIFICATES & SALES $/KG NEGOTIATION
CASHFLOW MANAGEMENT
SOIL PREP
CURING & GARLIC LAND &
HARVESTING & BED
STORAGE GROWING ROTATION
FORMATION
SHEDDING
PALLETS
CONCRETE PADS TRACTORS & EQUIP
CURING TRAYS TRACTORS (HP?)
WEED & GARLIC SEED
FANS/HEATERS DISEASE MGMT PREP ROTATIONAL MANAGEMENT
DEHUMIDIFIERS PRIMARY TILLAGE
PALLET JACKS/LIFTERS SECONDARY TILLAGE
WEED EQUIP FERTILISER SPREADING
IRRIG/FERT EQUIP MULCH SHREDDING GREEN MANURE SEEDING
IRRIGATION PUMP IRRIGATION & SPRAYING EQUIP PLANTING
MAIN LINES FERTGATION SEED/BULB EQUIP
SUBLINES PLANTING EQUIP BULB GRADING
DRIPLINES BED FORMING BULB CRACKING
SOLID SETS/SPRINKLERS DIMPLER ROLLERS CLOVE GRADING
FERTIGATION PLANTERS SEED COATING
3 YEAR ROTATION ACTIVITY MAP with SALES & REVENUE
DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV
2 REGIONS IN ROTATION (MIN 3 YR)
AREA 1 GREEN MANURE PLOUGH HOE PLANT INCORP
SOIL TEST
AREA 2 - FALLOW S-TYNE CULTIVATOR F=4WKS FERTILISE PLOUGH
AREA 3 P2 FERT
HARVEST
CURE
MONEY
$$
CASHFLOW CHALLENGE FOR FIRST WHOLESALE ORDER (360KG) UNTIL FIRST PAYMENT
BED PREP GROW HARVEST CURE CLEAN SHIP PAYMENT = 12 16 mths
3 mths 6-9 mths 1 wk 4-12 wks 1-2 wks 1 wk 4-6 wks
Silverskin
Scaling-up
How to succeed
Create a SCALING-UP operational, financial & investment plan
GO SLOW - Set a realistic target for next 3 and then 5 years and plan toward this
Understand your maximum local market sale volume (and realistic $/kg)
Always have an Exit Strategy which doesnt cost you your farm
Standard Purple Stripe
Scaling-up
Factors - revenue
SCALE SMALL PRODUCER MEDIUM PRODUCER SMALL COMMERCIAL LARGE COMMERCIAL
<500m2 500-1000m2 1,000m2-25,000m2 2.5 Ha - 20Ha PLUS
Up to 300kg 300-800kg 800kg 15 tonne 15 t 120 t Plus
SELL 40-80 kg/mth (4mth) 80-200 kg/mth (4mth) 200 kg -3 t/mth (5mth) 3 t 50 t/mth (6mth)
Internet sales Internet sales Direct retail contracts Direct retail contracts
Farmers markets Farmers markets Wholesale Wholesale
F&V shops
Restaurant / caterers
Butchers
Scaling-up
Factors - revenue
Direct2Retail & Wholesale Income Planning how much & when
Talk to Local Retailers and Wholesalers (both in-state and next-state)
How many suppliers they have do they need/want more
When do they first get garlic, and when do they run out of garlic
When is their GLUT period and duration when is the lowest price
What garlic groups sell well and which ones do they want more of
What is the quality they need/expect
How does their buy price change over the garlic season
What are their payment terms
What is their return policy
What is your STORY how do you differentiate yourself from others
SMALL PRODUCER MEDIUM PRODUCER
<500m2 500-1000m2
Scaling-up Up to 300kg
40-80 kg/mth (4mth)
300-800kg
80-200 kg/mth (4mth)
Scaling-up Up to 300kg
40-80 kg/mth (4mth)
300-800kg
80-200 kg/mth (4mth)
FERTILISE PLOUGH
AREA 3 P2 FERT
HARVEST
CLEAN
SELLING
CASHFLOW CHALLENGE FOR FIRST WHOLESALE ORDER (360KG) UNTIL FIRST PAYMENT
WHOLESALER buy orders and PAYMENTS BED PREP
3 mths
GROW
6-9 mths
HARVEST
1 wk
CURE CLEAN
4-12 wks 1-2 wks
SHIP
1 wk
PAYMENT
4-6 wks
= 12 16 mths
CLEANING &
PACKAGING
Buy (rather than contract) for soil preparation/bed formation WEED &
GARLIC SEED
DISEASE
Larger irrigation pump, new main lines & sublines, tape, sprinklers MGMT
PREP