Production planning fresh produce fruit vegetable packing and processing app manages fresh produce packing, inventory, traceability, shipping and sales. Less waste, more profit! Fresh produce production planning for fruit, vegetables, coleslaw, leafy mixed products and more... Make better planning decisions, reduce waste, deliver exacting orders.
Production planning in fresh produce fruit & vegetable packing and processing
Fresh produce production planning for fruit, vegetables, coleslaw, leafy mixed products and more... Make better planning decisions, reduce waste, deliver exacting orders.
Fill each order with 100% accuracy, zero fresh produce waste, efficient packing, and value adding processes to maintain traceability and maximize efficiency.
Production planning - fresh produce fruit & vegetable packing and processing
Production planning - fresh produce fruit & vegetable packing and processing
Choose from a range of fresh produce production planning tools designed to make your operation run at maximum efficiency with least effort.
Optionally choose to use batch packing in farmsoft. Batch level traceability allows recalls both up and down the supply chain, all batch inputs have their traceability details captured in real time, making the Batch Number an easy to use traceability key, one of many that can be used in farmsoft.
Customers can enter their fresh produce orders using the farmsoft Fresh Produce Customer Portal, this gives you up to date access to fresh produce orders, changed, and cancellations to better plan production.
Monitor batch outputs, and batch waste. If waste exceeds a pre-determined percent, an email alert containing the Batch Recall report is sent to management showing the inputs, outputs, and waste levels.
Easy batch based packing and processing allows ad-hoc and pack to order processes and pre planned scheduled production.
Batches become the central traceability point (and cost center) for all fresh produce/food. Mix multiple varieties of produce, from multiple suppliers and maintain strong traceability at the same time. Analyze batch waste and quality with ease. farmsoft even supports value added processes such as food manufacturing, drying, blending, juicing and more – handy for coffee, hops, and herbs, and processed food manufacturing. You can even mix unlimited batches with other batches to make a “final product” without losing traceability and tracking the cost of finished product.
Project required raw materials and packaging materials
View undersupply or oversupply of raw mateials (actual and projected)
All production is assigned to a line manager, inventory manager, and production line.
Project orders Vs. your estimated sales, Vs. planned harvest volumes* (requires farming modules)
Shedule multiple orders to be backed in a single batch
On screen alerts inform your team of which materials must be packed where and when and by whom
production planning fruit and vegetables fresh produce
Production planning - fresh produce fruit & vegetable packing and processing
Production planning > Project required inventory
Easily compare required, available, and any shortage of fresh produce inventory during production planning. Plan daily packing, weekly, packing, or even months in advance for planting, ordering, harvesting. Guarantee all fresh produce products are available in the correct quantity at the correct time. Use the farmsoft fresh produce customer portal to access fresh produce orders faster and plan production better.
Production planning >
Easily assign multiple orders to batches and production lines with one click!
Production planning - fresh produce fruit & vegetable packing and processing
Production planning - fresh produce fruit & vegetable packing and processing
Production line managers and inventory managers can receive instant on screen alerts letting them know a new batch has been scheduled, for inventory managers, this directs them to collect the required inventory and take it to the correct production line.
Production planning - fresh produce fruit & vegetable packing and processing
Production plan
Manage & monitor batch costs with the ability to capture labor costs, transport, packing material cost, and fresh produce costs.
Projecting the workflow of your fresh produce packing business made easy...
Create unlimited batches, with inputs such as fresh produce, packing materials, and any other inventory such as ingredients and additives.
Full traceability of all batch input.s
Product processed in a batch can be re-used in another (or unlimited) batch.
Batch progress management and monitoring.
Assign multiple Sales Order Items to a batch, creating batch work orders & instructions, or simply assign customers to a batch.
Run unlimited packing/processing lines at the same time.
Mix unlimited sources and varieties of produce (ie: from your farm, external suppliers, co-operative growers) into one batch while maintaining traceability.
Easy to access dashboard reporting, analysis and KPI’s
Assign labor & materials to batches for cost monitoring & reporting.
When creating outputs from a batch (usually finished product) packaging materials can be automatically consumed and applied to the batch.
Configure best manufacturing practices and processes to guide employees through the best practice for manufacturing the finished product.
Associate quality control tests to manufacturing processes, FarmSoft will prompt the user to perform QC when required.
We present an integrated tactical planning model for the production and distribution of fresh produce. The main objective of the model is to maximize the revenues of a producer that has some control over the logistics decisions associated with the distribution of the crop. The model is used for making planning decisions for a large fresh produce grower in Northwestern Mexico. The decisions obtained are based on traditional factors such as price estimation and resource availability, but also on factors that are usually neglected in traditional planning models such as price dynamics, product decay, transportation and inventory costs. The model considers the perishability of the crops in two different ways, as a loss function in its objective function, and as a constraint for the storage of products. The paper presents a mixed integer programming model used to implement the problem as wells as the computational results obtained from it.
Business intelligence for fresh produce wholesale, packer, processor, import/export
Meetings and workshops provide a forum to discuss industry issues and provide updates on our current projects. 100% strawberry Rankings by country Ms Hill said she would like to see a more collaborated approach on a national level which brought together industry and government management and response mechanisms.
Food production in Luxembourg Albania Shackell G (2008) Traceability in the meat industry—the farm to plate continuum. Int J Food Sci Technol 43:2134-2142 CrossRef Google Scholar USA FDA registered Brand owner obtains company prefix. RELATED This page was last edited on 10 September 2017, at 06:04.
Allows for information to be utilised for a number of purposes: pack house management, quality assurance, supply chain management, compliance and production and consumer feedback. The transportation provider only knows about... itself. PTI is administered by the Produce Marketing Association, GS1 US, the United Fresh Produce Association, and the Canadian Produce Marketing Association.
Production planning in fresh food industries is a challenging task. Although modern Advanced Planning and Scheduling (APS) systems could provide significant support, APS implementation numbers in these industries remain low. Therefore, based on an in-depth analysis of three sample fresh food industries (dairy, fresh and processed meat), the author evaluates what APS systems should offer in order to effectively support production planning and how the leading systems currently handle the most distinguishing characteristic of fresh food industries, the short product shelf life. Starting from the identified weaknesses, customized software solutions for each of the sample industries are proposed that allow to optimize the production of fresh foods with respect to shelf life. The book thereby offers valuable insights not only to researchers but also to software providers of APS systems and professionals from fresh food industries
Planning carrot production is worthwhile
"We started the fall-winter carrot campaign in early October on 100 hectares. One beneficial commercial trend is to have suitable sales agreement in place with the European retail chains before sowing is carried out," explains Sergio Trevisan (in the photo), sales manager for Gruppo Mazzoni - Fresh Division.
Production planning - fresh produce fruit & vegetable packing and processing
"Of the 100 hectares cultivated, 60% is uncovered while the rest is covered with mulching films. We will cover the company's needs until late April, then we will continue with the Sicilian production."
Although the weather has not been exactly favorable, Mazzoni registered yields of 60 tons per hectare and quality is very good with grades 20/40 and a few exceptions of grades 40+."
"The fact that we own over a thousand hectares of sandy soils with good water availability means we can rotate crops (tomatoes, potatoes), which is an added value. Current quotations are €0.25/kg and have been stable for over a month. As usual, if there are any variations, they will be upwards."
Production planning - fresh produce fruit & vegetable packing and processing
Production planning - fresh produce fruit & vegetable packing and processing
After a few years of productive instability that have led to marked fluctuations of weekly quotations, the situation has stabilized over the last 4/5 years on the Adriatic coast as well and there have been no shortages and no excesses.
Production planning - fresh produce fruit & vegetable packing and processing
Production planning - fresh produce fruit & vegetable packing and processing
"This has generated economic sustainability for the entire chain. It is also true that 70% of the production is carried out by professional players and that productions are planned with Italian and foreign clients."
Production planning - fresh produce fruit & vegetable packing and processing
Production planning in fresh food industries is a challenging task. Although modern Advanced Planning and Scheduling (APS) systems could provide significant support, APS implementation numbers in these industries remain low. Therefore, based on an in-depth analysis of three sample fresh food industries (dairy, fresh and processed meat), the author evaluates what APS systems should offer in order to effectively support production planning and how the leading systems currently handle the most distinguishing characteristic of fresh food industries, the short product shelf life. Starting from the identified weaknesses, customized software solutions for each of the sample industries are proposed that allow to optimize the production of fresh foods with respect to shelf life. The book thereby offers valuable insights not only to researchers but also to software providers of APS systems and professionals from fresh food industries. nyone can put seeds in the ground and grow a lot of food. But if you don’t know what you’re going to do with it, it can be a problem. Market plans, production plans, and work plans are critical when you sell fresh produce.
Susan Jutz of Solon, Iowa, has been growing vegetables for a CSA – or Community Supported Agriculture – program for over 20-years. She says the more organized you are in January, the better the rest of the year will go. Start by pouring over last year’s records.
"I have harvest and yield data. We have workers who work on our farm, we have time sheets, we look at that to see where the work load was and what I need to change. We have planting plans, we have very detailed planting plans. Crop rotation is a part of it, cover crop data," says Jutz. "Everybody needs to have a business plan, and know what your goals are, and what those needs are for your family."
Have a production plan for your markets. What do your customers like, and how much do you need to produce to meet those needs?
Carmen Black works on the farm with Jutz. She says a planting diagram and schedule is critical because the challenge is to have a high-quality product when you need it throughout the growing season.
"Some important things here, is that we have the distance apart in the row, number of days till harvest from transplant, and then different dates here in our target harvest date," says Black. "So these are just things when you’re making your own planting plans that you might want to have on there. Things to think through."
This is also the time to order seeds from those big, beautiful seed catalogs you’re getting in the mail. Jutz says if you sit down with those catalogs and don’t have a plan, you can spend a lot of money on seeds that will just sit in the cupboard.
A smarter factory - connecting buying, sales and production departments
The processing and packaging of bulk agricultural products is labour intensive and error prone. Eqontrol, a new and intelligent software solution, connects machines and quickly solves problems in complex production environments.
Whether you’re working with a small packaging line or within a larger production environment, as a factory manager you’re facing logistic and operational challenges on a daily basis. Problems arise when an operator has to switch between lots and manually change machine settings of all components in a production line. The packaging line, specifically, is as efficient as its weakest part: even a single mistake – for example a wrong line in a recipe – can reduce the capacity of the whole line and potentially even result in a rejected order. Furthermore, finding the right, qualified personnel is an ongoing challenge for today’s factory managers.
What if there were a solution that drastically reduces your changeover time, avoids track & tracing issues, reduces leftovers and gives you a clear overview of your production line’s performance? Eqontrol is a digital operator that connects your buying, sales and production departments, increasing efficiency and preventing unpleasant surprises. All possible scenarios can simply be controlled from one intuitive and self-explanatory interface.
Smart packing
Each order has specific requirements for type of product, quality, weight and packaging. The weighing and packaging machines must be emptied out regularly and changed to the correct settings. When a new order comes in, the whole process starts over again. A good operator can connect all parts of the factory floor together thanks to years of experience, but it remains a labour intensive and error prone process, resulting in varying undesirable situations. The larger a factory gets, the more complex the work becomes. That’s why the support of a digital system that thinks ahead can be a real lifesaver.
With Eqontrol, you can control all machines from one clear interface. The intelligent system allows the different parts within a production line to communicate with each other. Switching between different configurations is as simple as selecting the desired output on a tablet or desktop: the machines will automatically respond and be set correctly.
The minimized changeover time between orders is a major advantage, just like the minimized downtime: your packaging line will no longer run out of labels, pallets or ink, because it will tell you beforehand if anything needs to be refilled. The highly intuitive software allows you to visualize the process, giving the operator a handy overview at hand of the entire production line. Furthermore, it allows you to create reports, enabling you to plan an accurate production schedule based on data from past orders. The system also automatically backs up all information regularly in the cloud through an internet connection, but software and data are stored at the factory itself for maximum security.
Smart grading
When you invest in an optical grader that replaces a manual sorting line and checks the quality of your product both on the outside and on the inside, of course you’re looking for a quick return of investment and maximum output of your machine. Eqontrol helps you get the most out of your grader by cleverly planning or combining different orders. Seeing as the grader is developed to collect information from each individual product, it would be a shame not to do anything with those data.
Production planning - fresh produce fruit & vegetable packing and processing
Production planning - fresh produce fruit & vegetable packing and processing
Bert Loedeman (l.) and Jaap Trouwborst.
Eqontrol tracks and traces your agricultural product from sorting to packaging, resulting in several advantages. For example, a faulty batch can be easily traced back to a specific supplier, so you can still sell the rest of the order for a good price. Furthermore, Eqontrol gives you the opportunity to discuss product quality with your suppliers, as you now have an insight to their delivered results and consistency over time. Thanks to Eqontrol, meeting your clients’ track & trace requirements is no longer an issue.
Smart storage
Finally, Eqontrol is also a solution for the largest and most complex factories that use automated warehouses, thanks to its intelligent positioning technology. The system uses the information about individual product batches, collected during the grading process, when placing these batches into the warehouse. In an onion factory, for example, one batch of onions may be more humid than the other, so the system will make sure to store each individual crate in the best climate zone in the warehouse. It also means the system will make sure the orders go out in the right order (first in, first out).
Smart team work
Eqontrol offers full chain integration of all factory departments and optimises the flow between them: from buying and processing to storage and sales. It’s important for these departments to clearly communicate with each other, but especially in large factories, connecting these separate teams with each other remains challenging. Eqontrol brings them together so that everybody knows where they’re standing: for example, it helps sales managers to sell promises that the production department can actually deliver. Thanks to the data that Eqontrol collects, a very reliable planning can be made based on performance data from past orders. Instead of relying on an operator’s intuition, the dashboard shows live data concerning efficiency at any moment of the production process. It reduces human errors and rejected orders, enabling you to increase your margins.
For more information:
Production planning - fresh produce fruit & vegetable packing and processing
Production planning - fresh produce fruit & vegetable packing and processing
E-mail: info@eqontrol.com
Web: www.eqontrol.com
The production and distribution planning of fresh produce is a complex optimization problem, which is affected by many factors, including its perishable characteristics. Farmers cannot guarantee the efficiency and accuracy of production and distribution decisions. Given the close relationship between the production and distribution of annual fresh produce, the intention of our research is to solve the two-stage joint planning problem and maximize the revenue of farmers ultimately. The internal relationship matrix between the two links of production and distribution is established. On this basis, we propose a mixed-integer programming (MIP) model, which covers the constraints of labor and capital. The decisions obtained are not only based on price estimation and resource availability but also on the impact of the agricultural Internet-of-Things technology and the special requirements of each distribution channel. Numerical experiments demonstrate that when the planting area is 1, 4, and 6 ha, the proposed joint planning model can improve the distribution revenue of farmers by 7.92%, 4.15%, and 4.94%, respectively, compared with the traditional separate decision-making approach of distribution. According to different decision scenarios, management insights have been obtained. For example, farmers should carefully sort and package products as well as choose a timely and safe third-party express delivery company. Additionally, the proposed strategy can evaluate the impact of distribution channels on farmers' revenue.
Gambia: Vegetable growers trained on marketing, gender mainstreaming
The West Africa Agriculture Productivity Project (WAAPP), in collaboration with the Gambia Agricultural Emergency Support Project (GAESP) recently held a two-day training for vegetable growers on marketing and gender mainstreaming.
The capacity development workshop brought together 80 women vegetable growers on an all-year-round vegetable production and value- chain addition at Chamen Agricultural and Seed Multiplication Centre in the North Bank Region (NBR).
Speaking at the event, the regional agricultural director for NBR, Dr. Saikou E Sanyang outlined the importance of building the capacities of vegetable growers on the importance of group management, marketing, gender mainstreaming and production planning. Dr. Sanyang said promoting an all-year-round vegetable production would increase nutritional supplementation and income. According to him, training farmers on Natural Agricultural Resource policies would ease effective utilisation of technological transfer and enhance the attainment of an all-year-round vegetable production, and by extension contribute to poverty reduction. The regional agricultural director said training farmers on marketing strategies would obviously boost income and group management. He thus thanked the West Africa Agriculture Productivity Project and Gambia Agricultural Emergency Support Project for providing the funds.
Mustapha Saidy, the deputy governor of the region underscored government's commitment in food security and livelihood development. He said capacity development is crucial in the attainment of food production, noting that it would enhance ability to adopt best agricultural practices on vegetable production.
Deputy governor Saidy hailed the efforts of the Regional Agricultural Directorate in Kerewan for strengthening farmer extension workers' relation on the transfer of skills and knowledge on production and productivity.
The NBR Women's Bureau Programme officer, Fatou Ceesay said mainstreaming gender into food production would empower producers to increase production and improve livelihood. She said the training would complement Women's Bureau efforts in enhancing gender mainstreaming and boost income, through adoption of enhanced marketing strategies.
The workshop participants hailed the efforts of WAAPP, GAESP and the NBT Agricultural Directorate for their steadfastness in building farmers' capacity.
Recent environmental and food safety concerns in the United States produce sector have brought about increasing interest in organic fruit and vegetable production as an alternative to traditional fruit and vegetable enterprises. As a result, the production and marketing of organic crops has expanded steadily during the 1980s. However, as more organic producers enter the industry and it becomes more and more competitive, existing producers are forced to become better growers and more effective marketers.
Most organic farmers (and other agribusinessmen) have heard the phrase “effective marketing is the key to profitability,” but many do not fully understand what this means. The tendency is to associate “marketing” with “selling” or “advertising.” These activities are, in fact, only small aspects of marketing. From a grower perspective, marketing may be defined as the total system of business activities designed to plan, price, promote and distribute products/services that satisfy the wants/needs of potential/present customers, while achieving the business objectives.
The major emphasis in this definition is the customer, first and foremost. The produce business that provides the customer with what he wants, when and how he wants it, will be the most successful. However, it is important to note that even if a demand exists for an organic product you can supply, there is no point in doing so unless you can do it at a profit. Thus, successful marketing depends on developing a thorough marketing plan that outlines how to supply the produce reliably, consistently and at a profit.
In a state as large and diverse as Texas, it is impossible to develop a general marketing plan that would apply to all organic growers because management skills, market opportunities and resource availabilities vary considerably in each area of the state. Thus, step-by-step guidelines are presented which can be used to develop an individualized marketing plan. The planning framework presented in this paper (see Figure 1) represents an application of the total strategic marketing planning process. It is practical and workable, and with slight modification it can be used for any specific organic produce operation. While developing a market plan alone cannot guarantee success, it does ensure that factors affecting the profitability and survivability of the organic business are considered. This is especially important for organic crops whose marketing does not always follow traditional channels.
complete flow model for market planning
Figure 1. Flowmodel of the marketing planning process.
step 1 in flowmodel, perform situation analyis
Step 1. Analyze the present marketing situation.
The market planning process should begin at least 6 months prior to harvest. The first step in the process is to analyze the current marketing situation (sometimes referred to as a market opportunity analysis). Marketing objectives cannot be determined before an assessment of where the operation presently stands in its total marketing environment is carried out. In conducting this analysis, the grower typically gathers two types of information: (1) internal or business related information; and (2) external or market related information.
Internal information gathering involves the grower learning about the capabilities of the produce business itself competing in the marketplace. General categories that need to be investigated include: (1) financial resources and capabilities; (2) the facilities available to the firm; and (3) strengths and weaknesses of the business (see Table 1).
External information gathering involves the grower learning as much as possible about the markets in which the organic fruit or vegetable business is planning to compete. Major categories to be investigated here include: (1) environmental constraints; (2) market conditions; and (3) an analysis of competitors (see Table 2).
Table 1. Internal information gathered In the situation analysis
Internal Information:
(1) Financial resources and capabilities:
Gross profits and net earnings after taxes
Financial ratios-return on investment, breakeven analysis, leverage ratio, current ratio, age of accounts receivable, inventory turnover, working capital turnover and profit margins
Cash flow analysis (actual and/or projected)
Enterprise budgets should be developed for crops currently produced and planned for production. Fixed costs (depreciation, interest, insurance, and taxes) should be allocated on a per unit basis in addition to variable costs (materials labor, etc.) Record keeping systems should track all inputs used in producing the organic produce.
Borrowing capabilities
(2) Operating facilities:
Production capacity-based on land, labor and equipment availabilities
Production scheduling (of cultural practices)
Inventory levels (previous production and pack-out rates) – by variety, grade, size and loss rates (may affect markets targeted in the short run)
Manpower requirements (from budgets and production scheduling)
Equipment requirements (from budgets and scheduling)
(3) Competitive strengths and weaknesses:
Skills and interests of the producer
Competitive status of the organic business (name recognition, quality perception, etc.)
Market share projections (as compared to competitors)
Competitiveness of prices-volume discounts
Advertising and promotion capabilities
Distribution methods and channels
Table 2. External Information gathered In the situation analysis
External Information:
(1) Environmental constraints:
Costs and availabilities of materials
Costs and availabilities of energy (fuel, electricity, etc.)
Economic conditions-inflation, interest rates, capital availability
Technology changes-changes in production practices
Political environment-environmental quality, pesticide issues, etc.
(2) Market conditions:
Market size-population, age, family size, number of households, income levels, rate of growth in an area, per capita consumption of vegetables
Geographic concentrations–determines shipping necessities and patterns
Market segments (alternative outlets)–these include:
Grocery stores (independents and chains)
Wholesale grocers
Wholesale distributors ( schools, hospitals, institutions, hotels, restaurants)
Packers or other growers with market contracts
Cooperatives and/or marketing associations
Processors
Food service markets
Brokers and commission merchants–identify buyers and coordinate sales
Direct marketing alternatives (PYO, roadside stands, farmers’ markets)
Market window analysis–to determine periods at which vegetable crops can be marketed profitably
(3) Analysis of competitors:
Number of competitors in the market area
Market shares (industry surveys)
Strengths and weaknesses in terms of prices (last 3 to 5 years), quality, promotion, advertising, costs of production, shipments (last 3 to 5 years), transportation costs.
Sources of Information:
Yellow pages (general headings-Food Brokers, Food Products, Retail and Wholesale, Fruit and Vegetable Growers and Shippers, Fruits and Vegetables, Wholesale and Retail Grocers)
The Packer’s Red Book-The Packer, Shawnee Mission, KS
The Blue Book-Produce Reporter Co., Wheatley, IL
State or national trade associations (Produce Marketing Association, Newark, DE or the United Fresh Fruit and Vegetable Association, Alexandria, VA)
County Extension agents and horticulturist-TAEX
Texas Department of Agriculture (can help locate potential buyers)
Trade publications (The Packer, Pronet, OMNIS, etc.)
Trade shows (PMA, UFFVA, etc.)
Target Market Selection
Once possible organic markets have been segmented (Table 2), the task at hand becomes one of deciding which markets to target. This is based on the research findings and opportunities identified earlier. After segmentation, certain target market options exist for the firm:
Aim at the entire market (all segments) with a single marketing approach.
Pursue several different segments with different marketing approaches for each segment.
Focus on just one segment with a very direct marketing approach.
In the case of organic produce marketing, it is probably best to employ the second option and target two or three segments including a primary market, a secondary market and a salvage market. The primary market is the market in which the organic grower would like to compete. The secondary market is one in which prices may be lower but the market may be closer in proximity, allowing the grower to compete more directly. The salvage market may be a direct market alternative or a direct wholesale operation directed toward final consumers.
For each of the target markets selected, the grower should attempt to assess the following buyer needs or characteristics:
grades, sizes and volume to be purchased
shipment and delivery dates
prices to be received (any price adjustments)
transportation costs
quality of produce when delivered
guarantees or return policies
optimal time to contact buyer for orders
actual or estimated share of buyer’s total volume
problems encountered (delivery, pricing, volume, uniformity)
special requirements of the buyer (lot size, delivery, etc.)
Contacts with potential buyers to assess this information should begin at least 6 months prior to harvest. Calls for an appointment should be made before visiting buyers because they are busy and do not appreciate unannounced visits. Samples of the produce (either an actual sample or pictures of the produce) win give buyers an idea of the quality of produce. Previous business references and estimates of prices desired and expected/potential volume should be given to buyers to aid in their decision making. At the initial meeting, the grower should convince the buyer that he has the necessary expertise to grow high quality produce organically. Certification documents should be presented to help assure the buyer of this expertise. Once agreements between buyer and seller have been reached, the grower should contact the buyer at least 1 week before shipment/pick-up to indicate produce availability. Most buyers would prefer 2 to 3 weeks notice of upcoming produce availability.
Step 2, determine marketing objectives
Step 2. Set some realistic marketing objectives.
Once the marketing environment has been analyzed and target markets selected, objectives must be developed to provide the direction and guidance for the grower. These objectives must be in line with the overall objective of the business as well as with the financial objectives and production objectives.
Marketing objectives are typically set in such areas as profit, sales volume, market share, pricing, advertising and promotion. In determining marketing objectives, the grower should be guided by a number of criteria. Marketing objectives should be measurable, specific, consistent with overall business goals, attainable and have specific deadlines. The determination of realistic marketing objectives requires a sound situational analysis (step 1). Since these objectives will guide the entire plan and its strategies, they have to be realistic and clear. However, they may need to be refined over time. The setting of objectives is an ever-changing part of the planning process. As market situations and competition change, so must the marketing objectives.
step 3, formulate marketing strategies
Step 3. Formulate the appropriate marketing strategies.
At this point in the process, the grower’s task is to determine an overall strategy to achieve the defined objectives. There are four basic market strategy positions that might be considered by the organic producer. These include: (1) market penetration; (2) market development; (3) product development; and (4) diversification. After determining objectives, the organic producer needs to decide upon the particular strategy position that will best accomplish the objectives.
In a market penetration strategy, a grower attempts to fill the needs of an existing market with its present product mix. For organic producers, this type of strategy may entail a number of approaches. For example, the grower may wish to increase the number of customers in present markets, or he may wish to increase the consumption of particular vegetables by both present and potential customers. In addition, the grower also wants to prevent competitors from taking away present customers.
A market development strategy is one in which the grower attempts to find new markets for his existing organic products. The grower hopes to find new uses and/or new customers in new markets for crops that are already being produced and marketed. It is, of course, possible for any grower to employ market penetration and market development strategy at the same time, since they involve the same products the grower is currently producing, with only the markets differing.
A product development strategy exists when the grower attempts to produce new crops or varieties for customers in present markets. A number of approaches may be used here as well. For example, a product improvement may involve a new crop (variety) actually replacing an existing crop that is slipping in the market. The new crop may be less expensive to produce, more appealing or serve the customer’s needs better. Another example is when more organic products are grown to offer more choice or wider variety to existing customers. Or maybe current products are offered in slightly different forms (processed). With this type of strategy, the grower wants to make a better impression in a present market through product changes and/or additions.
A diversification strategy occurs when the grower attempts to attract new groups of customers by moving into totally new markets with new products. This might involve taking a new crop (variety) which was developed for present markets to totally new markets that the business did not previously serve. With this approach, the grower hopes to move into markets not served with new products. Diversification is the most risky of the four strategies because it involves departure from both the product and market experience of the firm.
step 4, implement tactical procedures
Step 4. Establish tactical procedures for implementing strategy.
After selecting the overall strategy, the next step in the planning process involves implementing and carrying out these strategies. This requires the development of marketing programs which involve decisions about product development, pricing, promoting and distributing the organic produce.
These areas are often referred to as the marketing mix. Decisions concerning the marketing mix are presented in Table 3. This list is not inclusive nor do all decisions or activities pertain to every organic producer or packer. The marketing mix is dependent upon which target markets are selected, the type of market strategy chosen and the requirements of each buyer.
Table 3. Product mix decisions regarding product, pricing, promotion and distribution.
Product Activities
Determining the most effective product mix (crops, varieties pack sizes, etc.) to serve each market segment (should be based on costs of production and buyer demand).
Using attractive and efficient containers that hold up during storage and transportation and can possibly be used as point-of-purchase material or display materials at the retail level.
Deciding whether to use bulk-bin or volume-filled containers.
Providing guarantees for each product in the product line (certification).
Planning and introducing new produce items (varieties, pack sizes, etc.) when possible.
Providing information on the care of the produce after delivery.
Scheduling crop plantings and selecting varieties to take advantage of periods of favorable prices.
Promotional Activities
Selecting and prioritizing target markets and geographical marketing area.
Determining whether advertising is required for the target markets selected.
Selecting appropriate sales promotional media such as point-of-purchase materials, samples, result demonstrations or trade shows.
Pricing Activities
Determining base prices for each product in each market served (should be based on costs of production). If growers have developed costs of production information, they have, the necessary information in negotiating prices necessary to meet or exceed break-even price.
Using advance pricing to help retailers pre-plan and schedule promotions.
Determining credit policies.
Distribution Activities
Determining the type of reseller system most appropriate, if any, given the market served and the products involved.
Motivating the wholesalers and retailers to push the business’ product (point-of-purchase materials, cooperative advertising, etc.).
Providing protective packaging for goods in transient and storage.
Determining the modes of transportation to be used.
Determining field inventory requirements and maintaining these requirements.
Providing effective communication with buyers so that shortages can be minimized.
Providing frequent small shipments, even on weekends if necessary.
Providing in-transit temperature control measures to ensure quality.
step 5, evaluate and control
Step 5. Evaluation and control procedures
Performance of the plan must be measured, and this means that standards must be developed against which performance can be evaluated. Typically, the grower develops quantitative measures of overall planning performance such as the following:
Comparing total sales and profits with figures from preceding years.
Measuring performance relative to competitors (i.e., market share).
Performing a sales analysis by breaking down sales into categories such as geography, customers and product.
Performing a distribution cost analysis by determining the relative profitability of present ways of doing business through various channels.
Measuring customer satisfaction with surveys and other market feedback.
In addition, immediate feedback concerning performance can be obtained by calling after each delivery to determine if the shipment arrived on time, if the produce was in proper condition, and if the buyer had any problems. The grower should take immediate steps to correct any problems and satisfy the buyer.
The importance of proper and timely evaluation cannot be overlooked. Communication between the grower and buyer is essential for success. Buyers will try a new supplier “one time.” If they are not pleased with the produce, they will look elsewhere. A good evaluation system and prompt corrective actions, when required, can assist growers in maintaining their individual market share.
Properly conducted, this final step allows the grower to evaluate what is right and wrong and to make corrective actions. This step forces the grower to consider how the results of each planning period’s evaluation shall be used to improve performance in the next planning period. Information gained in the control and evaluation analysis may be used to update objectives, to alter strategy approaches and even change tactics to be used. When this happens, the planning process has come full circle and the entire process begins again.
Key Factors in Vegetable Production
Success in vegetable production whether it is organic or not is greatly depended on a well thought out plant. Key factors that should be considered carefully during the planning stage of the farming operation are: site selection, water supply and quality, crop and variety selection, and, market development. If the wrong decision is made with regard to anyone of these, the operation is doomed for failure.
Site Selection –
Minimizing potential production problems is essential to all farming operations. This is especially true for organic producers. One of the most effective means of reducing potential problems is through proper field site selection. Three points should be considered when selecting a field to produce vegetables: field topography, soil type, and water availability and quality.
Field Topography –
Topography refers to the physical characteristics of the overall field site and includes such conditions as; contour, soil depth, water and air drainage, and, the presence of rock out cropping and trees. These characteristics can have a significant influence on crop production and management. Poorly drained fields or those with low areas can become water logged during periods of excessive rain. Such conditions can enhance the incidence of diseases, reduce plant vigor and yield, and, under excessive conditions, cause plant death. Brush areas or abandoned fields and pastures can harbor insects and severe as host for plant diseases, some of which can be vectored by insects. Rock out cropping and trees within a field can become impedance to farm implements and increase difficulty of land preparation and crop establishment. . Sites with slopes of 1.5 % (18″ elevation change per 100′) or more should be avoided to prevent excessive erosion problems. An ideal topography for vegetable production is one that is nearly flat to slightly sloping, well drained, and, free of trees, rocks and low areas. Efficiency of crop maintenance, irrigation and harvest operations is greatly enhanced in fields with this type topography (6).
Soil type and quality –
Soil type refers to the physical composition or properties of the soil. Soils basically consist of decomposed mineral matter (sand, silt, and clay) and decomposed organic matter. Optimum vegetable production is achieved on well-drained sandy loam soils. Although vegetables can be grown on a wide range of soil types, most vegetables are not well adapted to heavy clay soil types. Soils of this type tend to have poor aeration and drainage and can restrict root growth. Consequently, these soils should be avoided (6). Soil is the fundamental resource base for all agricultural production systems. Unfortunately, too often, too little time is spent in selecting soil type and soil management practices. In organic production, soil health is essential. Soil quality influences its ability to provide an optimum media for growth, sustain crop productivity, maintain environmental quality, and, provide for plant and animal health (17). Therefore, soil quality and soil health is viewed as the foundation to successful organic production. Consequently, the primary management goal of an organic producer should be sustaining and improving soil quality or health over the long term. Table 1 presents important soil properties influencing soil productivity. The USDA is currently developing test kits to evaluate soil quality indicator properties. Contact your local USDA-NRCS field office to obtain a test kit.
Table 1. Soil Quality Indicator Properties
Physical properties Chemical properties Biological properties
Bulk density
Rooting depth
Water infiltration rate
Water holding capacity
Aggregate stability
pH
electrical conductivity
cation exchange capacity
organic matter
mineralizable nitrogen
exchangeable K
exchangeable Ca Microbial biomass carbon
earthworms
enzymes
disease suppressiveness
Water –
Water is the life-blood of vegetable production. Vegetable crops generally require more total water and more frequent irrigation than most other agronomic crops. Few vegetables can be grown successfully under dryland conditions in most areas of Texas. Even in East Texas where 45 + ” of rainfall occurs annually, crops can experience period of drought stress. Therefore, only fields that have easy access to an abundant water source should be considered for vegetable production. The water source should have the capability to provide the volume required for the maximum needs of the highest water-using crop to be planted. Water needs for selected vegetables grown in Texas are listed in Table 1 of the appendix.
Water quality is equally as important as water volume in selecting a field site water source. Water source for vegetable irrigation should contain less than 400 ppm soluble salts. Therefore, avoid water sources containing high levels of toxic elements such as Sodium, Boron or Aluminum. Tables 2 and 3 are helpful in evaluating suitability of water for irrigation. The absence of an adequate supply of high quality water cannot be offset with an ideal field site having a desirable soil type. Knowledge of crop tolerance to salinity is essential if marginal quality water is to be used (6).
Table 3. Classification of Sodium Hazard of Water Based on SAR Values.
SAR Values Sodium Hazard of Water Comments
1-10 Low Use on sodium sensitive crop such as avocados must be cautioned.
10-18 Medium Gypsum and leaching needed.
18-26 High Generally unsuitable for continuous use.
26 Very High Generally unsuitable for use.
Crop and Variety Selection –
A factor equal to the importance of good soil health to successful implementation of the organic production concept is crop and variety selection. Pest of all types occurs in abundance in most areas of Texas. However, the greatest limiting factor to successful vegetable production from a pest stand-point is the high incidence of disease outbreaks. With the reduced number of tools to combat pests available in the organic production arsenal, as compared to conventional production, even greater importance is placed on the use of resistant crops and varieties as the primary means of pest control. Table 2 of the appendix list vegetable varieties recommended for Texas. Most of the varieties listed were selected partly because they possess as high a level of resistance as available to as many diseases as possible. Therefore, organic producers who use varieties or grow species with resistance to as many diseases as available greatly increase their chances for success.
Market development –
The fact that most vegetable crops are highly perishable, the need to develop markets for produce should be established prior to planting the crop. This even more important for organically produced vegetables due to their limited or niche market status. For whatever reason one chooses to commercially produce vegetables organically, profitability is the driving force that keeps him in business. To achieve profitability, a producer must have a well thought out production and marketing plan based on sound scientific and business principles. Most startup vegetable operations generally fail due to the lack of market development or marketing skills.
Consequently, a potential grower cannot spend too much time in a developing production and marketing plan. Commercial vegetable production should always be viewed as a business first and as a farming enterprise secondly. Personnel views or beliefs are fine but establishing a business based on consumer preferences and demands make for a more successful undertaking.
In developing a sound marketing plan the following questions should be answered:
-What crops should I grow?
– How much of these crops should I produce?
– To whom or where shall I sell the produce that I will grow?
– How much real demand is there for the crops I am considering
– How much will it cost me to produce and market these crops?
– What if any are the sizes of the market windows for these crops?
– What are the risks associated with the production of these crops?
In order to effectively answer these questions one must be willing to invest considerable time conducting market research. It should be stressed that in order to market produce as organically grown, a farming operation must be “Certified Organic” by the Texas Department of Agriculture. The following (used with permission from TDA) describes the requirements of the Texas Department of Agriculture Organic Certification Program (16).
The Texas Department of Agriculture’s Organic Certification Program certifies crops produced under an organic farming system. That is, a system of ecological soil management that relies on building humus levels through crop rotations, recycling organic wastes, and applying balanced mineral amendments. When necessary, this system uses mechanical, botanical, or biological controls that have minimum adverse effects on health and the environment. In addition, organic crops are produced without the use of synthetic pesticides, synthetic fertilizers and synthetic herbicides. Upon demonstrating compliances with the Organic Standards and Certification, Texas Administrative Code, Title 4, Part I, Chapter 18, participants are entitled to use a marketing logo identifying their products as state certified. TDA inspects and certifies producers, processors, handlers (warehouses, distributors, brokers) and retailers of organic products.