Risk management education with ny horticultural producers
This presentation is the property of its rightful owner.
Sponsored Links
1 / 26

Risk Management Education with NY Horticultural Producers PowerPoint PPT Presentation


  • 58 Views
  • Uploaded on
  • Presentation posted in: General

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.

Download Presentation

Risk Management Education with NY Horticultural Producers

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Risk management education with ny horticultural producers

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


Overview of the new york risk management program

Presented by Cornell Horticultural Business Management and Marketing Program

Overview of the New York Risk Management Program

  • Research (special projects with RMA)

    • AGR Case Studies and Education (2000-01)

    • Specialty Crop Producer Survey (2001-02)

  • Education (NE Center for Risk Mgmt Ed)

    • Marketing Clubs (2001-present)

    • Risk Management Newsletters & Web-site (2001)

    • Business Analysis and Industry Performance Benchmarks (2002-present)

  • State Targeted Risk Management Grant

    • Train-the-trainer Workshops & Marketing Clubs (2001-02)

    • Business Planning Curriculum (2002-03)


Major participants

Presented by Cornell Horticultural Business Management and Marketing Program

Major Participants

  • Dept. of Applied Economics and Management faculty

    • Dr. Jerry White

    • Dr. Mark Stephenson

    • & Other faculty and staff

  • Cornell Cooperative Extension Educators

    • Horticulture Specialists

    • Farm Management Specialists

  • Others

    • Risk Management Agency

    • NASS-NY

    • Farm Credit

    • Farm Bureau


Building a holistic risk management plan

Presented by Cornell Horticultural Business Management and Marketing Program

Building a Holistic Risk Management Plan

  • Production

  • Marketing

  • Financial

  • Legal and Environmental

  • Human Resources


Risk management education with ny horticultural producers

Presented by Cornell Horticultural Business Management and Marketing Program

2000 Food Dollar

Why Marketing?


Supply chain movement toward the middle

Presented by Cornell Horticultural Business Management and Marketing Program

Supply-Chain Movement Toward the “Middle”

Shared Responsibility

  • Retailers are asking grower-shippers to share the majority of functional tasks within the supply chain

  • Retailers & grower-shippers endorse the resulting partnerships


Grower shipper strategies

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”


Why agricultural firms don t cooperate

Presented by Cornell Horticultural Business Management and Marketing Program

WHY AGRICULTURAL FIRMS DON’T COOPERATE?

  • Independence & Fragmentation Of All Sectors

    • 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?

    • Is it bad enough yet?

    • Is there an effective leader?


What is a marketing club

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.


What can a marketing club do

Presented by Cornell Horticultural Business Management and Marketing Program

What can a Marketing Club do?

  • Formal or informal discussion/sharing to learn from each other

  • Targeted and continuous learning

  • Real-time marketing information

  • Hands-on practices

  • Peer-support groups

  • Trade or Market as a Group

  • Others…..


3 key ingredients

Presented by Cornell Horticultural Business Management and Marketing Program

3 Key Ingredients

  • Interested Producers

    • 15-25 -- Interested and committed

    • Determine goals, topics and activities

  • Facilitators

    • Meeting arrangements

    • Educational resources

    • Help the leader and the group

  • Group Leader

    • One of the producers – a catalyst

    • Encourage participation

    • Coordinate planning of future programs


First meeting interest meeting

Presented by Cornell Horticultural Business Management and Marketing Program

First Meeting – Interest Meeting

  • A marketing workshop

    • Prepare participants in the basics

    • Get participants to similar level of knowledge

  • Gauge level of interest

    • What is a marketing club?

    • Potential benefits

    • Brainstorm marketing issues of participants

  • Set a time for the next meeting to

    • Set goals & plan for future meetings

    • Select interested topics & activities

  • Pass out responsibilities


How did we support the marketing clubs

Presented by Cornell Horticultural Business Management and Marketing Program

How did We Support the Marketing Clubs?

  • Mini-grants to horticulture extension educators

    • 7 fruits, 2 greenhouse, 1 vegetable

    • Provided training on organizing marketing clubs

  • Flexibility is important

    • What would you call the group?

    • What would the group do?

  • Provide marketing resources

    • Speakers

    • Marketing materials


What did we learn from the experience

Presented by Cornell Horticultural Business Management and Marketing Program

What Did We Learn from the Experience?

  • Participants need to have a common goal

    • Wyoming County vegetable growers

    • Erie County greenhouse growers

    • Western and Eastern NY fruit growers

  • Be workload sensitive

    • No crop season meetings

    • Plan ahead for meetings and tours

    • Assign responsibility

  • Build leadership

    • Establish ownership – self-directed

    • Build a future after extension involvement


Risk management web sites

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)


Risk management newsletters

Presented by Cornell Horticultural Business Management and Marketing Program

Risk Management Newsletters

  • 9 Newsletter Articles

    • Subjects identified by growers and extension educators

    • Some examples:

      • 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


Helping growers manage financial risks

Presented by Cornell Horticultural Business Management and Marketing Program

Helping Growers Manage Financial Risks

  • Expanding the Cornell Greenhouse and Fruit Farm Summary Programs

    • 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


Participating businesses contribute

Presented by Cornell Horticultural Business Management and Marketing Program

Participating Businesses Contribute:

  • 2 – 4 hours of meeting time

  • Annual cash receipts and expenses records

  • Business assets and inventory information

  • Other business operation information


Risk management education with ny horticultural producers

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)


Risk management education with ny horticultural producers

Presented by Cornell Horticultural Business Management and Marketing Program

Size of Greenhouses in the 2000 Summary


Risk management education with ny horticultural producers

Presented by Cornell Horticultural Business Management and Marketing Program

Scope of Greenhouses in the 2000 Summary


Risk management education with ny horticultural producers

Presented by Cornell Horticultural Business Management and Marketing Program

Establishing the Square Foot Week Concept

  • Comparing different sized businesses can be tricky.

  • Volume = size * weeks of operation

  • Square Foot Weeks = Sq Ft * Weeks Used.


Greenhouse business benchmarks

Presented by Cornell Horticultural Business Management and Marketing Program

Greenhouse Business Benchmarks

  • Industry averages by marketing channels

  • The data are also divided into quintiles representing the top 20%, second 20%….

  • Each greenhouse business can see where they fall in each performance measure.

  • Performance measures of the Top 20% of ROA


Risk management education with ny horticultural producers

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


Risk management education with ny horticultural producers

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

Thank you !

&

Discussion!


  • Login