1 / 29

Bellringer

Bellringer. Organic Farming Freedom Farm. EXPLAIN IN COMPLETE SENTENCES WHAT ARE ORGANIC VS NONORGANIC FARMING METHODS. Mission statement. Goal: To build a viable organic farm business in ten years.

shen
Download Presentation

Bellringer

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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Bellringer

  2. Organic FarmingFreedom Farm EXPLAIN IN COMPLETE SENTENCES WHAT AREORGANIC VS NONORGANIC FARMING METHODS

  3. Mission statement Goal: To build a viable organic farm business in ten years. • To establish the first three years of organic farming practice while selling on the conventional market until OCIA certification. • To have all land in organic production within four years and sell on the organic market by the fourth year.

  4. Mission statement • To increase cash flow over the next seven years through organic practice while selling on the organic market. • To replace and improve farm power machinery in ten years. • To maintain soil fertility while maintaining yield productivity and year to year stability.

  5. Outline… • Industry overview • Operations • Human Resources • Marketing • Financial • Feasibility Analysis

  6. Industry Overview • $20 billion US • Majority of industry - Europe, USA and Japan • Increasing health and environmental concerns • Aggressive promotion • Supportive government policies

  7. Canada... • $1 billion in annual sales • Annual growth of 20% per year • Predicted increase of 5 to 10% of global market by 2010 • Net exporter of bulk organic grains and oilseeds • Significant production of raw products - 80% store products imported from USA

  8. Saskatchewan... • Over 1000 certified producers • 70% of western Canada producers • $30 million industry • 30 organic processors • flour, flax oil, oatmeal, bread, cereal

  9. About Kipling: • LLD – SE 5-8-3 W2 • Precipitation (427mm) • Temperature (GDD) 1600 > 5 C • Soil Classification Black soil • Frost Free Days 120 KIPLING

  10. Kipling cont’d • Southeast transportation committee • Transportation: Near Trans Canada Highway # 1

  11. Capital Outlay

  12. OCIA Organic Crop Improvement association 3 years to get organic certification Crop rotation & tillage for weed control, fertility DIVERSITY Seed, fertilizer and variable machinery costs Are the highest yearly inputs Challenges – rotation choice

  13. 1 Oat+A Alfalfa Fallow Flax Barley Pea Wheat 2 Canola Fallow C/flax Barley Pea Wheat Oat+A 3 Flax Flax Barley Pea Wheat Oat+A A 4 Flax Canola Pea Wheat Oat+A A Fallow 5 Wheat Pea Wheat Oat+A A Fallow C/flax 6 Pea Wheat Oat+A A Fallow C/flax Barley 7 Wheat Oat+A A Fallow C/flax Barley Pea Rotation order Block 1 2 3 4 5 6 7 Year

  14. Human Resources • Sole Proprietorship • Owner/Operator • farm equipment and mechanical expertise • proven interest in organic food production • management/decision making skills • bookkeeping - overseeing paperwork - accreditation Salary: $40,000 in year 1, increasing to $50,000 by year 10

  15. Human Resources cont.. • Position #2 - Seasonal Labor (seeding-harvest) • knowledge of farm equipment • mechanical knowledge Wages: $9.52/hour

  16. Product/Service Features • Product within OCIA regulations • Certified “organic” • “Beneficial Products” • Serving the buyers needs

  17. Competition • Over 1000 certified producers in Sask. • Beneficial globally? • Detrimental locally? • Competition minimal due to infancy of industry

  18. Distribution/Pricing • “Price Taker” • price depends on world markets and demand • price dependent on quality and volume • research different buyers frequently • Distribution cost responsibility of buyer

  19. Strengths • Educated farmer/businessman • Knowledgeable hired help • Production diversity • Producing a “Healthy product” • Location- soil, climate, moisture

  20. Weaknesses • Marketing • getting the best price at the right time • “Price Taker” • Marketing unfinished product • Starting from scratch • inexperience in the agriculture industry • cost: significant capital needed • Limited database on production practices and outcomes

  21. Opportunities • Organic industry 15-25%/year • Emerging markets – Australia, New Zealand • Organic processors expanding • Premiums for production • OCIA most recognized – high visibility products • Low land cost and pest populations in Saskatchewan • Health and environmental problems related to pesticides decreased

  22. Threats • Infancy of the industry • Expansion of producers in Sask. - Opportunity? • Government regulation • Transportation (exporting - union strikes) • GMO crops (canola, wheat, etc.) • At the mercy of nature • Mining of the soil- minimal nutrient amendment • Lack of global quality standardization • NOP - National Organic Program

  23. Processors/Customers • Popowich Milling, Yorkton • Oat processing (oatmeal, flour, etc) • Bioriginal Food & Science Corp, Melville • edible oils and flax seed • CSP Foods - bakery mixes • Proven Organics, Gravelbourg • whole and split peas, flax and hulled barley

  24. Customers – Summary • Grower controls decision to sell • Expect competition from other growers, prefer broad base of supply • QUALITY – and price • Market is growing, buyers have sourcing problems

  25. Financial Plan

  26. Financial Analysis

  27. IRR and NPV Base Case Without 2% growth in price:

  28. Yield and Price Fluctuations

  29. HOMEWORK DESCRIBE ALL ASPECTS OF THE FARMING PLANNING

More Related