Peach and Apricot Farm Business Plan

Introduction

The Wilson Family Peach Farm is a start-up venture for Dr. Jared Wilson and his wife, Susan. The Wilsons will soon be retiring from their normal professions, starting in the spring. The farm will provide income and work opportunities for the Wilsons after retirement. It also allows them to continue their research on nutrition and agriculture. Approximately 80 acres of prime stone fruit growing land is to be acquired, using owner’s equity and a federal farm assistance loan. Dr. Wilson, Mrs. Wilson, and a Limited Liability Company will own the farm.

The Farm and its Products

This farm is located approximately 3.5 miles northwest of Gainesville in Georgia. This is a prime area for stone fruit and peaches growing. It receives plenty of sunlight and has excellent drainage. The soil pH is optimum.

Wilson Family Peach Farm will grow seven varieties of peaches in its first three years. These include the Redhaven (Ishtara), Tenn Natural and Lovell (Bayley, Montclar and Starks Redleaf) and the well-known Elberta. Once the farm is profitable, it will be able to expand its production into rarer varieties.

This crop’s attractiveness is due to the fact that high-quality, fresh peaches and nectarines are low in calories and sweet tasting. One medium peach provides only 37 calories. These fruit are a good source of Vitamin C and yellow-fleshed varieties are a good source of Vitamin A.

The Market

The United States provides about one-fourth (25%) of the world’s total supply of fresh peaches.

Peaches are America’s third most-popular fruit. They account for more than 70 percent of all stone fruit produced in the U.S. South Carolina and Georgia follow California’s 72 percent share of peach production at a far distance, averaging about 6 and 4 percent of the U.S. total over the past three years. Last year the Georgia peach crop totaled 115 million pounds and brought in $41.7 million. Georgia also produces more than 40 varieties of peaches commercially. Recent developments have shown that there may be an increase in the global peach market, particularly in Asia.

Wilson Family Peach Farm plans to sell its crop to three main buyers. Wilson Family Peach Farm plans to focus its efforts on selling most of its fruit directly to local produce stands who are able charge higher prices for high quality fruit. This will help keep the farm’s profit margins high. Most of the rest of the fruit will be sold to local fruit packers and distributors that then resell the fruit to grocery stores. Any fruit that doesn’t meet the quality standards of either the buyers or the distributors will be sold to canneries.

Financial Considerations

The farm will receive a farm assistance loan along with substantial owner equity. This will allow the farm to generate sufficient cash flow until it is able to start earning revenue. In year one, sales are expected to be enough to be profitable and to continue growing through year three.

1.1 Objectives

The Wilson Family Peach Farm will be achieving these goals over the next three year:

• You will be able to achieve profitability in one year.
• Buy 50 acres more adjacent land before year three to expand.
• Profit from the niche market for specialty and hybrid stone fruits
• Increase yield per acre to achieve economies of scale.

1.2 Mission

Wilson Family Peach Farm’s Mission Statement is to provide a retirement profession and supplemental income for Jared Wilson. In addition, the farm will provide a base for Dr. and Mrs. Wilson’s ongoing research in the agriculture and nutritional fields.

1.3 Keys to Success

The United States is an established industry that has seen very little growth. It also has a highly competitive market. Therefore the Wilsons will focus on the small niche market of hybrid and rare peaches, nectarines, and other stone fruit and also on quality so as to retain its supplier contracts with its chain distributors and local produce sellers. To this end the Wilsons have identified the following key elements to success.

• Use early-harvest varieties of nectarines and peaches to be ‘#8220;first on the market.
• Place emphasis on the marketing of hybrids for local distributors.
• Aggressively pursue cost analysis and reduction.
• Focus on post-harvest care to improve the quality of produce