Introduction
The Wilson Family Peach Farm is a start-up venture for Dr. Jared Wilson and his wife, Susan. The Wilsons will be retiring from their regular professions starting in the spring of this year. The farm will give the Wilsons income and work opportunity after their retirement. Both of them can also continue their own research programs on nutrition and agriculture. Owner’s equity and federal farm assistance loans will be used to purchase approximately 80 acres of prime stone fruit-growing land. Dr. Wilson along with Mrs. Wilson will jointly control the farm. It will be chartered in Georgia as a Limited Liability Company.
The Farm and its Products
The farm’s prime fruit growing land is located approximately 3 miles northwest of Gainesville. This is the ideal area to grow stone fruit and peaches. This land has excellent drainage and a high soil pH.
Wilson Family Peach Farm plans to grow seven varieties in the first three year, including the Redhaven and Ishtara peaches, Tenn Natural, Lovell and Bailey, Starks Redleaf, Starks Redleaf and the legendary Elberta. Once profitability has been established, the farm will begin to expand into more rare varieties.
The attractiveness of this crop is that fresh, high-quality peaches and nectarines are sweet tasting and low in calories, with one medium peach furnishing only about 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 accounts for approximately 25% of the global supply of fresh peaches.
Peaches are the third most popular fruit grown in America. 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. Georgia’s peach crop produced 115 million lbs last year and earned $41.7 million. Georgia is now producing more than 40 commercial varieties. Recent events have demonstrated that the peaches market is expanding internationally, especially in Asia.
Wilson Family Peach Farm will sell its crop to three major buyers. The Wilsons will sell the majority of their fruit to local produce stands, which can charge more for better quality fruit. This will allow them to maintain a high profit margin. The rest will be sold to local food packers and distributors, who then resell fruit to grocery store shelves. Any fruit that is not up to the standards of quality/maturity will be sold on to canneries.
Financial Considerations
The farm will receive a farm assistance loan along with substantial owner equity. This will allow for sufficient cash flow to the farm so that it can begin earning revenue. The farm’s sales will be enough to make it profitable in year 1, and continue to grow through year 3.
1.1 Objectives
The Wilson Family Peach Farm has three years to reach its goals:
- In the first year, you can achieve profitability.
- Buy 50 acres more adjacent land before year three to expand.
- Profiteer from the niche market that is hybrid and specialty stone fruit.
- To achieve economies of scale, increase yield per acre
1.2 Mission
The Wilson Family Peach Farm’s Mission is to provide an income stream for Jared Wilson and Susan Wilson as well as a retirement job. Additionally, Dr. Wilson and Mrs. Wilson will use the farm as a base to continue their research in nutrition and agriculture.
Success keys 1.3
The United States is a mature agricultural industry that experiences very little growth. This makes it very competitive. 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 achieve this, the Wilsons have identified key components to success.
- Utilize early harvest varieties of peaches, nectarines to become ‘#8220’ first to market
- You should concentrate on marketing hybrids to local distributors.
- Aggressively pursue cost analysis and reduction.
- Quality can be improved by focusing on post harvest care.