Introduction
Dr. Jared Wilson and Susan Wilson have started a venture called Wilson Family Peach Farm. In the spring of 2018, the Wilsons will retire from their regular careers. 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. A total of 80 acres are to be acquired using the equity of the owner and a federal farm loan. Dr. Wilson and Mrs. Wilson will jointly own the farm and it will be chartered as a Limited Liability Company in Georgia.
The Farm and its Products
This farm is located approximately 3.5 miles northwest of Gainesville in Georgia. This is one of the best areas in the state for growing peaches and other stone fruit. The soil has a perfect pH and good drainage.
Wilson Family Peach Farm has seven varieties of peaches and nectarines planned. They include the Redhaven. The farm will expand once profitability is established.
The appeal of this crop lies in the sweetness and low calories of fresh, high quality peaches. One medium peach only contains about 37 calories. These fruit are good sources of Vitamin C. Yellow-fleshed varieties are good sources 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 are responsible for more than 70% of all stone fruits produced in the U.S. South Carolina, Georgia and California follow California’s 72 percent share. In the three-year period, they have averaged about 6 and 4 percent respectively of the U.S. total. Georgia’s peach crop grew to 115 million-pounds last year, bringing in $41.7million. In addition to the Elberta, Georgia now produces more than 40 commercial varieties of peaches. Recent developments have shown that there may be an increase in the global peach market, particularly in Asia.
Wilson Family Peach Farm is planning to sell its crops 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. The rest of the fruit will go to local fruit distributors and fruit packers who then resell it to grocery stores. 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. The farm will have enough cash flow until it can begin making revenue. In year one, sales are expected to be enough to be profitable and to continue growing through year three.
1.1 Objectives
The objectives over the next three years for the Wilson Family Peach Farm are:
- Achieve profitability in year one.
- Buy 50 acres more adjacent land before year three to expand.
- Capitalize on the niche market for hybrid and specialty stone fruits.
- For economies of scale, increase the yield per acre.
1.2 Mission
The Mission of the Wilson Family Peach Farm is to provide a retirement occupation and supplemental income for the owners, Jared and Susan Wilson. 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
Farming in America is an old industry with little growth and a very competitive marketplace. Wilsons will therefore concentrate on the rare hybrid and rare peaches, nectarines, other stone fruits, and on quality to retain supplier contracts with the chain distributors as well as local produce sellers. The Wilsons identified these key elements as the keys to their success.
- Become “first to market” through use of early harvest varieties of peaches and nectarines.
- Marketing hybrids to local distributors is the key focus.
- Advocacy to reduce costs and analyze them aggressively
- Quality can be improved by focusing on post harvest care.
