Horticulture Unit E Marketing of Horticultural Crops Based

Horticulture Unit E Marketing of Horticultural Crops Based on Indiana State Standards

Objectives • Describe the differences in the levels of marketing and marketing options available to horticulture producers. Identifying advantages and disadvantages of each for specific crop types. • Address the problem of packaging and shipping fruits, vegetables, and other horticulture products.

• Compare three methods of packaging ornamental plants. Describe a specific plan for their market in the community • Describe problems with warehousing fruits and vegetables. Describe changes that could be made to improve fruit and vegetable quality to the consumer. • Explain the difference between wholesale and retail marketing for a particular product.

• Compare and contrast packaging units commonly used in the direct-to-consumer and wholesale markets. • Describe the process used to maintain quality during the marketing process. • Explain the basic and secondary considerations of market analysis and describe each relative to its importance.

• Choose a horticultural product and design a market analysis plan specific to it. Enrichment • Design a sign for a flower shop. • Demonstrate telephone sales skills. • Develop a floor plan for a floral business. • Develop order forms for a floral business.

Horticultural Marketing • The activities involved in selling fruits, vegetables, flowers, and ornamental plants. – Business Management – Advertising – Communication – Business planning

Types of Markets Farmers’ Markets – Designed so that producer can actually market his/her own product directly to consumer – Products are sold from stand or truck – Many cities have farmer markets in a central location – Profits are greater due to direct marketing – Popular with small and part time farmers

Roadside Marketing • Similar to farmers’ market, but differs because it is isolated alongside a road. • Location is very important so as to attract customers as well as passersby. • Good alternative to a small or part time producer.

Pick-Your-Own • • • Often called U-pick Customers pick the crop Reduces labor, and shipping cost Customers generally pay less for the product Can be used in big or small enterprises

Sales to Retailers • Involves sales to supermarkets, restaurants, and other businesses. • Locally grown produce is desirable because of freshness, locally grown plants are adapted to the climate. • Retailers are referred to as middle men because they are the link between producer and consumer.

Cooperative Selling • Producers combine crops for sale. • The use of this method gives the producers a larger volume to make available to larger buyers. • Supplies and equipment needed by the producers can be purchased in larger wholesale lots at a lower price. • Example: Florida Citrus Co-ops

Grower to Processor • Approximately 50% of agricultural commodities are sold to processors for canning, freezing, packaging in microwave meals, juices, sauces, pies, etc. • This type of market allows sale of damaged, less desirable produce.

Assignment For each means of marketing discussed pick a horticultural crop that might best be sold in this way. Write a paragraph for each justifying your choice.

Packaging Horticulture Products For Sale Why Package? – Prevents Damage – Enhances sales through advertising – Provides information to the consumer – Convince

Considerations • Labor • Volume • Handling • Time

Methods of Packing Fruits and Vegetables

Jumble Packs 1. Product is placed into a bag, box or crate. 2. The product is more susceptible to spoilage. 3. This is the most efficient method for labor, but take up more volume. Example: Apples in plastic bags

Pattern Packs 1. This method layers the product in a box as to fit as many items as possible into a given volume 2. Product sometime individually wrapped. 3. No separation of produce can mean bruising. Example: Citrus packed in boxes

Tray or Cell Packs 1. This method is similar to pattern packing, but trays are placed between product. 2. Produce more easily damaged is packed this way Examples: Tomatoes and apples

Ready for consumer packaging methods

Bags 1. 2. 3. 4. Least expensive and easiest way Works well for items with thick skins. Can be mesh, plastic, or paper Usually placed in boxes for transport

Trays 1. Product is placed on trays made of foam plastic or chipwood and wrapped in plastic. 2. This method keeps the produce clean during handling.

Boxes 1. Small boxes ranging from ½half quart to two quart capacity. 2. Can be open or covered 3. Often used by farmers’ markets and road side stands 4. Can hold stems, leaves, bugs etc. Examples: Strawberries and blueberries

Shrink Wrap 1. 2. 3. 4. Wrapping plastic around product and then cooling Helps to reduce damage in handling Prevents loss of water If product emits ethylene after harvest this should not be used. It will cause fruit to over-ripen and spoil. 5. Avoid using with Apples, pears, peaches, plums, avocados, and bananas.

Methods of Packaging Plants • Most are container grown to reduce labor and handling. • Larger plants grown in nurseries.

Containers 1. Can be plastic or pressed cardboard 2. Easier to keep adequate moisture 3. Plant is removed from container when ready to plant.

Burlap 1. Material can be either plastic textured or actual burlap. 2. Used most commonly on larger root balls

Wire Mesh 1. Some large root balls require wire mesh to hold the entire root ball together. 2. Wire is placed over the burlap for shipping.

Assignment 1. 2. 3. For each method of packaging fruit pick a fruit that is not suited for it and explain why that is not the best way to package it. Make a chart comparing the three methods of shipping plants. Make a list of 5 problems associated with storing fresh fruits and vegetables.

Developing a Marketing Plan 1. 2. 3. 4. 5. Select a horticultural crop Write a paragraph describing the size and type of operation you have. Also include a location. Write a paragraph describing how you plan to market your crop. Include information on how it will get from your farm to the consumer. Write a paragraph on how you plant to package your crop. Indicate at least three reasons for choosing this type of packaging. Design a label that has the product name, your company name and address, company logo. Use color and make it visually appealing to the consumer.

Wholesale vs Retail Wholesale Selling from the farm to someone other than the final consumer. Such as restaurants, processors, stores. Usually large quantities at lower prices. Generally exempt of sales tax. Retail Sales to the final consumer. Usually small quantities at higher prices. Sales tax collected on nonfood items.

Market Analysis • Should be done to determine if you should set up a business • Involves gathering and interpreting data and information to establish a market’s potential.

Enrichment Activity Marketing a Flower Shop For the next class, come up with a name for your flower shop and create a sign that would hang outside of your store. The sign should include, store name, hours, phone number, a graphic, and color. It should fit on a 8 1/2 by 11 piece of paper. The computer may be used.

Items sold in a Flower Shop • In groups brainstorm items sold in a flower shop

Equipment needed in a Flower Shop • • Coolers Cash Register Work area Sinks Phones Restroom Display area

Floor Plan On a 8 by 11 piece of paper sketch a floor plan for your floral business. Include sales area labeling product placement. Also show work area with equipment labeled.