Producing and Marketing Strawberries for Direct Market Operations

Abstract

<jats:p>The costs associated with growing, harvesting and marketing strawberries (<jats:italic>Fragaria</jats:italic> × <jats:italic>ananassa</jats:italic>) using the plasticulture production system were estimated to be $13,540/acre ($33,457/ha). Net revenue analysis showed that growers would have to charge at least $0.85 and $1.40/lb ($1.87 to $3.09/kg) for pick-your-own (PYO) and prepicked fruit, respectively, and sell 12,000 lb of berries per acre (13,449.9 kg·ha<jats:sup>-1</jats:sup>) to cover this expense. Break-even analysis indicated that growers would have to charge a PYO price of $0.65/lb ($1.43/kg) and $1.20/lb ($2.64/kg) for prepick berries and sell a minimum of 15,041 lb/acre (16,858.4 kg·ha<jats:sup>-1</jats:sup>) to cover the projected expenses. However, if a grower received $0.95 and $1.50/lb ($2.09 and $3.31/kg) for the PYO and prepicked fruit, respectively, he/she would only have to sell 10,622 lb of berries per acre (11,905.4 kg·ha<jats:sup>-1</jats:sup>) to break even. It was assumed that an average of 11.6 lb (5.26 kg) of fruit would be sold to PYO customers and an average of 7.1 lb (3.22 kg) would be sold to customers who visited the fruit stand. Under these assumptions, the breakeven yield of 14,724 lb/acre translates into a requirement to sell fruit to at least 1,539 customers per acre (3,802.8 customers/ha) at the lowest combination of prices while a yield of 10,398 lb/acre converts to a minimum of 1,087 customers per acre (2,685.9 customers/ha) at the higher prices. Customers were also surveyed at direct market operations in Spring 1999 to gain insight into consumer demographic characteristics, why customers select a specific PYO or prepick direct market strawberry outlet, average expenditures per customer, typical driving distances to direct market strawberry operations, and the effectiveness of advertising. Middle age, middle-income customers living within 10 miles (16.1 km) of the farm comprised the largest percentage of customers surveyed at the PYO operations, while middle age, high-income individuals who also live within 10 miles of the fruit stand were the largest group of respondents at the fruit stands. PYO customers spent an average of $10.30, and prepick consumers spent an average of $9.40 per visit. Less than 23% of all the respondents said that advertising influenced their shopping decision while &gt;77% indicated that any type of advertisement did not influence their decision. Overall, convenient location was easily the major reason that customers decided to patronize a specific direct market outlet while personal referrals were second.</jats:p>

Day-neutral Strawberry Production for Season Extension in the Midsouth

“…For the period from 2000 to 2003, average yields per ha in the plasticulture system in North Carolina fluctuated between 22 and 30 MTÁha -1 (Boriss et al, 2006), or %590 to 810 g/plant (assuming 36.9 thousand plants/ ha with double-row plant beds and spacing in the row of 35.6 cm and 1.52 m between rows). Safley et al (2004) estimated typical production and marketing costs for this system to be %$33,460 ha. By achieving a marketable yield of only 13.4 MTÁha -1 (364 g/plant), a slightly positive net return of $511 ha ($207 per acre) can be achieved with a pick-your-own price of $1.87 kg ($0.85 lb) and prepick (ready pick) price of $3.08 kg ($1.40 lb) (Safley et al, 2004).…”

“…Safley et al (2004) estimated typical production and marketing costs for this system to be %$33,460 ha. By achieving a marketable yield of only 13.4 MTÁha -1 (364 g/plant), a slightly positive net return of $511 ha ($207 per acre) can be achieved with a pick-your-own price of $1.87 kg ($0.85 lb) and prepick (ready pick) price of $3.08 kg ($1.40 lb) (Safley et al, 2004). However, a grower achieving 22.4 MTÁha -1 (607 g/plant), or %20,000 lb per acre, could realize a net revenue of $18,720 ha ($7,576 per acre) (Safley et al, 2004).…”

“…By achieving a marketable yield of only 13.4 MTÁha -1 (364 g/plant), a slightly positive net return of $511 ha ($207 per acre) can be achieved with a pick-your-own price of $1.87 kg ($0.85 lb) and prepick (ready pick) price of $3.08 kg ($1.40 lb) (Safley et al, 2004). However, a grower achieving 22.4 MTÁha -1 (607 g/plant), or %20,000 lb per acre, could realize a net revenue of $18,720 ha ($7,576 per acre) (Safley et al, 2004). Although the conventional strawberry plasticulture system provides only 5 weeks of harvest in the spring, it should be recognized that growers are capable of generating average weekly profits of over $3700 ha (over $1,500 per acre).…”

Dayneutral Strawberry: Potential for Farm Production Diversification in Southwestern Ontario

“…Apparently, the timing depended on work force availability and planting dates. Reference [18] reported that preplant operations were the most expensive operations in a system with plug-plants planted on raised beds. The cost associated with planting, care and harvest in the first production year are shown in Table 2.…”

Strawberry Growth and Productivity in Fumigated Compared to Compost-amended Production Systems

“…Gross returns can range from $21,000 to just over $30,000 per acre with an estimated $13,556 in total harvest and production costs per acre (Sydorovych et al, 2006). Most strawberry enterprises in this region comprise small to mid-sized family farms with an average size of 3-5 acres (Safley et al, 2004). These farms can be managed more intensely and are more likely to use alternative farming systems compared with large-acreage operations.…”