Marketing of

1

• Marketing of
• Horticultural Crops
• Based on Indiana State Standards

Modified by Georgia Agricultural Education
Curriculum Office June, 2002
2
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.

3

• 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.

4

• 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.

5

• 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.

6
Horticultural Marketing

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

7
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

8
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.

9
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

10
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.

11
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

12
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.

13
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.

14
Packaging Horticulture Products For Sale

• Why Package?
• Prevents Damage
• Enhances sales through advertising
• Provides informationto the consumer
• Convince

15
Considerations

• Labor
• Volume
• Handling
• Time

16
Methods of Packing Fruits and Vegetables
17
Jumble Packs

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

18
Pattern Packs

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

19
Tray or Cell Packs

• This method is similar to pattern packing, but
  trays are placed between product.
• Produce more easily damaged is packed this way
• Examples Tomatoes
• and apples

20
Ready for Consumer Packaging Methods
21
Bags

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

22
Trays

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

23
Boxes

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

24
Shrink Wrap

• 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.
• Avoid using with Apples, pears, peaches, plums,
  avocados, and bananas.

25
Methods of Packaging Plants

• Most are container grown to reduce labor and
  handling.
• Larger plants grown in nurseries.

26
Containers

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

27
Burlap

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

28
Wire Mesh

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

29
Assignment

• 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.

30
Developing a Marketing Plan

• 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.

31
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.

32
Market Analysis

• Should be done to determine if you should set up
  a business
• Involves gathering and interpreting data and
  information to establish a markets potential.

33
Enrichment ActivityMarketing 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.

34
Items sold in a Flower Shop

• In groups brainstorm items sold in a flower shop

35
Equipment needed in a Flower Shop

• Coolers
• Cash Register
• Work area
• Sinks
• Phones
• Restroom
• Display area

36
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.