In this Issue:
GUEST ARTICLE
Are You a Producer or a Business Owner?
VEGETABLE NEWS
STRAWBERRY NEWS
APPLE NEWS
| Vol 2 No.12 | August 15 , 2005 |
Are You a Producer or a Business Owner?
Karl Foord, Regional Extension Educator, Extension Regional Center-Farmington, Dakota Co.
Some people in the fruit or vegetable business are there because they grew up in the business. Some people have entered the business because they are seeking a particular lifestyle, or because they enjoy the production part of the business. There is magic in planting seeds and watching a crop mature. The same magic exists in nurturing a crop of apples from flower to ripe fruit. This may seem more appealing than the financing, marketing, and managing people side of the business. Regardless of the pathway to the business and where your passions lie my question is, do you define yourself as a business owner or a producer?
Is it true that once you enter the business, production becomes one of a number of issues that need to be addressed? As a business owner managing the production, finance, marketing, and people parts of the business are all critical aspects of success. As a business owner in the vegetable or fruit business, which of the above areas can be responsibly delegated to improve the business or permit it to grow?
Of the four areas, it seems that production is more easily delegated for at least two reasons. First, the rules governing successful production of crops are based more on science than judgment. Second, plant growth, per se, is not subject to the vagaries of human interaction and behavior. Optimal plant growth requires good water and pest management. Plants die without water and suffer under weed or pest stress. On the other hand, owner judgment seems to play a larger role in the management of finance, employees, and marketing. Operating money can come from the bank which will necessitate human interaction. Keeping employees motivated and happy and communicating with your customers are different types of challenges and require a different set of skills than those posed by production.
If the above is true, it leads to a problematic conclusion. If you started the business because you love the production end, you might find yourself delegating production responsibilities because the business demands your attention to finance, people, and marketing. If you avoid the finance, people, and marketing as much as possible, it is likely that your business will suffer due to the lack of attention in these areas. This means that if you entered the business because you liked the production, the fact that you are a business owner will continually draw you away from the thing you like and reason you started the business in the first place. Sounds frustrating – doesn’t it?
Needless to say if you like what you are doing you will probably do a better job than if you do not like what you are doing. This suggests that your business will be more successful if you enjoy or can embrace the business part of vegetable or fruit farming.
Editor’s Note: Karl Foord, Ph.D., MBA, has considerable experience with horticultural crop production and marketing. We are publishing a series of Karl’s articles on marketing and business management that we believe will be useful to many of our readers, particularly fresh market growers. Please send your feedback and questions to Karl at: foord001@umn.edu
ACKNOWLEDGEMENTS
Co-Editors: Bill Hutchison (hutch002@umn.edu), Department of Entomology, University of Minnesota, Jeanne Ciborowski, Minnesota Department of Agriculture, Ag. Resources Management and Development Division, and Suzanne Wold-Burkness (woldx018@umn.edu), Department of Entomology, University of Minnesota
The Newsletter is published weekly from May through August, cooperatively, by the Minnesota Department of Agriculture (MDA) and the University of Minnesota (U of MN). Reports are posted on the U of MN and MDA web sites on Fridays. If you have suggestions and/or comments, please send your contributions by 4 p.m., Wednesday to Jeanne Ciborowski, 651-297-3217, jeanne.ciborowski@state.mn.us , MDA, 90 W. Plato Blvd., St. Paul, MN 55107-2094. You can access the Newsletter at the U of MN web site in htm format at: www.vegedge.umn.edu/MNFruit&VegNews/mnindex.htm and at the MDA web site in pdf format at: www.mda.state.mn.us/biocon/fruitreports/
Partial funding for this publication is provided through partnership agreements with the Minnesota Fruit and Vegetable Growers Association (MFVGA) and the United States Department of Agriculture – Risk Management Agency (RMA). These institutions are equal opportunity providers.
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