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  • From: singingpigfarm AT comcast.net
  • To: market-farming AT lists.ibiblio.org
  • Subject: [Market-farming] market pricing
  • Date: Thu, 23 Sep 2004 23:52:31 +0000

All three market farming lists I received today were dominated by market
pricing. I have responded once and must respond again. Another grower in my
area is complaining loudly around town That my mesclun price to restaurants
is only $4.00/pound while he has to charge $7.00/ pound. My price has been
$4.00/pound for 10 years, dropping from the original $8.00/pound. How do I do
it? Am I just buying and reselling? No, I can buy a decent mesclun from
California for $2.20/pound, which at $4.00/pound is only a 45% gross profit
margin and I don't like anything less than 50 % gross profit margin or,
stated another way, doubling my money. My production costs from planting the
seed through harvest, packing and delivery is only $1.20/pound with hand
harvesting being the majority of the cost. That is a healthy 70% gross profit
margin.
I have been able to reduce my price from $8.00/pound to $4.00/pound and
maintain that price for ten years by becoming a better, more efficient grower
every year. I now make more money at $4.00/pound than I ever made at
$8.00/pound! A CSA grower in my neighborhood called me an elitist one day
saying that my prices are so high that only my high-end restaurant customers
can afford my product. Last year she branched out into selling to restaurants
and complained to one of my chef's that she doesn't understand how I can
possibly be growing my own product and selling it at $4.00/pound. One year, i
was an elitist for selling mesclun at $4.00/pound, now that she's trying to
compete with me I must be cheating-it's all a matter of perspective.
The fact is the cost of production for the large California growers is on the
order of $.60-.75/pound so I still have a lot of room to improve my
operation's efficiency and therefore my profit margin. My current production
is 500lbs/week, 52 weeks/year. I never have less than 2 acres planted in
mixed greens and am always harvesting from a minmum of 1/2 acre. Last year I
harvested 15-25lbs/hour, now I harvest 25-40lbs/hour. This year I have
already used 15lbs of lettuce seed, over 6 pounds of other salad greens
seeds, 6 pounds of beet seed, four pounds of chard seed and I am going to
plant another 4 pounds of lettuce/other greens seed next Tuesday. In three
years my goal is to purchase the type of machines used by the large Cali
growers to eliminate hand harvesting, hand washing/drying/packaging and at
that point lower my costs to $.75/pound and increase my production to 2,000
pounds/week while maintaining my $4.00/pound price. If that bothers other
growers, I say that if they are willing to do the things I do they will reap
the rewards I do.
Steve Rogers, owner/operator, Singing Pig Farm, Portland Ore




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