Maximise margins with your own veg box scheme
http://www.fwi.co.uk/Articles/2008/07/05/111063/ma [2008-7-7]
Tag : vegetables producer
Most box schemes are organised around the delivery of a weeklysupply of locally-harvested vegetables, direct to the customer'shome, or to a neighbourhood pickup point. Some farms grow all the produce for their customers' boxes, butmost will supplement shortages or provide more variety, by buyingin from other local producers. Schemes which involve purchases fromfurther afield, including imports, usually include a commitment asto origin.
What are the advantages for the farmer? By operating the supply chain yourself, you hang on to those profitmargins which would normally go to the wholesaler or commercialbuyer. Once you have established a stable customer base, there ispotential for tailoring your crop programme to fill your veg boxes,rather than growing speculatively for other direct retail outlets.In the same way, income and cash flow are potentially morepredictable.
Risk is spread over a number of customers and a larger range ofcrops. You don't have to worry about standardising your vegetables to fitthe packaging requirements of the commercial market, or growing acrop which goes to waste because it is no longer required by thecommercial buyer. If existing plant and premises are used, capital outlay isrelatively low. You have the satisfaction of being part of an expanding network oflocal food production. You are also directly in touch with your customers, whose startingpoint is typically an enthusiasm about fresh, local food. At thesame time, the public do not need to have access to your farm,unless this is part of your marketing and distribution plan.
What are the disadvantages?
Your customer expects variety. The growing, harvesting, and storageof a range of vegetables of sufficient quality and quantity can bechallenging and labour-intensive. Maintaining year-round supply isalso difficult, with a few schemes electing to shut down during theApril to June "hungry gap". Organising and packing your boxes takes time, depending on howcustomised your box contents are. Liaison with individual customers also requires time, and attentionto detail. Fuel and staffing costs involved in delivery can be unacceptablyhigh, depending on your location and whether you offer a doorstepor pick-up service.
Most box schemes are organised around the delivery of a weeklysupply of locally-harvested vegetables, direct to the customer'shome, or to a neighbourhood pickup point. Some farms grow all the produce for their customers' boxes, butmost will supplement shortages or provide more variety, by buyingin from other local producers. Schemes which involve purchases fromfurther afield, including imports, usually include a commitment asto origin.
What are the advantages for the farmer? By operating the supply chain yourself, you hang on to those profitmargins which would normally go to the wholesaler or commercialbuyer. Once you have established a stable customer base, there ispotential for tailoring your crop programme to fill your veg boxes,rather than growing speculatively for other direct retail outlets.In the same way, income and cash flow are potentially morepredictable.
Risk is spread over a number of customers and a larger range ofcrops. You don't have to worry about standardising your vegetables to fitthe packaging requirements of the commercial market, or growing acrop which goes to waste because it is no longer required by thecommercial buyer. If existing plant and premises are used, capital outlay isrelatively low. You have the satisfaction of being part of an expanding network oflocal food production. You are also directly in touch with your customers, whose startingpoint is typically an enthusiasm about fresh, local food. At thesame time, the public do not need to have access to your farm,unless this is part of your marketing and distribution plan.
What are the disadvantages?
Your customer expects variety. The growing, harvesting, and storageof a range of vegetables of sufficient quality and quantity can bechallenging and labour-intensive. Maintaining year-round supply isalso difficult, with a few schemes electing to shut down during theApril to June "hungry gap". Organising and packing your boxes takes time, depending on howcustomised your box contents are. Liaison with individual customers also requires time, and attentionto detail. Fuel and staffing costs involved in delivery can be unacceptablyhigh, depending on your location and whether you offer a doorstepor pick-up service.
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