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Food safety, wholesale production, and washing & packing
- 1. Farm planning, wholesale, post-harvest handlingand food safety Michael Kilpatrick, Farmer
- 2. Planning on ourfarm 1 year plan 3-5 year plan life plan
- 3. 1 year plan whatare we growing this year for what markets will we attend or produce what equipment are we going to buy who will work for us where are we going to plant what
- 4. 3-5 year plan whatmarkets do we want to be expanding into are we pushing to actively grow or shrink long range equipment procurement infrastructure upgrades
- 5. Life plan What doI want to be remembered for? What is my magnum opus? If I could pick a career today what would that be?
- 6. Is it allabout the money? you can work 80 hours a week your whole life, max out your 401k and IRA, and die of a heart attack at 60 before you can enjoy it.
- 7. Cutting down thestress institute ordering deadlines don’t cob stuff together Spend money on hard infrastructure Pay for good help, and treat them well take 1 day off a week
- 8. What are yourgoals? Stay small and do farmer’s markets part- time Run a large CSA Go certified and produce few wholesale crops efficiently Every Farm is different!
- 9. How should yourtime be spent? 1/3rd actually working in the business- doing only what you can do 1/3rd training your team 1/3rd self-development, new techniques, new strategies, seeing other farms.
- 10. What can onlyI do? Seeding bedforming cultivation repairs an maintenance equipment setup new infrastructure Farm walk every week crew direction sales calls
- 11. What am Itraining my crew to do? Irrigation setup general tractor work (plowing, disking, fertilizer spreading, compost) harvest weeding pruning/training bale chopping/ straw spreading spraying greenhouse seeding markets
- 12. What is theweak link? Look at operation every year and see where bottlenecks are. Read “The Goal” by Eli Goldratt What is slowing us down, crimping the operation. opportunity lost cost?
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- 14. If I wereto have this decision to make over again would I do it?
- 15. fix, close, orsell
- 16. What crops shouldI grow? Crops you can make money on crops suited to your climate Crops that you enjoy
- 17. How do weknow what we are making money on?
- 19. Costs to consider Productioncosts (seed, fertilizer, labor) Harvest costs (labor, boxes, twist ties) Post-harvest cost (washing, cooling, delivery) General costs (mortgage, insurance, etc) Marketing Costs (website, calling buyers, etc)
- 20. We need tomake $40,000 an acre Also need to make at least $40 an hour picking the crop Works out to be $4.50 a bed ft
- 21. Bed Systems an acreis 43,560 square ft All beds are on 72” centers or 7,260 bed ft per Acre We grow 4 rows on a bed, 14” apart
- 22. Carrots Yield is 4.25lbs #1’s for 3 row ft. NOT including juicers or seconds that is 5.64 lbs per bed/ft Beds are 300 ft long=1,692 lbs per bed 24 beds to the acre, or 7260 bed ft per acre = 40, 946 lbs per acre
- 23. Sales of Carrots Weretail in quart containers at $3.50 for approximately 1.5 lbs or $2.33 per lb That equals $95,404 per acre. at 40, 960 lbs per acre we need around $1 a lb to break-even. At our normal $1.50 wholesale price we are making $60 k an acre
- 24. When can weharvest? Retail price is 2.33 per lb divide that into $40,000 per acre and that equals 17,167 lbs per acre, or 0.59 lbs #1 per row ft bunched carrots are more per # so can harvest earlier
- 25. Harvest efficiency We canharvest 1250 lbs #1 carrots in an hour, 4 crew and the brontosaurus That is 312.5# per man/hour a crew of 2 can wash, weigh, and label 296# in one hour, ten minutes or 127# per man hour we estimate $10 per hour for our workers
- 26. Continuing.. 3.2 cents toharvest and 7.8 cents to wash It costs us 11 cents per lb to process carrots, harvest, wash, and pack. $728 dollars per hour to harvest, $295 to pack. The Organic Farmer’s Business Handbook, http://amzn.to/1cynDsA
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- 28. Costing out aMarketing Channel Sales efficiency of the channel Time efficiency Vehicle costs/maintenance Stacking efficiency
- 29. Farmer’s Market 70-80% efficient Marketfees, tents, scales, milage, meetings, politics Retail dollar Scale very easily, equipment has long use time.
- 30. CSA Depending how structured,anywhere from 90-100% efficient Boxes, CSA management, promotions, signup systems Usually less than retail dollar Consumer helps bear financial strain
- 31. Wholesale Efficiencies of scale Unlesscertified, wholesale prices will be quite low Need to have processes and techniques dialed in Just because it is a big check doesn’t mean you are making money
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- 33. Scale and Goals Howdoes this fit with my long term plan? What scale do we want to be on and does this fit with that? How does this fit with our systems already existing on the farm?
- 34. How will thisaffect our team? How does this affect, me, the farmer? How does this affect our crew? What do they think? What do councilors or mentors think? What do other farmers using this piece of equipment, technique, or soil type think of it?
- 35. Financial Decisions Do wehave the money for it? or do we need to finance this? Could we borrow, lease or rent this equipment? How many hours will this save us? Cost us? What are the numbers on this? Payback, reduced cost per unit of crop, etc?
- 36. Financial Decisions How doesthis affect the farm financially, or what are the long term liabilities of this decision? What additional expenses, resources, or time commitments will this purchase/lease incur? Is a dealer for this equipment readily available? How much do parts cost?
- 37. Equipment purchasing never makea hasty decision see if you can try it out before buying double size your equipment, windows of opportunity can be small Track record of the company
- 39. Rainy day orreserve fund we always have a list of equipment that is on our radar if the right one comes along we use this money to buy it.
- 41. Multi-use equipment You don’twant an expensive piece of equipment sitting around 363 days of the year. buying a G over a Super C- depends on scale share equipment between growers research, research, research
- 42. Bed Systems provide astandard system for vegetable production The wider the bed the less wheel tracks per acre Allow for machine planting, cultivation, harvesting, air flow
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- 45. 5 row system 5rows for spinach, radish, salad, other small crops (9”) 3 rows beets, carrots, beans (18”) 2 rows broccoli, cauliflower, potatoes (36”) 1 row tomatoes, artichokes (72”)
- 46. Goldini walking tractor Researchedit as the best walking tractor on the market is an excellent, heavy machine we used it until we were at about 4 acres
- 47. Goldini down engine firein 2006, put us down for 4 weeks starter went in 2013, $800 to replace Italian made, they go on vacation for the month of August, therefore parts very difficult to get. They also use a large variability in parts so very hard to match.
- 48. Buying Cheap Equipment Break partsnot available Dangerous not meant for what you are trying to do. not ergonomic
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- 50. Books on decisionmaking The Goal by Eli Goldratt Good to Great by Jim Collins Great by Choice by Jim Collins The E-myth Revisited Gerber The 80/20 Principle Koch The One-minute Manager Blanchard The Organic Farmer’s Handbook Wiswall
- 51. Selling Wholesale tips tobeing successful
- 52. What does ittake to sell wholesale? efficient production, harvest, and shipping Special supplies Knowledge of case sizes, grades, standards buyers appropriately sized equipment, pack house, etc
- 53. Waxed boxes bythe pallet
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- 55. Advantages of Wholesale Efficientuse of crop move large amounts of product, clean out overages Product placement and name recognition Increased sales opportunities allows scale, which keeps cost of production down
- 56. Disadvantages slim margin product usuallymust be perfect you are not in control, especially when shipping. payment 30 0r 60 days out. Buyers may not order/ or renege on order
- 57. Organic Certification give youprice advantage some companies will accept in leu of GAP easy to explain and nationally recognized alternatives: Food Alliance, Certified Naturally Grown
- 58. Steps to Certification anorganic mindset 36 months free of prohibited substances no genetically modified or treated seeds allowed very strict record keeping and paper trail
- 59. Wholesale channels coops/ healthfood stores restaurants supermarkets food service distributors Produce auctions Listed in our experience from best overall experience to toughest/lowest margin or experience
- 60. Interacting with produce buyers beprofessional have a printed or online wholesale sheet have an off-season meeting to discuss relationship don’t lose money selling wholesale they need to have your cellphone!
- 62. Questions to ask whatproducts, quantities, packing specifications how will communication be done? text, phone, email? Delivery schedule (does dock have specific hours) what deadlines, (order, delivery, credit) need to be put in place?
- 63. Timing, or supplyand demand certain times of year there can be a glut on the market (August tomatoes, June strawberries) also, peak holiday demands (thanksgiving turkey and cranberries) work with your buyers to see what demand is, when. goal is to sequence or have successions so that you can provide the crop the entire season.
- 64. Packaging/Branding Professional packaging sells! Know the packaging requirements of product and their respiration rates growersdiscountlabels.com or even print out on your own computer Who is your customer
- 66. Carrots www.naturallygrown.org kilpatrickfamilyfarm.com Changingthewayourcommunityeats,onefamilyatatime. 2 lbs. 5lbs. seconds Kilpatrick Family Farm’s
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- 68. FRESHPASTURED Scan or goto kilpatrickfamilyfarm.com to learn more Kilpatrick Family Farm chickens scratch for food on a rotated pasture in the summer and are free range in the colder months. Eating only the best local grain, makes their eggs taste better, while they are lower in cholesterol and higher in Omerga 3’s. laid by happy hens
- 69. Pricing most farmers haveunrealistic expectations about what their product is worth national pricing can be volatile, prices can double or halve in a week depending on who is producing work with your buyers to set prices that are equitable for everyone involved. USDA pricing available at www.ams.usda.gov/ fv/mncs/fvwires.htm
- 70. Margin vs Markup Produceis marked up 40-100% in retail stores Markup is percentage they are tacking on, margin is percentage of whole. Margin example: Kale is $3 at store, a 40% margin would mean their cost was $1.80. Markup example: the co-op paid $1.80 for a bunch of kale. They sell it at $3.00, their markup is 66.6 percent. (Sale price/ Cost=Markup. www.purplepitchfork.com/blog/understand-margins-to-understand-pricing
- 71. Standard Kale pricing Wholesaledistributor might pay 1.125 a bunch and sell it at 1.44 (23% margin or 28% markup) to our Coop who will sell it at 2.49 for a (42% margin or 58% markup) You might charge $3 a bunch at the farmers market.
- 72. Margin explained 40% 60% Cost what theypay the farmer or distributor for the product Margin What they use to cover expenses: employees, lights, rent, insurance, etc
- 73. Check Out theBuyer Do they follow through? pay fair prices? do they reject good product? Can they move the volume that is needed? will they buy only when you beat national pricing or are they looking for a local relationship.
- 74. The key towholesale profitability is volume, consistent sales, and efficient production systems Wholesale Success
- 77. DO NOT show upunannounced on a Friday at 4 pm with 3 bushels of cucumbers and expect a buyer to be pleased to see you.
- 78. Billing/Payment invoice promptly- within2-3 days 30 or 60 day terms are standard we started all smaller accounts out at cash and moved them up as we saw fit chefs are notorious for not paying/going out of business- watch them. use professional triplicate receipt books (they get one, you get one, one goes in file) email invoices/ statements
- 81. Food Safety protecting thoseyou serve
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- 84. (Good Agricultural Practices) GAP’s Avoluntary program to reduce the risks of microbial contamination of fruit and vegetables required by many major grocery stores and wholesale distributors http://extension.psu.edu/food/safety
- 85. HASSP (Hazard Analysisand Critical Control Points applies to processed Food usually for large companies and processors focuses on prevention, not reaction is based on sound science
- 86. FSMA- Food Safety and ModernizationAct Government program overseen by the FDA Tiered compliance based on sales totals. Has several major flaws relating to irrigation water, farm categorization, and manure and compost management. Compliance mandatory starting in 2017, but tiered based on farm size.
- 87. FSMA- 2 part law-Part 1 regulates the growing of specific crops, Part 2 regulates facilities that manufacture, process, or hold human food Certain crops are exempt from part one, most notably- Beets, pumpkin, sweet corn, winter squash, sweet potatoes Headache factor of this law is huge.
- 88. More info.. From VernGrubinger at UVM UNH Extension has a lot of good summary info: http://extension.unh.edu/FSMA-What-do-you-need- know Produce Rule Compliance Dates: http://www.fda.gov/ Food/GuidanceRegulation/FSMA/ucm334114.htm What Vermont is doing- highly recommended https:// practicalproducesafetyvt.wordpress.com/ Vern’s diatribe about the proposed rules: http:// www.uvm.edu/vtvegandberry/factsheets/ FourFlawsFSMA.pdf This will all be on blog including vern’s notes
- 89. Develop an On-Farm FoodSafety Plan Risk assessment of specific areas of the farm Documentation of practices and policies SOP’s (standard operating procedures) Land Use History water test results (field and packhorse) records, logs, etc
- 92. Areas of potentialRisk… and tips for improving them
- 93. Document, document makes sureeveryone is following the plan allows you to reduce liability, in case you are part of a larger outbreak collect information to evaluate on-farm processes promotes a culture of accountability.
- 94. Have a writtenplan… for everything
- 95. Worker Health and Hygiene provideclean bathrooms and running potable water to wash with provide training on proper hand washing sick employees should be sent home care for cuts and injuries right away policy on smoking, employee breaks, etc
- 96. Previous and Present LandUse what was on this property before? has it been flooded? what is adjacent? upstream, upslope or upwind? Heavy metal tests, pesticide testing
- 97. Agricultural Water use potablewater within 2 weeks of harvest (especially where water comes in contact with the edible part) test water for possible Bacterial or chemical contamination water management plan for farm what is upstream?
- 98. Processing Water change tankwater frequently use appropriate sanitizer pre-wash dirty vegetables before hydro- cooling 10 degree F rule (wash water not more than 10 degrees colder than vegetables)
- 100. Chemicals just because youare using organic chemicals doesn't mean that you don’t need to follow label chemicals should be stored in own locked area, far from processing and vegetable storage post chemical spill information employees applying chemicals should be properly trained and have license.
- 102. Animal and Pestcontrol keep all animals out of production fields and processing areas. almost all pathogens start with animals, especially E. Coli and Salmonella use fencing, netting, scare balloons, distress calls, etc. to keep animals at bay have a written plan if contamination happens
- 107. Cattle, pigs, chickens, anddomestic animals pose increased threats for contamination.
- 109. Manure and Compost oneof the top areas of concern Raw manure should not be applied within 120 days of harvest. Compost should be hot composted (131-170 degrees) for up to 15 days we use a lot of leaf mold for our farm
- 111. Trace back you shouldbe able to look at a case and know what it is, when, where, and who was responsible to harvest it, and where it is going. we use the code HW/RCAR/GV/220/15 (Name of buyer/product code/field/Julian day of year/year We also keep employee logs, that tell us who is on the harvest crews and who is in the packhouse
- 113. Field harvesting Keep productcool and in shade field heat removed as quickly as possible do not harvest from possibly contaminated areas (animal damage, puddles or flooding, equipment fluid spillage) keep stocks of field supplies near at hand (rubberbands, twist ties, boxes, etc) bins should be cleanable, impervious. keep harvest bins, knives, etc clean
- 117. Packing house concerns lights,fixtures, windows covered or protected from breakage walls should be of material that can be washed and sanitized. area should be well-lit and clean, with washable floors.
- 120. Final Product Transport Imperviousbin or keep on pallet temperature controlled vehicles Think about cold chain requirements.
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- 123. Michael Kilpatrick Kilpatrick FamilyFarm Post-Harvest and Storage
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- 131. Chris Blanchard’s Harvesting Rules •Drag containers rather than pushing them • keep the container near the hand that the product ends up in, and never cross your body with your hands • keep supplies like twist ties and rubber bands next to the hand that grabs them. • don’t set tools down, learn to work while holding knife (rubberbanding, twist tying) • Keep tools sharp, if you feel it when you cut yourself, it isn’t sharp enough • Track progress week to week, share with crew for a reinforcing feedback loop purplepitchfork.com/blackbelt.
- 135. • Storage #4 •Ruby Perfection
- 144. bunch line greens linebarrel washer vegetable washer tomato area coolers in feed
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- 161. Barrel washer from GrindstoneFarm www.grindstonefarm.com
- 177. Cooling requirements Most cropsdo best between 32° and 35° several do best around 50° if sweet potatoes go below 55° damage can occur. at 45°, shelf life is 1/2 that of 32°- keep produce cool http://www.ba.ars.usda.gov/ hb66/contents.html
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- 180. Sanitation Use stainless steel,concrete, FRP board, or plastic for walls, floors, doors use an approved sanitizer: Peroxyacetic Acid (PPA) Trade name (Sanidate, Tsunami), Clorine, (Allowed in organic only as a cleaner) Quaternary Ammonium Compounds (Quats) (not allowed in organic production) http://www.biosafesystems.com
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- 185. Root Celler • 40x 8 x 9 insulated shipping container • Movable, no need for building around it • $15 thousand invested- holding $60 thousand in product. • 3 HP condenser- 2 evaporators
- 186. container sources • www.kelconllc.com •www.jobsiteexpress.com • ebay.com • craigslist.com • barrinc.com
- 187. Inside the rootcellar •note stainless walls •slatted floor •to keep the humidity up(90%), we hose down bags • crops are stacked on pallets to keep them organized
- 192. laying out theroot cellar beets
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- 200. Insulating Trucks? • above15 degrees and under 2 hours doesn't seem to be a problem • roots on bottom of stacks • just insulate very well • www.webasto.com • open flame heaters NOT a good idea-
- 209. Outside Air System Insideair thermostat Outside air thermostat Fan Louver to let air circulate
- 210. using natural cooling Thermostatmeasuring outside air(set for heating) thermostat measuring inside air (set for cooling) Fan (in window bringing in cold air)
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