Introduction

Dr. Jared Wilson’s start-up venture, Wilson Family Peach Farm, is for Susan and her husband. The Wilsons will soon be retiring from their normal professions, starting in the spring. The farm is intended to provide the Wilsons with an opportunity for post-retirement work and income, plus an opportunity for both of them to continue their individual research programs on agriculture and nutrition. A total of 80 acres are to be acquired using the equity of the owner and a federal farm loan. Dr. Wilson and Mrs. Wilson will share ownership of the farm. The limited liability company chartered in Georgia will manage the operation.

The Farm and its Products

The farm has prime fruit growing land approximately 3.5 northwest of Gainesville, Georgia. This is a prime area for stone fruit and peaches growing. The land gets plenty of sunlight, has excellent drainage, and an optimum soil pH.

Wilson Family Peach Farm will grow seven varieties of peaches in its first three years. These include the Redhaven (Ishtara), Tenn Natural and Lovell (Bayley, Montclar and Starks Redleaf) and the well-known Elberta. Once profitability has been established, the farm will begin to expand into more rare varieties.

This crop’s attractiveness is due to the fact that high-quality, fresh peaches and nectarines are low in calories and sweet tasting. One medium peach provides only 37 calories. These fruit are good sources of Vitamin C. Yellow-fleshed varieties are good sources of Vitamin A.

The Market

The United States supplies approximately one-fourth (25%) the total world supply of fresh peaches.

Peaches are America’s third most loved fruit. They are responsible for more than 70% of all stone fruits produced in the U.S. South Carolina, Georgia and California follow California’s 72 percent share. In the three-year period, they have averaged about 6 and 4 percent respectively of the U.S. total. Georgia’s peach crop produced 115 million lbs last year and earned $41.7 million. Georgia produces over 40 varieties of commercial peaches, in addition to Elberta. Recent developments have shown that there may be an increase in the global peach market, particularly in Asia.

Wilson Family Peach Farm plans to sell its crop to three main buyers. In order to keep its profit margin high, the Wilsons will concentrate on selling the majority of its fruit to the local produce stands which are able to charge more for the higher quality fruit. The remainder of the fruit will then be sold to local distributors and fruit packing companies, who then sell the fruit to grocery shops. Any fruit that is not up to the standards of quality/maturity will be sold on to canneries.

Financial Considerations

The farm will be financed with a farm assistance loan and a significant amount of owner’s equity. This will allow the farm to generate sufficient cash flow until it is able to start earning revenue. In year one, sales are expected to be enough to be profitable and to continue growing through year three.

1.1 Objectives

The objectives over the next three years for the Wilson Family Peach Farm are:

• In the first year, you can achieve profitability.
• By year three, you can expand by buying 50 additional acres of land adjacent.
• Take advantage of the niche market in specialty and hybrid stone fruit.
• To realize economies of scale, increase yield per annum

1.2 Mission

The Wilson Family Peach Farm’s Mission is to provide an income stream for Jared Wilson and Susan Wilson as well as a retirement job. Dr. Wilson and Mrs. Wilson will continue to research the agricultural and nutritional fields from the farm.

Success Keys 1.3

Farming in America is an old industry with little growth and a very competitive marketplace. The Wilsons will concentrate on the niche market for rare and hybrid peaches, nectarines, and stone fruits, as well as quality to maintain its supplier contracts with local producers and chain distributors. The Wilsons identified these key elements as the keys to their success.

• Utilize early harvest varieties of peaches, nectarines to become ‘#8220’ first to market
• Focus on marketing of hybrids to local distributors.
• Aggressively pursue cost analysis, and reduction.
• For quality enhancement, focus on post-harvest management of produce.