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Marketing Considerations - Florida Greenhouse Vegetable Production Handbook, Vol 1
http://edis.ifas.ufl.edu/ ( Publisher's URL )
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Permanent Link: http://ufdc.ufl.edu/IR00001681/00001
 Material Information
Title: Marketing Considerations - Florida Greenhouse Vegetable Production Handbook, Vol 1
Physical Description: Fact Sheet
Creator: Zimet, D. J.
Publisher: University of Florida Cooperative Extension Service, Institute of Food and Agriculture Sciences, EDIS
Place of Publication: Gainesville, Fla.
Publication Date: 2001
 Notes
Acquisition: Collected for University of Florida's Institutional Repository by the UFIR Self-Submittal tool. Submitted by Melanie Mercer.
Publication Status: Published
General Note: "Original publication date December 1990. Revised January 2001. Reviewed February 2008."
General Note: "HS772"
 Record Information
Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
Rights Management: All rights reserved by the submitter.
System ID: IR00001681:00001

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HS772 Marketing Considerations Florida Greenhouse Vegetable Production Handbook, Vol 11 D. J. Zimet2 1. This document is HS772, one of a series of the Horticultural Sciences Department, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida. Original publication date December 1990. Revised January 2001. Reviewed February 2008. Visit the EDIS Web Site at http://edis.ifas.ufl.edu. 2. D.J. Zimet, associate professor, North Florida Research and Education Center Quincy, Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, 32611.The Florida Greenhouse Vegetable Production Handbook is edited by George Hochmuth, professor of Horticultural Sciences and Center Director, North Florida Research and Education Center and Robert Hochmuth, extension agent IV, North Florida Research and Education Center Suwannee Valley, Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL 32611. The Institute of Food and Agricultural Sciences (IFAS) is an Equal Opportunity Institution authorized to provide research, educational information and other services only to individuals and institutions that function with non-discrimination with respect to race, creed, color, religion, age, disability, sex, sexual orientation, marital status, national origin, political opinions or affiliations. U.S. Department of Agriculture, Cooperative Extension Service, University of Florida, IFAS, Florida A. & M. University Cooperative Extension Program, and Boards of County Commissioners Cooperating. Larry Arrington, Dean Because of the large investment required to start a greenhouse operation and the relative inflexibility of the greenhouse once it is set up, a marketing plan should be developed before the investment is made. The plan should take into account several market and production circumstances. Statements like "a tomato is a tomato," do not hold true, or at least should not hold true, for greenhouse vegetables. Most greenhouse producers say that they compete in terms of quality against mature green and even vine-ripe tomatoes. They can do so because greenhouse vegetables are viewed as specialty items which cater to a relatively small, but highly demanding market. Although the market is limited on an industry level, to the individual grower, the market can seem quite large. Market size can work for and against producers. Buyers seek consistent quantity and quality. Presently in Florida a typical greenhouse produces about 2/3 the volume of tomatoes that is produced on an outdoor acre. Given the small number of greenhouses, there is an inherent problem in having the ability to consistently produce or supply quantities demanded. The individual producer can often locate outlets for the produce, however, if enough time is taken. Once found, the market must be developed and sufficiently won over. An individual producer can do this locally by selling to specialty produce outlets. The marketing effort described above is very demanding and can be quite expensive, especially in terms of time requirements. The time requirement for marketing could prove harmful to crop production. Despite this potential drawback, such a marketing effort can be quite lucrative to the individual producer. In general, buyers and/or shippers require more volume than would be available from a (small) individual greenhouse producer at any one time. The logical implication is that some type of marketing association would be able to meet quantity and quality requirements. A marketing association could meet quantity requirements by coordinating production and harvesting by its members. In order to meet quality

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Marketing Considerations Florida Greenhouse Vegetable Production Handbook, Vol 1 2 requirements, an association should set quality standards (that are understood by all members). The members must agree to adhere to those standards and to be penalized if they do not do so. In addition, members must guarantee that they would market a certain percentage of their crop through the association and that they will not negotiate individually with the same buyers to whom the association sells, with whom it has negotiated in the recent past, or with whom it is in the process of negotiating. In general, producers should be wary when selling their product and should be aware that (forward) contracts are very rare in the produce industry. They are rare because prices depend upon conditions that change frequently or that are relative rather than absolute. Supply and quality conditions from other sources heavily influence the price a producer is offered. In addition, producers cannot predict the quality of their own harvest or even its quantity. Such predictions are more feasible, however, with greenhouse production than with field production. Although not foolproof, growers should check to see whether or not a broker (or any buyer) is bonded in Florida. The buyer or handler should also be checked by referring to some type of directory such as the Redbook. Producing a quality product is not enough. The product must be marketed successfully, which takes effort, in order to be able to say that a production cycle was successful. More Information For more information on greenhouse crop production, please visit our website at http://nfrec-sv.ifas.ufl.edu. For the other chapters in the Greenhouse Vegetable Production Handbook, see the documents listed below: Florida Greenhouse Vegetable Production Handbook, Vol 1 Introduction, HS 766 Financial Considerations, HS767 Pre-Construction Considerations, HS768 Crop Production, HS769 Considerations for Managing Greenhouse Pests, HS770 Harvest and Handling Considerations, HS771 Marketing Considerations, HS772 Summary, HS773 Florida Greenhouse Vegetable Production Handbook, Vol 2 General Considerations, HS774 Site Selection, HS775 Physical Greenhouse Design Considerations, HS776 Production Systems, HS777 Greenhouse Environmental Design Considerations, HS778 Environmental Controls, HS779 Materials Handling, HS780 Other Design Information Resources, HS781 Florida Greenhouse Vegetable Production Handbook, Vol 3 Preface, HS783 General Aspects of Plant Growth, HS784 Production Systems, HS785 Irrigation of Greenhouse Vegetables, HS786 Fertilizer Management for Greenhouse Vegetables, HS787 Production of Greenhouse Tomatoes, HS788 Generalized Sequence of Operations for Tomato Culture, HS789 Greenhouse Cucumber Production, HS790

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Marketing Considerations Florida Greenhouse Vegetable Production Handbook, Vol 1 3 Alternative Greenhouse Crops, HS791 Operational Considerations for Harvest, HS792 Enterprise Budget and Cash Flow for Greenhouse Tomato Production, HS793 Vegetable Disease Recognition and Control, HS797 Vegetable Insect Identification and Control, HS798