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Munson's Farm Expansion Proposal

Munson's Pickles and Preserves Farm has been successful for over 20 years growing vegetables and honey. They now want to expand by adding a plant nursery to sell flowers and plants. They are considering building a greenhouse on adjacent land or outsourcing production to farms in different climate zones. A decision requires calculating costs of building a greenhouse versus leasing land and factoring shipping for outsourcing. The proposal will compare these options and recommend the best path for a profitable expansion.

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Cherryjane Ruiz
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148 views5 pages

Munson's Farm Expansion Proposal

Munson's Pickles and Preserves Farm has been successful for over 20 years growing vegetables and honey. They now want to expand by adding a plant nursery to sell flowers and plants. They are considering building a greenhouse on adjacent land or outsourcing production to farms in different climate zones. A decision requires calculating costs of building a greenhouse versus leasing land and factoring shipping for outsourcing. The proposal will compare these options and recommend the best path for a profitable expansion.

Uploaded by

Cherryjane Ruiz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Munson’s

Proposal Plan
Background

The Munson’s have been raising crops and honeybees on their farm since the
mid-1800s. Twenty years ago, the family planted a few rows of sweet corn
alongside the road to see how the crop would yield. The few rows flourished
and produced more corn than expected. As a result, the family decided to put
a sign along the road and sell the extra corn to neighbors passing by the
farm. Eventually, other vegetables were added to the garden which
increased community interest. As the farm grew, the family decided to try
their luck at preserving. Soon, Munson’s was selling pickles and preserves prepared
from the fresh produce. These quickly became a fan favorite among
neighbors and
the community.

Today, the farm grows over 100 acres of


fresh vegetables and maintains 40 hives of
honeybees. A variety of venues and markets
around the community sell the produce and
honey. Recently, the farm has ventured into new
opportunities for selling wholesome food, as well
as opening their doors to events offering farm
fun. 1

Munson’s employs 20 field and


processing employees and welcomes the help
of dozens of volunteers. Volunteers help with
everything from planting and harvesting to
assisting customers in the Pickles and
Preserves Garden Shop.
Munson’s has a few veteran volunteers who manage the behind-the-scenes
business details and host the popular educational farm tours and field trips.

The Munson’s Pickles and Preserves Farm is now investigating new agricultural ventures
and expansion. Market research has begun based on current customer preferences
and discussions with other local producers. Current data shows that plant nurseries are
under- represented locally. (Hendon, n.d.) (Cornejo)
Proposal Overview
Munson’s would like to expand the farm to include flowers and plants. To be successful,
Munson’s will determine which flowers and plants are in the greatest demand and focus
on providing enough of these plants to fulfill customer needs. The farm will
explore popular flowers from around the world as well as plants that are native to the
area. To maximize profit, Munson’s is examining whether to build and manage a
greenhouse at their main farm in Edison, Washington, or outsource to farms across
various planting zones in the United States. A

Identified Plants and Flowers2


Popular Flowers by
Region
Malaysia: Chinese England: Tudor Afghanistan: Tulip
hibiscus Finland: Lily of rose Sri Lanka: Bangladesh:
the Valley Australia: Water lily Samoa: Shapla Bhutan:
Golden Wattle Iceland: Red ginger Blue poppy South
Mountain avens Pakistan: Singapore: Orchid Africa: Protea
Poet's Jasmine Nepal: Iran: Persian pearl United States: Rose
Rhododendron Maldives: Pink rose Chile: Copihue
Cambodia: Rumduol Estonia: Cornflower China: Peony

Native Plants
Miniature Hollyhock

Alpine Strawberry

Broadleaf Lupine

Camassia

Tuft Hairgrass

Fireweed

Oregon Grapeholly

A
Specific calculations will be provided in the financial reports.
Shooting Star

Broadleaf Sedum

Goatsbeard

Greenhouse Option
Munson’s does not have additional farmland to dedicate to the expansion of building a
greenhouse. However, a parcel of land is available for purchase adjacent to their current
farm. The seller has offered a full purchase price offer, a lease purchase offer, or a
profit- sharing offer. If they choose to purchase the land, Munson’s will need to determine
the initial cost of building the greenhouse as well as the ongoing cost of
maintaining, operating, and staffing.

Outsourcing Option
To minimize the initial cost of expansion, Munson’s is considering outsourcing to various
farms in multiple planting zones. To fully consider this option, Munson’s needs to
determine the cost to lease the land and resources from the regional farms. In addition,
shipping costs will need to be calculated. The best outsourcing options for Munson’s are
listed below.

Zone 6
•Christmas Valley, Oregon

Zone 7
•Kennewick, Washington

Zone 8
•Edison, Washington

Zone 9
•Gold Beach, Oregon
The list consists of farms in close proximity to Munson’s farm to reduce shipping costs.
Additional regions will be explored if the opportunity arises.

Summary
Munson’s Pickles and Preserves Farm has established a respected, well-known
reputation throughout many locations in the United States of America. The passion for
providing excellent customer service coupled with their love of nature has provided the
farm with
the opportunity to expand their business.

1
For additional information on the Background of Munson’s Pickles and Preserves Farm please refer to
[Link]
2
Information provided by Trey Research. Once the growing option is chosen the list will be updated.

Bibliography
Cornejo, J. (n.d.). Master Artist. Flowers and Plants. School of Fine Art, New York, New
York.

Hendon, A. (n.d.). Regional Farming. Retrieved from Trey Research:


hhtp://[Link]/

Common questions

Powered by AI

Munson's has maintained its reputation by consistently providing excellent customer service and quality products, which has built a strong community trust . As they explore new opportunities, they leverage this reputation by ensuring any expansions, like into flowers and plants, align with customer preferences and demand, helping foster continued loyalty and market presence . This approach not only supports business growth but also sustains the brand's integrity and reliability.

Munson's should consider factors such as regional popularity and customer preferences, focusing on both local native plants and popular flowers from diverse regions . They also need to evaluate the adaptability of these species to local climate conditions and the potential demand within their community . This involves a careful analysis of market trends and ecological compatibility.

Diversification has played a significant role in Munson's business growth by expanding their product offerings and attracting a wider community interest. Initially starting with corn, they diversified into a variety of vegetables, and later added pickles and preserves, capitalizing on community demand . This focus on diversification has extended into potential new ventures like flowers and plants, reflecting their strategy of responding to market demands and exploring new opportunities .

Considering plants popular in regions outside their locality provides Munson's strategic advantages by tapping into broader market trends and attracting diverse customer bases interested in novel products . This approach allows them to differentiate their offerings from local competitors, potentially increasing sales and expanding their market reach. It requires careful selection to align with climate adaptability and consumer interests to ensure successful integration into their product line.

Purchasing adjacent land could significantly affect Munson's operational dynamics by providing space for a greenhouse, thus centralizing operations and reducing dependency on external logistics . This would allow greater control over production processes and possibly enhance profit margins. Strategically, owning the land secures future growth opportunities and mitigates risks associated with leasing or outsourcing . However, it also requires substantial initial capital investment and operational readiness to handle new facilities.

Munson's should evaluate strategic considerations such as the financial impact of upfront costs and long-term benefits associated with land ownership versus leasing or profit-sharing . Purchasing land provides control and security but requires significant capital and entails risks related to future market fluctuations or operational challenges. Leasing or profit-sharing might reduce initial financial strain and afford flexibility, but could limit control over agricultural operations and profits. Analyzing market projections, financial health, and business goals will inform a balanced decision on the best course of action aligned with Munson's long-term vision.

Volunteers are integral to Munson’s operations and community engagement, assisting in diverse roles from fieldwork to customer service . Experienced volunteers manage business aspects and host educational tours, fostering community interaction and involvement . This volunteer involvement enhances operational efficiency while building community ties and promoting the farm as a participative and educational hub.

Choosing between a greenhouse and outsourcing presents Munson's with several challenges. A greenhouse requires purchasing land, which is a significant capital investment, as well as ongoing costs for building, maintaining, and staffing . On the other hand, outsourcing would minimize initial costs but involves determining lease costs and managing logistics such as shipping, which could impact profit margins . Each option involves balancing costs, risks, and potential returns while aligning with the farm's long-term strategic goals.

The choice of regional farms for outsourcing affects Munson's cost structure and logistics by introducing variable costs related to leasing agreements, resource allocation, and transportation between farms . Opting for nearby farms in different zones allows for diversified planting conditions, but it necessitates efficient logistics management to minimize shipping costs and ensure timely delivery of products . This strategic decision impacts both the marginal costs of production and scalability of operations.

Expanding into greenhouse production would require Munson's to address hormone and pest management more intensively, as controlled environments can exacerbate pest growth if not managed properly. Implementing sustainable practices and integrated pest management strategies becomes critical. Hormone management may enhance growth yields but necessitates careful monitoring to avoid impacting the quality of both greenhouse and outdoor produce. These implications affect both the operational efficiency and the environmental sustainability of their expansion strategy.

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