Market Analysis
California cost of living is higher than the national average and housing costs are much higher than the national average. At the same time, Riverside County personal income is less than the national average. In other words, this community can not only afford a high cost for organic items, but PFC Farms has made a way so the community can afford them as well. PFC Farms offers all seasoning lines and each include nutrients. Market analysis shows nutrition count on commercial food is low, PFC Farms utilizes super foods (Kale, Cabbage) to enrich the vitamin and nutrient count in every seasoning bottle.
California cost of living is higher than the national average and housing costs are much higher than the national average. At the same time, Riverside County personal income is less than the national average. In other words, this community can not only afford a high cost for organic items, but PFC Farms has made a way so the community can afford them as well. PFC Farms offers all seasoning lines and each include nutrients. Market analysis shows nutrition count on commercial food is low, PFC Farms utilizes super foods (Kale, Cabbage) to enrich the vitamin and nutrient count in every seasoning bottle.
Industry Analysis
This analysis is based on the North American Industry Classification System (“NAICS”) 111998: Agriculture – All Other Miscellaneous Crop Farming. The US crop production industry includes about 1 million farms with combined annual revenue of about $205 billion
Billion. Major companies include Dole Food Company, Chiquita Brands International, and Sunkist Growers. Crop farming is the growing and harvesting of field crops such as grain, oilseeds, tobacco, dry beans, potatoes, vegetables and melons, fruits and nuts, and floriculture.
Global crop production revenue exceeds $1 trillion. The US and China are among the top crop producers. Large companies outside the US include Fresh Del Monte Produce (headquartered in Cayman Islands); Total Produce (Ireland); and Amaggi Exportação e Importação (Brazil).
Demand is driven by federal agricultural policy programs, food consumption trends, and the grain and oilseed export market. The profitability of individual companies depends on maximizing crop yield and minimizing disease risk. Large companies have advantages in highly automated technologies and access to the latest in seed and crop technologies. Small operations can compete effectively by harvesting heirloom, non-genetically modified (GM), or specialty products. The industry is capital-intensive: average annual revenue per employee is about $390,000. (First Research)
The CSA makes the following generalizations/guidelines regarding its industry:
⦁ New entrants should practice farming 2 years prior to making a commitment to the challenge of CSA farming
⦁ In general, 20-30 shares per acre is possible
⦁ 30 shares per farmer or laborer is possible
⦁ To earn full time income 80-100 shares may be necessary
⦁ The share price ranges from $300-$800 per share annually ($15-$40 per share weekly) (CSA – Example)
⦁ In general, 20-30 shares per acre is possible
⦁ 30 shares per farmer or laborer is possible
⦁ To earn full time income 80-100 shares may be necessary
⦁ The share price ranges from $300-$800 per share annually ($15-$40 per share weekly) (CSA – Example)