 Zortrax Food Industries food processing ZORTRAX GLOBAL AGRIBUSINESS INVESTMENTS GROUP
The global population is already at 8 billion people according to United Nations. One of the major factors that drive and fuel this kind of population is food. This population have to feed every day and with climate change ravaging the world today better modern farming methods, climate smart agriculture and greenhouses farming remains the most viable farming methods for food security in the world. Zortrax Global Agribusiness Investments (ZGAI) has been on the forefront in making this a reality and by encouraging as many people as possible to be involved with this 21st methods of farming whether directly or indirectly. Table of contents: Ø What is Zortrax Global Agribusiness Investments? Ø Opportunity Ø Execution Ø Appendix Ø WHAT IS ZORTRAX GLOBAL AGRIBUSINESS INVESTMENT GROUP? Zortrax Global Agribusiness Investments is the agricultural investment company arm of Zortrax Agriculture Corporation. Established in 2018 commercially the company was fuelled by the need for inclusion of the other stakeholders who are interested in being part of the company. The stakeholders are either directly or indirectly involved with the running of the company to cater for their interest. Those who are directly involved have been offered the advisory board roles to oversee and advise the core team on divergent matters since most of the stakeholders hails from different professional backgrounds. Their advice and oversight is second to none and has kept ZGAI progressing to greater heights. ZGAI solely deals with agricultural investments where the willing stakeholders injects their share of the funds into the projects for a return on investment after the maturity of the agricultural project they invested in. The model has been widely accepted as every stakeholder has been receiving their return on investment no matter the circumstances. Ø OPPORTUNITY ZGAI has identified the following areas that would interest stakeholders and also proven that we have planned for and intend to execute our model Problem The biggest problem with the current world market and agricultural environment is inconsistencies in quality, price, and availability of agricultural products such as fruits, vegetables, herbal plants, trees, seeds, etc. In addition, the markets rely on generally poor safety, health, handling, and distribution standards that are exacerbated by a lack of proper or strict enforcement. Solution ZGAI has been able to will be able to operate in a wide scale such that it can produce and distribute its products to a larger population in the world. The agricultural environment would then turn effectively into providing locale employment opportunities; maximizing ZGAI social impact, and generating reasonable or fair returns to the stakeholders. Stakeholders/Investors ZGAI has been involving the stakeholders with the opportunity of owning a pie of this company under Zortrax Agriculture Corporation, temporally for a number of months or years depending with the type of agricultural investment they have chosen to invest in. ZGAI has pulled off this effortlessly for the past 4 years with our locations in London, Africa, America and Asia. Basically the stakeholders earn a return on investment of 15 percent pa. Well managed agricultural structures can earn many times the aforementioned return percentage owing to the fact we don’t have inflation in agriculture produce and the world population increasing every day. Our markets are diverse and our avenues to realize such kind of returns. Our distribution networks worldwide makes it easier as well as our value addition manufacturing lines, making it easy to reduce or entirely alienate post-harvest losses, thus increasing the profits. ZGAI model is sustainable and has been successful for over four years now and counting serving over 2000 stakeholders uplifting their livelihoods. The stakeholders usually invest on well-structured well researched and proven agricultural investments over the years, long term and short term investments. The short term agricultural investments includes greenhouses, hydroponics, aeroponics and normal greenhouses agriculture, among others. The long term agricultural investments includes citruses and long term fruits agriculture. Target Market Scope/Overview ZGAI targets consumers who are looking for the best quality and best priced products that are consistently available at the nearest market from where they live or work. Better quality and healthy foods can only be found in upscale supermarkets and the average consumer is left to shop in local open-air markets, which are inconsistent and sometimes unsafe. Whether open-air or in supermarkets, ZGAI aims to produce in a large scale – enough to force reasonable pricing across the board; at the same time offering the best quality of products that are safe and healthy for the average consumer. So far, ZGAI has been successful in tapping into international markets and in most of the countries we operate in. ZGAI has already defined its customer base and started a trend, whereby we have been exporting our finished products to countries like Spain, brazil, UAE, Africa, and Europe just to mention a few. ZGAI intends to push the boundaries and disrupt world agriculture by introducing working agricultural mechanisms that favors the farmers and its stakeholders at large at this age. Target Market Segments (Summary) a.) TAM (Total Available Markets) ZGAI available market encompasses the consumers and countries who need: Consistent availability of products. Reasonable prices. Accessible products. Top Quality and safe products. Employment and economic advancement. While this encompasses a broad population, Zortrax’s marketing strategy is designed to gradually spread from current locations to targeted geographic destinations. b.) SAM (Segmented Addressable Markets) ZGAI segmented markets can be summarized as locally existing open-air markets, supermarkets, value-added markets such as fruit juice, and honey in the respective countries we are in operation. This doesn’t include the countries we do the exports. c.) SOM (Share of Market) ZGAI intends to reach into approximately 40% of the world general population in terms of its products from stakeholder’s investments and involvement to the leading producer of different staple diets in different countries around the globe. We will achieve this by employing precision agriculture and climate smart agriculture not mentioning bringing together and training the communities of different countries we and will operate in. This is all geared to ensure in our small ways the impact will be felt on the issues of food security and financial freedom to the stakeholders in the short and long run. The strategy is to be active participants in the defined landscape but also to build its brand in a manner that ensures that the remaining 60% knows about Zortrax Global Agribusiness Investments and will be simply waiting for distribution of its products and services. The long term strategy has been defined in various aspects within this document. Trends The described market segments have been researched and determined to be driven by: i.) The rapid increase in population; increasing the number of potential consumers. ii.) The increasing health awareness of consumers; especially in developing countries; requiring safer and top quality agricultural products. iii.) An increasing demand in international markets. iv.) An existing and expanding niche the food products in international markets. An example of the listed trends is honey. Zortrax Honey a subsidiary of Zortrax Agriculture Corporation is branding African. Asian, and Europe honey this is bid to minimize the gap of this precious commodity mostly under looked, catapulting to the markets and the consumers worldwide. The discussed target markets and trends address the advancing tastes and evolving needs. The potential changes in the marketplace have also been researched and the conclusion is that the above trends offer an ever-increasing customer base. Any changes in ZGAI strategy are anticipated to be minimal and easily adjusted to. Ø EXECUTION Our products is for the all walks of life consumers and stakeholders who has difficulty finding quality agricultural products readily available, reasonably priced and healthy to consume. The stakeholders who haven’t yet found a better way to invest their funds in a company that has a reputable history over the years. ZGAI pricing model is primarily based on the cost-plus pricing elements commonly used in the agricultural industry. It means that for most of its products, the price is determined by the initial cost of production and distribution, plus a reasonable mark-up offering, which may depend on many variables. The prices of most products will almost certainly be evenly distributed from the low end to the high end market with the intent that large scale production will serve all this population variations. Ø APPENDIX The food production and marketing industry provides the physical products and associated services required in the production and consumption of food products. For safety and health reasons, the industry is controlled in each country of origin as well as the desired destination. The controls are essentially governmental and may be subdivided into other parts of the selected government. For example, the federal governments oversee the entire set of protocols, but state, provincial, health, ports authorities, and other subsets of the federal government may require additional or supplemental rules and regulations. The food production and marketing industry comprises of affiliated companies or entities separate or fully owned by Zortrax Agriculture Corporation. These companies may be involved with activities such as transportation, sales and marketing, quality control, shipping, packaging, and handling of products and other activities as required. All activities are the responsibility of Zortrax Agriculture, which is ultimately responsible for the health and safety of all individuals and companies involved from the transport/shipping stage (from the farm sources), through the port of entry (desired country), and finally to the intended market. In different countries, the food production and marketing industry may be referred to and under the umbrella of differently-named departments or organizations. Zortrax Agriculture Corporation with its subsidiaries shall satisfy the requirements of all entities in any selected country of operations.
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 BEE FARMING TECHNOLOGY Modern Zortrax farms and agricultural operations work far differently than those a few decades ago, primarily because of the advancements in technology we have made, including sensors, devices, machines, and information technology. Our agricultural practices routinely uses sophisticated technologies such as robots, temperature and moisture sensors, aerial images, and GPS technology. These advanced devices and precision agriculture and robotic systems allow us to be more profitable to us and our investors, efficient, safer, and more environmentally friendly.
IMPORTRANCE OF ZORTRAX AGRICULTURAL TECHNOLOGY With Zortrax Agriculture Technology farmers no longer have to apply water, fertilizers, and pesticides uniformly across entire fields. Instead, they can use the minimum quantities required and target very specific areas, or even treat individual plants differently. Benefits include:
In addition, Zortrax robotic technologies enable more reliable monitoring and management of natural resources, such as air and water quality. It also gives producers greater control over plant and animal production, processing, distribution, and storage, which results in:
FOOD DEMAND BY THE YEAR 2040 By 2040, the demand for food will surge 70%, in line with rapid population growth in the world. A study found that about 9.9% of the world’s population still goes hungry, so the thought of feeding almost 10 billion mouths is a daunting prospect. With environmental changes hard to predict, we must turn to innovation in agriculture technology, and this is where Zortrax Agriculture Technologies applies. Thankfully, the signs so far offer hope With Zortrax Agriculture Technologies. We don’t have to wait two decades to see how innovative agricultural solutions can influence human life in the future, when as a corporation we are already into this farming technologies now. Read on to discover innovation and Zortrax Agriculture technology in agriculture that we are already working and have worked on. We’ll explore some of the Zortrax Agriculture Technologies that change the way farmers grow, transport, store, and manage their produce. 1. ZORTRAX BEES FARMING When it comes to U.S. and UK and Africa crop production countries where Zortrax Honey operates , honey bees are worth $55 billion in totality. These insects are essential to human survival, so as a corporation there is increasing innovation in agriculture equipment to help protect bees and maximize their pollination capabilities. ZAC uses commercially reared bees to deliver targeted crop controls through pollination, replacing chemical pesticides with an environmentally safe crop protection system. The system doesn’t require spraying water or the use of tractors. Instead, the scientifically designed bumblebee hive allows bees to pick up a trace amount of pest control powders on their legs to spread as they travel within the field. This innovation in agriculture technology supports improved sustainable farming, crop yield, and soil quality. ZBVT’s solution is suitable for many crops, including blueberries, sunflowers, apples, and tomatoes, and it also works for farms of all sizes. 2. PRECISION AGRICULTURE At Zortrax Agriculture Corporation we comprehend that agriculture is the nobliest of all professions and that's why we use Precision agriculture as an agricultural resource management strategy that collects, processes, and evaluates data and offers insights to help farmers optimize and increase soil quality and productivity. Management decisions count on precision agriculture data points to improve farmland and farm produce across several key areas which have assisted us in key decisions making all over the years including:
This innovation in Zortrax Agriculture Technology uses big data to aid management decisions, enabling farmers and our corporation to control crop yield variables like moisture level, soil condition, and microclimates to maximize output. It relies on remote sensing systems, drones, robotics, and automation to improve crop health and optimize agricultural resources, leading to more productivity. Zortrax Agriculture Corporation projects that the global precision farming market will hit $16.35 billion by 2028, growing at a 13.1% CAGR. Zortrax believes increasing government support and the growing need for efficient crop health monitoring will drive market growth. 3. GREENHOUSES AND INDOOR VERTICAL FARMING The average yield of rice per hectare is between three and six tones. However, farmers don’t have to face this limitation when using indoor vertical farming. This indoor vertical farming grows farm produce stacked above another in a closed and controlled environment. Zortrax Agriculture Technology growing shelves mounted vertically to increase crop yield in limited spaces. Quite often, the shelves don’t require soil—they’re either hydroponic or aeroponic:
Indoor vertical farms enable growers to control variables such as light, temperature, water, and sometimes, carbon dioxide levels, allowing them to get healthier and bigger yields. Other benefits of the technology include 70% less water usage, which conserves energy, and reduced labor costs due to the use of robots for harvesting and planting. 4. ZORTRAX LIVESTOCK FARMING TECHNOLOGY Zortrax livestock technologies provide farmers with data-driven insights, allowing them to streamline farm management, improve animal care, and boost productivity. Here are some of Zortrax innovations redefining livestock farming:
Zortrax farm automation brings together agricultural machinery, computer systems, electronics, chemical sensors, and data management to improve equipment operation and decision-making, and ultimately, reduce human input and error. Reduced labor time, higher yields, and the efficient use of resources are driving the large-scale adoption of the technology. Zortrax now use automated harvesters, drones, autonomous tractors, seeding, and weeding to transform how they cultivate their crops. The technology takes care of menial and recurring tasks, allowing them to focus on more critical functions. As with any field, Zortrax automation can help employees save time, as the technology reduces the need for people to actively partake in a task. Thanks to this automation, the production has increased on this farms and most farmers now spend more time with their families than before. 6. ZORTRAX WATER MANAGEMENT TECHNOLOGY Irrigation is a vital method of providing water to drylands that usually have insufficient rainfall in order to make them arable. However, while this is a crucial aspect of farming today, many farmers still irrigate their fields with wasteful amounts of water the same way the Mesopotamians did over 4,000 years ago. Besides wasting over two-thirds of the water, flood irrigation can overwater plants, affecting their growth. It could also carry excess fertilizers into streams and lakes, contaminating freshwater sources. Zortrax innovation and technology in agriculture offer farmers more sustainable ways to provide sufficient water to plants. For instance, N-Drip, a micro drip irrigation system, allows water to slowly drip to plants’ roots, creating the right environment for crops to thrive. The technology reduces water usage by up to 50% and improves crop quality. 7. ZORTRAX REAL-TIME KINEMATIC (ZRTK) TECHNOLOGY While conducting research at our farms in the UK, we found that constraining farming machinery to a permanent lane significantly reduced damage to the soil. “Allowing machines unconstrained travel across the land can result in virtually all of the land being run over, which compromises the drainage and friability.” In 2020, Zortrax Farms planned to transition our 3,500 acres to a 12-meter controlled traffic system where all the farm machines will use the same permanent traffic lane. Implementing a controlled traffic system requires accurate techniques, which are almost impossible with traditional GPS systems. ZRTK technology can provide centimeter-level accuracy, which enables farmers to accurately map their fields and constrain vehicles permanently on the same lane. It transmits the correct positioning information to tractors by radio signal, allowing them to stay on track while moving. This innovation boosts soil health and productivity, increasing output with less input.  Agriculture machinery My family had the Sukkah de rigueur when I was a kid. There was enough room for four folding tables to seat 30. The walls were brown burlap to complement the pine branches overhead. Decorations of orange and yellow gourds along with purple and browned cobs of corn hung from above. And although I enjoyed their autumnal colors and strange shapes, the significance of the dangling vegetables was lost on a suburban kid who thought anything could be found in the supermarket. In Israel, however, the agricultural motif of the holiday isn’t missed, whether you’re from the city or the country. It’s part of the history here. For the many Zionist pioneers who first settled in the Land of Israel at the beginning of the last century, the most important theme of Sukkot was found in a biblical passage that called for a weeklong thanksgiving at the end of the harvest season: “You shall hold a festival for the Lord your God, seven days, in the place the Lord will choose; for the Lord, your God will bless all your crops and all your undertakings, and you shall have nothing but joy”  Agricultural Automation using drones Still, farming meant much more than providing a daily sustenance for Israel’s founders. They wanted to reclaim what they saw as a barren country and realize the vision of a “land flowing with milk and honey.” At the same time, the kibbutz movement spread its agricultural communes along the frontiers of the land in order to set up outposts that would one day be used in defense of the Jewish state. So when Sukkot came, the relevance of the holiday went beyond religion. It gave Israelis a chance to celebrate the agrarian enterprise and the national socialist values of the settlement movement.
Israeli farmers have come a long way since the first pioneers began clearing away rock-strewn fields and draining the swampland. In the half century since Israel’s establishment, the country has almost tripled the territory used for farming and production has multiplied 16 times. About one-fourth of that output is exported. The best-known success is the Jaffa citrus fruit brand, but Israel is selling much more abroad than just oranges. Making the Desert BloomOne of the biggest achievements of Israeli agriculture has been the ability of farmers to utilize the country’s desert areas as greenhouses. In the same way that the Children of Israel were compelled to face the trial of surviving in the desert wilderness for 40 years, economics forced many Israel crop growers to cultivate the barren regions of the country’s southern periphery rather than the more expensive lands in central Israel. The exposure to searing hot days, bone-chilling nights and occasional flash-floods make Israel’s desert farmers experts on the experience recalled by the weeklong Sukkah sojourn. “Everything is strong: the heat is strong and the colors are strong,” Eran Ettner, one of Israel’s desert farmers. “When a storm comes, it comes like a tornado for two or three hours and then it is quiet.” Ettner grows peppers in the Arava valley, which runs along the Israel-Jordanian border from the southern tip of the Dead Sea to Eilat. The region has become one of the most fruitful for Israeli farmers, who have learned to use the high level of sun radiation and the dry weather to grow some of the juiciest vegetables you’ll ever taste. In total, about 60 percent of the country’s vegetable exports come from the Arava region. In addition to peppers, the Arava is also known for its melons and flowers. The methods have been so successful, that Israel has exported its agriculture technology to places like Morocco and Egypt, even though they’re potential rivals for sales to Europe. The Jewish National Fund (JNF) has played a critical role in the success of desert agriculture, funding the preparation of 2,000 dunams (8,000 acres) a year for use. The JNF also subsidizes research and development stations that focus on improving Israeli technology. That’s one of the factors that helped the farmers figure out a way to make do without a critical agricultural resource that the country sorely lacks: sweet water. With rain falling only about five months out of the year, precipitation has always been a life-and-death issue in the holy land. It’s been so critical, that the rabbis who designed the prayer liturgy inserted a prayer for rain to be repeated three times daily starting at the end of Sukkot–the beginning of the rainy season–through Passover. In the desert, though, farmers have realized that if they want to thrive, prayers aren’t enough. Uri Yogev had been cultivating orchards of peaches and plums for three years on Kibbutz Revivim in the southern Negev when he realized that there wasn’t enough fresh water to make the fruits profitable. So he decided to turn to a more plentiful natural resource in the region: the underground salt-water aquifers. “It was clear to us we had to concentrate on salt water, because that’s what exists here,” he said. “Everyone knew there was salt water but no one knew what to do with it.” A Romantic Vision Realized A member of the kibbutz suggested that Yogev use the brackish water to try growing olive trees–even though olives are traditionally grown in climates where rain is plentiful and the soil is rich. The results were better than they could have imagined. In five years the kibbutz now boasts the largest grove of olive trees in Israel. Yielding about 200 tons of award winning olive oil a year, the orchard is the only one in the world where olives are cultivated with salt water. “Salt has created very big and very successful trees,” Yogev said. The Israelis who thrive in the desert making it bloom with peppers, olive trees and flowers are realizing the romantic vision of the country’s founders. To walk through orchards of palm trees in the middle of wilderness is breathtaking enough to entice even a suburban couch potato. But the work isn’t for the fleeting romantic enticed by Sukkot’s outdoor existence. While desert farmers derive satisfaction from working the land, they also endure some of the most mundane tasks possible. Iddo Korman, who grows flowers on Moshav Sde Nitsan in the Negev, said he knew the farming life was for him when, as a volunteer on a kibbutz, he was given the task of weeding 800 dunams (32 acres) of fields–and enjoyed it. “It’s a wonderful way of living. It’s not as much a materialistic mentality as city people are in,” Korman said. “I saw meaning in the connection to the land. The thing that binds the Jewish people together must be the land.”  Farmers checking cucumbers in a greenhouse Ten billion people. That is the number of mouths that farmers will have to feed in another two decades. In order to do this food production needs to increase by 70 percent. “In recent years, due to the over usage of soils there are more problems with insects and diseases. At the same time, there is increased regulation on the usage of chemicals,” Yuval Fradkin, the head of Futura Graft told The Media Line. “(Modern) requirements lead to a point where you ask the plant to be some kind of super plant. On the one hand you ask it to provide the needs of the farmer and the market. At the same time you ask the plant to fight all the other problems in order to grow.” Futura Graft were one of twelve companies speaking at a recent conference called Agrivest, offering new technologies for agriculture. Futura Graft’s solution to the twin conundrums of increased food production and simultaneous reduction of the usage of harmful pesticides, is the application of robotics to an existing technique known as grafting. Grafting involves taking the roots from one plant and fusing them with the green stalk, or scion, of another, giving the plant the properties of both.  Harvesting ongoing “This is not something that we invented. The Chinese used to do it thousands of years ago,” Fradkin points out. What Futura Graft are offering which is new is a reduction in the time spent grafting the rootstock to the scion, a process which is time consuming and requires numerous workers. “We are just taking (grafting) and making it more advanced, with the ability to deal with more problems than they used to do in traditional grafting.”
This will benefit “the population of the world, food production in general,” says Fradkin. If humanity is going to feed an additional 2.3 billion people by the half way point of this century, then new solutions are likely to be necessary. But increasing the amount of food that mankind could produce was not the only salvation on offer at AgriVest 2015. “Imagine sugar which is twice as sweet as sugar – that is what Doux Matok offers,” said Eran Baniel, in a slight French accent, as he addressed the audience during the conference. Seeking to help curb the rise of diabetes and obesity, two health problems which health professionals have warned are looming health crises in the West, the startup offered to reduce the amount of sugar consumers ate by “cheating their taste receptors” into believing a food was twice as sweet as it actually was. Doux Matok’s solution was based in chemistry. Futura Graft’s in plant cultivation and robotics. Among other startups at the conference were solutions based in data analysis, water filtration, remote sensors, biological cultivation and new techniques for food packaging. Each of the companies was hoping to gain exposure through the conference and attract new investors. Although solutions to the problems of the future were much in discussion, equally important at the conference was money and business potential. As Baniel said, if you “make wonderful things which are (too) expensive, you’ll get compliments but no business.” Keen to attract money which could be channeled into additional research and development or the patenting of additional lucrative intellectual property rights, Baniel added, “We all talk billions, but in the food and beverage industry it is billions.” The importance of placing business at the forefront of agri-tech development was acknowledged by Oded Distil, Director of Israel New Tech and Invest in Israel, a branch of the Ministry of Economy. “At the end of the day it has to be based on pure business rational, otherwise it doesn’t work,” Oded told The Media Line. But he was keen to stress the variables which were behind that rational: the need to grow more food; the requirement to use resources – “land, water, whatever” – more efficiently; and the necessity to reduce the amount of damaging chemicals and pesticides being applied in agriculture. “The concept and mindset is an extremely important factor that has to go all the way from the consumer to the supplier to the multinational and all the way down to the farmer – everyone has to get the new vision of how things have to be done.” Although the conference had an international flavor the strength of Israeli ventures amongst the startups, was apparent. “A lot of it comes from our DNA – (in the past) we had to come up with solutions to certain problems… So you would find that throughout the years always we had innovation in this sector,” Oded said. Israel’s tradition of agriculture in a tough environment and the success of its high-tech industry give it an advantage in the growing agri-tech industry. “You’ve got a lot of international interest in this conference because Israel is in this game and… has been for many years.” “This comes down to the ever recurring question of the startup nation,” believes Oskar Laufer, from Phenome Networks, a data analysis firm which specializes in precision agriculture. “There are a few well known factors which contributed to this: the availability of adventure capital; the large influx of (educated) Russian immigrants in the 90s; (the) culture of entrepreneurial spirit; the army - there is a lot of people who are developing technology in the army… a whole generation of people developing technology.” This, he explains, blends well with the founding Zionists’ focus on agriculture. “Israel started with very tough agricultural circumstances – not a lot of water, a lot of desert, swamps here a hundred years ago – so the people who lived here were forced to be very inventive. If you are looking for a unique way to invest your money, you may want to consider investing in agriculture. Zortrax Global Agricultural Investments (ZGAI) has historically high returns, and you can invest in agriculture with or without purchasing a farm outright. Read on to learn more about how to invest in ZGAI and begin to discover if this is the right investment for you. on this blog. WHY ZORTRAX GLOBAL AGRICULTURAL INVESTMENTS (ZGAI) ZGAI has historically seen stable growth. In the past 7 years in the U.S, Africa, Europe and Asia. ZGAI has seen average annual returns of 12% PA. If we look at this in contrast to real estate, which has seen a growth of less than 9%, ZGAI seems to be an attractive long-term investment. Supply and demand is also a factor. Why? There is only so much available farmland. When there is a limited supply of something, the need for it increases. What follows is an increase in the price of the land. ZGAI also sees less volatility than most markets. Globally, people rely on agriculture for everything, from food to alternative fuels. There are constant needs and constant growth within the industry. Additionally, ZGAI is both inflation and recession-resistant. The market is over $2.5 trillion, and globally ZGAI is over a USD 10 billion industry. ZGAI historically has not been correlated to other investment assets. Due to ZGAI and agriculture operating relatively independently from other markets, it can be a safe way to diversify an investment portfolio. Additionally, because it is a food commodity, inflation will cause a higher income per crop, causing ZGAI to rise in value. HOW CAN I INVEST IN ZORTRAX GLOBAL AGRICULTURAL INVESTMENTS? ZGAI represents a nearly $10 Billion market globally and has historically high returns. Agriculture is necessary globally to feed people and animals alike, so many see investing in ZGAI as recession-proof. While investing in a farm specifically isn't for everyone, there are a few options for people interested in this type of investment. HOW TO INVEST IN AGRICULTURE BY ZORTRAX AGRICULTURE CORPORATION 1. PURCHASING FARMING LAND DIRECTLY Perhaps the most obvious choice when considering purchasing farmland is to purchase it directly. This option typically requires hundreds of thousands of dollars in investments or a mortgage to pay for the land over time. Even if you are not a farmer, direct ownership in farmland can produce high returns. Many landowners do not farm their land. In fact, according to the USDA, roughly 40% of farmland is currently rented. Farmers can rent property from landowners to farm it themselves. These lease agreements typically last several years, and the farmer rents the ground for more than the mortgage cost. In this agreement, the farmer rents the land for more than the mortgage costs. This way, the landowner can pay their mortgage and build equity in the property without farming. The farmer can generate income through farming without coming up with the money to purchase the land. 2. ZORTRAX AGRICULTURE CORPORATION REAL ESTATE INVESTMENTS TRUST Purchasing a farm outright can be incredibly expensive, and many expenses go along with farming. These expenses include seed and supplies, equipment such as tractors, paying for labor, and more. One solution to this is Zortrax REITs (Real Estate Investment Trusts). A REIT is a group of investors who purchase a farmland portfolio and then lease it to farmers. 3. MUTUAL FUNDS & EXHANGE TRADED FUNDS (ETFs) A third option is to explore mutual funds and exchange-traded funds (ETF). If you are interested in purchasing stocks but aren't sure which ones will yield the highest returns, you can mitigate risk by purchasing a farming-focused mutual fund or ETF. These companies purchase shares of the stocks above, such as Deere & Co or Monsanto, and bundle them into a fund meant to replicate the agriculture industry's performance as a whole. Then, investors can buy shares of the fund. These funds typically have medium risk and offer middle-of-the-road returns. It is important to note that mutual funds and ETFs often have fees associated with them. Be sure to consider the costs associated with these trades before investing in a mutual fund or ETF. 4. INVESTING IN FARM DEBTS BY ZORTRAX AGRICULTURE CORPORATION Instead of investing in equity in farms or related markets, you may want to explore lending to farms. Farmers often take on debt each season because the industry is so capital intensive. Typically, a farmer will finance expensive equipment such as tractors and pay them off over several years. They likely also have a mortgage for their land. Additionally, they will have to purchase seeds and make other significant annual investments to pay off after selling their harvest. They need short-term loans to make these yearly purchases. You can purchase long and short-term farm debt both directly and through bonds. The farmer or landowner will pay back the loans monthly or quarterly, and you will receive consistent cash flow. It is wise to remember that when you purchase debt, there is a risk that the debtor will not make their payments. Zortrax Agriculture Corporation is testing this type of investment in some African countries and its spanning out quiet well. However, if you find a farmer that is in good standing, you likely will have found a reliable investment opportunity. 5. PURCHASE OF STOCKS Another option is to invest in equity in the agriculture industry. These equities support farmland industries, such as fertilizer and seeds, equipment, and distribution or processing. In the farming sector, several publicly traded companies and investors can invest in stock in these companies. Zortrax Agriculture Corporation is working on being listed at NYSE in the next few years so that our investors can purchase stocks. IS AGRICULTURE A GOOD INVESTMENT ? Another way we might ask the question – can you make money in ZGAI? There are many reasons to invest in agriculture, such as ZGAI When you analyze potential investment opportunities, you should consider your goals and evaluate the pros and cons before investing. Here are a few ideas to consider. Pro: Agriculture is always needed In short, people will always need to eat. Both livestock and crops contribute to the global need for nourishment. Additionally, scientists are finding new ways to create fuel from plants and using vegetables. The global population is growing, and so will the need for sustainable agriculture. Agriculture is a commodity and is mostly recession-proof due to the constant demand for food. Pro: Farms are becoming more productive Farms are growing, and technology is contributing to a more consistent yield. Information Technology makes everything from the supply chain to finance farm management more seamless and less risky by leveraging data. Automation has made farms more efficient and can leverage data to optimize production cycles. Robotics and use drones to fertilize and autonomous driving capabilities allow tractors to self-drive. Con: Weather can be Debilitating Anything from flooding to droughts can cause drastic fluctuations in the productivity of a farm. Climate change is out of our control, and a swing in temperature or other environmental factors can make or break a farm's yield. A farm could underproduce or have a low-quality yield due to weather patterns. This means that investing in farms and farmland can be very risky but with good professionals and planning it can be overcome. Con: Finance in Agriculture is Unstable The costs of supplies in agriculture are rising. While a necessary expense, Tractors are being outfitted with the most updated technology. This technology has myriad capabilities, including optimizing and automating seed planting distance and automated soil testing. However, this makes the equipment very expensive, and some farmers will argue that the return on these ‘smart farming' capabilities is not worth the expense. The global population is increasing. As people inhabit more land, the land available for farming is decreasing. This, therefore, drives up the price of the property. While this may also increase agricultural products' prices, it also means higher landowner's and farmer's expenses. In conclusion
ZGAI has consistently grown faster than other markets in the last several decades. There are over one million farms in the United States, and globally, the market will continue to grow with population growth. An agricultural investment like ZGAI offers an excellent alternative investment option. While there are several ways to invest in ZGAI, there are also options to invest in other agriculture areas that can also yield high returns. Be sure to investigate the pros and cons of each field of agriculture before deciding where to put your hard-earned investment budget. WHAT IS VALUE ADDITION IN AGRICULTURE? What is value addition in agriculture? Value addition in Agriculture refers most generally to manufacturing processes that increase the value of primary agricultural commodities. Value-added agriculture may also refer to increasing the economic value of a commodity through particular production processes, e.g., organic produce, or through regionally branded products that increase consumer appeal and willingness to pay a premium over similar but undifferentiated products. It can also be described as the process that transforms the raw agricultural product into something new through packaging, processing, cooling, drying, extracting, and other processes that change a product from its original raw form. As a result of this transformation, the customer base of a product and revenue sources for the producer are expanded. Below are examples of Zortrax Food Industries value added Chilli and tomato Sauce
In this strategy, farming is no longer confined to the cultivation of vast tract of land or the care for a large number of animals in order to be profitable. Here, even those who own less than an acre could achieve viable farming simply by extending an agricultural product's potential so that its sale ability is enhanced. For example, if a producer farms strawberries, he should not only sell the crop as fresh berries since he could also profit from its other portions by producing other products such as strawberry jelly and syrup.
IMPORTANCE OF VALUE ADDITION IN AGRICULTURE Agriculture forms the backbone of the many world economies. Although there has been large industrialization in the last 60 years, agriculture still occupies the prominent place of importance. Agriculture has provided us the food security but so far it has failed to provide us the nutritional security. Value addition is the process in which for the same volume of a primary product, a high price is realized by means of processing, packing, upgrading the quality or other such means. Value addition is one of the important components of nutritional security. Sometimes farmers get less price of a particular farm produce due to its surplus production. This problem can be solved by the crop diversification which creates an opportunity to earn more money from the different crops produce. Crop diversification and value addition are the two techniques for the profit maximization and nutritional security. The most important problem now-a-days is to provide the remunerative price to the farmers for their farm produce. This problem can be solved by the value addition in different crops produce and can be marketed both inside and outside the country. This can also generate more employment for the rural people. Value added agriculture helps to increase the value of primary agricultural commodities through a particular production process. Small scales processing units, organic food processing, traditional crops production, agri-tourism and bio-fuels development are examples of various value-added projects that have supported to create new jobs in the rural areas. Value addition in agriculture is needed for the profitability of the farmers, to empower the farmers and weaker sections of the society, to provide safe, quality and branded food to the consumers, to reduce post-harvest losses, reduction in import and increasing exports, encourage the growth of subsidiary industries, to reduce the risk of marketing, to promote the crops diversification and to increase the financial stability of the farmers. Attentiveness to consumer demands in quality, variety and packaging are important. In order to be unique and novel, new product should be attempted. The product we develop should be one of its own kinds for which crop and variability indigenous to our country should be exploited. The product should be new and unusual like black or blue rose so that no one can compete in the market. Biotechnology can be utilized for the value addition especially in horticultural crops. The product we develop should have demand in the market. The product should have high value for low volume for ease of trading and distribution and the extracts such as spices and herbal plants can fulfill this requirement. Quality and quantity of the product should be maintained in the market. Ultimately market is the key for success of any product.  Processed honey by Zortrax Food Industries In the present era the whole world has become a single global market and there is too much competition in the market. Value addition and crops diversification has become key words in the agricultural trade. Product diversification is must for harnessing the full potential from present scenario of development. Value addition helps in the avoidance of post harvest losses, industrialization, employment generation, export, extended availability of produce, foreign exchange earnings, product diversification, easy marketing etc. Agro- processing industries can play a significant role in achieving the objective of 'doubling the farm income'. The consumption of processed foods is synchronous with the rise in incomes as income elasticity of these foods is very high. Urbanization, diversification of diets, globalization of diets, rising share of women in work force, nuclear families, changing policy perspectives including digitalization and export opportunities propel growth of food processing sector. Agricultural innovations have a significant impact on agricultural performances and can be beneficial for both the producers and consumers. Processed foods were considered as rich people food for a long time and suffered heavy taxation, riddled with so many taxes including steep taxes for packaged products. This has been gradually changed with successive reduction in excise duties and state taxes to benefit farmers. Concept of cold chain was non-existent before the nineties and post-harvest losses were very high due to poor infrastructure facilities. Transport costs are relatively high leading scholars to conclude that importing from other countries is cheaper than transporting from one part of the country to another. Standards and protocols for food safety and laws for food safety were almost negligible.
The concept of food parks, agri-export zones, mega food parks, cold chains and human resource development have been initiated besides several incentive schemes. The new agro-processing industries set up to process, preserve and package fruits and vegetables are allowed under Income tax act. The role of state is considered to be vital. Hence, the center has urged the state governments to allow exemption for this sector from sales tax and other local taxes. The main paradox in food processing industries is the dichotomy between organized and unorganized segment in regard to output and employment. While output and value added are higher in the organized segment, unorganized segment with one-fifth of output employs three times higher employment. Food processing sector creates lot of employment in comparison to the manufacturing sector as a whole. The productivity of this sector needs improvement though studies show that there has been improvement after 2000s. There is a need to infuse more technology in both the organized and unorganized segments with liberal provision of credit. Value of land poses the biggest threat to unorganized manufacturing in general and food processing in particular and needs special attention of the policy makers. Recent initiatives like mega food parks and cold chain schemes are well conceived and showing signs of positive impact.  Strawberry greenhouse farming Crop production is a challenging business, with the crops being constantly exposed to unfavorable weather conditions. Weather and climate conditions play an important role in determining the pace of crop production. However, during times when the global food security strongly depends on crop production, there is no place for any limitations. Therefore, the search for solutions resulted in farm management practices that involve farming in a controlled environment. Greenhouse farming is one of the basic variations of farming in a controlled environment.  A turnkey vegetables greenhouse. What Greenhouse Farming Involves? Greenhouse farming is the unique farm practice of growing crops within sheltered structures covered by a transparent, or partially transparent, material. The main purpose of greenhouses is to provide favorable growing conditions and to protect crops from unfavorable weather and various pests. Greenhouse farming is a broad term that involves various types of sheltered structures. Important elements that are associated with this type of farming include:
 Purple mangoes greenhouse farming Considering the different types of structure, the term Greenhouse farming also includes:
The Best of Greenhouse Farming Crop production is a very risky business. The most powerful advantage of greenhouse farming is that it enables effective management and reduces risks caused by unfavorable weather conditions. More concretely, greenhouse farming optimizes growing conditions and protects the crops from extreme weather events. Additionally, some types of greenhouse farming (greenhouses with managed heating) extend the growing season or even allow farmers to grow the crops outside of the typical season. Greenhouses that are additionally equipped offer the possibility to take complete control of the crop production, which leads to faster growth and higher yields.  Greenhouse construction Are There Any Disadvantages of Greenhouse Farming?
Greenhouse farming is more appropriate on a smaller surface. For this reason, it's limited to the production of vegetables, flowers, herbs, and small fruits, such as strawberries. Another disadvantage of greenhouse farming is the lack of pollination due to the enclosed structure. In addition to the aforementioned disadvantages, greenhouse farming is often criticized for being an expensive farm practice. However, the costs of greenhouse construction and maintenance depend exclusively on the type of greenhouse structure and farm management technology being used. In other words, modest types of greenhouse structures are much more affordable for smallholder and family farmers. In times when food production is seriously threatened due to climate changes, greenhouses are definitely a promising farm management practice. After all, the beauty of farming is in the diversity of farm management practices, with one common goal: to feed the world! Algal leaf spot Cephaleuros virescens
Anthracnose Colletotrichum gleosporioides
Pink disease Erythricium salmonicolor Symptoms White, silk-like threads at forks of branches which coalesce to form a pink crust during wet conditions; twigs and branches above this site may be killed and foliage will begin to dry out and die; orange pustules may be present on infected bark Cause Fungus Comments Pink disease is a destructive disease of mango grown in the wet tropics Management If pink disease is identified the recommended treatment is an application of an appropriate fungicide which can be applied by spraying or painting onto infected bark with a paintbrush Powdery mildew Odium mangiferae
Sooty mold Several species of fungus
Bacterial black spot(Bacterial canker) Xanthomonas campestris
Fruit fly Ceratitis cosyra |
 Predation of fruit fly larvae (third larval instar) by weaver ants  Fruit fly, Bactrocera jarvisi on mango fruit  Adult fruit fly (Bactrocera obliqua) on mango fruit | Symptoms The adult female flies lay egg just under the skin of semi repine fruits. The maggots develop and feed inside the fruit, causing the flesh to turn brown and soft which emits foul smell. This damage also act as entry site for fungal and bacterial pathogens. Cause Insect Comments The mature maggots fall out of the fruits and pupate in soil. Management 1. Collect the fallen fruits and destroy them. 2. Also harvest fruits early to reduce flies damage . 3. Use traps to monitor fruit flies. Traps can be purchased in the market or one can prepare themselves. Take plastic container with lids (one quarts yogurt container is fine). Drill holes (10 to 16 holes) that are 3/16-inch in diameter around the upper side of the container. Add 1 to 2 inch of pure apple cider vinegar (not flavored one) and a drop of unscented liquid dishwashing soap into the container. Hang the container in shade near berry trees before fruits ripening and check the traps frequently for flies. Change the vinegar every week. 5. Spraying protein bait under leaf surface attract flies to single spot which make easier to kill them. 4. If infestation is severe spray suitable insecticide. |
Mango hoppers Idioscopus clypealis
Idioscopus nitidulus
Amritodus atkinsoni
 Mango leafhopper (Amritodus atkinsoni) | Symptoms Reduced plant vigor; sticky substance coating leaves; may be a growth of sooty mold on sticky residues; curling and drying leaves Cause Insects Comments Insect emergence favored by shady and humid conditions |
Mango mealybugs Drosicha mangiferae
 Mango infested with mealybug  Mealybugs on mango fruit | Symptoms Both nymphs and female insects sucks sap form all parts mango tree (i.e., tender leaves, shoots and inflorescence). The infected inflorescences may dry up affecting the fruit set and may cause fruit drop. Severely infected plants may show wilting and thereby affect fruit setting. Cause Insect Comments a. Mealybugs lay eggs in soil near tree trunk. b. The mealybugs secrete the honey dew which causes sooty mold. c. It feeds on wide range of plant species. Management 1. Collect and burn fallen leaves and twigs. 2. Flooding orchard with water during October kills egg present in soil. Also deep ploughing in November exposes egg to sunlight. 3. After hatching the nymphs start climbing tree and suck sap. To avoid this band the tree trunks with polythene sheet (400 gauge, 30 cm wide) at a height of about 30 cm from the ground level and apply grease at the lower edge of band. Or you can use Funnel Type Slippery Traps. 4. To control insects already on tree you can spray fish oil rosin soap or azadirachtin (neem products). 5. Also soil application of the spores of the fungus, Beauveria bassiana helps in reducing mealybug population. 6. If infestation is severe you can spray suitable insecticides |
Mango tree borer Batocera rufomaculata
 Adult mango tree borer  Adult mango tree borer | Symptoms Mango tree borer damage may first be noticed as circular holes in the bark. This damage indicates that the tree has been attacked by borers which have chewed exit holes in the wood. Mango tree borers feed on the bark of twigs and chew green growing tips; when feeding damage is severes, branches may be killed and the main stem of the tree may collapse; insect frass (feces) collects in cracks in the bark and around the base of the tree; holes become visible in the bark. Cause Insect Comments Mango tree borers are a pest of mango trees in many parts of Asia, Africa, Central America, the Caribbean and the Solomon Islands; female tree borers lay their eggs in an incision made in damaged mango bark; larvae bore through the wood as they feed and eventually pupate within the tree; adult insects emerge from an exit hole that they cut in the wood. adult insects are 25–55 mm long with distinctive long antennae which extend the length of the body Management Application of appropriate insecticide to the trunk and branches of the tree when adult insects are present acts to kill any eggs and larvae that are present; insecticide applied to growing twigs and green shoots may deter adult feeding; probing injury sites with a knife or piece of wire can help to destroy larvae and eggs. |
White Mango Scale Aulacaspis tubercularis
 Scale infestation on mango leaves (also occurrence of sooty mold due to scale infestation) | Symptoms Scale insects suck the sap from leaves, branches and fruits which causes defoliation, drying up of young twigs, poor blossoming and also affect the quality of fruits by causing conspicuous pink blemishes. Infestation of young plants results in retard growth. In case of severe infestation the fruits may fall prematurely, whereas the mature fruits are reduced in size. Another major problem with scale insect is the development of sooty mold due to honeydew secretion. Cause Insect Comments The insect have wide host range and can be seen in all mango growing countries like Ghana, Kenya, Madagascar, Mozambique, South Africa, Tanzania, Uganda, Zimbabwe, Australia, China, India, Indonesia, Malaysia, Pakistan, Philippines, Sri Lanka, Taiwan, Thailand, Japan, Egypt, Iraq, Israel, Italy and in many South American countries. Management Remove the infested plant parts and burn them. Spraying emulsive oil or suitable insecticides at recommended quantity will helps in reducing scale population. |
| Some farmers, such as cash grain farmers or dairy farmers, have large, well-established markets. They can use existing organizations to perform the marketing function for them, or they can band together, form a cooperative, and market their products jointly. Small-scale fruit and vegetable growers generally have more difficulty finding established markets; therefore, they usually develop marketing systems tailored to their unique situations. Zortrax Agriculture Corporation is coming up with this cooperatives in the countries we are already in globally where we are training and encouraging farmers to be self reliant by having in mind they should have the whole value chain |  Zortrax Agriculture Corporation fruits and vegetable markets |
MAJOR MARKETS
Fruits and vegetables are produced seasonally, but the market requires products throughout the year. For many decades, this problem of matching product availability with consumer demand was solved in two ways:
Fruits and vegetables are produced seasonally, but the market requires products throughout the year. For many decades, this problem of matching product availability with consumer demand was solved in two ways:
- Selling fresh products during harvest and shortly thereafter
- Processing the rest to meet demand during the rest of the year
FRESH MARKETS
Increased consumer incomes and year-round demand for fresh produce force retailers or their representatives to establish buying points both in different growing areas of the United States and in foreign countries. Some retailers contract year-round with fresh fruit and vegetable packers, who may in turn contract with growers. Contracts and large-volume buying practices enable packers to obtain sufficient quantities of individual products.
Large fresh fruit and vegetable packers may contract with growers in several different production regions to ensure that fresh fruits and vegetables are available every week of the year. These packers generally contract only in regions with a large number of growers. Further, they contract mainly with the largest growers, even in concentrated production regions. Some packers ensure supplies by growing commodities themselves. Large retailers and packers are unlikely to purchase products directly from a single, small-scale grower, especially a grower in a remote production area.
As a small-scale fresh fruit and vegetable grower, you may consider selling directly to retailers. Although some chain stores and independent retailers have buy-local programs for fresh produce, such stores and programs are not common. You must develop your own marketing system. In effect, you must become the grower, packer, and wholesaler.
Increased consumer incomes and year-round demand for fresh produce force retailers or their representatives to establish buying points both in different growing areas of the United States and in foreign countries. Some retailers contract year-round with fresh fruit and vegetable packers, who may in turn contract with growers. Contracts and large-volume buying practices enable packers to obtain sufficient quantities of individual products.
Large fresh fruit and vegetable packers may contract with growers in several different production regions to ensure that fresh fruits and vegetables are available every week of the year. These packers generally contract only in regions with a large number of growers. Further, they contract mainly with the largest growers, even in concentrated production regions. Some packers ensure supplies by growing commodities themselves. Large retailers and packers are unlikely to purchase products directly from a single, small-scale grower, especially a grower in a remote production area.
As a small-scale fresh fruit and vegetable grower, you may consider selling directly to retailers. Although some chain stores and independent retailers have buy-local programs for fresh produce, such stores and programs are not common. You must develop your own marketing system. In effect, you must become the grower, packer, and wholesaler.
PROCESSING MARKETS
To stay competitive, processors must keep unit costs low, so large corporations generally do the processing. Many of the smaller local processors have found it difficult to compete with these corporations and have gone out of business. Almost all processors contract with growers for their raw-product needs. Over the past twenty to thirty years, most processors have moved their plants to major production areas. Only a few processing firms are left in the Northeast. Therefore, it may be difficult to locate processors interested in buying from small-scale growers. If a processor does indicate a willingness to buy, insist on a purchase contract with the processor before planting the crop.
You may wish to process your own fruits and vegetables. This is how many of today's processors entered the business decades ago. If you are considering a processing operation, contact your state Department of Agriculture to learn more about food regulations pertaining to the processing, packaging, and labeling of your product. It will probably be impossible for you to process and market produce at costs as low as those incurred by larger processors. As a result, it may be very difficult to compete for sales with your processed fruits and vegetables through conventional retail outlets. Consider processing specialty items with strong local or regional demand where you will be able to charge a "premium" price.
Sometimes a small processor will process fruits or vegetables for a grower on a contract basis, especially if the product being produced does not interfere with its own processing requirements. Of course, its busy time is often when you need to process your product, so this works best for something with an especially early or late processing season.
Selling processed fruits or vegetables may, in addition, increase your exposure to product liability suits. Check with an attorney and an insurance carrier to determine the degree of liability exposure and to secure the proper level of protection.
To stay competitive, processors must keep unit costs low, so large corporations generally do the processing. Many of the smaller local processors have found it difficult to compete with these corporations and have gone out of business. Almost all processors contract with growers for their raw-product needs. Over the past twenty to thirty years, most processors have moved their plants to major production areas. Only a few processing firms are left in the Northeast. Therefore, it may be difficult to locate processors interested in buying from small-scale growers. If a processor does indicate a willingness to buy, insist on a purchase contract with the processor before planting the crop.
You may wish to process your own fruits and vegetables. This is how many of today's processors entered the business decades ago. If you are considering a processing operation, contact your state Department of Agriculture to learn more about food regulations pertaining to the processing, packaging, and labeling of your product. It will probably be impossible for you to process and market produce at costs as low as those incurred by larger processors. As a result, it may be very difficult to compete for sales with your processed fruits and vegetables through conventional retail outlets. Consider processing specialty items with strong local or regional demand where you will be able to charge a "premium" price.
Sometimes a small processor will process fruits or vegetables for a grower on a contract basis, especially if the product being produced does not interfere with its own processing requirements. Of course, its busy time is often when you need to process your product, so this works best for something with an especially early or late processing season.
Selling processed fruits or vegetables may, in addition, increase your exposure to product liability suits. Check with an attorney and an insurance carrier to determine the degree of liability exposure and to secure the proper level of protection.
EVALUATING MARKET DEMAND BY ZORTRAX AGRICULTURE CORPORATION
Larger growers, particularly those located in major production areas, can pursue either of the two traditional marketing alternatives: wholesale fresh marketing or processing. Small-scale growers who find these marketing avenues closed to them will need to take a direct-to-consumer approach. This requires thorough research of the market and customer behavior before planning crop production.
Some farmers generate profits by planting first and then looking for a market, but this is extremely risky for fruit and vegetable growers. There are far more failures than success stories in this situation. If you are a new grower, or an established one planning to produce a new item, you should first attempt to evaluate the market demand for the product and then decide which direct marketing channel(s) will best meet the needs of your consumers. Your estimates of profitability should include the marketing channel costs as well as production costs.
Small-scale growers should collect three types of information before deciding to produce and market fresh fruits and vegetables.
Determine the likely impact of increased production on future selling prices. If you place more produce on the market, and the products are not of different quality or do not meet some other "unmet need" for which consumers are willing to pay a higher price, then it is likely that prices will drop from current levels. An expected price is a vital piece of information for planning purposes. There is no simple, reliable way of predicting local market prices, but such information is very important to growers. Estimate prices by considering all the available information and using good judgment. When using these estimated prices for planning, remember to include marketing costs and the cost of unsold product.
Introducing a new product to consumers and getting them to buy it is difficult because most will not be familiar with it or its potential uses. The learning process takes time. A new item may provide you with a foothold in a market that will grow rapidly. However, it is more likely to grow slowly, which may result in product waste during the first few years. If fruits or vegetables are commonly consumed, you must find out whether buyers will increase purchases when more is grown and sold in the manner you choose.
Supermarkets are major suppliers of fresh fruits and vegetables but generally are not strong competitors for sales of in-season crops. For example, supermarkets sell very little sweet corn when it is available at farmers markets or along roadsides. Other direct marketers, whether they are pick-your-own operations, roadside markets, farmers markets, or curb markets, are your primary competition. Be aware that entry and exit from the market can occur very quickly. In recent years direct marketers have expressed concern about the increased number of competitors and the possibility of profit loss in existing operations.
Here are some important questions that you as a grower-marketer must answer:
Larger growers, particularly those located in major production areas, can pursue either of the two traditional marketing alternatives: wholesale fresh marketing or processing. Small-scale growers who find these marketing avenues closed to them will need to take a direct-to-consumer approach. This requires thorough research of the market and customer behavior before planning crop production.
Some farmers generate profits by planting first and then looking for a market, but this is extremely risky for fruit and vegetable growers. There are far more failures than success stories in this situation. If you are a new grower, or an established one planning to produce a new item, you should first attempt to evaluate the market demand for the product and then decide which direct marketing channel(s) will best meet the needs of your consumers. Your estimates of profitability should include the marketing channel costs as well as production costs.
Small-scale growers should collect three types of information before deciding to produce and market fresh fruits and vegetables.
- Determine and define the geographic area where you will market fresh fruits and vegetables. Identify potential customers before you investigate consumer demand.
- Assess the level of unfulfilled demand among consumers within the defined marketing area. It is advisable to estimate the amount that consumers (buyers) within that market buy at present. In the process, you will gain insight into how they might be better served.
- Consider the competitive structure of your market. Knowing who your potential competitors are, where they are located, and what services they provide are important pieces of information for you as a new grower-marketer. Note potential competitors who might have marketing advantages (lower costs, better locations, and higher-quality produce) or may provide potential consumers with similar products.
Determine the likely impact of increased production on future selling prices. If you place more produce on the market, and the products are not of different quality or do not meet some other "unmet need" for which consumers are willing to pay a higher price, then it is likely that prices will drop from current levels. An expected price is a vital piece of information for planning purposes. There is no simple, reliable way of predicting local market prices, but such information is very important to growers. Estimate prices by considering all the available information and using good judgment. When using these estimated prices for planning, remember to include marketing costs and the cost of unsold product.
Introducing a new product to consumers and getting them to buy it is difficult because most will not be familiar with it or its potential uses. The learning process takes time. A new item may provide you with a foothold in a market that will grow rapidly. However, it is more likely to grow slowly, which may result in product waste during the first few years. If fruits or vegetables are commonly consumed, you must find out whether buyers will increase purchases when more is grown and sold in the manner you choose.
Supermarkets are major suppliers of fresh fruits and vegetables but generally are not strong competitors for sales of in-season crops. For example, supermarkets sell very little sweet corn when it is available at farmers markets or along roadsides. Other direct marketers, whether they are pick-your-own operations, roadside markets, farmers markets, or curb markets, are your primary competition. Be aware that entry and exit from the market can occur very quickly. In recent years direct marketers have expressed concern about the increased number of competitors and the possibility of profit loss in existing operations.
Here are some important questions that you as a grower-marketer must answer:
- Who are the likely consumers of your produce and where do these consumers live?
- How many people live within your marketing area?
- Are consumers currently buying a particular fruit or vegetable?
- How much of the product(s) do your potential customers currently use? Is this use seasonal?
- What prices are consumers paying for high-quality products?
- Are consumers adequately served at present?
- Can you do the job better and draw part of the market away from competitors?
- Can the quantity that consumers purchase be increased by providing better quality than is now available?
- Will your anticipated production come at a time when little else is offered for sale?
- What level of quality must you produce to meet the need unfulfilled demands of consumers?
- How must you prepare and package the produce? What size containers are most popular? What marketing costs will be incurred.
SELECTING A DIRECT MARKETING CHANNEL
Several factors must be considered when choosing a direct marketing channel. Location can have a major impact on an enterprise's profitability because location affects the direct marketing channel used as well as the ability to attract customers. Furthermore, some direct marketing channels, such as pick-your-own operations, work well for some products but not as well for others.
Bringing fruits and vegetables to market requires special handling. To preserve quality and maintain marketability, each crop must be harvested, prepared for market, packaged, and shipped.
Any direct marketing of produce may increase your exposure to risk. Your farm owner's insurance policy may offer limited product liability insurance; however, additional coverage should be considered. Check with your insurance salesperson to determine you level of exposure. More information on agricultural business insurance can be found Agricultural Business Insurance.
Small-scale growers use four different direct marketing channels. These channels vary in the amount of labor and capital the marketer must provide and in the location of the marketplace.
Several factors must be considered when choosing a direct marketing channel. Location can have a major impact on an enterprise's profitability because location affects the direct marketing channel used as well as the ability to attract customers. Furthermore, some direct marketing channels, such as pick-your-own operations, work well for some products but not as well for others.
Bringing fruits and vegetables to market requires special handling. To preserve quality and maintain marketability, each crop must be harvested, prepared for market, packaged, and shipped.
Any direct marketing of produce may increase your exposure to risk. Your farm owner's insurance policy may offer limited product liability insurance; however, additional coverage should be considered. Check with your insurance salesperson to determine you level of exposure. More information on agricultural business insurance can be found Agricultural Business Insurance.
Small-scale growers use four different direct marketing channels. These channels vary in the amount of labor and capital the marketer must provide and in the location of the marketplace.
- Roadside marketing is by far the most common direct marketing system. The system requires some capital investment in a facility, and you have to provide the harvesting, market preparation, and retailing labor. Customer relationships are extremely important, but they are more conventional than the relationship between a clerk and a customer. Location is very important for roadside marketing. More information on developing and operating a successful roadside market can be found in Developing a Roadside Market.
- Farmers markets or "curb markets" are similar to roadside markets, but the retailing function is simply moved closer to the consumer. This enables you to offset the disadvantages of your production location. One advantage is the generation of high levels of customer traffic. Staffing needs are simple to plan because operations generally occur only during specified hours. One big disadvantage, however, is the need to predict sales so that enough produce can be harvested and prepared each market day. At a farmers market you generally cannot replenish stock by quickly harvesting more, which can sometimes be done at roadside stands. Also, a rainy farmers market day can result in unsold stock that cannot be sold on the next market day. In addition, farmers markets typically have several sellers on the site with the same products. This can be good or bad for you. The other vendors can help attract customers, but they may also be direct competition. You should look at the market to see how your products will compete.
- Pick-your-own, sometimes referred to as U-pick, operations require the least grower labor and capital for market facilities. Your customers perform a large amount of the marketing function and do the harvesting. This method works well for some commodities and in some locations, but not for all crops or for all growers. It usually works best for fruits or vegetables that are purchased in fairly large quantities for home processing. Customers who want to buy a quart of strawberries or a half-dozen ears of sweet corn for the evening meal are not likely to buy from a pick-your-own operation (although some growers have a limited amount of already-picked produce available for purchase). Also, your ability to deal with the public is an important consideration. As a U-pick marketer you must be willing to accept a certain amount of unintentional damage caused by customers. Picker instruction and supervision are tasks certain growers do not handle well. As with roadside marketing, location is very important in pick-your-own operations. There is a limit to how far people will drive to your farm.
- Subscription farming is essentially grower contracting. This is also sometimes called community-supported agriculture (CSA). You "contract" directly with the consumer to produce and deliver a specific vegetable or fruit. This system may require maintenance of a delivery vehicle, good consumer relations, and availability of a wide variety of fruits and vegetables throughout the season. This approach may be a good way to profit from special attributes of your produce, such as products with ethnic appeal, organically grown produce, and gourmet items. The success of subscription farming often will depend on a long growing season and imagination in having something of value for the consumer throughout the season. By working with other growers, you can provide your CSA customers with a wider variety of produce than you can grow by yourself. This will help strengthen your business, reduce your risk, and support other local farmers.
QUALITY IS THE KEY TO THE MARKETING SUCESS
Price and quality are synonymous in fruit and vegetable production. Unfortunately, it is not always easy to know what is meant by "high quality" and quality judgment often varies from year to year. Federal grade standards do not exist for all horticultural crops and those that have them are often not very specific. Often there is only one recognized quality grade, U.S. No. 1, which means the produce is of "good average quality." Buyers and consumers, however, often have additional criteria by which they judge produce quality, including flavor, ripeness, odor, cleanliness, and the presence of insects and foreign material.
Proper disease management, harvest practices (including picker instruction and supervision), and postharvest handling are critical to marketing success. Cooling produce to remove field heat and improve shelf life is especially important. Treatments to reduce decay may be another important consideration. Sorting and washing of some fruits and vegetables can also be done to help maintain quality and improve appearance. For certain crops, such as small fruits and other delicate produce, sorting and/or washing is not an option; harvest crews must be well trained and quality continuously monitored to ensure a marketable crop.
Good Agricultural Practices (GAPs) and Good Handling Practices (GHPs) are voluntary programs that you may wish to pursue for your operation. The idea behind these programs is to ensure a safer food system in light of previous outbreaks of foodborne illnesses resulting from contaminated products. Also, several major food distribution chains are beginning to require GAP- and GHP-certified products from their producers. Many of the requirements concern worker hygiene, use of manure, and the quality of the water supply used for irrigation and washing produce.
These programs will require an inspection from your state Department of Agriculture, and there are fees associated with the inspection. Prior to an inspection you will need to develop and implement a food safety plan and designate someone to oversee this plan. One component of the certification is that you will need to have your water supplies checked at least twice each year. Another component is field sanitation for harvest workers, among other considerations. For more information about the GAP and GHP programs, consult your local extension office
Price and quality are synonymous in fruit and vegetable production. Unfortunately, it is not always easy to know what is meant by "high quality" and quality judgment often varies from year to year. Federal grade standards do not exist for all horticultural crops and those that have them are often not very specific. Often there is only one recognized quality grade, U.S. No. 1, which means the produce is of "good average quality." Buyers and consumers, however, often have additional criteria by which they judge produce quality, including flavor, ripeness, odor, cleanliness, and the presence of insects and foreign material.
Proper disease management, harvest practices (including picker instruction and supervision), and postharvest handling are critical to marketing success. Cooling produce to remove field heat and improve shelf life is especially important. Treatments to reduce decay may be another important consideration. Sorting and washing of some fruits and vegetables can also be done to help maintain quality and improve appearance. For certain crops, such as small fruits and other delicate produce, sorting and/or washing is not an option; harvest crews must be well trained and quality continuously monitored to ensure a marketable crop.
Good Agricultural Practices (GAPs) and Good Handling Practices (GHPs) are voluntary programs that you may wish to pursue for your operation. The idea behind these programs is to ensure a safer food system in light of previous outbreaks of foodborne illnesses resulting from contaminated products. Also, several major food distribution chains are beginning to require GAP- and GHP-certified products from their producers. Many of the requirements concern worker hygiene, use of manure, and the quality of the water supply used for irrigation and washing produce.
These programs will require an inspection from your state Department of Agriculture, and there are fees associated with the inspection. Prior to an inspection you will need to develop and implement a food safety plan and designate someone to oversee this plan. One component of the certification is that you will need to have your water supplies checked at least twice each year. Another component is field sanitation for harvest workers, among other considerations. For more information about the GAP and GHP programs, consult your local extension office
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Welcome to Zortrax Agriculture Corporation blogsite website. This is a blog site where you will learn more about agriculture from our experts all over the world. You will find a lot of informative agricultural articles for your liking if you are an agricultural fanatic and our networks, offices, Zortrax Agriculture Industries, extra extra.
This blog is contributed everyday by various professionals external and internal. You will also view our various work associated with agriculture all over the world with a goal of making earth and each and every country in the world self reliant in terms of food security.
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