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105 Acres of Watermelons in under 5 minutes
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Now_What
Posted 8/25/2016 09:18 (#5489142 - in reply to #5489058)
Subject: RE: 105 Acres of Watermelons in under 5 minutes


Yea you can get a minimum price and quantity if you are growing with a shed but the prices for FRESH produce fluctuate quite rapidly week to week based on consumer demand at the store and weather throughout the year affecting supply. Those kind of deals put some of the risk with the shed but also keep the profit in the shed. That's why they are always looking for growers. You can have all kind of contracts in the world but when it comes down to it the store doesn't know if you are comming in to buy one head of lettuce, 5 heads or none this week. You might get a contract that gives you a date that you need to harvest at and they will give you a floor, but the wholesale prices can be all over the place. I had a contract with a sweet corn packer once and there was a glut and no consumer demand that year and they harvested the corn with a sliage chopper and cut me a check at the contract minimum which basically covered my inputs.

Another year we had planted spinach Mexico sent in some more tainted spinach about a month before harvest started here and the shed couldn't move any product and closed up a contract with a closed company was completely worthless at that point.


One year the market price was hovering around $ 8.00 a box for tomatoes then a few weeks later it dropped down to $2. Then a hurricane took out Florida and the price jumped to $22.00 A box. Fresh produce is vastly different than something that you can store in the bin or sell to a processor who doesn't have to worry about a product that is going to spoil literally overnight.
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