BS in Agricultural Business
The purpose of this study was to determine whether it is more profitable for San Ysidro Farms to establish a new commodity mix and grow brussel sprouts, cabbage, and kale in replace of broccoli and cauliflower or continue its current commodity mix for production. The goal is to determine whether the new commodity mix will bring greater profits during the months of January, February, and March.
The project represents a basic comparison technique of the different commodities grown for San Ysidro. Using the current 2013 cash flow statement and others from the previous production years, a comparison amongst the different commodities has been made comparing total revenue , net profit/loss, harvest, variable, and production costs for each commodity. Using these numbers and the total acreage for each commodity, the cost per acre has been calculated to determine the profitability per acre.
Over the 2013 production period it was found that growing brussel sprouts, cabbage, and kale was more profitable than to maintain its current commodity production mix. This conclusion is based on the the increase in net profit over the months of January, February, and March by $510,000 from 2012 to 2013 production year.