College - Author 1
College of Agriculture, Food and Environmental Sciences
Department - Author 1
Agribusiness Department
Degree Name - Author 1
BS in Agricultural Business
Date
3-2013
Primary Advisor
Wayne Howard, College of Agricultural, Food, and Environmental Sciences, Agribusiness Department
Abstract/Summary
Bishop’s Pumpkin Farm is a 40-year-old agriculture tourism destination looking to expand their brand name. One way to do this is through value-added products and in the case of this study, by producing pumpkin butter. To determine if this would be a revenue enhancing enterprise for the business, expenses were analyzed for the ingredients in the product and the processing at an offsite processor. A break-even analysis was performed to determine a minimum price required to cover variable production prices and a minimum required price to cover total costs which would include establishment costs. The numbers were based on a minimum batch production, which would make 1,320 jars of pumpkin butter.
The study suggests that the pumpkin butter be sold at a lower price to help establish brand recognition and a customer base. A market study needs to be completed, in addition to this analysis, in order to determine the demographic and potential mark-up percentage for retail at high-end grocery stores. The minimum batch would give a small inventory base that would allow for a market analysis of the first year of the enterprise. From there, the business would be able to better determine future inventory requirements and a reasonable retail sales price.
URL: https://digitalcommons.calpoly.edu/agbsp/104