JANUARY 2011
CELEBRATING 131 YEARS AS CANADA’S PREMIER HORTICULTURAL PUBLICATION
VOLUME 61 NUMBER 01
Two under 40: weather vanes for the future By Karen Davidson There’s a reason that the Old Farmer’s Almanac still holds an audience. Weather never repeats itself. If forecasts could be true, every farmer would be rich, planting more, planting less. That’s not how it worked last year for Peter Schouten, partner in Heppell’s Potato Corporation in Surrey, British Columbia. After a late spring, with 30-day gaps in planting, the fall harvest was rained out with four inches in 36 hours. With 756 acres in potatoes alone, he lost $2 million. “It’s tuition spent for knowledge gained,” says Schouten, who is also chair of BC Fresh, a company that annually markets $50 million of root crops for 52 farm families. “The sooner we can look back at this once-in-acentury event, the better.” Crop insurance proved inadequate, covering perhaps 30 per cent of the input costs. The lobby for AgriRecovery funds has yielded nothing, not even a nod from the provincial government. A recent turnover in agriculture ministers means new briefings are needed to keep the file alive. Ever optimistic, he is forging ahead with 2011 plans to grow high-quality crops and to offer top-rate service to clients. To reduce risk, he is cutting potato acreage to 540 acres and joint venturing on another 100. He will grow fewer types of potatoes while increasing the mix of high-value nugget potatoes. Schouten’s high standards include food safety. He estimates this line item costs $40,000 annually for hair nets, gloves, staffing
Inside Ghesquiere Plant Farms goes bankrupt
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How old is the McIntosh apple?
Weather, good and bad, plays a pivotal role in the fortunes of the produce industry. Peter Schouten, Heppell’s Potato Corporation, Surrey, British Columbia, was photographed early in the 2010 potato season before he lost $2 million in the washout of fall harvest. He shares his business philosophy as he flips the calendar for a fresh outlook. and audits. With little crop to market this winter, there will be labour savings due to the fact he halved his staff from 67 to 30. With his banker asking for more documentation than ever before on working capital and cash flow charts, he is spending more time on examining costs and margins. While the B.C. labour rate is one of the lowest in Canada at $8.00 per hour, there are plenty of items on the cost ledger. “Numbers are important but I don’t want to lose the entrepreneurial flavour of this farm,” he says. “The farm has been in the Heppell family since 1920, but I can see that we have to be mind-
ful of every detail.” The farm also grows pumpkins, squash and some forage crops for rotation, relying on certified seed for best results. In the balmy Pacific climate, they have planted as early as Feb 17th and never been later than March 1. Between now and seeding, Schouten will be finalizing marketing plans for both the farm and BC Fresh. The flooding has caused a 15 per cent price increase in local potatoes with more price hikes expected as supplies dwindle. It will be important to communicate to consumers why those prices are going up to keep the loyalty of those who want
local produce. Part of the plan is to continue putting the faces of farm families on the transport trucks of BC Fresh. This is a way of keeping the heat on grocery chain buyers who ultimately decide on what potatoes to buy at what price. Although B.C. potatoes are consumed primarily within the province, growers are price-takers due to the volume of potatoes grown stateside in Washington and Idaho. “I’m not a big fan of the Canadian dollar right now,” states Schouten, referring to the ease of potatoes crossing the border at an at-par dollar. On the whole, Schouten has
weathered the storm with a positive attitude, concentrating on what the farm does really well. He’s not unlike many business people, digging in for the long haul. The irony is not lost on him that he irrigated his potatoes during a dry summer only to be flooded out. Compare his story to that of another grower in Ontario who agrees that profit can be measured in inches. “Florida froze this morning,” says Bill Nightingale, Jr. “so I’m selling like crazy.”
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FOCUS: tracing produce from field to fork
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