Do you want to start a cabbage farm and need to write a plan? If YES, here is a sample cabbage farming business plan template & FREE feasibility report.
Cabbage is a kind of vegetable that is prepared and consumed in different forms. As a matter of fact, cabbage can be eaten as a raw vegetable or steamed, though many cuisines pickle, stew, sautée or braise cabbage. Raw cabbage is 92 percent water, 6 percent carbohydrates, 1 percent protein, and contains negligible fat.
If you are considering starting a cabbage farm business, the good news is that you can’t get it wrong because cabbage is consumed by almost everybody in the globe.
It is important to state that starting a cabbage farming business comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business venture. An aspiring entrepreneur can either choose to start on a small or large scale depending on their financial status.
A Sample Cabbage Farming Business Plan Template
1. Industry Overview
Cabbage is a leafy green, red (purple), or white (pale green) biennial vegetable plant grown as an annual vegetable crop for its dense-leaved heads.
Many shapes, colors and leaf textures are found in various cultivated varieties of cabbage. Leaf types are generally divided between crinkled-leaf, loose-head savoys and smooth-leaf firm-head cabbages, while the color spectrum includes white and a range of greens and purples.
Oblate, round and pointed shapes are found. According to Wikipedia, in 2017, world production of cabbage (combined with other brassicas) was 71.4 million tonnes, led by China with 47 percent of the world total (table). Other major producers were india and Russia.
Cabbage is generally grown for its densely leaved heads, produced during the first year of its biennial cycle. Plants perform best when grown in well-drained soil in a location that receives full sun. Different varieties prefer different soil types, ranging from lighter sand to heavier clay, but all prefer fertile ground with a pH between 6.0 and 6.8.
For optimal growth, there must be adequate levels of nitrogen in the soil, especially during the early head formation stage, and sufficient phosphorus and potassium during the early stages of expansion of the outer leaves. Temperatures between 4 and 24 °C (39 and 75 °F) prompt the best growth, and extended periods of higher or lower temperatures may result in premature bolting (flowering).
If you are a close observer of the vegetable farming industry that cabbage farming is a part of, you will agree that the industry is anticipated to increase due to increasing consumer health consciousness, which has led to increasing demand for fresh produce.
While per capita fruit and vegetable consumption has remained stable over in recent time, the price of vegetables have increased as consumers demand premium, fresh vegetables. So also, the number of both small and large farms have been increasing.
Small, local farms are benefiting from the organic, local movement, while large, commercial farms are improving labor efficiency.
Statistics has it that in the united states of America alone, there are about 76,459 registered and licensed vegetable farms responsible for employing about 317,590 and the industry rakes in a whooping sum of $26 billion annually. The industry is projected to enjoy 2.5 percent annual growth.
As a matter of fact, with the recent advancement in technology, farmers can now comfortably grow varieties of vegetables in a country where such crops can hardly survive and in places where there are few farming land.
One thing is certain when it comes to cabbage or vegetable farming in general, if you are able to conduct your market research and feasibility studies before choosing a location, you are more likely not going to struggle to grow the business and also to sell your cabbage because there are always food processing companies and consumers out there who are ready to buy from you.
2. Executive Summary
Carl Mason® Vegetable Farms, LLC is a registered and licensed commercial vegetable farm with bias in cabbage cultivation that will be based in the outskirt of Wichita Falls, Texas – United States. We have done our detailed market research and feasibility studies and we were able to secure 25 hectares of land to start our cabbage farm.
We will always leverage on greenhouse farming to cultivate cabbage hence we will construct a structure with walls and roof made essentially of transparent material in which plants requiring regulated climatic conditions are grown. At Carl Mason® Vegetable Farms, LLC we will be involved in the cultivation of different types of cabbages such savoy, red and white, with spring greens and green cabbage both inorganic and non – organic forms.
We are in the cabbage farming business because we want to leverage on the vast opportunities available in the agriculture industry, to contribute our quota in growing the U.S. economy, in national food production, raw materials production for industries, to export agriculture produce from the United States to other countries and over and above to make profit.
Carl Mason® Vegetable Farms, LLC is well positioned to become one of the leading vegetable farms in the United States of America, which is why we have been able to source for the best hands and machines to run the business with.
We have put processes and strategies in place that will help us employ best practices when it comes to cabbage farming. Carl Mason® Vegetable Farms, LLC is a private registered commercial vegetable farm that is owned and managed by Carl Mason and his immediate family members.
3. Our Products and Services
Carl Mason® Vegetable Farms, LLC is a commercial vegetable farm that will be involved in cultivating cabbage via greenhouse farming model and land farming for the United States’ market. We are in business to produce cabbage in commercial quantities. We will be involved in the;
- Cultivation of different species of cabbages such as; savoy, red and white, with spring greens and green cabbage
4. Our Mission and Vision Statement
- Our Vision is to become one of the number one cabbage cultivator and exporter not just in Texas, but also in the United States of America.
- Our mission statement as a commercial cabbage farming business is to go into full – time cultivation of cabbage that will not only be consumed in the United States of America, but also exported to other parts of the world.
- We want our well – packaged cabbage to flood the United States and other countries of the world.
Our Business Structure
Carl Mason® Vegetable Farms, LLC is a commercial cabbage farm that intends starting small in Wichita Falls – Texas, but hopes to grow big in order to compete favorably with leading commercial vegetable farms in the industry. We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own.
At Carl Mason® Vegetable Farms, LLC, we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the farm. In view of the above, Carl Mason® Vegetable Farms, LLC have decided to hire qualified and competent hands to occupy the following positions;
- Chief Operating Officer
- General Farm Manager
- Cabbage Cultivation Manager/Supervisor
- Field Workers
- Sales and Marketing Executive
- Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
General Farm Manager
- Responsible for the planning, management and coordinating all farm activities
- Supervise field workers
- Ensure compliance during project executions (especially in the construction of greenhouse)
- Providing advice on the management of farming activities across all sections
- Responsible for carrying out risk assessment
- Using IT systems and software to keep track of people and progress of the growth of crops
- Responsible for overseeing the accounting, costing and sale of farm produce after harvest
- Represent the organization’s interest at various stakeholders’ meetings
- Ensures that farming goals desired result are achieved, the most efficient resources are utilized and different interests involved are satisfied.
- Oversee the smooth running of the daily farming activities across the various farming sections.
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Responsible for financial forecasting and risks analysis.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Cabbage Cultivation Manager / Supervisor
- Responsible for the cultivation of cabbage and related vegetables
- Supervises other workers within the department
- Work closely with the General Manager to achieve the organizations’ goals and objectives
- Responsible for planting and harvesting cabbages as required by the manager or supervisor
- Responsible for weeding in and around the cabbage farm
- Responsible for watering and applying manure (organic fertilizer) or in organic fertilizer as instructed
- Assist in loading cabbages meant for deliveries
- Work closely with the General Manager to achieve the organizations’ goals and objectives
6. SWOT Analysis
Carl Mason® Vegetable Farms, LLC does not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis.
We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard cabbage farm that will favorably compete with leading commercial vegetable farms in the United States of America.
We are quite aware that there are several vegetable farms all over Wichita Falls – Texas and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Carl Mason® Vegetable Farms, LLC employed the services of an expert HR and Business Analyst with bias in the commercial farming industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Hankins Carl Mason® Vegetable Farms, LLC;
Our strength as a cabbage farming company is the fact that we have healthy relationships with loads of major players in the agriculture industry. We have some of the latest vegetable farming machines, tools and equipment that will help us cultivate cabbage in commercial quantities with less stress.
Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in the industry under our payroll.
Our weakness could be that for now we lack economies of scale. We have been able to put up structures that will help us overcome this initial setback within the shortest time frame possible.
The opportunities that are available to us cannot be quantified. Changes in consumer preferences have led supermarkets and other retail outlets to demand fresh vegetables and fruits all year-round. We are ready to take advantage of any opportunity that is available in the industry.
Both the number of small local farms and larger commercial farms have been growing. Increasing imports of fresh produce will slightly constrain demand for vegetables and fruits. Just like any other business, one of the major threats that we are likely going to face is economic downturn.
It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new cabbage farm or commercial green farm in same location where our target market exist.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with rising technology and scientific development in the agriculture industry, you will quite agree that vegetable and fruits farming via greenhouse commercial farming model is at the front burner. Greenhouse farming gives room for greater control over the growing environment of various crops.
Dependent upon the technicality and specification of a greenhouse design, some of the important factors which may be controlled include temperature, levels of light and shade, irrigation, fertilizer application, and atmospheric humidity et al.
So also, if you are a close observer of the trends in the vegetable farming industry, you will agree that the vegetable farming industry is anticipated to increase due to increasing consumer health consciousness, which has led to increasing demand for fresh produce.
While per capita fruit and vegetable consumption has remained stable over in recent time, the price of vegetables have increased as consumers demand premium, fresh vegetables.
So also, the number of both small and large farms have been increasing. Small, local farms are benefiting from the organic, local movement, while large, commercial farms are improving labor efficiency. Going forward, players in the vegetable farming industry will continue to increase revenue generation for their business.
8. Our Target Market
The end consumer of cabbage or vegetable farm produce and those who benefits from the business value chain are all encompassing; it is far – reaching. Every household consumes cabbage in different forms. In essence a cabbage farmer should be able to sell his or her farm produce to as many people as possible.
We will ensure that we position our business to attract consumers of fresh vegetables (cabbage) not just in the United States of America alone but also other parts of the world which is why we will be exporting some of our cabbage to other countries of the world.
Our Competitive Advantage
Carl Mason® Vegetable Farms, LLC is fully aware that there are competitions when it comes to selling vegetables and fruits all over the globe, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in the United States.
We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable cabbage farming processes that can help us sell our produce at competitive prices, good network and excellent relationship management.
Other competitive advantage lies in the power of our team; our workforce. We have a team of hardworking and highly proficient vegetable cum cabbage farmers, a team with excellent qualifications and experience in various niche areas in the vegetable farming industry.
Aside from the synergy that exist in our carefully selected team members, we have some of the latest and efficient farm machines and equipment and we will be guided by international best practices in the industry.
Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round standard cabbage farm. With this, we will be able to take advantage of all the available opportunities within the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Carl Mason® Vegetable Farms, LLC is in the cabbage farming business for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives. Below are the sources we intend exploring to generate income for Carl Mason® Vegetable Farms, LLC;
- Sale of different species of cabbages
- Greenhouse construction, consultancy and advisory services
10. Sales Forecast
From the survey conducted, we were able to discover that the sales generated by a cabbage farm depends on the size and nature of the farm.
We have perfected our sales and marketing strategies and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income/profits from the year of operation and build the business from survival to sustainability.
We have been able to examine the vegetable farming industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the projections that we were able to come up with for the first three years of running Carl Mason® Vegetable Farms, LLC;
- First Fiscal Year (FY1): $150,000
- Second Fiscal Year (FY2): $250,000
- Third Fiscal Year (FY3): $300,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters, and unfavorable government policies. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are quite aware that the reason why some vegetable farms hardly make good profits is their inability to sell off their farm produce as at when due. In view of that, we decided to set up a standard food processing plant to help us maximize profits.
Our sales and marketing team will be recruited based on their vast experience in the vegetable farms industry and they will be trained on a regular basis so as to be well equipped to meet their set targets and the overall business goal of Carl Mason® Vegetable Farms, LLC.
Our goal is to grow Carl Mason® Vegetable Farms, LLC to become one of the leading cabbage farm in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Wichita Falls – Texas but also in other cities in the United States of America.
In summary, Carl Mason® Vegetable Farms, LLC will adopt the following strategies in marketing our cabbage;
- Introduce our business by sending introductory letters alongside our brochure to stake holders in the agriculture industry, supermarkets, grocery stores, hotels and restaurants and agriculture produce merchants et al.
- Advertise our business and cabbage in agro – allied and food related magazines and websites
- List our cabbage farms on yellow pages ads
- Attend related agriculture and food expos, seminars, and business fairs et al
- Leverage on the internet to promote our business
- Engage in direct marketing
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means to promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.
Below are the platforms you can leverage on to boost our cabbage farming brand and to promote and advertise our business;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our business
- Install our Bill Boards on strategic locations all around Wichita Falls – Texas
- Distribute our fliers and handbills in target areas
- List our vegetable farms in local directories / yellow pages
- Advertise our cabbage farms in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.
12. Our Pricing Strategy
Some of the factors that will help you sell your farm produce at the right price that will guarantee that you make profits is dependent on your strategy while some of the factors are beyond your control. For example, if the climatic condition is unfavorable and if there are natural disaster in the location where you have your commercial cabbage farm, then it will directly affect the prices of your farm produce.
Over and above, if you want to get the right pricing for your farm produce, then you should ensure that you choose a good location for vegetable farm, choose a good breed that will guarantee bountiful harvest, cut the cost of running your farm to the barest minimum.
And of course try as much as possible to attract buyers to your farm as against taking your farm produce to the market to source for buyers; with this, you would have successfully eliminated the cost of transporting the goods to the market and other logistics.
In view of that, our prices will conform to what is obtainable in the industry but we will ensure that within the first 6 to 12 months our cabbage are sold a little bit below the average price in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our cabbage farming business
- Payment Options
The payment policy adopted by Carl Mason® Vegetable Farms, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Carl Mason® Vegetable Farms, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via check
- Payment via Point of Sale Machines (POS Machines)
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for cabbage purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
When it comes to calculating the cost of starting a vegetable farm with a standard greenhouse farm, there are some key factors that should serve as a guide. The most important expenses is the construction of the greenhouse. In view of that, here are some of the basic areas we will spend our startup capital in setting up our cabbage farm;
- The total fee for incorporating the business in United States of America – $750.
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
- The amount needed to acquire / lease a farm land – $50,000
- The amount required for preparing the farm land – $20,000
- The cost for acquiring the required working tools and equipment / machines / fencing et al – $10,000
- The amount required for purchase of the first set of cabbage seedlings, manure (fertilizer) and pesticides et al – $15,000
- The amount required to set up a standard vegetable (cabbage) processing plant within the farm facility – 80,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $10,000
- The cost of launching an official website – $600
- The amount required for payment of workers for a period of 3 months – $80,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000
Going by the report from detailed research and feasibility studies conducted, we will need an average of three hundred and fifty thousand dollars ($350,000) to start a standard cabbage farm in the United States of America.
Basically, the nature of vegetable farms does not require an office space, most people that run vegetable farms operate directly from their farms. But we have decided to open a small liaison office; a place where administrative jobs will be carried out.
Generating Funds/Startup Capital for Carl Mason® Vegetable Farms, LLC
No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as vegetable farming.
No doubt raising startup capital for a business might not come cheap, but it is a task that an entrepreneur must go through.
Carl Mason® Vegetable Farms, LLC is owned and managed by Carl Mason and his immediate family members. They are the sole financier of the business, but may likely welcome other partners later which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources. These are the areas where we intend sourcing for fund for Carl Mason® Vegetable Farms, LLC
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Carl Mason® Vegetable Farms, LLC is to ensure that we continue to make available different sizes and species of cabbages, deliver quality services, improvise on how to do things faster and cheaper.
We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
From our findings, another factor that kills new business such as ours is financial leakages. In order to plug financial leakages, the management of Carl Mason® Vegetable Farms, LLC adopted the use of payment machine and accounting software to run the business.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store. We will not waste time in adopting new technology, best practices and diversifying our services.
Carl Mason® Vegetable Farms, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts : Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of farm land in Wichita Falls – Texas (preparing the farmland inclusive): Completed
- Conducting Feasibility Studies: Completed
- Startup Capital generation: Completed
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Design of The Company’s Logo: Completed
- Printing of Packaging and Promotional Materials: Completed
- Recruitment of employees: In Progress
- Building /construction of greenhouse and hothouse facility: In Progress
- Purchase of the needed working tools, machines and equipment: Completed
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Farm land Treatment, Health and Safety Arrangement: In Progress
- Establishing business relationship with key players in the industry (agriculture farm produce merchants, transporter/haulage and suppliers of seeds, fertilizers, pesticides and insecticides): Completed