Do you want to start a pineapple farm and need to write a business plan? If YES, here is a sample pineapple farming business plan template & feasibility report.
Starting a pineapple farming business is one sure way of earning good money in the United States of America owing to the fact that you will definitely get all the support you need in terms of technology and finance to grow the business.
Pineapple farming has evolved from the small scale farm to a global industry in countries where it’s carried out. Countries in the Caribbean, South America, North America, Europe, Asia, Australia and Africa are known to be in the forefront when it comes to cultivating pineapples.
However, pineapple farming comes with its own fair share of challenges. An aspiring entrepreneur can either choose to start on a small scale or on a large scale depending on their financial status.
A Sample Pineapple Farming Business Plan Template
1. Industry Overview
Pineapple farmers are under the Citrus Fruit, Nut and Other Fruit Growing industry and farmers in this industry grow a range of produce, including citrus fruits, almonds, bananas, berries, avocados, olives and other fruits and nuts.
Industry participants sell these products to food wholesalers, retailers, processors and other markets. In 2018, world production of pineapples was 27.9 million tons, led by Costa Rica, the Philippines, Brazil, and Thailand as the largest producers.
If you are a close observer of the Citrus Fruit, Nut and Other Fruit Growing industry, 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 fruits especially organic fruits have increased as consumers demand premium, fresh fruits.
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 industry will continue to increase revenue generation for their business.
The flesh and juice of the pineapple are used in cuisines around the world. In many tropical countries, pineapple is prepared and sold on roadsides as snack.
It is sold whole or in halves with a stick inserted. Whole, cored slices with a cherry in the middle are a common garnish on hams in the West. Chunks of pineapple are used in desserts such as fruit salad, as well as in some savory dishes, including pizza toppings, or as a grilled ring on a hamburger.
Growers in the Citrus Fruit, Nut and Other Fruit Growing industry are forecast to benefit from a continued rise in demand from export markets over the next five years. However, industry growers are also anticipated to face pressure from growers in other countries with a lower cost base, particularly for labor, over the period.
Ongoing public and private initiatives to promote fruit consumption are projected to contribute to industry revenue growth over the next five years. An anticipated increase in crop yields will likely boost production output over the period, further supporting industry revenue growth. Overall, industry revenue is forecast to increase at an annualized rate.
Statistics has it that in the united states of America alone, there are about 76,459 registered and licensed citrus fruit, nut and other fruit growers 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.
With the recent advancement in technology, farmers can now comfortably grow varieties of fruits in a country where such crops can hardly survive, and in places where there are few farm land, people can make use of the rooftop (basement) of their houses to cultivate some fruits even for commercial purposes.
One thing is certain when it comes to pineapple farming, if you are able to conduct your market research and feasibility studies before choosing a location for your fruits, you are likely not going to struggle to grow the business.
Lastly, it will pay you not to only cultivate fruits and sell them for consumption to retailers and consumers. You can as well start a complimentary business like fruit processing plant; producing and packaging juices. The bottom line is that if you have enough farming land (space) and you are interested in maximizing pineapple farming, you are sure going to make huge profits from the business.
2. Executive Summary
Shannon West® Pineapple Farms, LLC is a licensed commercial farm with a pineapple plantation that will be based in the outskirt of Providence, Rhodes Island – 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 pineapple farm. We will always leverage on both open field and greenhouse farming to cultivate a varieties of pineapples.
In the nearest future, hopefully within the first five years of officially running Shannon West® Pineapple Farms, LLC, we will start our pineapple processing and packaging plant and also start exporting our pineapples and juices to other parts of the world.
This is why aside from the fact that we’ve secured the required farming land and most of the farming equipment and machines, we have also hired some key employees who are currently undergoing training so as to be able to fit into the ideal picture of the 21st century pineapple farming business workforce that we want to build.
We are in the pineapple 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 and export and over and above to make profit.
Shannon West® Pineapple Farms, LLC is well positioned to become one of the leading pineapple farms in the United States of America, which is why we have been able to source for the best hands to run the business with. We have put process and strategies in place that will help us employ best practices when it comes to pineapple farming as required by the regulating bodies in the United States of America.
Shannon West® Pineapple Farms, LLC is a private registered commercial farm that is owned by Shannon West and his immediate family members. The company will be managed by Shannon West and his immediate family members at least for a period of time.
3. Our Products and Services
Shannon West® Pineapple Farms, LLC is a commercial farm that will be involved in cultivating various species of pineapples for both the United States and the global market. We are in business to produce fruits in commercial quantities. We will also ensure that we operate a standard pineapple juice processing and packaging plant as part of our complimentary business.
We are in this line of business to make profits, and we will ensure that we do all that is allowed by the law of the United States of America to achieve our business goals and objectives. These are the areas we will concentrate on in our pineapple farm. If need arises, we will definitely add more produce to our list;
- Cultivation of different species of pineapples
- Pineapple juice processing and packaging
4. Our Mission and Vision Statement
- Our Vision is to become one of the leading pineapple farms not just in the United States of America but also on the global stage.
- Our mission statement as a commercial farm is to go into full – time cultivation of different species of pineapples that will not only be consumed in the United States of America, but also exported to other parts of the world.
- We want our processed fruits to flood the United States and other countries of the world.
Our Business Structure
Shannon West® Pineapple Farms, LLC is a commercial pineapple farm that intends starting small in the outskirt of Providence – Rhodes Island, but hopes to grow big in order to compete favorably with leading commercial pineapple farms in the industry.
We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own.
At Shannon West® Pineapple 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 stakeholders.
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 ten years or more as agreed by the management of the farm. In view of the above, Shannon West® Pineapple Farms, LLC have decided to hire qualified and competent hands to occupy the following positions;
- Chief Operating Officer
- General Farm Manager
- Crop (Pineapple) Cultivation Manager/Supervisor
- Pineapple Processing and Packaging Plant Manager / Supervisor
- 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 other section managers
- Ensure compliance during project executions (especially in the construction of greenhouse and hothouse et al)
- 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 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.
- Responsible for training, evaluation and assessment of employees
- 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 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
Pineapple Cultivation Manager/Supervisor
- Responsible for the cultivation of different species of pineapples
- Supervises other workers within the department
- Work closely with the General Manager to achieve the organizations’ goals and objectives
Pineapple Juice Processing and Packaging Plant Manager / Supervisor
- Responsible for managing the processing and packaging plant section of the business
- Supervises other workers within the department
- Work closely with the General Manager to achieve the organizations’ goals and objectives
Sales and Marketing Officer
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with company policy
- Responsible for handling business research, marker surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with customers
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the farm
Field Workers/Contract Staff
- Responsible for preparing farm land for pineapple cultivation
- Weeding or fertilizer and/or pest control application
- Assist in handling the harvest of pineapples
- Carries out task in line with the stated job description
- Assist in transport working tools and equipment from the farm and back to the designated store room
- Handles any other duties as assigned by the line manager
Front Desk/Customer’s Service Officer
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels / documents for Shannon West® Pineapple Farms, LLC
- Distribute mails in Shannon West® Pineapple Farms, LLC
- Handles any other duties as assigned by the line manager
6. SWOT Analysis
Shannon West® Pineapple Farms, LLC do 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 pineapple farm that will favorably compete with leading commercial pineapple farms in the United States of America.
We are quite aware that there are several pineapple farms all over Providence – Rhodes Island, 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.
Shannon West® Pineapple Farms, LLC employed the services of an expert HR and Business Analyst with bias in the Citrus Fruit, Nut and Other Fruit Growing 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 Shannon West® Pineapple Farms, LLC;
Our strength as a pineapple farm is the fact that we have healthy relationships with major players in the agriculture industry; both suppliers and buyers within and outside of the United States. We have some of the latest farming machines and equipment that will help us cultivate pineapples and produce pineapple juice 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 greenhouse commercial farming business under our payroll.
Our weakness could be that we are a new pineapple farm in the United States, it might take some time for our organization to break into the market and gain acceptance especially from international markets in the industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.
The opportunities that are available to us cannot be quantified; we know that a good percentage of people on planet earth eat pineapples either raw, as pineapple juice or as toppings et al. So also changes in consumer preferences have led supermarkets and other retail outlets to demand fresh fruits all year-round. We are ready to take advantage of any opportunity that is available in the industry.
Both the number of pineapple farms have been growing. Increasing importation of fresh produce will slightly constrain demand. 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 pineapple farm in same location where our target market exists and who may want to adopt same business model like us.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with rising technology and scientific development in the agriculture industry, you will quite agree that pineapple farming via greenhouse commercial farming model is at the front burner. Greenhouse commercial farming is rapidly gaining entrance in our world today.
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.
Greenhouses are used to overcome shortcomings in the growing qualities of a piece of land, such as a short growing season or poor light levels.
In essence, they are designed to improve food production in marginal environments. Also, if you are a close observer of the trends in the industry, you will agree that the industry is anticipated to increase due to increasing consumer health consciousness, which has led to increasing demand for fresh pineapple.
While per capita fruit and vegetable consumption has remained stable in recent time, the price of organic cultivated fruits have increased as consumers demand premium, fresh fruits. 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.
8. Our Target Market
The end consumer of pineapples and also those who benefit from the business value chain is all encompassing. Every household consumes produce from pineapple farms as juice or toppings. In essence a pineapple 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 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 pineapples.
Our Competitive Advantage
Shannon West® Pineapple Farms, LLC is fully aware that there are competitions when it comes to selling pineapples 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 farming processes, good network and excellent relationship management.
Our competitive advantage lies in the power of our team; our workforce. We have a team of hardworking and highly proficient farmers and scientists, a team with excellent qualifications and experience in various niche areas in the industry.
Aside from the synergy that exists in our carefully selected team members, we have some of the latest greenhouse farm equipment and we will be guided by 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 farm that will be involved in pineapple cultivation, juice processing and packaging. 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 objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Shannon West® Pineapple Farms, LLC is in the pineapple 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 Shannon West® Pineapple Farms, LLC;
- Sale and supply of different species of fresh pineapples
- Sale and supply of fresh pineapple juice
10. Sales Forecast
From the survey conducted, we were able to discover that the sales generated by pineapple farms across the United States depends on the size of the farm, and the nature of the pineapple farm.
We have perfected our sales and marketing strategies and we are quite optimistic that we will meet or even surpass our set target of generating enough income/profits from the first year of operation and build the business from survival to sustainability.
We have been able to examine the pineapple 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 Shannon West® Pineapple Farms, LLC;
- First Fiscal Year (FY1): $230,000
- Second Fiscal Year (FY2): $300,000
- Third Fiscal Year (FY3): $550,000
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 pineapple 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 fruit juice processing plant to help us maximize profits.
Our sales and marketing team will be recruited based on their vast experience in the 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 Shannon West® Pineapple Farms, LLC.
Our goal is to grow Shannon West® Pineapple Farms, LLC to become one of the leading pineapple farms 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 Providence – Rhodes Island but also in other cities in the United States of America and the world at large.
In summary, Shannon West® Pineapple Farms, LLC will adopt the following strategies in marketing our pineapples;
- Introduce our business by sending introductory letters alongside our brochure to stake holders in the agriculture industry and companies that rely on fresh pineapples for their raw material.
- Advertise our business and agriculture produce in agro – allied and food related magazines and websites
- List our pineapple farm 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 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 pineapple farm 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 Billboards on strategic locations all around Providence – Rhodes Island
- Distribute our fliers and handbills in target areas
- List our pineapple farms in local directories / yellow pages
- Advertise our pineapple 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
We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers is to sell our pineapples at competitive prices hence we will do all we can to ensure that the prices of our pineapples and pineapple juices are going to be what other commercial farmers would look towards beating.
One thing is certain, the nature of pineapple farming makes it possible for farmers to place prices for their farm produces based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss. The easier you sell off your harvest the better for your business.
- Payment Options
The payment policy adopted by Shannon West® Pineapple 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 Shannon West® Pineapple 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 the purchase of our pineapples and pineapple juice without any stress on their part.
13. Startup Expenditure (Budget)
When it comes to calculating the cost of starting our pineapple farm with a standard greenhouse farm, there are some key factors that should serve as a guide. The most important expense is the construction of the greenhouse or hothouse as the case may be.
In view of the above, here are some of the basic areas we will spend our startup capital in setting up our pineapple 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 – $70,000
- The cost for acquiring the required working tools and equipment / machines / fencing et al – $30,000
- The amount required for purchase of the first set of pineapple seedlings (slips and suckers et al) – $10,000
- The amount required to set up a standard pineapple juice and packaging processing plant within the farm facility – 100,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost of launching an official website – $600
- The amount required for payment of workers for a period of 3 months – $100,000
- 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 four hundred and fifty thousand dollars ($450,000) to start a standard pineapple farm with fruit juice processing plant business in the United States of America.
Generating Funds/Startup for Shannon West® Pineapple Farms, LLC
Shannon West® Pineapple Farms, LLC will be owned and managed by Shannon West and his immediate family members.
They are the sole financier of the firm, 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 Shannon West® Pineapple Farms, LLC
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up 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 $350,000 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
The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business , then it won’t be too long before the business close shop.
One of our major goals of starting Shannon West® Pineapple Farms, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to sell our farm produce a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Shannon West® Pineapple 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 of our business strategy.
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 farmland in the outskirt of Providence – Rhodes Island (preparing the farm land 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 Promotional Materials: Completed
- Recruitment of employees: In Progress
- Building /construction of greenhouse and hothouse facility: In Progress
- Purchase of the needed pineapple cultivating tools, machines and equipment and construction of fruit juice processing plant: 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: Completed