Business Commons^™

Turning A New Leaf: A Feasibility Study Of Converting To Organic Production Of Lettuce From A Conventional Operation, Christina Wilson

Agribusiness

This study focuses on the possible risks associated with the conversion of a farm from conventional to organic farming practices. The purpose of the study is to test the feasibility of the conversion to organic practices using lettuce as the focus crop and following the changes in a 150 acre farm's net income through a four year conversion time span. Revenues and expenses will be gained from cost and return studies and financial documents will be generated for the base year and the four year conversion period in order to generate five net incomes. The four net income that are …

Using @Risk To Forecast Feasibility Of A Strategic Expansion: A Case, Steven Slezak

Agribusiness

No abstract provided.

Cost-Benefit Analysis Of Implementing Wastewater Treatment Facilities In Beer Breweries, Jaffer (Jeff) Shah-Ganai

Agribusiness

The purpose of this study was to both see the effects of wastewater on profitability as well as determine an efficient way of dealing with that wastewater. In addition to finding the most efficient way of treating wastewater, the cost of implementing such a technology was also discussed. Two technologies were specifically talked about and those were an anaerobic digester and a two stage anaerobic digester. Between the three breweries that were discussed, two of them use one of those pieces of equipment; Sierra Nevada has an anaerobic digester and Red Hook has a two stage anaerobic digester.

To analyze …

The Economic Returns To U.S. Public Agricultural Research, Julian M. Alston, Matthew A. Anderson, Jennifer S. James, Phillip G. Pardey

Agribusiness

We use newly constructed state-specific data to explore the implications of common modeling choices for measures of research returns. Our results indicate that state-to-state spillover effects are important, that the research and development lag is longer than many studies have allowed, and that misspecification can give rise to significant biases. Across states, the average of the own-state benefit-cost ratios is 21:1, or 32:1 when the spillover benefits to other states are included. These ratios correspond to real internal rates of return of 9 or 10 per annum, much smaller than those typically reported in the literature, partly because we have …

Future Market Trends In Western Agriculture: Strategic Implications, Steven Slezak

Agribusiness

No abstract provided.

It’S All About Produce: Flexing The Muscles Of Western U.S. Organic Spinach Consumption, Christiane Schroeter, Xiaowei Cai

Agribusiness

Over the past few decades, consumers have become more concerned about health and nutrition, which is displayed by an increased demand for organic foods. Once considered a niche product, organic food has become more affordable for consumers through its availability in conventional supermarkets. In 2010, organic food and beverages showed a 7.7% increase in annual sales compared to 2009 sales, with the highest growth rate of 11.8 % in organic produce (Organic Trade Association (OTA), 2011).

Produce Sales Comparison During A Shelf Talker Advertising Campaign In San Luis Obispo County Grocery Stores, Maxwell Hess

Agribusiness

This consumer study was conducted to assess how effective shelf talker advertisements with nutrition related health claims are at selling fresh produce. Background research was conducted to determine the appropriate displays and FDA defined label claims. The study posted visually appealing shelf talker advertisements next to their respective produce item and compared the recorded sales a week prior to the advertising campaign to the following week with advertisements. Two separate observation periods were conducted at Spencer’s San Luis Obispo and Arroyo Grande locations after the first period in June 2011 produced a surprisingly small amount of statistically significant data. The …

Profitability Comparison Study Of An Organic Almond Orchard Versus A Conventionally Farmed Almond Orchard In Stanislaus County, Carl B. Evers Iii

Agribusiness

This study examined the differences in costs and profitability for established conventional and organic almond orchards in Stanislaus County, California. The study used a partial budgeting approach to compare cost and profitability for established orchards for 2010, and thus ignored transition costs. Data was obtained from UC Davis cost studies for organic almonds, and from the Green Valley Ranch in Keyes, CA for conventional almonds. Adjustments were made to the U.C. Davis costs to account for changes in input use, input costs and grape prices Stanislaus County during the 2010 growing season, and to ensure both orchards in the study …

Feasibility Study For Building A Tasting Room In Napa Valley, Trevor Mitchell

Agribusiness

This study was undertaken to determine if it would be financially feasible for Altamura Winery to build and operate a wine tasting room in Napa Valley over the course of a 30 year period.

This report used a feasibility study to examine the investment of the tasting room. The study used the cost approach of valuation to value the construction costs. Then capital budgeting was used as a method to determine if the tasting room should be constructed. The capital budgeting methods of this study include the use of a cash flow budget, break-even analysis, and a net present value …

Millennial Organic Wine Consumers Of San Luis Obispo, Ca, Tadeo Perez

Agribusiness

No abstract provided.

Juicy Boost: A Business Plan, Scott Silverman

Agribusiness

A start up business plan dealing with the opening of a Juice Bar in Paris, France.

Financial Analysis Of A Value Added Dairy Operation In California, Jason De Groot

Agribusiness

The case study was undertaken to determine whether if it is more financially profitable to become a value-added dairy business in California. This is a frequently discussed issue in agriculture, but there is not a lot of information available of how value-added facilities are doing.

This report uses two highly recognized financial reporting methods including an income statement and balance sheet to determine if the case study was financially profitable. Financial data was gathered from the enterprises, both farm and processing facility, for fiscal year 2010. The information generated made it possible to view financial income and profit for each …

Conventional And Organic Lettuce Production In San Luis Obispo County, Mark Freitas Crusha

Agribusiness

This study was undertaken to evaluate the net returns for conventional head lettuce compared to organic leaf lettuce in San Luis Obispo County. Price, yield, and costs for both lettuce systems were collected to perform a budgeting analysis projected over a twenty-year period.

Organic leaf lettuce was found to be more capable of paying finance charges and fixed commitments to produce in San Luis Obispo County. This conclusion was based on projected price and yield data along with a comparison of the profit and loss statements for the two types of lettuce for the time period of 2011 through 2030. …

Using System Dynamics Modelling Approach To Develop Management Tools For Animal Production With Emphasis On Small Ruminants, L. O. Tedeschi, C. F. Nicholson, E. Rich

Agribusiness

Small ruminants are important assets in several regions of the world. They account for more than half of the domesticated ruminants. Despite the growth in goat production in the world (more than 2% per year), research related to goat production is less than desired. One underused but potentially valuable approach for research on small ruminants is simulation modelling. Models of the components of small ruminant systems can enhance the financial returns and reduce negative environmental impacts. These models can be used to assess many dimensions of small ruminant production, from rumen dynamics to economic policies designed to support small ruminant …

Attributes Affecting Preferences For Traffic Safety Camera Programs, Lindsey M. Higgins, W. Douglass Shaw, Aklesso Egbendewe-Mondzozo

Agribusiness

With just a few notable exceptions, research supports the concept that red light cameras (RLCs) improve safety. However, many communities that have implemented RLC programs have faced a firestorm of public opinion associated with the use of RLCS, with many communities having to remove the cameras. What makes or breaks a red light camera program? Because of the experimental design process, stated choice is recognized as a tool that can resemble a laboratory experiment for the public policy arena. In this research, a stated choice model was developed and used to explore public preferences for a RLC program through an …

Partial Budgeting Analysis Of Conventional Pump Over Versus Pulsair Cap Management System For A Large–Scale California Winery, Zachary Thomas Hicks

Agribusiness

The purpose of this project was to evaluate the financial feasibility of implementing an automated gas injection system from Pulsair as an alternative to the traditional pump over cap mixing technique that is used during the alcoholic fermentation stage of winemaking.

There were various costs involved in this project that were determined and explained through the use of the partial budgeting method. The costs that were thoroughly analyzed included equipment, labor, utility, and initial investment costs for the Pulsair system as well as the related pump over operation costs. After the two methods associated numbers were evaluated, they were then …

The Costs Of Increased Localization For A Multiple-Product Food Supply Chain: Dairy In The United States, Charles F. Nicholson, Miguel I. Gomez, Oliver H. Gao

Agribusiness

There is increased interest in greater localization of food supply chains but little evidence about the effects of localization on supply-chain costs. Assessing these effects is complex in multiple-product, multi-process supply chains such as the dairy industry. In this study, we develop a spatially-disaggregated transshipment model for the US dairy sector that minimizes total supply-chain costs, including assembly, processing, interplant transportation and final product distribution. We employ the cost-minimizing solution as benchmark to compare alternative scenarios of increased supply chain localization. Our results indicate: (1) short-run limits to increased localization, (2) modest impacts on overall supply-chain costs, and (3) large …

Factors That Influence Prices For Cool-Climate Wines: A Hedonic Analysis Of The Market For Riesling, Christiane Schroeter, Jennifer L. Ritchie, Bradley J. Rickard

Agribusiness

The price of wine represents various characteristics that differentiate each bottle, assuming that the majority of consumers use price as a signal of quality. The objective of this study is to analyze the drivers of Riesling prices, since this varietal continues to gain popularity and can be grown in all climates, including cool-climate regions. We expand the use of quality ratings by including interaction terms to express wine-quality and price-quality relationships. The results suggest that higher price premiums are associated with wines that earned high expert rating scores, and this emphasizes the importance of market-perceived quality signals.

Cost-Benefit Analysis Of Installing Solar Panels On The Schnoor Almond Ranch, Morgan Anne Wampler

Agribusiness

This study was undertaken to determine if it would be cost-beneficial over a 30-year period to install solar panels to power the water pumps on the Schnoor almond ranch. A cost-benefit analysis was performed to determine if the investment would be financially worthwhile. The analysis included calculating the net present values of the annual cash flows along with the calculation of the internal rate of return. If the net present value proves greater than zero and the internal rate of return proves greater than the discount rate, the investment will be cost-beneficial. State and federal rebates and incentives were also …

Gow Ranch Beef Cattle Feasibility Study, Colton Jack Gow

Agribusiness

The purpose of this project was to decide the best time to sell calves on the Gow Ranch in Roseburg, Oregon. The two options are directly off the cow at 550 pounds in October or at 850 pounds in June.

The revenues and costs from selling calves at these two times were collected for the last five years. This data was put into an Excel spreadsheet to show profit and loss from each year. Both selling prices and costs were examined to show at what point to sell would have made the best profit.

Using figures from this spreadsheet it …

A Study Of The Feasibility Of Establishing A Spray And Fertilizer Equipment Outlet Store In The Paso Robles Area., Daniel C. Rodriguez

Agribusiness

The purpose of this feasibility study was to establish whether or not the proposed spray and fertilizer equipment outlet store could be opened and be profitable in the target area. The goal was to be profitable within two years of operations. Personal interviews proved to be important to estimate the preliminary budgets of the outlet store. Pertinent financial information was evaluated by proforma financials. This information proved useful as to estimate yearly profits/losses for the business and to accept or reject the author’s hypothesis.

After the study was concluded and all of the figures were evaluated by the author, it …

Consumer’S Preferences On Purchasing Seafood From The Gulf Coast Region Following The Deepwater Horizon Oil Spill, Jared Wheatley

Agribusiness

No abstract provided.

The Feasibility Of A New Sit-Down Restaurant In Ventura, John Wassil

Agribusiness

This study was carried out to determine whether it would be feasible to open a new restaurant in downtown Ventura. The study would also provide information on the type of restaurant and bar individuals prefer and the target market of the new restaurant.

The project’s analysis was conducted by putting together a projected income statement to determine the amount of profit that could be made in the first 3 years of the operation. To find out the preferences of Ventura’s consumers and to determine the target market a survey was conducted and analyzed.

According to the results of the analysis, …

Organic Replacement Heifer Enterprise Budget For Walker Dairy, Colton Brodt

Agribusiness

This study was undertaken to determine if Walker Dairy could raise replacement heifers cheaper than the current market price.

The main objective of this report was to calculate how much it costs Walker Dairy to raise a heifer per head. Data collected went into the development of a heifer enterprise budget and determining an average market price. Transfer value in (drop calf price), feed, labor, operating and fixed costs were all factored into the total cost per animal. Also, the data was broken into four different sections of a heifers’ life to aid management in evaluating the cost of raising …

Examining Local Consumer Interest In Selling Cal Poly Honey Online, Harrison Luce

Agribusiness

This study was undertaken to determine whether Cal Poly affiliated people were interested in purchasing Cal Poly honey online through its own web store. In addition to determining the level of interest, the target market was examined to explore how to market Cal Poly honey more effectively. The underlying objective of the project was to determine if a Cal Poly honey web store would be profitable as a honey marketing outlet in addition to current sales at stores around campus.

A survey was administered to Cal Poly affiliated people online using SurveyMonkey.com over a nine-day time period. The survey focused …

Social Media Increases Wine Sales And Consumption, Quinn Watson

Agribusiness

The purpose of this study is to research the effects that social media and marketing tools have on branding and labeling a winery and its tasting room. The goal of a specific social media resource, such as a social networking site like Facebook, is to capture the attention of young wine consumers worldwide.

This study will investigate different marketing strategies that the wine industry uses to help attract more attention to the younger wine consumer demographic. Focusing on Costa De Oro Winery in Santa Maria, California, interviews and surveys will be administrated to gather data about specific marketing strategies of …

Profitabliltiy Analysis Of A Hard Apple Cider Company, Erik R. Johnson

Agribusiness

The purpose of this paper was to determine whether a hard cider company could be profitable in San Luis Obispo, CA in a 3 year period. A business plan was created to analyze the potential profitability of the company and included an analysis of the market, competition, consumers, the industry, and finances.

Background information was provided on the history of the hard apple cider industry, the use and importance of a business plan and the permit and license requirements to run an alcohol business.

The CEO and founder of the future company, Erik Johnson, determined the company would be named …

Evaluation Of A Walnut Orchard And A Cost Study Of The Redevlopment Of A Walnut Orchard, Jacob F. Samuel

Agribusiness

A comprehensive study of the redevelopment of a walnut orchard taking into consideration all the factors from planting to harvest. Also a comparison of two orchards where orchard A is well producing and orchard B is poor producing. The study examines the value of the two orchards, where their profitabliltiy is, and whether or not the poor producing orchard should be redeveloped.

What Is Strategy?, Steven Slezak

Agribusiness

No abstract provided.

When Do Fat Taxes Increase Consumer Welfare?, Jayson L. Lusk, Christiane Schroeter

Agribusiness

Previous analyses of fat taxes have generally worked within an empirical framework in which it is difficult to determine whether consumers benefit from the policy. This note outlines on simple means to determine whether consumers benefit from a fat tax by comparing the ratio of expenditures on the taxed good to the weight effect of the tax against the individual’s willingness to pay for a one-pound weight reduction. Our empirical calculations suggest that an individual would have to be willing to pay about $1500 to reduce weight by one pound for a tax on sugary beverages to be welfare enhancing. …