More Gallons, More Profit: New Opportunities in Agriculture

Transcription

1 More Gallons, More Profit: New Opportunities in Agriculture Cinch Munson Propane Education & Research Council Larry Osgood PERC Advisor & Consultant President: Consulting Solutions

2 Propane in Rural America 50% use propane in their home. 40% use propane in their operation. ~830,000 customers. ~1,000,000,000 gallons. >10% of all sales.

3 (Million Gallons) U.S. Propane Demand in Agriculture Source: API Survey

4 U.S. Propane Supply Outlook Source: ICF International

5 U.S. Propane Supply vs. Demand Source: ICF International

6 What does this all mean? The price advantage for propane and propane equipment, plus the longer term supply-demand scenario, gives propane a timely growth opportunity.

7 POSITIONING PROPANE

8 Why Propane? Equipment cost. Installation cost. Operating cost. Environmentally friendly. Proven and reliable. Portable and mobile. Storable. No theft.

9 Why Propane? Equipment cost. Installation cost. Operating cost. Environmentally friendly. Proven and reliable. Portable and mobile. Storable. No theft.

10 Why Propane? Equipment cost. Installation cost. Operating cost. Environmentally friendly. Proven and reliable. Portable and mobile. Storable. No theft.

11 A committed partner. Unique service. Knowledgeable support. Real solutions. Off-the-grid operations. Convenience. Connections. Why Propane?

12 A committed partner. Unique service. Knowledgeable support. Real solutions. Off-the-grid operations. Convenience. Connections. Why Propane?

13 TARGETING AGRICULTURE OPERATIONS

14 What propane equipment do you use 1000 gal 500 gal 0 gal on your operation? 2015 World Ag Expo, Survey Participants 5000 gal >100,000 Gallons 1000 gal 1000 gal 5000 gal 5000 gal 20,000 gal 2,000 gal 500 gal 30,000 gal 20,000 gal 5,000 gal 5,000 gal

15 with even more opportunities.

16 and even more opportunities.

17

18 POSITIONING THE PROPANE MARKETER

19 Where do you get information about equipment you purchase? World Ag Expo, Survey Participants

20 What influences buying decisions? 2015 Farm Incentive Program, Irrigation Engine Participants Number of respondents: N=44 Participants could select more than one response.

21 What is the propane marketer s role? Equipment Sales & Service Partnerships Knowledgeable Simply Selling Gas < < < The Role Continuum > > >

22 CAPITALIZING ON THE OPPORTUNITIES

23 Irrigation Engine Opportunity Can use over 5000 gallons/year. Summer load. Tier 4F. New generation of engines.

24 When are irrigation engines purchased? 2015 Farm Incentive Program, Irrigation Engine Participants Number of respondents: N=44 Participants could select more than one response.

25 When do you irrigate?

26 What is the Expected Life Span for an Irrigation Engine? 2015 Farm Incentive Program, Irrigation Engine Participants Number of respondents: N=40* *Four participants did not respond to this question.

27 What types of fuels are propane irrigation engines replacing? 2015 Farm Incentive Program, Irrigation Engine Participants

28 What influenced the decision to purchase a propane irrigation engine? 2015 Farm Incentive Program, Irrigation Engine Participants Number of respondents: N=44* Participants could select more than one response. *One participant purchased a propane-fueled engine because electricity is not available in his area.

29 Irrigation Engine Growth Partner with engine dealers and irrigation dealers. Attend farmer events. Host customer events.

30 Crop Dryer Opportunity Can use 20,000 gallons or more a season. High demand in a short season. Pre-winter load.

31 When do you dry grain?

32 What types of fuels are propane grain dryers replacing? 2015 Farm Incentive Program, Grain Dryer Participants

33 Build relationships with equipment dealers and local experts. Understand your local harvest. Understand impact of efficiency and harvest flexibility. Crop Dryer Growth

34 Greenhouse Heat Opportunity Can use 20,000 gallons or more per year. Natural gas competition. Companies moving to new locations.

35 Greenhouse Heat Growth March-June buying season. Make connections. Understand the systems. Forced Air. Hot Water Radiators. Heated Benches & Floors.

36 Animal Heat Opportunity Can use 30,000 gallons or more per season. Biomass and natural gas competition. Understand Good Better Best solutions.

37 Animal Heat Growth Attend agriculture events. Maintain margin. Understand the solutions. Forced Air. Brooder. Overhead Radiant. In-Floor Radiant.

38 Flame Weeding Opportunity Use 4-10 gallons per acre per treatment. Typically two treatments per year. Growth in organic markets. Competitive in traditional ag?

39 Flame Weeding Growth Build relationships with local organic experts. Understand the benefits of the technology. Attend farmer events.

40 PERC RESOURCES

41 Sales Resources propane.com

42 Let s Capitalize on the Opportunity