Local Producer Perspective

Transcription

1 RAAW Conference Local Producer Perspective SAN DIEGO, CA AUGUST 2018

2 Southern California Perspective From Mike Mellano, CEO Mellano & Company Allison Paap, VP Lending Manager American AgCredit

3 Southern California from the outside:

4 The other side of Southern California:

5 Farming in San Diego County National Rankings: #19 Farm Economy among all US Counties #1 in Nursery Production #2 in Avocado Production #1 in number of Small Farms #1 in number of Organic Farms #1 in farmers with off-farm income Source: San Diego County Farm Bureau

6 San Diego County Crop Profile Nursery & Floral 69% Fruit 19% Vegetables 8% Livestock & Poultry 3% Other < 2% 2016: Total value of crop production - $1.8 Billion Total Acreage 250,720

7 Local Farms Farm Size 4 acre median 79 acre average Demographics 20% of San Diego Farms are operated by women At least 25% are operated by minority farmers Economic Value $4.7 Billion annual impact 16,000 jobs

8 Trends in San Diego Farming Changing Crop Selections Increasing acreage in wine grapes, dragon fruit, olives & low water-use plants Specialty Fruits

9 Trends in San Diego Farming - Marketing Branding Farmers Markets/CSA Niche Markets

10 Trends in San Diego Farming - Marketing Organic Agritourism and Farm-to-Table

11 Trends in San Diego Farming Water Use High-Density Plantings Hydroponic Recycled Water Low water-use plants

12 Keys to success with farming in San Diego Climate Diversified water supply Labor supply (although more difficult now) Steady supply of local markets

13 Challenges to farming in San Diego Water Price, price, price Immigration reform Shrinking labor pool Changing policies, slow action in DC Pest exclusion Traveling public Package shipments

14 A Closer Look.. The World s Finest Farm Grown Flowers

15 1925: Beginnings from 6 acres and Passion

16 Mellano & Company History

17 Today & Tomorrow Farm Floral Wholesale Consumer Ready Events

18 Farm Floral Mellano & Co farms on 375 acres Over 7 Million bunches of flowers and foliage produced annually More that 43 Varieties produced Signature crops include ranunculus and myrtle Newer crops include decorative peppers and pumpkin trees

19 Farm Floral Utilizes over 20,000 square feet of computer-monitored refrigeration with pre-cooling capacity of over 350 boxes per hour.

20 Wholesale Distribution Sourcing Specials & Programs Christmas Wreaths & Garlands Plants Peonies

21 Consumer Ready Entry Level Value Bouquets Arrangements Consumer Bunches Premium Farm & American Grown Bouquets

22 Events The Rose Parade LA County Fair Oscars/Emmys Conservatory in the Bellagio Field-to-Vase/Farm Dinners Weddings

23 Part of the California Flower Community Mellano & Company faces challenges and opportunities impacting the whole floral industry. CA Flower Production averages about $300 million annually 76% of US Cut Flower Production comes from CA California production centered in 6 counties: Monterey, San Diego, San Luis Obispo, Santa Barbara, Santa Cruz & Ventura

24 California Flower Production Acres and Revenues

25 Challenges to the CA Flower Industry Access to land and urban pressures Pests, weeds, and diseases Water availability and water cost Energy Cold-chain requirements and other transportation issues Globalized Industry and declining domestic production Innovation pipeline continuing demand for new and expanding product lines and demand for R&D work Impacts of new farm products, including legalized cannabis

26 Mellano & Company Answering the challenges Engaging and gaining support from the urban population Carlsbad Field to Vase Dinner, Agritourism at Flower Fields, Investigating new opportunities for Agritourism Embracing the most advanced scientific farming and irrigation techniques Strict adherence to the cold-chain for quality control and minimize disease risk Commitment to ongoing investments in technology and research and development Staying informed to changes in local jurisdictions related to the legal and production issues of new crops impacting flower growers, including the ongoing dynamic situation around cannabis

27 Answering the Challenges Forming Strategic Partnerships

28 Looking Forward - What s next for California Flowers?

29 Questions? MIKE MELLANO ALLISON PAAP