Onion Farming Business Plan

 

Industry Overview

Onions are cultivated by vegetable farmers, and vegetable farmers are known to grow a wide variety of vegetables (onion, peppers, potatoes, lettuce, tomatoes, sweet corn, mushrooms and all other vegetables) and melons in open fields and in greenhouses. Some vegetable farmers also grow a variety of fruits and other crops.

Onions is one of the most consumed vegetables in the world simply because they have so many valuable medicinal applications due to the nutrients, vitamins, minerals and organic compounds contained in them, including the presence of sulfuric compounds and quercetin in traces of the essential oils. Onions also contain mineral components such as calcium, magnesium, sodium, potassium, selenium and phosphorus, and they are a good source of vitamin C, vitamin B6, and dietary fiber.

If you are a close observer of the vegetable farming industry that onion farming is a part of, 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 in recent time, the price of vegetables has increased as consumers demand premium, fresh vegetables.

So also, the number of both small and large farms has 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.

The Vegetable Farming industry that onion farming is a part of is indeed a fast – growing industry and pretty much active in all countries of the world. As a matter of fact, The Netherlands has some of the largest greenhouses in the world where vegetables are cultivated. That is the scale of food production in the country so much so that in 2000 alone, greenhouses occupied about 10,526 hectares, or 0.25 percent of the total land area.

The Netherlands has an estimate of 4,000 greenhouse establishments that operate well over 9,000 hectares of greenhouses and employ about 150,000 workers, producing €7.2 billion worth of vegetables, fruits, plants and flowers, some 80% of which is exported.

Statistics has it that in the United States of America alone, there are about 76,459 registered and licensed vegetable farms (including onion farmers) scattered all across the United States 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 onions and varieties of vegetables in a country where such crops can hardly survive.

One thing is certain when it comes to vegetable cum onion farming, if you are able to conduct your market research and feasibility studies before choosing a location to cultivate your onion, you are more likely not going to struggle to grow the onion farming business and also to sell your onions because there are always food processing companies and consumers out there who are ready to buy from you.

Lastly, onion farming is indeed a profitable business venture and it will pay you to cultivate other vegetables alongside onion if indeed you want to maximize profit in this line of business. The good thing is that other vegetables do pretty well when they are cultivated alongside onions.

Onion Farming Business Plan – Executive Summary

User Name® Onion Farms, Inc. is a registered commercial farm that will be based in the outskirts of Bismarck, North Dakota – United States. We have done our detailed market research and feasibility studies and we were able to secure a well – situated and suitable farm land to start our commercial onion farming.

Our commercial onion farm is going to be a standard commercial onion farm hence will be involved in cultivating other vegetable such as potatoes, lettuce, tomatoes, sweet corn, mushrooms and all other vegetables and melon. We will be involved in both organic commercial onion farming and non – organic commercial onion farming.

We are in the commercial onion farming business because we want to leverage on the vast opportunities available in the commercial farming 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.

User Name® Onion Farms, Inc. is well positioned to become one of the leading commercial onion farms in the United States of America, which is why we have been able to source for the best hands and farm machinery to run the farm with. We have put processes and strategies in place that will help us employ best practices when it comes to commercial onion farming as required by the regulating bodies in the United States of America.

User Name® Onion Farms, Inc. is a family business that is owned by Mr. User Name and his immediate family members. The farm cum business will be fully and singlehandedly financed by User Name and his immediate family members.

Before starting User Name® Onion Farms, Inc., User Name has worked with some of the leading commercial farms in the United States of America; he has a degree (B.Sc.) in Agricultural Science from the University of North Dakota.

  • Our Product Offering

User Name® Onion Farms, Inc. is a commercial farm that will be involved in cultivating onions and other vegetables via the greenhouse farming model and land farming for both the United States’ market and the global market. We are in business to cultivate onions and other vegetables in commercial quantities.

We are in this line of business to make profit, 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 onion farms. If need arises we will definitely add more agricultural produce to our list;

  • Cultivation of onions and other vegetables such as; cucumbers, shallots, tomatoes, lettuce, chilies, capsicum, red salad onions and snow peas, Chinese cabbage, lettuce, basil, roses, tomatoes, okra, cantaloupe and bell peppers, watercress, basil, coriander, parsley, lemongrass, sage, beans, peas, kohlrabi, taro, radishes, strawberries, melons, onions, turnips, parsnips, mushroom, carrot, melon, sweet potato, cauliflower, cabbage, broccoli, and eggplants et al
  • Greenhouse construction, consultancy and advisory services

Our Vision Statement

Our Vision is to become one of the leading onion cum vegetable farm brand not just in the United States of America but also on the global stage.

  • Our Mission Statement

Our mission statement as a commercial farm is to go into full – time cultivation of onions and other vegetables that will not only be consumed in the United States of America, but also exported to other parts of the world.

  • Our Business Structure

User Name® Onion Farms, Inc. is a commercial onion cum vegetable farm that intends starting small in Bismarck – North Dakota, but hope to grow big in order to compete favorably with leading commercial vegetable farms in the commercial farming industry both in the United States and on a global stage. 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. This is why we are committed to only hire the best hands in and around North Dakota.

At User Name® Onion Farms, Inc., 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 our stakeholders (the owners, workforce, and customers).

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, User Name® Onion Farms, Inc. have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Operating Officer
  • General Farm Manager
  • Administrator/Accountant
  • Crop (Onion and other Vegetables) Cultivation Manager/Supervisor
  • Sales and Marketing Executive
  • Front Desk Officer

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; developing incentives; developing a climate for offering information and opinions; providing educational opportunities
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
  • 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 across the various sections on behalf of the organization
  • Supervises other section managers
  • Ensures compliance during project executions (especially in the construction of greenhouse and hothouse et al)
  • Provides advice on the management of farming activities across all sections
  • Responsible for carrying out risk assessment
  • Uses 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
  • Represents the organization’s interest at various stakeholders’ meetings
  • Ensures that farming goals are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied. Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Handles all financial transactions for the company
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Oversees the smooth running of the daily farming activities across the various farm sections

Administrator/Accountant

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defines job positions for recruitment and managing interviewing process
  • Carries 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
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the farm
  • Serves as internal auditor for the farm

Crop (Onion and other Vegetables) Cultivation Manager/Supervisor

  • Responsible for the cultivation of onions and other vegetables such as; cucumbers, shallots, tomatoes, lettuce, chilis, capsicum, red salad onions and snow peas, Chinese cabbage, lettuce, basil, roses, tomatoes, okra, cantaloupe and bell peppers, watercress, basil, coriander, parsley, lemongrass, sage, beans, peas, kohlrabi, taro, radishes, strawberries, melons, onions, turnips, parsnips, mushroom, carrot, melon, sweet potato, cauliflower, cabbage, broccoli, and eggplants et al
  • Supervises other workers within the department
  • Works closely with the General Manager to achieve the organizations’ goals and objectives

Sales and Marketing Officer

  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects
  • Writes 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
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the farm

Front Desk/Customer’s Service Officer

  • Welcomes guests and clients to the farm by greeting them in person or on the telephone; answering or directing inquiries.
  • 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
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the farm’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
  • Receives parcels/documents for User Name® Onion Farms, Inc.
  • Distributes mails in User Name® Onion Farms, Inc.
  • Handles any other duties as assigned by the line manager
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