In my 30 years as a commercial grower and consultant, the question I am most often asked is “So, what REALLY is the best and most profitable crop for me to grow?”. I have observed with amusement (and sometimes dismay) the never-ending debates over the best crop selections for both novice and experienced growers alike.
What is the ideal crop for me?
My answer is always the same: “There is none!”
Appropriate crop selection is one of the most critical factors in proper hydroponic business development, and should be based on a number of factors…each of which is highly individual to each grower and situation.
Which marketing avenue is best? Retail? Wholesale? Restaurants? CSA? Farmer’s Market? (How about some combination thereof?)
These decisions will be influenced by your geography, accessibility, temperament (love dealing directly with consumers?), local competition, and size/scale of your growing operation, among other factors. Based on your preferred marketing direction(s) from above, careful crop selection should now focus on crops that are:
In high market demand in your specific area
Generally unavailable or of inconsistent quality
Sought by a niche consumer who is willing to pay premium price for a premium product
Highly perishable and do not ship well or has high shipping costs
Have been recognized as offering superior benefits to health or well-being
Using the emotional argument for raising specific crops such as “everyone is growing lettuce”, “I like tomatoes”, or “I see greenhouse peppers selling for $4/lb!!” is poor rationale for a decision that is so critical to your success.
One of the biggest mistakes that I see growers make is to attempt to build a business around “growing lettuce” or “raising tomatoes” which is really putting the cart before the horse. The most effective route to building a successful hydroponic business is to identify….and then exploit, existing (or created) market opportunities. The markets always have, and will continue to evolve and change. Success and profitability are based on this market exploitation, combined with high level production and effective cost control. Notice that I mentioned market exploitation first. That is because this critical piece is the foundation that the entire business is built upon.
In terms of hydroponic/controlled environment ag production, I see the following areas that currently offer particularly promising opportunities:
- Ethnic specialties
- Nutraceuticals/Botanicals
- Specialty cooking greens
- Homeopathic herbs
- Micro vegetables
- Items limited only by your imagination
So, while other growers are looking to decide what crops to grow and sell from their system, a smarter approach may be for you to develop a growing system and business around a MARKET OPPORTUNITY. Step back and take a look at opportunities that currently exist. Look at opportunities that you could create. How can you best fill that need? THEN, you will have the answer to that magic question “what IS the best crop for me to grow?” It’s time to get growing!
This article was published by Joe Swartz at the corporate blog of American Hydroponics.
For more information
AmHydro
SOUTH G STREET ARCATA, CA 95521-6670
T: (800) 458-6543 286