It is only 10 years since organic became interesting for investors. Until now, it was not interesting, because the profitability of this business was incomprehensible. Today, considering that the market for consumption of these products is growing, everyone started to participate in it.
Today, for the grain group, it is completely possible to create models: there are technologies, an understanding of what a profitable area should be, and outlets have formed. That is, this market is already developed.
A similar market of berries only at the beginning of its development. Therefore, if I am asked about the proportion of paid, profitable berry organic projects, I will answer: 50/50.
Many companies, I would say 70%, who invested in the cultivation of organic strawberries and raspberries, for now are unprofitable. Why?
They violated one rule. When everyone starts to deal with raspberries, they argue: “We planted it, it grows and yields 10 tons / ha,” because they were told by specialists in conventional farming, without looking at the costs. In fact, raspberries will yield 2 tons, because this is its natural yield.
From two tons you can make jam, but you will not do business.
When in 7 years you will have an infrastructure, a business will be built and cultivation of another culture will not be a problem for you. After the raspberries you can go to strawberries, blackberries and so on.
You will understand the business, how to invest it, and continue to work. Therefore, the, one well-known successful grain company just invested money first 3 years, and then restarted, and now it has a successful model.
It is because it is not always easy to produce profits. It depends on the volume. They found a factory that processes their products on tolling conditions. It took another five years. Now they have 3.5 thousand hectares in processing.
If you want to invest money and earn 20% organic per year, you may not even start. In the best case, at least some profit you will receive in 3 years. Because you will have many organizational problems to complete the business.
I have seen a lot of companies. One does the wrong watering, anothe bought bad saplings, which died. In most cases, it is necessary to recommend plowing a site or replacing and dumping.
Somewhere the staff was wrong, and some two men are not able to sit down on the tractor, because they drink for three days/
That is, you need to see all this complex of problems.
In the next article I will talk about what is important to consider in growing organic raspberries in Ukrainian conditions.
Previously, AgroDay wrote that in the modern market, organic farmers are increasingly beginning to influence inorganics.
Nikolai Bykov, Consultant on Organic Production and Agronomy (Certificate No. 26/2017/2)