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Business Feasibility

for Ornamental
Aquatic Plant Culture
in the Northeast
Gef Flimlin, Rutgers Cooperative Extension,
Bob Pomeroy, University of CT
&
Don Schnoor,
Ornamental Aquatic Consultant

Basic concept
Design a small commercial aquatic
plant culture system that can be
replicated to expand production to
other like-minded growers, all
marketing product similarly or
cooperatively.

Why?

Basic Farm Design


Several Levels of Involvement
Hobby

level, small start


Medium Growth
Larger investment for a faster
growth operation.

Hobby/Starter farm
One 14 x 100 hoop house (owned or
rented) with two raceways, unheated
Purchase about 900 starter plants in
year 1 (about $2200).
Market very locally
Propagate part of production and keep
leftovers in inventory.

Medium sized farm


Two 14 x 100 hoop houses, one
heated with twin walled plastic, one
unheated, single wall plastic. Both with
ventilation. Two raceways in each.
Purchase about $4000 worth of starter
plants (1600 at $2.50 average)
Market more aggressively to local
garden centers and landscapers.
Propagate leftovers.

Larger Investment
One 100 x 30 double walled plastic
greenhouse with roll up sides, heat and
ventilation. Four raceways.
Two 14 x 100 single walled plastic hoop
houses with roll up sides and two
raceways.
Purchase about $6000 worth of
plants.(2400 plants at $2.50 average)
Need outside labor and possibly sales help
for larger scale marketing.

Raceway design

Each raceway is elevated to ease handling of


plants.
Raceways are 4 wide initially constructed of
plywood, 2x4s, and a rubber liner.
Each raceway empties into a plastic tank
equipped with a recirculating pump and a float
to maintain water level. The pump sends the
water back to the head of the raceway.
A simple piece of window screen reduces fouling
getting into the tank.

Head house
Each scenario should consider the
addition of a head house constructed or
placed at the end of the hoop house or
greenhouse. This space will provide an
appropriate location for storage of pots,
soil, fertilizer, etc. as well as a place to
propagate plants, pack for shipping,
and work on other tasks.

Start up costs: Hobby size


(retail pricing)

2 ply greenhouse 14x100, ventilation (no


heat), roll-up sides $4000 to $5500
Raceways.Lumber, liners, tanks, pumps,
misc.$2400.
Plant plugs (30 varieties x 30 plugs each x
$2.50 each) $2250.
Pots, trays, media, fertilizer$300
Total..about $10,000 (no labor costs)

Start up costs: Medium sized


farm

2 greenhouses, one double walled with heater,


one single walled roll-up sides.about $9500.
4 raceways systems.$4800.
Plants.$4000.
Pots, trays, media, fertilizer.$700.
Total.about $19,000

Start up costs: Large farm

30x100 double walled heated greenhouse


plus 2- 14x100 single walled roll-up sides
hoophouse.$17000
6 raceways.$7200
Plants.$6000
Pots, trays, etc.$1200
Total.about $31,500

Rough Sales Year 1


900 plants purchased($2250@$2.50)
Sell 700 4pots @ $4 each= $2800
Repot 200 plants in 6 pots; hold for
propagation.
Value of 200 plants in spring (at least
2:1 split if not more) $1600+

Rough Sales Year 1

Purchase plants, pots, etc.


Sell 700 ($4 each)
Spring value leftovers
PROFIT

$2250
$2800
$1600
$2150

What kind of plants?

Plant selection

Start with hardy varieties to help ensure grower


success. Marginals work best, but tropicals can
be added if they can be sold in the first year.
Theyll need heat to be over-wintered in the
Northeast.
Each grower would cultivate about 20 to 40
varieties selected from the most popular by
market demand.
First delivery will come in Mid-March in plug
form (6 to 12 tall plants). These will be
immediately planted into 4 pots. The second
delivery will be around May 1 in a similar form.

Plant Selection

Plant deliveries can be moved back or


forward as the seasons change or depending
on the location in the region.
Planting media should be a mix of soil, clay
and sand and can be enhanced with timerelease fertilizer (eg. Osmocote, Nutricote).
May also use rock wool or aquatic planting
material.
Raceway stocking will be in one or two
raceways and expanded into the other
raceways later as plants are propagated.

Marketing

Primary Markets

Aquatic Garden or Pet Centers for plants


Garden Centers (take orders during early
winter Regional Garden Center Shows)
Catalogue or Web sales
Consumer Direct (Landscapers)
Wholesalers (only for over-stocks since
profit is smaller for this group)
Co-op sales in the future.

Marketing by Grower

Marketing is direct to retailers within a


drivable radius of the farm.
A charge for delivery on small orders
(<$300) is charged. Possibly mileage at
$.50/mile+ depending on vehicle.
Wholesale selling at garden/pet shop
shows are given a small discount (10%) to
place large opening season orders at
shows.

Marketing

Delivery and regular retailer stock maintenance onsite will inspire customers to use your service more
and accept fish or snails as you incorporate them
into business.
Supply plant display bins to centers for exclusive
plant contracts.
Offer to take back any your unsold plants at
season end from retailers. Give a credit memo for
spring purchases, minus a 15- 25% restocking fee.
These plants can be split, over-wintered and resold in the spring, doubling your money.

Plant Business Logic

Year 1 Grow to build inventory; sell and


show plants to retailers for orders for next
year. Helps to plan for Year 2 plant
purchases and growing needs.
Year 2 Increase customer base and
production capabilities. Grow the
business.
Year 3 Continue to increase capacity,
propagation and sales.

System linkages

Supplemental crops could be snails,


tadpoles, and lilies.
The culture of fish can be added. The
effluent of this process can be pumped
through the plant raceways and serve as a
fertilizer. The fish can be either food fish
or ornamentals, although ornamentals will
likely have a better return for investment.

Profit challenges

No labor costs were included in calculations.


This must be done to turn this from a hobby
into a business.
These plans do not constitute a full plant
product line; mostly hardy plants, few tropicals
and no lillies. Other additions can be
considered for expansion of product line.

Profit challenges
Sales

potential assumes
somebody in operation can
sell. If plants look good, this
shouldnt be hard, but
somebody has to knock on the
doors and plan a strategy.

Profit challenges
Propagating

plants is much
easier than selling.
Sales will make or break the
operation!!!!!!!!!!!

Last Step

Make Money!

Growing Ornamental Aquatic Plants


as a Business in the Northeastern
United States
Available online at

www.nrac.umd.edu/publications/factSheets.cfm

Thanks to other participants


Andy

Lazur, Univ. of MD
Randy Mickley, URI
Bob Pomeroy, Univ. of CT
Chip Crumm, Aquatic plant business, MD
Tom Jamir and folks at NRAC for
funding

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