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Modules

Note that each module in the Certificate in Alternative Farming is a short course in its own right, and may be studied separately.

CONSIDERING NEW ENTERPRISES

Over recent years, farmers from many other countries, have looked increasingly towards growing new types of crops or animals. There can be a distinct advantage in getting in first with potentially valuable products. At the same time there can often be a disadvantage in that the country does not have an infrastructure developed to deal with the product. For example, Australia has been farming an increasing number of emus and ostriches, but there are few abattoir facilities developed to kill and process the meat, leather, feathers, etc.

Advantages & Disadvantages Of New Industries

• Getting In First. This can allow you to:
  • Develop a market niche.
  • Develop a reputation, and a level of expertise that you can market to future industry members, for example by provide startup or breeding stock for the next wave of farmers.
• Starting later
  • It may be hard to break into the market in the face of established producers, but you may be able to bypass mistakes made by the earlier people (pioneers in the industry).

High prices are generally obtained for stock/produce at first, particularly if they are in high demand as breeding stock, but once numbers increase then price drops rapidly. You can lose a lot of money buying expensive stock, only to see prices plummet in a short time. Timing your entry into developing industries is crucial.

You can often get extensive help, advice, support from various government agencies (e.g. agriculture departments) who are keen to develop new industries in conjunction with  farmers.

Some new products require more sophisticated facilities for processing than others, while others can utilise existing facilities for other crops or animals. You need to be aware of what is needed and ensure you have reliable access to such facilities (or an ability to develop suitable processing facilities), before making a commitment to grow something new or different.

Markets - may already be established, or you may need to develop market opportunities.

New industries often have additional tourism potential, for example, uncommon animals will attract interest as an oddity to be looked at, not just for meat, fleece, or milk production.

WHICH NEW ENTERPRISE TO CHOOSE?

Careful selection of which new enterprise/s to undertake is extremely important. Choosing the wrong enterprise can result in expensive outlays for little return, a lot of work to produce a marketable crop or service, poor yields, poor quality product, or even total  failure of the enterprise.

HOW THEN DO YOU DECIDE WHICH ENTERPRISE/S TO TRY?

STEP 1.

A simple process to get you started is to consider, on a BROAD SCALE, all the possibilities for potential enterprises. This could be done as a brainstorming session, perhaps with relatives, staff members, and/or fellow farmers. Don't limit yourself at this stage - no idea is too silly. You may want to do a little research to give you a few more ideas. What products or services are being trialed in Australia, or which are being grown overseas successfully, but not yet trialed in Australia, that you might be interested in?

A little research, even a visit overseas, could extend the range of possibilities to consider.

List all the ideas you come up with. A list of possible enterprises/activities to give you a good head start is included later in this chapter.

STEP 2.

List all of the things that you already have, or could readily get hold of, that could be potentially utilised as part of a new enterprise. Once again don't limit yourself. Items to be listed could include, such things as:

• Land - how much, where is it located (e.g. next to a major highway or near a big town), topography, soils, climate, etc.
• Water - how much, from what sources, cost, quality, reliability, etc.
• Established infrastructure - do you have sheds, buildings, dams, fences, roads, etc. on your property?
• What services do you have access to (mains water, power, telephone, etc.)?
• What equipment do you have, or can readily get access to (e.g. tractors, harvesting equipment, cultivating equipment, sprayers, irrigation equipment, vehicles, etc? What enterprises are these resources suited to, or could be readily adapted to.
• What skills and knowledge do you have - don't just consider farm production skills, also consider computer skills, marketing skills, cooking skills, handyman skills, business skills,etc. Some crops and animals are very difficult to grow; others are easy. Some services are easy to provide, others may be more difficult. If you are inexperienced, it is often best to start with the easy ones, even though profit margins may not be as high as for other products or services.
• What are your personal interests? You will put much more effort into something you are really interested in.
• Can you get extra, suitably trained staff easily if required?

STEP 3.

Limiting Factors

What things would limit you from doing certain enterprises. List these. Could these limitations be readily overcome. You might, for example, have a water shortage problem, or your property may be well off the beaten track, or your property is subject to heavy frost.

STEP 4.

Go through each of the potential enterprises on your first list and cross check them with your other two lists. Put a tick or an asterisk against those enterprises that you feel you could do given the list of resources you have or could readily get hold of. Put a cross next to those enterprises where you feel you wouldn't have the necessary resources to carry out that enterprise. Also put a cross against those enterprises where the items from your limitations list would make the undertaking of that enterprise difficult, for example, if you have water shortages, then trying to produce a crop or animal with high water demand (e.g. water chestnuts, aquaculture) is not likely to succeed.

STEP 5.

Start to carry out some initial research into the items that you have asterisked or ticked. You may limit this step to those enterprises that particularly interest you, especially if your list of possible is still a long one. Don't throw away your original list though. As conditions change (e.g. finances improve, irrigation channels are supplied to your area) you might want to later on reconsider some of the enterprises you have at first rejected.

STEP 6.

Some of the following points might help you further cut down your list of possible enterprises.

Are you producing for your own needs, for commercial production, or for both? 

A. IF PRODUCING FOR YOUR OWN NEEDS:      

Your market is assured here.  It is difficult to go wrong provided you do the following:‑ 

• Ensure that you have or develop the skills required to produce the product or service you have selected.
• Ensure that you have the right equipment, materials, etc. to produce the product or service.
• Check and be sure that you can grow or produce or deliver each particular product or service cheaper than you might buy the product for.

BEWARE, even though it may seem ridiculous, it is often possible to buy something for less, or hire someone to provide a service, than it might cost you to grow it or provide a service yourself.

B. IF PRODUCING A PRODUCT OR SERVICE TO SELL:

Your market is rarely assured, and when it is (e.g. contract growing), there are generally disadvantages involved. Choosing which product or service to grow or provide might include:

• Studying the demand of alternative products or services under consideration and select high demand ones.
• If you choose a crop or animal, then how suitable is that crop or animal to the soil and climate of your area. Would expensive site modifications need to be made to allow that crop or animal to be grown successfully (e.g. greenhouse installation, windbreaks, soil works).
• Could you borrow, lease, hire any other equipment you might need on a short term basis, while you have a try out producing a new crop, animal, service, etc.
• What is the cost, and availability, of planting material, breeding stock, specialist equipment? Can you get it, and/or can you afford it?
• Consider the keeping quality of any products. Those which only keep for short periods only are more of a risk than ones which keep well.
• Can the products you might be considering growing be processed to give them a much longer life?
• Could processing be used to increase the value of the products you are considering (this is known as value adding)?
• Consider when the product or service will be sold/supplied and the likely changes in demand throughout the year.
• Consider the relationship between cost outlay & return. Some enterprises require large capital outlay before any return can be obtained (eg: Walnut orchard ... property & labour, etc. can be tied up for up to 10 years before reasonable crops start to be obtained from the trees).
• Consider the scale on which that product or service is normally grown or delivered commercially.  Crops grown on large scales (eg: Wheat) are subject to scale economies (ie: they need to be grown on large scales to achieve a reasonable cost efficiency).
• Consider how well established the particular sector of the industry you are considering is, and study what other people growing that crop or providing that service are doing. If everyone grows a particular crop or animal, or decides to provide a particular service because there has recently been a high demand ... next year may result in an over supply of that crop, animal, or service, and very cheap prices.
• Consider the likely transportation & marketing requirements of the products or services.
• Consider the time that particular crops or animals take to mature and the length of production of that particular crop or animal.

Some crop bearing trees, for example, can take four or more years before you get a

worthwhile crop, but will keep bearing, if well maintained, for decades.

• Consider market presentation & preferences before beginning a venture.  Some products or services require a larger capital outlay to package & present at market than others.
• For "new" or experimental crops or animals, determine what information is available on their culture, and what grower support (e.g. Dept. of Agriculture). Trying crops or animals that are new to your area, or are experimental can be costly if results are poor, but also have the potential to be very rewarding if results are good. Researching overseas efforts with such (or similar) crops can often provide important information.

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