2001 Annual Report for FNC01-369
Determination of Market and Profit Feasibility for an Organic Specialty Cut Flower Business in a Rural Northern Michigan Community
Summary
Kim Smith-Potts of Honeydale Farm in Skandia, MI has been awarded a SARE grant of $5,000 to create a market for an organic, specialty cut flower business within the northern Michigan community. Honeydale Farm Flowers is an extension of Honeydale Farms, a family-run operation, owned by the Potts family and includes an independent contracting business. Honeydale Farm Flowers is co-owned by Kim Smith-Potts and Sarah Anderson.
In addition to her two years of yield research with Michigan State University and the Michigna Food and Farm Alliance, Kim wanted to determine whether or not there was a strong enough market that exists for her flowers. Throughout the project Kim conducted market surveys, developed a marketing plan and began growing and selling specialty cut flowers.
She found the demand to vary amongst the local florists; with each florist having their own likes and dislikes. A few of the flowers that were popular among many of the florists included: Allium, Amaranthus, Echinacea, Lupinus and Rudbeckia. Through this process they found it difficult to meet the heavy demand of consumers and realized that the growing process for the flowers needed to become more efficient and effective.
Honeydale Farm Flowers market segment is mostly comprised of wholesale to florists, but retail sales for events, especially those that involve the customer performing some of the arranging seems to be the most profitable for the business.
In the first year of operation, Honeydale Farm Flowers experienced a high amount in expenses due to the large investment in tools and equipment needed to start the business. Both Kim and Sarah look for a net profit as annual costs are reduced and as the fields reach optimum soil fertility for proper growing conditions. In the future it is expected that the revenue will increase to help out both Kim and Sarah’s family.
The future for Honeydale Farm Flowers appears to be bright as Kim states that, “The social impacts included an increasing trend towards and interest in the purchasing of organic, specialty cut flowers, plus an increasing awareness and knowledge base of organic and sustainable farming practices by the growers and their families, as well as others in the surrounding market community and in the regional, national and international growing communities.”