To: Morgan Thomas mthomas@TheFarm.com From: Gabe Jones gjones@TheFarm.com Subject: Potential Growth of The Farm based on Quarter One and 2017 Trends CC: Morgan, As president of The Farm’s board of directors, I thought I’d share recent data supporting our expectations for growth in 2019 and beyond. While we expect to make a 20% profit during the next 12 months, the board should consider expansion to increase the profits further. The Environment: The Verde Valley is Uniquely Situated The Verde Valley’s mild weather supports produce growth 10 months each year. This has allowed us to regularly bring products to farmer’s markets in Sedona, Prescott, Camp Verde, Flagstaff, and Anthem. Sustainability: More than a Movement When The Farm was established in 2004, principles of sustainability were woven into each aspect of the operation. Since then, becoming more sustainable is a goal of businesses everywhere. As an early Arizona adopter of green food and livestock production, The Farm has been featured in numerous news reports on television, newspapers, radio, and magazines. The exposure has helped create a steady growth of loyal customers, based on feedback received at farmer’s markets. Continuing and improving our organic methods results in more loyal customer each year, in part because the state’s population continues to grow, but also because consumers are supporting green companies. As more people learn about the link between health and organic practices, more customers will seek our products. Education: A Destination for Arizona Students Our educational outreach has made us eligible for grants; this area could increase significantly during the next decade. Arizona’s population continues to grow, and schools need field trips to teach students about food and sustainability. The Farm receives payment from schools, as well as education-related grants. Our operation regularly has paid interns. These positions are partially supported by Yavapai Community College and NAU-Yavapai. Students come from several programs: winemaking, biology and chemistry, sustainable communities, and others. These educational relationships benefit everyone and more funds are funneled into our operations as well. Additionally, our website has become a source for scholars and students researching best growing practices. The Farm–Recent Growth On-Site Sales Customer Profit Ed Grants 0 10 20 A1 2018 30 Q4 2017 40 50 60 70 80 Q3 2017 This table represents growth in the past year, a growth that has been steady since 2004. Desire for Farm to Table Cafe: Customer Survey Reveals Growth Opportunity A survey conducted in March 2018 revealed potential areas for growth. There were 3,207 respondents, all were presumed to be customers because the survey link was distributed during the purchase of goods. Some customers reported a desire for more opportunities to purchase from The Farm. These responses likely were from customers in Flagstaff and Prescott, where the farmer’s markets happen seasonally. More than 2,500 customers said they would regularly eat at a café owned by The Farm. The National Federation of Independent Businesses reports a meteoric rise in success of farm-to-table restaurants because of changing consumer behaviors. NFIB said 87% of new restaurants using local food suppliers find success, compared to just 59% of all newly established restaurants. Other potential areas of growth could include food delivery, both as stand-alone products or meal kits, a popular trend among many Arizonans. Conclusion Staff members at The Farm look forward to hearing reactions from the board after its annual meeting later this month. Expanding operations, including a potential Farm-to-Table café, requires a vote by the board. Reach out to me directly if you would like more information on The Farm’s operations or any consumer trends in Arizona, nationally, and internationally. Sincerely, Gabe Jones Development and Outreach Coordinator, The Farm (928) 555-3942
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