efarmer.us kale and mustard greens production, market, and expected return december 2008 copyright...

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Kale and Mustard Greens

Production, Market, and Expected ReturnDecember 2008

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Overview• Climate – Kale and Mustard Greens are cool season crops.

Extreme cold and heat temperatures prevent year-round land production in Kentucky. The greens should be planted in early spring or late summer/fall.

• History– Crucifer or Mustard Family (Brassica juncea) – Mustard Greens originated in India – Kale belongs to Brassica oleracea family (Acephala Group)

which is a form of Cabbage. English settlers brought Kale to the US in the 17th century.



Market Opportunities• Worldwide, National – Europe, Asia, North and

South America consume large quantities of greens

• Direct Market – Farmer’s markets, roadside stands

• Wholesale Market – Produce auctions, local retailers, restaurants

• Price - Greens range from $5.50-$8.40 per box with an average price of $7.00



Marketing in KentuckyFind the market and establish a price – Research local and statewide

markets by using trade magazines, Cooperative Extension Service, KY Vegetable Growers Association, KY Department of Agriculture, KY Farm Bureau, The Commodity Growers Cooperative, and the US Department of Agriculture.

In order to choose a market, consider local facilities, time available for marketing, production volume, and financing.

Possibilities for marketing – Roadside or on the farm markets, pick-your-own sales, farmer’s markets, produce auctions, or marketing cooperatives.

Local wholesalers, grocers, and restaurants may also purchase directly from growers. However, this requires a greater investment in containers, cooling equipment, and transportation. Some may require the application of price look-up (PLU) stickers. Marketing cooperatives provide access to clean, grade, and cool produce.



Marketing continued

Healthy foods are gaining popularity across the nation. When marketing Kale and Mustard greens, be sure to emphasize the following:

Mustard greens promote lung health, essential vitamins and nutrients for a healthy heart, women’s health (menopause), and protection against rheumatoid arthritis.

Kale contains high amounts of beta carotene, vitamins K and C, and calcium.

It is also important to note that some varieties of Kale are used for ornamental purposes.



Production Characteristics


Soil Test Results (lb./A)

Fertilizer Needed (lb./A)

Phosphorus Phosphate

Low <31 121-180

Medium 31-60 1-120

High >60 0

Potassium Potash

Low < 201 101-150

Medium 201-300 51-100

High 301-450 1-50

Very High >450 0

Nitrogen

Usually, soil tests are performed before planting crops. This table illustrates the amount of fertilizer needed according to the test results.

Apply 100 to 150 lbs of actual Nitrogen per acre. Apply 25% to 50% broadcast with other fertilizer before seeding/transplanting and disk in well. The remainder can be divided into one or more side dressings (Bessin, p. 51).

Bessin, Rick. Vegetable Production Guide for Commercial Growers, p. 51.


Greens can be produced as• Row Crops• Raised beds with plastic (6’’ H x 32’’ W with 5 to 6 feet between

centers of the bed)• Raised beds without plastic (2-3 rows per bed)• Greenhouse Crops

Greens can be direct seeded or transplants. If using transplants, keep them in the greenhouse 4 to 6 weeks before planting in the field (transplants result in earlier crops than direct seeded crops).

Tobacco float beds may be used for production of greens.



Production Kale Varieties Maturity (Days) Mustard

VarietiesMaturity (Days)

Winterbor 50-55 Savannah 35

Darkibor 50-55 Tendergreen 40

Redbor 55 Southern

Giant 45

Red Russian 50 Green wave 45

Blue Knight 45-55 Florida Broadleaf 50

Blue Armor 47-57

Vates 57


Source: Bessin, Rick. Vegetable Production Guide for Commercial Growers, p. 50.


Diseases & Pests – Downey mildew, powdery mildew, various

fungal leaf spots

– Cutworms, wireworms, aphids, flea beetles, leafminers, leafhoppers, and white fleas



Insecticides


Actara 25 WP Dimethoate 4 E Malathion 8 Sevin XLR

Admire Pro Endosulfan 3 EC Oberon 2 SC Spintor 2 SC

Assail 30 SG Fulfill 50 DF Platinum 2 SC Trigard 75 WP

Beleaf 50 SG Intrepid 2 F Provado 1.6 F

Bt products Knack 0.86 EC Pyrethrin

Confirm 2 F Lorsban 75 WP Radiant SC

Insecticides Restricted Use

Asana XL Diazinon 50 W Mustang Max

Baythroid XL Dimilin 2L Proclaim 5 WDG

Daizinon AG500 Lannate 90 SP Renounce 20 WP



FungicidesFungicides for Mustard & Kale

Acrobat 50 WP Cabrio EG Rovral 4 F

Forum SC Endura Iprodione 4L AG

Actigard 50 WG Fixed Coppers2 Sulfur

Aliette WDG3 Maneb1 Ultra Flourish

Azoxystrobin2 Ridomil Gold EC/SL


1 For use on Kale only. 2 Several formulations are marketed. 3 The use of Aliette in the following KY counties has certain restrictions to protect endangered freshwater mollusksand their habitat: Campbell, Green, Hart, Kenton, Marshall, Rockcastle, Todd, Warren, and Wayne.



Harvest

Mustard and Kale are harvested when their stalks are young and tender as whole plants or individual leafs.

Greens have a high respiration rate which means that they must be washed, packed, stored or sold as soon as possible.

Mustard and Kale are usually field packed and top-iced in waxed corrugated boxes or wooden crates.

Smaller producers can band together three to five stalks whereas larger producers require labels and PLU stickers.

Harvesting and packing labor averages about 5 boxes per hour for bundled greens.



Production OpportunitiesCapital Requirements-- initial investments may include

specialized bed shapers, precision planters, bed cultivators, plastic laying and transplanting equipment, irrigation system, post-harvest washing/cooling equipment.

Production-- ranges from bare ground cultivation in single and multiple rows to irrigated, densely planted raised beds.

Kale and Mustard greens are produced successfully in tobacco greenhouses. Since the plants prefer cool temperatures, they can be grown just above freezing (production yields will be less than those in the fall).



Greenhouse Production• A full-time production company will have an initial investment of at

least $50,000. • Physical resources include: level land for greenhouses, fertile soil

that is herbicide free, water source, availability of fuel to heat greenhouse. If retail sales are a possibility, the greenhouses should be accessible to the retail market.

• Greenhouse building costs range from $1.50 - $10.00 per square foot of greenhouse space depending on the type/size of the greenhouse.

• Energy costs range from $.25 - $2.00 per square foot per year• Heating systems range from $.60 - $3.00• Ventilation/cooling systems $.50 – $2.00• Benches and costs $.75 – $6.00• Irrigation and fertilization system and costs $.10 – $1.00 per sq. ft.



Labor requirements depend on the number of acres or square footage of greenhouses.

One acre requires 22 hours of labor for field preparation, planting and crop care. Harvest labor requires 80 hours per acre with higher yield crops requiring up to 95 hours per acre.

Laborers can bundle an average of five boxes per hour. Production yields an average of 400 boxes per acre. Production costs average $4.00 - $5.00 per box.



Opportunity Cost

• Most vegetables are an opportunity cost of producing only greens. Other vegetables may create higher revenues.

• The cost of land and equipment that could be used to produce something else or leased out.

• A farmer’s time can also be considered an opportunity cost of producing greens because the time could have been spent elsewhere.



Revenue• Revenue sources

– Primary Crop: Kale and Mustard Greens have average crop values of $2,800 for greens planted in single rows on bare ground. Net returns vary depending on production techniques, however, it ranges from $800-$1000 per acre.

– Secondary sources may include harvesting mustard seeds for Dijon mustard production or producing ornamental Kale.

• Government Production Incentives: The KY Department of Agriculture offers information regarding government grants. Horticulture Advertising and Market Development Grants, the 2008 Advertising Cost-Share Program, and the 2008 Market Development Cost-Share Program are offered to Kentucky farmers who meet the criteria.

http://www.kyagr.com/marketing/farmmarket/grants.htm



USDAThe US Department of Agriculture (USDA) offers extensive

information regarding financial services available to farmers nationwide. The Business and Community Development segment of the USDA contains important information pertaining to available federal grants, re-lending programs, federal loans, and enterprise/opportunity grants. For more information regarding all services offered by the USDA, please visit the website:

http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?navid=BUSINESS_DEVELOPMENT&parentnav=RURAL_DEVELOPMENT&navtype=RT



Expected Return Report


Acres 200 400 600 800 1000

Boxes (400/A)

80000 160000 240000 320000 400000

Price/box$7.00 $7.00 $7.00 $7.00 $7.00

Revenue$560,000.00 $1,120,000.00 $1,680,000.00 $2,240,000.00 $2,800,000.00

Production Cost ($5/box) $400,000.00 $800,000.00 $1,200,000.00 $1,600,000.00 $2,000,000.00

Profit $160,000.00 $320,000.00 $480,000.00 $640,000.00 $800,000.00


Risk• Market Risk- There is always a chance that products will fail in

the market. If producers do not establish positive business practices, positive customer relationships and a positive image in the market, goodwill and sales will suffer.

• Production Risk – due to low light levels and high heating costs, economical greenhouse production in winter is nearly impossible. Without proper care, plants will not survive. Severe weather conditions may also negatively affect greens production.

• Financial Risk- Former producers are not as big a risk to banks as those who have never cultivated land. Banks will require a business plan for production of produce before lending to individuals. The Cooperative Extension Service and the KY Department of Agriculture have special services to aid farmers in developing a business plan.



Basic Summary• Market Opportunity – High demand for greens in

KY and the US (47,000 acres harvested in 1996 with the demand increasing each year)

• Advantages of Western and Central Kentucky– Climate – Great climate for production of greens – Tobacco operations can be adapted to produce

greens efficiently– Risks vs. tradition crop – Without proper marketing,

the overall risk of producing greens increases



References

Bessin, Rick (Ed.). (2008).Vegetable Production Guide for Commercial Growers (p. 49-57). UK Cooperative Extension Service: College of Agriculture. Retrieved from http://www.ca.uky.edu/agc/pubs/id/id36/021-057.pdf

Clemson Extension Department of Applied Economics and Statistics. Spring hand harvested greens. Retrieved from http://cherokee.agecon.clemson.edu/greens6.pdf

Marr, C. and Rogers, D. (2008). Commercial Vegetable Production: Drip Irrigation for Vegetables. Kansas State University Agricultural Experiment Station and Cooperative Extension Service. Retrieved from http://www.oznet.ksu.edu/library/hort2/mf1090.pdf



UK Cooperative Extension Service. (2006). Greenhouse-grown lettuce and greens. University of Kentucky: College of Agriculture. Retrieved from http://www.uky.edu/Ag/NewCrops/introsheets/lettuceintro.pdf

UK Cooperative Extension Service. (2007). Leafy Greens. University of Kentucky: College of Agriculture. Retrieved from

http://www.uky.edu/Ag/NewCrops/introsheets/leafygreens.pdfUK Cooperative Extension Service. (1999). Marketing Options for

Commercial Vegetable Growers. University of Kentucky: College of Agriculture. Retrieved from http://www.ca.uky.edu/agc/pubs/id/id134/id134.pdf

UK Cooperative Extension Service. (2002). The Greenhouse Business in Kentucky: A review of crops and how to begin a business. University of Kentucky: College of Agriculture. Retrieved from http://www.uky.edu/Ag/HLA/anderson/greenhousesinkentucky.pdf



Agriculture Websites

Kentucky Department of Agriculture http://www.kyagr.com/

United States Department of Agriculture http://www.usda.gov/wps/portal/usdahome

Whole Foods is an excellent resource for nutritional information on leafy greens.

Kale: http://www.whfoods.org/genpage.php?tname=foodspice&dbid=38#historyuse

Mustard Greens: http://www.whfoods.org/genpage.php?tname=foodspice&dbid=93#historyuse


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