A Newsletter for Professionals Growing Greenhouse Crops in the Rocky Mountain Region

Contents

• Business Planning: A Key to Success
• Diseases of Miniature Roses
• News from the Lab
• Fertilizer Calculations: Understanding Parts per Million

Business Planning: A Key to Success

Many businesses do not consider writing a business plan until they go to a bank in an attempt to get a loan. This is not the time to start the business plan process! While banks require business plans as a condition of evaluating credit worthiness, the plan process should start at the very beginning. A business plan is a great tool that will contribute to your success by helping you to set goals and outline specific steps that need to be taken in order to reach your goals. The plan is a living document, which evolves to reflect the changes you experience in business. It is not a book that is written once, and then shelved to collect dust.

Prior to writing a business plan, your idea needs to be tested by conducting a marketing study. The marketing study is where you will learn if your idea is sound. A marketing study is important not only for the new business startup. An existing business that is contemplating adding a new product or product line can benefit from this process as well, learning customer response to an idea before introducing it to the marketplace. This step can save you time and money.

The marketing study is where you will learn if people will buy your product. Growers and potential growers constantly ask me which crops to plant in order to realize a profit. While I have some ideas of my own, I always tell them to ask their customers. Nobody knows more about what will sell than your customers or prospective customers. Even after giving this advice, I am amazed at how the same growers continue to ask me which crops to plant! Listen to your customers, they are the very best resource you have.

When conducting a marketing study, think of all of the different types of consumers that may have some interest in your product. Next, compile a list of all possible customers in your area. You may locate them in the Yellow Pages, through trade associations, and through word of mouth. With the list complete, the next step is to contact them, on the telephone or in person. Be sensitive to their business schedules, and make calls during off-peak times. The information that you need from these individuals is the types of similar products that they purchase, as well as the quantities used on a weekly basis. You should ask about their current suppliers, and how pleased they are with the quality and service they are receiving. Ask if there are products that they would like to receive that are not available. Ask if there are products they receive that do not meet their standards of quality. This will enable you to identify areas for improvement. You will learn areas of dissatisfaction; this will give you some clues as to ways you can outwit the competition. After identifying product use and current supplier performance, tell the potential customer about your idea and solicit a response. This is when you will learn what they think about your idea. An added benefit is that you may gain ideas for a product that you had not considered when a customer tells you what they would really like for you to grow. The final step is to ask the customer if they can refer you to somebody that would be interested in similar types of products. By word of mouth, you will learn of customers that are not found in telephone books or in trade associations!

The benefits of conducting a marketing study are many. You will gain the confidence that you have a sound idea. You will get a good indication of the total market potential in your area. You will meet potential customers, so they will remember your name later, when you actually have the product ready for sale. By talking with these individuals, you will identify the ways to best target customer needs. The best reason for conducting a marketing study is to start business with a product that is in demand!

With the marketing survey complete, you will be ready to undertake a business plan. There are several resources available to guide you through this process. There are several components to a business plan, including executive summary; company description; products and services plan; marketing plan; management plan; operating plan and financial plan.

The executive summary is a brief overview of your total business plan, highlighting significant points of the business plan. The goal of the executive summary is only to gain the reader's attention, encouraging them to continue reading.

The general company description is an explanation of the overall company concept. The type of company is described, along with the name and location. An overview of primary products and services is presented. This section includes the current status of the company (startup, existing business, existing business with new product line) and the legal organization is noted (sole proprietorship, partnership, corporation).

The products and services component of the business plan is a more detailed description of your crops and how you intend to bring them to the marketplace. The key of this section is to highlight superior benefits and advantages related to your products and services, giving the reader reasons why people will buy your product. This is your chance to describe how you can outperform your competition with the skills that only you have, in the business world these are known as your key competencies.

A marketing plan utilizes the information you learned from the process of conducting a marketing survey. In the marketing plan, you will describe your potential customers and your competition. The key element here is to describe how you will attract customers and promote your products. This discussion will entail describing your advertising strategy and selling approach. Finally, you will want to set terms of sales, such as pricing and credit. If you are a small business, I recommend avoiding extending a great amount of credit. Rather, strive to operate on a cash and carry basis. Remember that your job is as a grower, not a banker! As your business grows, extending credit will be a necessity.

The management plan is the area where you will identify the key players in the operation and their qualifications. You should include a résumé for each key officer in the company in order to elaborate on their experience and competence. Any outside resource persons that will contribute toward the success of your operation should be mentioned in this section. These resources may include outside consultants and extension agents, anybody that will help your business should be mentioned.

In the operating plan, describe the method used to produce your product. Describe your facilities, the location and equipment used to grow the crop. Also, various control methods need to be mentioned here. Control methods include tools utilized to control the greenhouse climate, inventory tracking and quality of the product. In the operating plan, you should also mention suppliers for all of the products needed to grow and sell your crop.

The financial plan is the most difficult portion of the business plan. It might be best to consult with an accountant to accurately complete this portion. However, I have personally written a complete business plan, including financial, so it is possible. The financial plan will include a complete description of all your financial needs, and existing sources of funding such as personal savings, family contributions and other creditors. You will predict your revenue for three years. Using the numbers obtained through the marketing survey will help in this section also. You can attempt to reach a certain percentage of the total market in your area the first year, and increase that percentage in subsequent years. The financial plan also identifies all expenses of the operation for three years.

The business plan is crucial for survival. By enduring this process, you will identify all of the inputs that are needed for the success of your operation. Determining the cost of growing a crop will enable you to accurately set a price for the product and know how much product needs to sell in order to break even or yield a profit. The business plan is a tool to keep you focused on your original goals. By identifying all of the costs and inputs needed for this type of product, you can help to resolve some challenges before they arise. Growing a crop is always a challenge; there are obvious benefits to resolving other pitfalls before they arise. The business plan is a living document that evolves to reflect changes in your business. It is a tool that you will find useful throughout the life of your business.

This information was originally presented at the Adams/Boulder County Home on the Front Range Program in February. To view the slides, click below:

Requires Acrobat Reader

Chris Freeman
Area Specialist Commercial Greenhouse
Adams County

Diseases of Miniature Roses

Miniature potted roses are very popular for Mother's day, Easter and other spring sales. While easy to fit into many a grower's production schedule, they tend to have some inherent pest problems. Spider mites, powdery mildew and root rots tend to be high on the list of problems associated with this beautiful flowering pot plant.

Spider mites are among the most common of pest problems on miniature pot roses. Mites suck the juices out of the leaves, stems and flower buds. Affected foliage appears a dull green color. Upon closer inspection the leaves will be mottled or stippled. Eventually the leaves will turn yellow. The spider mites, themselves, should be visible when infested leaves are inspected. They range in color from reddish to yellow, often with two black spots on the back (two-spotted spider mite). Dry air is the one conditions that favors mite populations. Increasing leaf wetness (but also increase air circulation so leaves don't stay overly wet) is often very beneficial when controlling or preventing mite problems. Predatory mite species such as, Phytoseiulus and Amblyseius, can be used as a biological control of many mite pests. Miticides labeled for use in greenhouses include Floramite, Sanmite and Avid (many of these miticides are specific for pest species and will not harm predatory or beneficial mites- check label for more information).

Powdery mildew is a fungus-caused disease that will also cause a great amount of damage to roses under dry conditions. The leaf surface becomes covered with a white talcum powder like coating (mycelium and spores). In roses a purplish discoloration may occur on leaves along with leaf distortion. Factors favoring this disease include a high relative humidity (95%), but no water or dew on the leaf surface. Any conditions causing plant stress (i.e. light levels too low, poor air circulation, and imbalanced fertility) also will favor this disease. Many, many different plants are susceptible to powdery mildew and the fungus is often harbored in weeds both inside and outside the greenhouse. Spores are spread by air currents and survive in plant debris. Since it is difficult to avoid environmental conditions that favor development of this disease, the use of fungicides is commonly a control method of choice. Chlorothalonil, copper sulfate, sulfur, myclobutanil, piperalin, thiophanante methyl, triademfon, and triflumizole are labeled for control on most greenhouse crops. Read and follow label directions.

Root and lower stem and crown rots are caused by fungi that reside in soil or potting media. The most common fungi involved in root disease on potted roses are Rhizoctonia and Pythium. Whether a fungus is causing the root system to rot, the stem to rot, or both, symptoms begin as yellowing or browning of lower leaves and/or leaf drop. As the disease progresses, the symptoms eventually become that of a wilt.

Rhizoctonia root and stem rot is the most common disease of potted plants in Colorado. Stems are attacked at the soil line and develop dark brown cankers or lesions that eventually become soft and mushy. Roots are usually affected, as well. When examined the roots will be discolored, root mass will be decreased, and often the outer covering of the root will be soft and mushy. The disease is favored by high available moisture and high temperatures. Anything that will weaken the plant will also favor the disease. Sanitation is key in managing this problem. Many fungicides are labeled for control including: Banrot, Chipco 26019, Terraclor, Cleary's 3336, SoilGard, and Mycostop.

Pythium root and stem rot usually begin in the root tips. Root tips will turn brown, the cortex of the root will slough off. Eventually the disease progresses up the roots to the stem. The diseases are favored by excess moisture and poorly drained media. A wide variety of potted plants is susceptible to this water mold fungus. Rogue (pull and destroy) infected plants to help manage the problem. Fungicides such as Terrazole, Truban, Banrot, Chipco Aliette, SoilGard, Subdue, Banol, or Mycostop are labeled for control.

No endorsement of products mentioned is intended nor is criticism implied of products not mentioned. As always, before using any pesticide, consult the label.

Laura Pottoff
Extension Pathology Agent
Jefferson County

News from the Lab

The plant hormone ethylene

I have started this series of segments on plant hormones with ethylene, because it is my favorite plant hormone and it is the focus of my research program at CSU. It is unique among the plant hormones in that it is a gas, and as such ethylene produced by one plant can easily effect a neighboring plant. Ethylene is most well known within the greenhouse industry as a contaminant that causes a series of postharvest or postproduction disorders. One of the biggest problems is the effect of ethylene on flower quality. Ethylene accelerates the deterioration (wilting, color fading and senescence) of flower petals and often results in abscission of flower petals or entire flowers. Most all plants produce some ethylene, but flowers and fruits produce much more ethylene than leaves and other vegetative tissues. Wounding or just shaking a plant can cause the plant to increase its ethylene production. This increased ethylene is especially a problem during shipping in a closed truck where ethylene production from plants builds up and may result in the senescence or petal shattering of all flowers in that shipment. Storage and shipment at low temperatures is beneficial because it decreases the ethylene production rates of flowers and fruits.

Some advice on minimizing the detrimental effects of ethylene on horticultural commodities:

1. Remove all sources of ethylene contamination from storage areas and transport containers. These include decomposing materials, gas pipes and cylinders and exhaust from internal combustion engines. Maximizing ventilation of these areas with outside air also prevents buildup of the ethylene produced by the products.
2. Do not store or transport flowers with fruits.
3. Treat highly sensitive products with an ethylene action inhibitor. This will protect the plant from its own ethylene production as well as external ethylene. Ethylene action inhibitors include ethylblock (floralife) and STS.
4. Store and ship at the lowest possible safe temperature, and remove field heat as promptly as possible.

Ethylene affects a number of developmental events besides flower senescence and abscission. These include:

1. Abscission of leaves on intact plants and cuttings.
2. Fruit ripening and abscission
3. Adventitious root formation
4. Initiation and opening of some flowers
5. Leaf senescence
6. Epinastic curvature of leaves and bracts
7. Stem and root elongation

What are the benefits of ethylene to horticulture?

In addition to its seemingly detrimental effects on horticultural crops the commercial application of ethylene also has benefits. The practical use of ethylene in agriculture has been limited because of its gaseous nature. It is much easier to work with a growth regulator that is in the form of a powder or a liquid that can be used as a spray or a drench. One compound that has made the commercial application of ethylene practical is ethephon (2-chlorophosphonic acid). Ethephon is a liquid that is stable at pH4 or less. Ethylene is absorbed by the plant and the pH inside the plant cells (greater than pH 4) causes the cleavage of ethephon and the release of ethylene. Some of the practical uses of ethylene include the promotion of abscission and fruit ripening.

Promoting abscission:

Ethylene in the form of ethephon is applied to cherry trees approximately 10 days before the date of harvest to reduce the amount of force required to remove the fruit and thus minimize the damage to the trees caused by the mechanical harvesting equipment. Ethylene is also used to remove young fruit from peaches and apple trees to thin the crop and produce larger, better quality fruit.

Promoting fruit ripening:

It is common practice for bananas to be harvested before they are ripe. This allows them to be shipped green so that there is less damage. When they reach a wholesaler they are then gassed with ethylene to induce ripening. Similarly harvesting tomatoes at the mature green stage allows them to be picked mechanically. These tomatoes can then be induced to ripen by treating them with ethylene.

Michelle L. Jones, Ph.D.
Assistant Professor of Floriculture
Horticulture and Landscape Architecture

While teaching greenhouse and nursery management classes, I have found that students often have the most trouble learning how to calculate fertilizer and plant growth regulator ratios. All of these are typically based on parts per million or ppm. Most fertilizer bags and PGR labels have all the calculations printed on them, but often a refresher on the calculations is in order. Over the next few issues, I will illustrate some of these basic calculations.

Parts Per Million

The use of liquid feed fertilization programs in greenhouse and greenhouse crop production is the standard of our industry. Many growers use either a constant feed program fertilizing with each irrigation, while others use a pulse feed program fertilizing on a regular periodic schedule. The program selected is determined by crop requirements, available equipment, and personal preference. The most important concern, no matter which program is used, is accuracy in calculation of fertilizer concentrations.

Crop nutrition requirements and most published fertilizer schedules use the terminology "parts per million" or ppm. There are fertilizer tables provided by most fertilizer producers for easier reference. With a little knowledge, a calculator, and patience, the tables are not necessary.

Many growers are familiar with the Quick "75" Method for calculating ppm. To calculate the amount of fertilizer required, divide the desired ppm by 75 and then divide by the decimal fraction of the desired nutrient (such as nitrogen, potassium or phosphorous) contained in the fertilizer. This results in the number of ounces of fertilizer to use in 100 gallons of water.

To use this equation, assume that the fertilizer recommendation calls for 200 ]ppm of nitrogen from ammonium nitrate (33% N)-Using the above equation, divide 200 ppm by 75 resulting in 2.67,and then divide by 0.33. The answer is 8.09 ounces of ammonium nitrate which dissolved in 100 gallons of water will yield 200 ppm nitrogen.

Confused? Some examples of what one part per million represents under various conditions are: 1 crystal of salt in 5 lbs., 1 drop in 16 gallons, 1 inch in 158 miles, 1 minute in 1.9 years, 1 pound in 500 tons, and 1 cent in $10,000. Therefore, to calculate ppm in 100 gallons of water, first multiply 100 gallons by 8.34 pounds per gallon which equals 834 pounds. Multiply 834 pounds by 16 ounces per pound which equals 13,344 ounces per 100 gallons. Therefore, 13,344 ounces per 13,344,000,000 ounces equals 1 part per million, or more simply 0.013344 ounces per 100 gallons of water equals 1 PPM

1. 100 gal. * 8.34 lbs./gal. = 834 lbs.
2. 834 lbs. * 16 oz/lb. = 13,344 oz.
3. 3,344 oz/100 gal.
4. 13,344 oz./13,344,000,000 oz. = 1 PPM
5. 0.013344 oz./100 gal. = 1 PPM

The next step is to multiply the desired PPM by 0.013344, which is 74.94. By rounding 74.94 to 75, it must by understood that the result will not be entirely nor mathematically accurate, but perhaps is close enough for practical purposes. Within the units of the ratios commonly used in fertilizer solution, the error will be 0.02 or less per 100 gallons.

For those who can think in metric terms, there is an easier way to calculate PPM By definition, 1 milliliter (ml) of water weighs 1 gram (g), therefore 1 liter (1000 ml) weighs 1000 g. Thus 1 liter (L) of water weighs 1,000,000 milligrams (mg). This tells us that 1 PPM equals 1 mg/1,000,000 mg of water or 1 mg/L of water. To calculate PPM in liters, simply multiply the desired PPM by 1 and divide by fraction of the fertilizer. This results in the number of mg of fertilizer to use in 1 L of water.

To illustrate this equation, use the same fertilizer recommendation as before, 200 PPM N from ammonium nitrate (33%N). Substituting in the above equation, multiply 200 by 1 resulting in 200, and then divide by 0.33. The answer is 606 mg of ammonium nitrate, which dissolved in 1 L of water will yield 200 PPM nitrogen.

To increase this to irrigation volumes, multiply this result by the required volume. Multiply 606 mg by 380 L (100 gal) which equals 230,280 mg or 0.507 pounds (8.12 oz).

Steven E. Newman, Ph.D.
Greenhouse Crops Extension Specialist
Horticulture and Landscape Architecture