West Kansas Produce increases Cimarron Gold acreage
West Kansas Produce increases Cimarron Gold acreage
West Kansas Produce LLC in Ulysses, KS, a grower, packer and shipper of "Cimarron Gold" brand sweet corn, is gearing up for its second year with increased volume of high-quality product.
The company began only last year, but its founders and staff have many years of produce experience. Jake Thorup, sales agent, has been in the business for over 30 years and has worked as a sales broker and agent in Salinas, CA, for various companies and in many commodities.
"I got involved with West Kansas when I was approached by Greg Crossgrove, an industry professional I have worked with over the years in other deals," said Mr. Thorup. "He is an area consultant for the private investment group behind the founding of West Kansas Produce."
The company increased its acreage in the past year to about 520 acres from approximately 480 acres.
"We will have higher volumes," said Mr. Thorup, "and we're focusing on yellow and bicolor corn exclusively this year, rather than white corn. Consumers in the Midwest, which is our market, prefer yellow and bicolor."
Mr. Thorup said that it is most important, especially for a new company, to properly promote its brand. The company's "Cimarron Gold" has enjoyed growing success and support from its customers because of the company's strong marketing techniques.
"We recently had several meetings with customers, and the responses to 'Cimarron Gold' is very positive," he said. "The brand is enjoying continued growth, and we have good expectations for the future."
The company's sweet corn deal in Kansas is a seasonal operation that runs from mid-July through about Oct. 20. Mr. Thorup said that sweet corn is primarily a chainstore commodity as opposed to a foodservice product. He also noted that the corn market in the Midwest is currently experiencing a transition that may affect the market in coming years.
"There is a lot of interest in field corn for ethanol production currently," he said. "Because of subsidies and government support, many growers are switching at least a part of their acreage into field product, and some are growing wheat for fuel production. That is affecting prices in the sweet corn category because it is creating a bit of a shortage. Field corn prices have jumped in just one year because of the guaranteed return. This evolution is putting some strain on our rent prices because they are increasing along with the demand for fuel crops."
Mr. Thorup said that the transition would affect sweet corn prices. If there is 10 percent more demand but less corn available, prices will inevitably rise because of the effects of supply and demand.
"We are encouraged about seeing better prices," he said. "In a normal, stable year, we would see about $8 to $10 per crate. Depending on demand, those figures will likely rise in 2007. We have also looked at the three-month weather [forecast] published by the National Weather Service for the area, which indicates that we will have a little wetter-than-normal season, which could shorten supplies a little, therefore driving prices even a little higher. We're too far out currently to put exact numbers on prices, but increases seem inevitable at this time."
West Kansas' primary market includes retail chainstores throughout the Midwest, Texas and all points in the Southeast. It also supplies wholesalers and distributors.
Harvesting was scheduled to begin about July 16. Mr. Thorup told The Produce News in mid-June that the crops were looking very good, despite some weather changes ranging from dry to damp and warm to cool.
West Kansas Produce packs its corn in wax-impregnated cartons, four dozen to the box. The corn is sold as U.S. Fancy grade. Mr. Thorup said that people usually think of corn when Kansas comes to mind, and those thoughts are justified.
"Farmland in Kansas has repeatedly produced the best-quality corn in the country," he said. "The high quality is the reason we decided to embark on this farm operation and launch the new company."
Mr. Thorup said that every area of the country has its own set of challenges, and Kansas is no exception. The company's growing areas back up to Brighton, CO, in the westernmost region of Kansas.
"We aren't under drought conditions in Kansas at this time, but we are hearing that eastern Colorado is taking some steps in water restriction because of the dry conditions," he said. "We have heard that about 450 wells on farms were shut down last year, and word is out that they are shutting down about 300 this year. Each well services about 160 acres, and that adds up to around 70,000 acres of farmland, most of it dedicated to vegetables, that could be affected."
Mr. Thorup added an interesting note to this situation by stating that Native American tribal properties are not regulated by the same water restrictions that other areas must abide by, and there is word that some deals are being made with the tribes to use their water. If water shortages across the country continue in the future, this could become an important aspect for agriculture in the United States.
"We use irrigation so we aren't dependent on rain for a good crop, but it is nice when moisture comes from its natural and free source," he said. "We do worry about heat, and if the temperature goes up and stays there for long periods, all vegetable crops suffer, including corn. Too much moisture is equally bad. As producers, our expectations have to be kept in check regardless of what areas of the world we're farming in."
It is not surprising to see a new and progressive company like West Kansas Produce begin to expand quickly. Mr. Thorup said that it is currently considering adding broccoli, cabbage and dry onions to its farming operation next year.
"These crops would fill in some seasonal voids for us, so it makes perfect sense to start considering engaging in them," he concluded.
The company began only last year, but its founders and staff have many years of produce experience. Jake Thorup, sales agent, has been in the business for over 30 years and has worked as a sales broker and agent in Salinas, CA, for various companies and in many commodities.
"I got involved with West Kansas when I was approached by Greg Crossgrove, an industry professional I have worked with over the years in other deals," said Mr. Thorup. "He is an area consultant for the private investment group behind the founding of West Kansas Produce."
The company increased its acreage in the past year to about 520 acres from approximately 480 acres.
"We will have higher volumes," said Mr. Thorup, "and we're focusing on yellow and bicolor corn exclusively this year, rather than white corn. Consumers in the Midwest, which is our market, prefer yellow and bicolor."
Mr. Thorup said that it is most important, especially for a new company, to properly promote its brand. The company's "Cimarron Gold" has enjoyed growing success and support from its customers because of the company's strong marketing techniques.
"We recently had several meetings with customers, and the responses to 'Cimarron Gold' is very positive," he said. "The brand is enjoying continued growth, and we have good expectations for the future."
The company's sweet corn deal in Kansas is a seasonal operation that runs from mid-July through about Oct. 20. Mr. Thorup said that sweet corn is primarily a chainstore commodity as opposed to a foodservice product. He also noted that the corn market in the Midwest is currently experiencing a transition that may affect the market in coming years.
"There is a lot of interest in field corn for ethanol production currently," he said. "Because of subsidies and government support, many growers are switching at least a part of their acreage into field product, and some are growing wheat for fuel production. That is affecting prices in the sweet corn category because it is creating a bit of a shortage. Field corn prices have jumped in just one year because of the guaranteed return. This evolution is putting some strain on our rent prices because they are increasing along with the demand for fuel crops."
Mr. Thorup said that the transition would affect sweet corn prices. If there is 10 percent more demand but less corn available, prices will inevitably rise because of the effects of supply and demand.
"We are encouraged about seeing better prices," he said. "In a normal, stable year, we would see about $8 to $10 per crate. Depending on demand, those figures will likely rise in 2007. We have also looked at the three-month weather [forecast] published by the National Weather Service for the area, which indicates that we will have a little wetter-than-normal season, which could shorten supplies a little, therefore driving prices even a little higher. We're too far out currently to put exact numbers on prices, but increases seem inevitable at this time."
West Kansas' primary market includes retail chainstores throughout the Midwest, Texas and all points in the Southeast. It also supplies wholesalers and distributors.
Harvesting was scheduled to begin about July 16. Mr. Thorup told The Produce News in mid-June that the crops were looking very good, despite some weather changes ranging from dry to damp and warm to cool.
West Kansas Produce packs its corn in wax-impregnated cartons, four dozen to the box. The corn is sold as U.S. Fancy grade. Mr. Thorup said that people usually think of corn when Kansas comes to mind, and those thoughts are justified.
"Farmland in Kansas has repeatedly produced the best-quality corn in the country," he said. "The high quality is the reason we decided to embark on this farm operation and launch the new company."
Mr. Thorup said that every area of the country has its own set of challenges, and Kansas is no exception. The company's growing areas back up to Brighton, CO, in the westernmost region of Kansas.
"We aren't under drought conditions in Kansas at this time, but we are hearing that eastern Colorado is taking some steps in water restriction because of the dry conditions," he said. "We have heard that about 450 wells on farms were shut down last year, and word is out that they are shutting down about 300 this year. Each well services about 160 acres, and that adds up to around 70,000 acres of farmland, most of it dedicated to vegetables, that could be affected."
Mr. Thorup added an interesting note to this situation by stating that Native American tribal properties are not regulated by the same water restrictions that other areas must abide by, and there is word that some deals are being made with the tribes to use their water. If water shortages across the country continue in the future, this could become an important aspect for agriculture in the United States.
"We use irrigation so we aren't dependent on rain for a good crop, but it is nice when moisture comes from its natural and free source," he said. "We do worry about heat, and if the temperature goes up and stays there for long periods, all vegetable crops suffer, including corn. Too much moisture is equally bad. As producers, our expectations have to be kept in check regardless of what areas of the world we're farming in."
It is not surprising to see a new and progressive company like West Kansas Produce begin to expand quickly. Mr. Thorup said that it is currently considering adding broccoli, cabbage and dry onions to its farming operation next year.
"These crops would fill in some seasonal voids for us, so it makes perfect sense to start considering engaging in them," he concluded.
