Carefully controlled business plan distinguishes Peri & Sons
Carefully controlled business plan distinguishes Peri & Sons
Peri & Sons Farms Inc. is distinguishing itself in the California onion deal with a calculated business plan that emphasizes quality product production, branding and vertical integration.
“We are pretty conservative about the way we plan volume,” said Teri Gibson, director of marketing and customer relations. “It’s based on reasonable sales projections that take into consideration historical data and our own ‘gut’ feeling about market conditions for the seasons ahead. It’s about producing premium quality first and foremost, not necessarily volume. We are fortunate that a combination of increases in volume from our existing customer base and modest new-customer growth has allowed our company to consistently grow at a comfortable and manageable pace year over year. Overall volume for our 2013 spring-summer season looks to be consistent with our growth plan if all goes well.”
Micheal Lindemann, farm production manager for Peri & Sons Farms in Firebaugh, CA, gets a closer look at the maturing onion crop. (Photo courtesy of Peri & Sons Farms Inc.)The company is headquartered in Yerington, NV, and has onion farming operations in Firebaugh, CA. The vertically integrated grower-packer-shipper controls the entire production process from seed to store, offering consistency in products and service year round.
“Over the last couple of years, we have moved away from the more typical commodities practice of marketing onions under various labels,” Ms. Gibson said. “Instead, we have shifted focus to marketing all of our onions under our brand, ‘Peri & Sons Farms,’ in either premium or organic. ‘Sweetie Sweet,’ our proprietary sweet onion, is the exception.”
Peri & Sons grows white, yellow, mild yellow, sweets, reds and sweet reds in California just as it does in Nevada. “Of course, the varieties are matched to the growing conditions for the area,” Ms. Gibson continued. “Even though the varieties are the same, there is a difference: it’s the difference between the look and make-up of a short-day onion vs. a long-day onion, no matter what California farm grows it.”
Looking at the Firebaugh crop, Ms. Gibson said, “So far, we are seeing temperatures more typical of the area than we have for the last couple years. But as every farmer knows, that can all change in a day. Our farm in Firebaugh is in California’s San Joaquin Valley and managing the harvest can be challenging in the summer when daytime temperatures can approach 100 degrees Fahrenheit and a heat wave can take it up to 115 degrees Fahrenheit. For that reason, at certain times we are forced to harvest at night.”
The California crop is marketed between April and September, accounting for approximately half of Peri & Sons Farms’ Onions All Year program. “Logistically it’s a seamless process for our customers,” Ms. Gibson said. “Our onions are ordered and shipped just as they are from Nevada.”
Both conventional and organic onions are grown in Firebaugh. “About 8 percent of our crop is certified and marketed to the organic sector,” Ms. Gibson commented. “It’s still to be seen whether last year’s report by Stanford University, stating that organic produce isn’t any better for you than conventional varieties when it comes to vitamin and nutrient content, has a lasting effect on the market. I think that those who buy organic products do it as part of an overall lifestyle commitment, and I think that ‘tribe’ is going to continue to grow.”
Peri & Sons markets onions to a full array of wholesalers and retailers as well as some brokers and foodservice customers. According to Ms. Gibson, consumers like being able to make a more personal connection with the farmers who actually grow product.
“Highlighting the family farm, the farmer and the local or domestic aspects of the product are ways to get consumers more engaged,” she stated.
This year, the company will promote its three-pound combo pack. “It is a unique way to sell all three varieties — red, yellow and white — and it allows consumers to try a couple varieties of onion that they may not have tried before,” she noted. “Plus it’s convenient for retailers because they can sell all three colors in one pack style, maximizing shelf space and minimizing SKUs.”
Peri & Sons also plans to promote its “Sweetie Sweet” proprietary onion. “We have been testing a new variety of sweet red onion, and we are finding it has some unique characteristics that we think will make it a standout in the market,” she said. “It will be offered on a limited basis to select customers this fall if we are satisfied with the final product.”
Ms. Gibson was asked what about the challenges facing domestic growers, and she said satisfying labor needs is one of the biggest. “Cultivating vegetables, especially organics, is very labor intensive, and growers cannot meet their labor needs without utilizing the immigrant workers who are willing to perform the work,” she explained.
“The regulatory framework that governs the employment of seasonal workers renders the program even more costly and cumbersome for farmers,” she continued.
“The regulations, while well-intended, have significant unintended consequences, and they are out of touch with the realities of day-to-day farming operations. Growers are accordingly forced to devote significant time and resources to regulatory compliance and bureaucratic red tape to satisfy their labor needs, when a more efficient, common sense approach to the labor issue should be — and quite easily could be — made available,” she added.