- Advantages of Renovation in a Surplus Market
- The Case for IP
- Rooted Cutting Resilience
- Conventional Propagation vs. Rooted Cuttings
- Physiological Momentum of Rooted Cuttings
Advantages of Renovation in a Surplus Market
SURVIVING PERIODS OF SUPPLY AND DEMAND IMBALANCES
• Due to the extent of the current imbalance, it is highly unlikely that it will be remedied through development of new markets in the near term.
• The difference in growers’ cost of production will ultimately correct this imbalance.
• Oversupply will lower profits and could force some high cost growers to exit the business.
• As in all industries under pressure, low-cost producers will be the survivors in the long run.
RENOVATION + NEW TECHNOLOGY = THE KEY TO LONG-TERM SURVIVAL
• Historically “good” yields of 300 barrels/acre will likely not achieve lowest cost.
• Utilization of the best technology (new varieties that offer high yield and related benefits) is key to being a low-cost producer and long term survivor in any industry.
• Agricultural market swings have become closer in frequency with more severe price fluctuations.
• In the cranberry industry, it is critical for investments in technology (bed renovations with productive Rutgers varieties) to be made early in the down cycle to achieve maximum return in the subsequent era of profitability.
• Contrarians, those who invest during down periods, are likely to be long term survivors in a cyclical agricultural market.
•Loss of production income has been a major cost of bed renovation.
•Therefore, a good time to renovate is when prices are low (e.g. time of oversupply), subsequently minimizing the loss of production income.
Rutgers varieties can be a key part of the solution to being a long term profitable cranberry producer –
“The varieties of today for the growers of tomorrow.”
The Case for IP
Why use Integrity Propagation plant material when renovating or establishing new cranberry beds?
Here are three important reasons:
1. Foundation Level Plant Material
2. Return on Investment
3. Rooted Cuttings
Considering the high cost to establish or renovate a cranberry bed, using foundation-level rooted cuttings assures that your bed will have the maximum potential that Rutgers varieties offer.
The cost of foundation-level virus-indexed plant material is about the same or less than non-certified mowings.
The cost to scrutinize mowings or prunings to a similar extent of that done by Integrity Propagation (i.e. DNA and virus testing) would probably exceed $500,000 per ton. You may not like what you find…
Rooted Cutting Resilience
This rooted cutting was found about 48 days after this bed was planted. The plant had been dropped along the row, on top of the ground. Not only did it survive a period of extreme heat and intense sunlight, but it produced 12 inches of new growth.
This is an excellent example of the resilience advantage of rooted cuttings.
Rooted cuttings are planted with a physiological momentum, bringing on production sooner, with subsequently lower renovation costs.
Conventional Propagation vs. Rooted Cuttings
The photographs on the left hand side are examples of conventional propagation at a rate of 1½ tons per acre. They were planted in the fall of 2009. The photographs to the right were planted in May of 2010 with 60,000 rooted cuttings per acre. They are both Crimson Queen®.
The rooted cuttings have established about twice the ground cover. Rooted cuttings have well-established roots at the time of transplanting. Therefore, the new planting is eligible for an herbicide program long before conventional propagation.
Physiological Momentum of Rooted Cuttings
Integrity Propagation, in cooperation with Dr. Joan Davenport, has developed several nutritional regimens utilizing time-release fertilizer to further enhance the physiological momentum of our plants after transplanting into the bed. Integrity Propagation’s nutritional regimens are individually designed to complement the customer’s method and timing of transplanting.
Establishing a bed with rooted cuttings is more consistent and is better suited for aggressive herbicide and fertilization programs. This explains why they often come into production one year faster.
For more information regarding the unique benefits of our varieties,
please Contact Us today.