PROJECT ON-FARM

TITLE OF THE CASE STUDY

Direct online sales of oranges

MAIN DATA OF THE COMPANY

Name of the Company

Ismael’s Farm

Country

Type of the Company

Farming Activity

Direct selling way

SELF – INTRODUCTION OF THE FARMER

Ismael Navarro is a young farmer from Valencia, 39 years old. He has been a professional farmer since 2015. He studied IT and started his farming career after a generational change in his family, although he has always had an interest in the sector. The farm is made up of several plots of citrus fruits of approximately six hectares. They have oranges and mandarins of different varieties, and are now starting to plant avocado. From 2017 onwards he started with direct sales, firstly due to economic needs, with the aim of achieving greater profitability, as citrus fruits in Spain are going through a serious economic situation. He took an example from other growers, verifying that direct sales were an opportunity and he began to implement it on his farm until today, where it accounts for more than 75% of turnover. Their direct sales are focused on the online format. As for the rest of the workers, his parents are retired, although he has one person permanently employed throughout the year (an integrated pest management advisor, who is an agricultural engineer) and during the year he hires seasonal workers depending on the work to be done.

CHANGES / INNOVATIVE SOLUTIONS ADOPTED

At the agronomic level, it has reduced the use of synthetic herbicides by 50%, it has more machinery for mowing weeds, it has specific covers for biological pest control and, when space permits, it shreds pruning, among other things. In addition, it collects and analyses multiple data for use in its decision-making, both on its farm and for sales: it has humidity sensors on its farm. They also use a nearby weather station to monitor rainfall. They even analyse economic data. On a commercial level, it is a complete paradigm shift. Currently, supported by e-commerce solutions, it has improved its sales, boosted marketing campaigns and created an online page: masquenaranjas.com. It also makes use of social networks, mainly Instagram and Facebook (where it has more engagement), but also Twitter. It also carries out agro-tourism activities, in this case, visits to the orchard for small groups (families or 5-6 people), through the website of a public body in their autonomous community that promotes them. These are visits of approximately 3 hours where people are shown the farm and the process of the oranges is explained (as well as the varieties and the ripening times).

WHY AND HOW YOU DECIDED TO INTRODUCE  STRATEGY CHANGES / INNOVATIONS

Regarding agronomic changes, the main reason was his awareness of the, in his opinion, excessive use of chemical products, he has been implementing some changes. For example, in terms of pruning, he makes use of pruning even if it is more expensive, as he thinks it will be more beneficial in the long run for both his farm and the environment. In terms of chemical reduction, decisions have been made as they have gained a better understanding of the crops or the role of pest controls, as well as legislative impositions (such as the reduction of pesticides imposed by the European Union). As far as commercial changes are concerned, the main factor was economic needs, as he saw that either the way of making sales had to be changed or, as has happened to many of his colleagues, viability was very much in doubt, and so, making calculations and studying the possible profitability, he took the decisions he did, especially with regard to direct sales. Finally, regarding data analysis, Ismael has knowledge in this area from his studies, which he complemented with his agricultural activity. This data helps them to better understand crops, fertilizers, etc., as well as financial data.

WHAT OBSTACLES DID YOU MEET

The most important obstacle, again, has been financial because, to return to the example of wood shredding, this process is more expensive than burning a pruning plot. The purchase of certain machinery has also played a role. Bureaucracy has also been an obstacle, especially in the delay in granting permits, for example, he had to wait two years for a road he needed to use to be cleared. In their area, they have more and more pest problems, making pest management more and more complicated to handle. In this respect, they use new solutions offered by suppliers. As for direct sales, among the difficulties he points out the existence of competition, where you have to know the competition, see how it works, have knowledge of online marketing and know the market. He also has to dedicate time to customer service, where he has to spend time and money.

EVALUATION OF THE RESULTS

As for the level of production, this has had to be reduced in order to be more profitable, as some plots were already old and are in the process of being renovated, while others have had to be sold. On the work organization side, there have also been many changes, both in terms of the people to contact, the service companies, and the distribution of work according to the times. Finally, in relation to sales, he values the changes made positively: if he had not made direct sales, he would have abandoned, leased or sold his farm today, because the numbers of six years ago were not viable.

WHAT WOULD YOU DO DIFFERENT AND WHAT ARE THE PERSPECTIVES IN YOUR MIND

Ismael does regret some of the decisions he has made in the past, although he accepts that you have to make mistakes to realise certain things. In general, they have not been irreversible mistakes, but he has made mistakes, sometimes due to lack of knowledge, climatic misfortunes or simply making the wrong decision. He also thinks that he should have opted 5 years ago for varieties that are now good, but now it is too late and he is simply trying to adapt. In the future he wants to continue being a farmer: a profession that he likes very much, even if he comes from another sector and despite the difficulties he has. He fights for his farm, for the sector at the level of agricultural trade union organizations, he also appears in the media in this sense. The lack of generational renewal hurts him and that is why he is also involved in this type of struggle. In this sense, he plans to continue to evolve, to include new improvements, to invest in machinery to increase profitability and efficiency, to strengthen direct sales and even to make the leap to cover other countries (currently he only covers mainland Spain).

FINAL SENTENCES

General Evaluation

As far as direct online sales are concerned, he gives a positive assessment, as without the changes he would not have been able to continue his farm. In general, since he has been managing the farm himself, he has made many changes, some with good results and others without, but in general the assessment of his work is positive. It is a profession he is passionate about, so he is going to fight to continue on the right path.

Suggestions for other farmers

As farmers, as well as loving our land, we have to be concerned about knowing how to sell our products in order to give value to them and to our work. We have to be very aware of the marketing channel: Financial knowledge is basic, as farmers are small entrepreneurs, and be aware of the needs of your audience and trends, but always with a fixed course. You have to be aware of new technologies, there is a growing social awareness of direct sales, so it is an opportunity: I encourage people to try it and to value it as a possibility for their life.