Post Midterm (Final Exam) Flashcards
Before you build consider
Location
Location considerations before you build
Room for expansion
Topography
Land use prediction
Climate
Labour supply retention
Accessibility
Water
Orientation
Room for expansion (location)
Not just the greenhouse itself; Service buildings (about 10% of the area of the greenhouse), Holding ponds (environmental considerations)
Estimate a minimum of 2X the area of the greenhouse
Hoogeveen Plants (nursery)
> 30 years of experience
4 product brands: climbing plants, fruit plants, bamboo-grasses and helleborus
Largest helleborus producer in Europe
Near the top of the market in fruit plants
35 acres of greenhouses over 11 production sites
40 permanent employees and 150 seasonal employees
Maximize space in packing and shipping areas
Topography (location of greenhouse consideration)
Service buildings and greenhouse on same level
Greenhouse uses lots of water= good drainage, drainage tiles
Windbreaks: on NW side, 100’ distance to avoid snow drifts, On SWE sides at least 2.5 X height of trees to avoid shadows
Shelterbelts
Are important plantings. They reduce wind, reduce erosion, increase snow catch as a water resource in the spring.
Without Shelterbelts, we cannot produce horticulture field crops.
Shelterbelts go in first
Density of Shelterbelts
Dense Shelterbelts give a greater wind reduction within 10H but more open Shelterbelts will give protection for a greater distance.
Snowdrifts reflect this with drifts behind dense belts usually less than 10H in length
Land use prediction (location consideration)
Future zoning, agriculture designation
Development
Labour Supply and retention (location consideration)
Close to urban centres with > pop?
Higher wages… offset by increased automation=fewer workers
Luciano Schrama
Schrama Nursery
Producing Bob’s sour cherries
Stores and ships barefoot
Developed a special plastic for long post harvest shelf life
Accessibility (location consideration)
Shipping/Transport easily accessible to markets
About 25% of costs from gross sales of floral crops=marketing (majority is shipping/transport)
Close to main shipping centres=reduction in local transport costs
Accessibility to fuel (gas lines, oil) what type of heating system
Water (location consideration)
Most important but also most overlooked
Quantity (cost—- source?). Up to 20L/m2 of plants in a single application
Quality- how to check?
Orientation (location consideration)
Avoid shadows
Are you >40 degrees N latitude or <40 degrees N latitude?
> 40 degrees N latitude= E-W for single span, N-S for ridge and furrow gutter connected greenhouses at all latitudes
If < 40 degrees N= N-S for single span
12 High tunnels on the horticulture Science field facility
Unique in Canada
Set up 4 treatments (control, drought, heat, drought x heat) x 3 replications
High tunnels fully irrigated
Automated opening/closure for temperature, rainfall
High tunnels in the horticulture field other considerations
Higher level control= more $$ ($24,000 per high tunnel)
How long is the truck?
Need a fork life or does the truck come with a power tailgate?
What are the dimensions of the crate for each high tunnel? 87” l x 29” w x 49” h
How much does each crate with the high tunnel weigh? About 2000 pounds
Greenhouse types
Even span
Ridge and furrow
Contiguous
Even span
self-supporting commercial greenhouse and is the most common type of greenhouse
Glass greenhouse are commonly built using A-frame or Evan span construction
Roof has even pitch and width
Ridge and furrow
2 or more even span greenhouses connected together at the eaves
Adjacent structure joined together along their lengths (gutter) without walls in between- creates large interior space
Contiguous
2 or more even-span greenhouses with inner walls separating each greenhouse
Most popular commercial greenhouse
Venlo style, gutter connect ridge and furrow type; oriented N-S to avoid shadows due to the gutters, no purlins
Advantages of Venlo style, gutter connect ridge and furrow type
Venlo style: more light (single pane)
Better control of the environment: greater air volume= less temperature fluctuation, better air circulation, vent opening at top
Lower heating costs: one heating system can heat an entire range, less roof surface covering the floor=less heat loss
More efficient use of land
More efficient use of internal space (fewer walls)
Ease of expansion, flexibility of zones
More space for automation (booms, hanging baskets, shade curtains, etc.)
Labour and plant material saving (fewer doors to enter and exit, avoid moving material outside)
Disadvantages of Venlo style, gutter connected Ridge and Furrow type
Greenhouse is all one environment zone; can restrict type of crops with different requirements
Relatively high initial cost compared to double poly hoop houses or high tunnels
Increased disease, insect spread
Warm and cold micro environments can develop if fan circulation is not adequate
Snow build up
Uneven span gable roof
Highest solar radiation
Gable style is more amenable to multi-span gutter connected greenhouses
Quonset
Lowest solar radiation
Requires about 7.6% less heating than gable style
Uneven span greenhouse
Uneven pitch and width
Commonly used when the location is on a hillside
High tunnels
Hoop houses
Quonset type
3 season (not year round)
Most popular entry level structure
Lean-to greenhouse
Roof support from the other building
Should be placed on the south side
What is the second largest operational cost in Northern greenhouses
Heating right after labour
Energy efficient greenhouse
Energy efficient design (cover, shape, thermal storage in greenhouse, etc.)
Use of alternate energy (biomass, geothermal heat, industrial waste heat, co-generation)
Canadian greenhouses heating cost
15-20% of total operating costs (Statistics Canada, 2008)
High heating cost in Canadian Prairie’s greenhouses
Chinese solar greenhouse (CSG) might reduce the heating demand
Up to 60-80%
Re-purposed shipping containers
Churchill, MB
Hydroponic production 400-450 heads/week
CESRF
Controlled Environment Systems Research Facility
University of Guelph
Micro greens
A good place to start
Seedling growth on the windowsill in a coffee room or in the classroom
Harvest in about 7 days, high turnover
Informal education
Heat must be
Supplied to a greenhouse at the same rate with which it is lost in order to maintain a desired temperature
Heat can be lost
In three ways, by conduction, convection and infiltration and by radiation
Heat is conducted
Directly through the covering material (glazings) in conduction loss
Most heat is lost this way
Infiltration loss
Heat is lost as warm air escapes through cracks in the covering
Radiation loss
Heat is radiated from warm objects inside the greenhouse through the covering to colder objects outside
Depends on the covering
Simply adding a second layer=
40% reduction in heat loss
Best insulator
Air
Transmissivity
Transmission of solar radiation (clear vs opaque)
Emissivity
Emission of radiation (heat)
F-clean greenhouse films
Can better diffuse light (strawberry)
Greenhouse Glazings (coverings) considerations
Durability, light transmission, cost and effects on heating costs
2 main types of greenhouse glazings
Glass, plastics (more popular)
Rigid plastics
Two commonly that are used
Double layer is better for improved insulation from the dead air layer in between the two layers
Acrylic glazing used for side and end walls
Polycarbonates are thinner and mostly used for roof glazing
Two common rigid plastics
Acrylic or polycarbonate
Semi-rigid plastics
Also called fibreglass reinforced plastics
Suitable for A-frames and Quonset structures
It is made from glass embedded in acrylic plastic
Initial light transmission similar to glass but reduces with time
Conduct heat efficiently and greenhouse is cooler than glass
Film Plastics- polyethylene
Least expensive material, which is becoming more popular
A common design with this glazing is Quonset type
Simple frame and easy to install but easily breaks down by UV
The end wall can be a variety of glazing material
Film plastic- polyvinyl fluoride
Similar to polyethylene but more expensive
Resistant to UV radiation and therefore, last longer
Transmission is close to that of glass
A unit heater
(Forced air), in which each heater has a firebox, is the cheapest and consequently the most popular system, especially in warmer climates
Common in small GH
Can be used in combo with perimeter hot water or steam pipes
Two types of unit heaters
Horizontal and vertical
Vertical heaters
Also suspended from the roof but blows warm air downwards
Might create problems of low humidity and high temperature stress for plants
Finned to increase rate of heat transfer to air
Horizontal heaters
Combustion fo fuel requires oxygen
If the unit heating system uses up the oxygen in the air, will shut down and may freeze your crop
Insufficient O2=CO
Employee injury, death
Unit heat distribution
Heat is distributed from the unit heaters by one of two common methods
Convection tube method and Horizontal Air Flow (HAF)
Convection tube method
Warm air from unit heaters is distributed through transparent polyethylene tube running the length of the greenhouse
Heat escapes from the tube through holes on either side of the tube in small jet streams, which rapidly mix with the surrounding air and set up a circulation pattern to minimize temperature gradients
Horizontal Air flow
HAF
In this system, fans located above plant height are spaced about 50 feet (15 m) apart in two rows such that the heat originating at one corner of the greenhouse is directed down one side of the greenhouse to the opposite end and then back along the other side of the greenhouse
Both of these distribution systems can be used for circulating air when neither heating nor cooling are used
Central heating systems
One or more boilers located in a seperate room outside/basement of the greenhouse
It provides steam or hot water heating
Fuel y used are natural gas, coal or fuel oil
Unit heaters or pipes connected to the boiler circulates the steam or hot water, which returns to the boiler for reheating
Can be more efficient than unit heaters, especially in large greenhouse ranges
Central heating
Heat is transported in the form of hot water or steam (mainly hot water) through pipe mains to the growing area
There, heat is exchanged from the hot water in a pipe coil on the perimeter walls plus an overhead pipe coil located across the greenhouse or an in-bed pipe coil located in the plant zone
Some greenhouses install a heating pipe coil in the concrete floor in lieu of the overhead coil across the greenhouse. A set of unit heaters obtaining heat from hot water or steam from the central boiler can be used in lieu of the overhead pipe coil
Cost benefit of central heating
Central systems cost $3.50-$4.50/sq ft
More than unit heaters
Cost benefit long term advantages
Boilers burn cheaper fuels (wood[20% of oil], natural gas, propane, coal, biofuels, etc.)
Cheaper maintenance
Longer boiler life
Enables ground/root zone heating
Less infiltration heat loss
In floor heating
Energy from central heating
Advantages over other methods of heat distribution based on Central Heating: higher yield, better disease control, reduced fuel consumption, dry floor quickly… useful in ebb and flow system
Hot Water Biotherm Heating
Plastic tubes carrying hot water is installed on the greenhouse benches
Heat is regulated by thermostat, which warms up the roots of the plants placed directly on the biotherm
Above air temperature may be lower
Provide heat supplement in winter
Alternative heating methods
Low intensity infrared-radiant heaters can save >30 % in fuel over more conventional heaters
Several of these heaters are installed in tandem in the greenhouse
Lower air temperatures are possible since the plants and root substrate are heated directly
Infrared heaters
Downward heating of plants, benches, soil, floor, etc
The heat is then given off from these objects to heat the greenhouse, 90% efficient
They only warm plants and objects that are placed directly under them, and may fail to heat objects that are on the periphery
Soils may not get warm if covered by a plant with large canopy leading to increased soil-borne diseases and root stress
Solar heating systems
Found in hobby greenhouses and small commercial firms
Both water and rock storage systems are used
The high cost of solar systems has discouraged any significant acceptance by the horticulture industry to date
Solar heating
Use of radiant energy from the sun
Solar collectors store solar energy in the day, which is released at night to warm the greenhouse
Solar energy generator:
oil (glycol), water or air
Furnaces, boilers
Fuel sources= natural gas, oil, wood
Efficiency<100%
Heat pump systems
Can be used for heating or cooling
Efficiency can be >100%
Heat pump is run by electricity which is used to transfer heat between a source to a sink
Efficiency depends upon the difference in temperature between the source and sink (like peddling a bicycle up a steep hill)
Source: air to ground (geothermal)
Sink: air or water in the greenhouse
Geothermal
At varying depths from the earth’s surface=geothermal heat
Some drilling > 1km deep=expensive
Hot/warm water from the depths pumped up and put through a heat exchanger=transfers the heat
Cooled water is pumped back down
Alternative worth considering ($)
Combined heat and power (CHP)
CHP unit consists of an engine which drives a generator= Co-generator (“Co-Gen”)
Produces heat, electricity and CO2 simultaneously
Electricity can be used by the greenhouse
Co-gen more efficient than central power plant about 34% more efficient
2 types of CHP
1) combustion turbine or engine with heat recovery unit
2) steam boiler with steam turbine
Industrial Waste heat
Waste heat from power plants or industry used to heat the greenhouse
E.g. SaskPower Shand Greenhouse in Estevan
Back-Up Heating Systems
Emergency equipment is a necessity and should include a heat source as well as an electrical generator
The generator can be installed to start automatically upon power failure
The need for heat should be signaled by a temperature sensor-activated alarm system in the manager or owner’s home
Temperature sensors
Temperature sensor placement is very crucial. The sensor should be at the height of the growing point of the plants and in a location typical of the average temperature of the greenhouse
It should be in a light-reflecting chamber that is aspirated at a minimum airflow rate of 600 fpm (3 m/sec)
The aspirated chamber should also contain other temperature-sensing controls and a thermometer for testing and correcting the sensors
How much heat do you need?
Lots of tables to calculate the heat requirement of greenhouses
Information necessary for determining the heat requirement for an A-frame, Quonset greenhouse, gutter connected greenhouse are contained in tables
Depends on heat loss
Lowest night temperature in CSG
Was 1.6 degrees Celsius, when outside temperature was -29.2 degrees Celsius in Manitoba
CSG being used to produce
The warm season vegetables at latitudes of 40 degrees N in China without supplying suppplemental heating
Annual total heating requirement for CSH
1068 MJ/m2
Around 50% less heating as compared to a typical gutter connected greenhouse
Heat conservation
The heat requirement of a greenhouse can be reduced by installing double greenhouse coverings;
By using a greenhouse design with minimal exposed surface area
By using thermal screens: heat retention, partial shade in summer, photoperiod block
By repairing broken glass and tightening existing glass
By using a windbreak of trees to reduce wind velocity
By using high efficiency heaters and boilers
By periodically adjusting and cleaning heater,s boilers and thermostats
And possibly by using cool-temperature- tolerant varieties of plants
Adding CO2
CO2 supply system and equipment
Plant growth in the greenhouse is limited by CO2 supply especially during sunny days in winter
Addition of more than 400 PPM (atmospheric concentration) of CO2 is important
Usually growers add 1000-1500 PPM CO2
Sources of CO2 (adding)
Liquid CO2 in pressurized tanks is commonly used in the greenhouse industry
Dry ice or or frozen solid CO2
The CO2 comes out of their storage containers as gas which is then distributed through pipes and metered out as needed
Another source is burning (complete combustion) of natural gas
Incomplete combustion may result in the production of carbon monoxide and ethylene gases
These gases are poisonous to plants and humans
CO2 is added on sunny days but not on cloudy days
Cooling systems
Fan and Pad, Swamp cooler
Most are based on evaporative cooling
Sprinkling
Fogging
Fan and Pad, Swamp Cooler
Advantages: 80-90% efficiency, simple, does not wet foliage, up to 25C reduction (avg 3C-7C)
Challenges: needs access to lots of fresh water, high initial cost, energy to run fans, uneven temperature across greenhouse, less efficient than fogging
Most are based on evaporative cooling q
Principle of conversion of latent heat to sensible heat
Hot air from outside of the greenhouse gets absorbed by water and is re-evaporated into the greenhouse
Lowest temp of re-evaporated air: wet bulb temperature
Sprinkling (cooling)
Simple
Increases surface area for absorption and release of cooled air
Challenge: increased disease
Fogging (cooling)
2-6 micron size
Increases heat and mass exchange
More uniform cooling
Challenges: promote the formation of bacteria and diseases like powdery mildew
Winter and Summer Horizontal Air Flow (HAF) fans
Placed at or near eave height for efficient air circulation pattern in the greenhouse
Column of fans faces the opposite direction to the next column along the entire length of the greenhouse
Additional strategies for cooling systems
Reducing transmissivity
Whitewashing
Shading
Largest producer of Japanese maples
In Europe
Differentiated market- grows specialize in specific crops
Energy Curtains
These are automated systems using fabrics that can insulate a greenhouse at night and shade the crops during the day
The curtains are installed from gutter to gutter
They are opened and closed by computerized systems
Short Day Curtains
Short day curtains are similar to energy curtains
However the function fo short day curtains is to provide darkness to stimulate short day effect
They also retain heat and must be opened on sunny days
Importance of ventilation
Ventilation is the movement of air in and out of the greenhouse
It brings in cool air to replace warm air inside the greenhouse to reduce excessive heat
It helps maintain CO2 levels in the greenhouse for plant use
It moderate relative humidity in the greenhouse
All these help to control diseases
Summer-Passive ventilator cooling system
Example:ridge/roof and sidewall ventilators
Typically used for a A-frame greenhouse
Three Types of Natural Ventilation
Sawtooth Greenhouse
Retractable roof greenhouses
Roof vents in barrel vault and ridge and furrow greenhouses
Sawtooth greenhouses (natural ventilation)
Built with metal frames as attached ranges
Glazing material is fibreglass or plastic
Triangular gable areas with one edge perpendicular to the greenhouse floor
The ridge vent is the perpendicular edge
Barrel Vault and ridge and furrow greenhouses
The roof is hinged on one side and open from the opposite side
Ridge vents face west to south west so wind blowing from the west (windward) over the vents will blow out the hot air in the greenhouse
Retractable roof greenhouse
Usually metal A-frame design and attached range
Opens by drawing the glazing over each rafter
It is often associated with side vent to fully expose plants to natural environment
Plants receive full sunlight, may be watered by rain, robust plants and energy saving
Keeps greenhouse cool, only uses heater when outside temperature reaches 0, open vents if too hot
Specializes in temeprate woody trees and shrubs
Greenhouse watering systems basic
Know the rules of watering
Be introduced to the various watering options
What types of watering systems are there?
Closed system
Open system
Several ways to water plants; Hand watering, sprinklers and mini sprinklers, booms, sub-irrigation and drip
Closed system
The nutrient solution is recirculated, nutrients are not allowed to leach into the ground
Open system
The nutrient solution is allowed to pass through the root zone and out into the environment
Rules of watering
- Use a well draining substrate/media with good structure
- Water thoroughly each time
- Water just before moisture stress
Manual or hand watering
Hoses
Wands
Wand heads
labour intensive
Most efficient
Need to make sure you release the pressure
Heating, Cooling, and venting Concepts
- Heat
- Unit heaters
- Unit heat distribution, central heating
- Alternative heating
- Back up heating systems
- Temperature sensor
- how much heat do you need?)
- Conserving heat
- Adding CO2
- Cooling systems
Automatic Watering
Low labour cost
Can produce better quality crops
Operated automatically or with the combination of small proportion of labour
There are many types of automated systems specific to production interests and crop type
Automated systems specific to production interests and crop types
Spaghetti tube watering systems
Hanging basket watering systems
Cut flower watering systems
Potted plant watering systems
Boom irrigation system
Spaghetti Tube watering
Comprised of thin black tubes from water supply lines
It is connected to individual pots to hold and dispense water in the pots
Ends of the Spaghetti tube
Holders and Emitters: arrow emitters, pressure compensating emitters
Spray tubes
Fitted to the end of a spaghetti tube
Made of plastic stakes that is vertically held in the soil
It has a slanted surface above ground through which water is sprayed
Adjustable micro spray on stake, clip stake, stake with tubing
Requirements for uniform wetting when using the spaghetti tube watering system
Pot: same pot size for production of the crop
Distance: distance between pots must be equal
Type: Same type of growing media
Water loops
A type of spaghetti tube watering system
Has tiny holes along the bottom perimeter of a ring fixed at the end of the spaghetti tube
The ring is placed around the plant in the pot to supply drips of water
Water distribution is uniform
Hanging Basket Watering System
Mainly used for watering plants grown in hanging baskets
There are two main types namely: Israeli drip watering, environmentally controlled hanging basket operator (ECHO) watering
Israeli drip watering
Originated in Israel
Plastic pipes connected with drip emitters are installed above hanging baskets
Uniform distribution of water
Minimize foliage disease infections such as powdery mildew
ECHO watering system
Automatic, ease of rotation and watering of plants suspended on a moving cable
Each plant is watered by an automated sensor (timing and quantity) water breaker
Hanging basket
Suspended bag culture of strawberry
This growing method culture reduces the requirements of hand-labour and make the fruits cleaner and less affected by Botrytis cinerea compared to soil culture
Potted flowering plants watering systems
Used mainly for potted flower plants but can also be used for other potted plants
The four types are: capillary mat watering, Ebb and flow watering, trough irrigation, overhead nozzle watering
Capillary Mat watering system
Does not wet foliage but water is absorbed by capillarity
Made of layers of plastic sheet at the bottom, water-absorbent fibre mat, then a perforated plastic sheet with 1000s of tiny holes
A black plastic sheet on top will reduce light penetration to minimize algal growth
The mat is moistened by ooze or spaghetti tube watering system installed on the bench
Ebb and flow watering (class greenhouse G wing)
Water is pumped onto the bench to submerge the pots and water is then taken up quickly by capillarity before draining away for recycling
This system may have grooved plastic insert that run the length of the bench to contain the water
Trough irrigation
Potted plants are placed in thin plastic troughs
Troughs have low sides and run the length of the bench
The trough is sloped to allow water to trickle down
The lower end drains the water into a tank for recycling
Characterized by low humidity and good air circulation
Overhead nozzle watering
Overhead pipes fitted with suspended nozzles and runs the entire length of the growing bench or greenhouses floor
Coarse spray and mist nozzles are used
Mainly used for crop production and plant propagation
Wets foliage and therefore, recommended for use early in the morning
What is hydroponic
Hydroponic comes from two Latin words meaning “working water”
“Hydro” means “water”
“Ponds” means “labor”
Literally means “soilless growing”
Water culture
The most used water culture methods are NFT, floating raft systems and aero ponies which are closed systems
There are three types of hydroponic systems
Capillary System
Flood and drain system
Nutrient Film Technique (NFT) system
Capillary system
A passive system (no moving parts)
The capillary or wick system do not use pumps or timers
Nutrient solution is drawn up to the roots by capillary action through a wick insert in the root medium and solution
Rubbermaid Totes
$10
Cut six 5” holes in the lid
Put 6” pots in the holes with a wick (yarn)
Fill with fertilized water to the half way line
Flood and drain system
An active system where pumps and other devices are used to draw nutrient solution to the roots
Most versatile and used in rock wool culture
Each time the nutrient solution in the lower reservoir fills the upper growing tray, the roots are bathed in fresh nutrient solution
When the nutrient drains back to the reservoir, fresh air is drawn through the root system to replenish O2
Nutrient Film Technique System
NFT system is also known as the “true hydroponic”
NFT is a method of growing plants in a continuous shallow flow of nutrient solution
Part of the root grow in a nutrient solution while the other part above the water line gets oxygen
Basic Design of NFT:
Reservoir tank
Pumps (2-3 pumps running at the same time)
Nutrient solution delivery network
Growing troughs and solution return systems
Lettuce
tomatoes
Managing hydroponic nutrient solutions
The pH of the nutrient solution and electric conductivity (EC) are continuously monitored
EC estimates fertilizer concentration of the solution
The system can be connected to computerized injector system for monitoring and automatic adjustment of pH and EC
Optimum solution temp of 18-21 degrees C is maintained by heating coils in the reservoir or separate auxiliary tank
High temps deplete O2 in the nutrient solution, which affects plant growth
This is a common problem in summer when radiant heat causes a rise in temp of the nutrient solution
Sterilization of nutrient solution
Partial sterilization is done to avoid killing all beneficial microorganisms
Aim to create a balance between beneficial and non-beneficial microorganism populations
Treatment include: slow sand filtration, lava rock filtration system, heat treatment, ozonation, UV treatment system, Micropore filtration
Principle of Operation of a hydroponic system
Ensure adequate nutrient balance
Aeration is achieved by large drop of the returning nutrient solution leading to substantial agitation of the solution in the reservoir tank to replenish O2
Air is also forced into the solution by the aeration loop
O2 can also be pumped into the solution
Advantages of Hydroponic system
Better control over plant growth
Faster growth
High produce quality
Absence of pests including weeds
Requires small area of production
Disadvantages of hydroponic system
High initial cost
Requires good knowledge and skills
Special nutrient formulations must always be used
Diseases remain a risk especially, water-borne diseases in closed systems
Tomato Latin name
Solanum lycopersicum
Global annual production of tomatoes
Reaching approximately 182.3 million tons, second most important vegetable crop globally
What stage are tomatoes sensitive to chill injury
They are sensitive in all stages
Below 15 degrees affect on tomatoes
Can dramatically delay development and harvest
Cultivars of tomatoes general
Can vary for sensitivity to low light levels and may need wider spacing s
Individual tomato plants
Cam grow up to 12 m or 40 feet over a year
Tomato growing 101
1- select a cultivar
2- growth
3- training and pruning
4- pollination
5- harvest
Select your cultivar (tomatoes)
First thing you need to do
Indeterminant (main shoot stays vegetative)
Bred for greenhouse conditions: lower lights uniformity, disease, firmness, etc.
F1 hybrids allow for vigour, productivity, and multiple resistance genes
May costs $1 per seed, some people make cuttings
Selection criteria
Yield
Uniformity
Disease resistance
Reduced physiological problems: cracking, catfacing, blossom-end rot
Consumer preference and market
Consumer preference and market
Size
Shape
Colour and pattern
Processing traits: skin thickness-Oxheart type
Flavour
Skin texture
Flavour: Reading the ‘Tomato’ Leaves
Leaves are a morphological marker for fruit sweetness
Leaflet shape and leaf-vein density impact fruit sugar content (BRIX): round/less lobed leaves have a positive effect on both fruit BRIX, vein density is negatively correlated with BRIX
Fruit sugar accumulation in modern tomatoes is two to three-fold less than that in wild species
One or two crop systems tomatoes q
1 crop- September —> June: pro;less turnover, con; increase disease pressure
2 crop- spring crop (December- June) and fall crop (late July- January): Pro; less disease pressure, con; more management
Growth of tomatoes
Seedlings: germination approximately 10 days
First transplant (vegetative stage): when cotyledons touch or first true leaf appears, rotate 90 degrees- encourage more roots
Second transplant (veg-production stage) 5 to 6 weeks old: should have 7 to 8 true leaves
Tomato Seedlings
0-20 days
Bottom heating: sensitive to cold temperature injury
25 to 26 degrees, air and root zones
75 to 80% relative humidity: growers often cover rockwool plugs with plastic tunnels, partially open tunnels for a few days before removal
Growing- 1st transplant tomatoes
Focus on root growth
Transplant temp: before transplant- 23 degrees (root), after transplant- 21 degrees (root), 2 weeks after- root 20 degrees, air 23 degrees average (day= 24 degrees, Night=22 degrees)
Water daily, wet but not waterlogged
Growing 2nd transplant tomatoes
Transplant temp: air 20 degrees, 1 week later Night- 18 degrees, day- 20 degrees and root 20 degrees
Watering- 7 times a day, smaller amounts: causes roots to be slightly stressed to develop a large root system
Aim for 5 to 15% over drain to determine how long irrigation system runs: as plants get bigger, run time will get longer
Balancing act of tomatoes
Too vegetative
Too generative (reproductive)
Too vegetative (tomato’s)
Diagnose: thick stems and large long leaves, leaflets at the end of a flowering truss
Solution: raising 24 hr average temp 1 degree or longer time between watering
Too generative (reproductive)-tomato
Diagnose: thin stems, short leaves and small fruit that ripen quickly- an overly generative plant will eventually stall with insufficient leaf development to fill the fruit with an accompanying focus on setting more fruit
Solution: reduce 24 hr temp by 1-1.5 degree OR more frequent watering
Vapour pressure density (VPD)
How much more water the air can hold at a specific temperature
Higher the VPD the drier the air
Optimum for most plants is between 0.4 and 1.6 kPa
Relative humidity (RH)
How much moisture is in the air compared to how much is can hold
Water holding capacity of air approximately doubles with every 10 degree increase
Tomatoes VPD
0.5 to 1.2 kPa
Light for tomatoes
Seeding: 160 Watts/m2, 16 to 18 hour day length
First transplant (vegetative stage): same as seeding stage, one week before next transplanting switch to 12 hour days, reduced shock, alter plant spacing as they get larger, need wider spacing with shorter days and less intense light
2nd transplant (production stage): light too low- flower trusses can abort or not develop and smaller fruit, light too high- plant stress, small short leaves, reduced quality and yield
CO2 for tomatoes
Seeding: 800 to 1000 ppm, liquid CO2 source preferred, purity
First transplant: same as above
Second transplant: same as above
Training and pruning: tomatoe vines
Vines are trained to go on twine with the help of clips
About twice a week: pinch off laterals, twist vines around support twin, using clips if needed
If primary growing point is pinched by mistake the plant becomes “blinded”. It will not produce any new flowers
Don’t bother replacing, young plants won’t develop well in the shade of bigger plants
Training and Pruning: fruit thinning of tomatoes
Optimum balance is 20-25 fruit: 20 leaves, for most cultivars
Truss pruning/thinning: results in fewer fruit but larger ones of better quality
Tomatoes are graded by their size
Tomatoes are graded by their size
Beefstake tomatoes: sold as individuals, higher prices paid for large and extra large
Cluster tomatoes: 4-6 in a cluster, total weight 454 to 680 g, all showing mature colour
Topping for tomatoes
6 weeks before plant termination
Remove the tops of plants from marble sized fruit and higher: small fruit will not have time to mature before termination of the crop
Leave one or two leaves above the highest cluster of fruit that remains: prevents sun scald
Forces termination especially is interdeterminate plants
Training and pruning: leaf pruning of tomatoes
As fruit is harvested leaves are removed at the base
Plants are lowered by lowering strings and moving the hangers over
Catching sunlight
Training and pruning: canopy height for tomatoes
Usually, plant canopy maintained at 7 to 8 feet: bottom of vines drag on to bags or the floor, ripe fruit are at height that is easy to pick
Some growers with talkers greenhouse have let their tomatoes grow up to 12 feet tall: vines are not on the floor, need electrical carts with adjustable platforms for workers, heat rises so taller greenhouses need sensors where the plants are
More high risk for employees
Twinning technique for tomatoes `
Special practices
2 stems (leaders)per plant for summer, takes advantage of intense sunlight
In fall, one stem per plant is removed- to lower plant density with temp reduction
Maximize plant density
Top the plant really young (4 nodes) and then let two laterals be leaders
Flowering details for tomatoes
Initiation begins 3 weeks after cotyledons fully expanded: 3rd oldest true leaf is 1 cm long
Can control early flowering
Optimal pollen germination temp is 22 degrees
Pollen sticks to the styles if relative humidity is above 70% or temp is in the range of 17 and 24 degrees
Optimum night temperature for fruit set is 15 to 16 degrees
Control early flowering for tomatoes with
Low light levels- 29 day delay
24 our average temp is important for controlling flowering: cooler nights, adjust by having warmer days
Double trusses can occur below 13 degrees which is not good
Pollination for tomatoes
Modern cultivars are self pollinating but require mechanical action for highest yields
Bumble bees: 3 hives per acres
Battery powered electric needs: use every other day
Pollination problems for tomatoes
High temp and low light can alter styles and reduce pollen viability resulting in poor pollination: improved cultivars, high fertility regimes, CO2 enrichment, can overcome effect of low light on pollination
High temperatures >24 degrees
High humidity >85% (pollen release is impeded)
Harvest of tomatoes
Fruit is ripe 6 to 7 weeks after flowering
Beefsteak types are often harvested at “colour breaK”: yellow orange colour occurs at bottom end of the fruit, needs at least to be mature green ( a lighter shade of green)
Closer market might have more colour showing at harvest
First fruit may be very slow to ripen: remove leaves around the fruit to get more sunlight
Cluster types are harvested when all tomatoes in the cluster have colour break: they get bagged before going to market
Harvest care of tomatoes
Gentle handling extends shelf life
Minimize the height tomatoes are dropped into the harvest bin
Pick fruit in the morning when the temperatures are cooler
Don’t overfill bins (can cause damage when stacked in transport)
Latin name for cucumber
Cucumber sativus
What do we know about cucumber?
Semi tropical plant- native to Southern Asia (also Africa)(North): gives us clues to its preferred growing conditions
Cultivated in India for at least 3000 years, not a new crop
Some of the very first greenhouses, were constructed by the ancient Romans so that the Emperor could eat cucumbers every day of the year
Cucumber growing 101
Select a cultivar
Growth
Training and pruning
Pollination
Harvest
Cultivars of cucumbers
2 major market classes: long English, and mini
Not common: Asiatic, apply, Beit alpha
Two classifications of cucumbers
1) slicing: long English and mini/Lebanese cucumber
2)Pickling: gherkins- sharp spines and more hardy
Powdery mildew tolerant cucumbers
Generally produce a lower yield
Produce later in the season
Common in the greenhouse
Propogative materials cucumbers
Seeds, transplants, grafted transplants
Grafted transplants: increases cost significantly
Growth seedlings (cucumber)
Temperature: night<day= tall seedlings with small leaves, night>day= short and stocky seedlings
Light: range between 250 and 670 micro moles/m2/s- 1 day below 80 can reduce photosynthetic rate by 25% and result in fruit abortion
Production temperature for cucumbers
21 degrees
Balance vegetative and generative growth
The production stages of cucumbers
Has four stages
1. Planting out and establishment
2. Growth stage 1 (vegetative)
3. Growth stage 2 (generative)
4. Growth stage 3 ( full crop)
3 crop system
Three crops per year are grown to maintain quality
Don’t have to give much care
4 crop system of cucumbers
Larger growers, produce a crop 50 weeks per year
2 crop cucumbers
Using better root health management technologies to maintain plant vigor and fruit qualiuty
Grow for longer
Lots of care
Growth of cucumbers
Humidity is closely monitored and controlled
High or fluctuating humidity is ideal for powdery mildew (most concerning) and gummy stem blight
Cucumbers are highly susceptible to drought stress: up to 30 irrigation cycles/day in hot sunny conditions
General training and pruning of cucumbers
Very important for cucumbers
Regular maintenance is required: prune laterals at least weekly, but often 2-3 times per week
Remove leaves to address specific problems: plant density, improving fruit colour, damage/diseases
BUT- do not take more than 1-2 leaves/week- if you take too many it will shock the plant
Umbrella methods cucumbers
2 methods
1. Modified umbrella
2. Traditional umbrella
Modified umbrella
- Determinate
- Indeterminate unidirectional
- Indeterminate bidirectional
- Short lateral variation
Traditional Umbrella
- Original determinate
- Original indeterminate unidirectional
- Original indeterminate bidirectional
1) determinate - umbrella for cucumbers
1- remove flowers and laterals from the bottom 60-80 cm
2- remove laterals up to the support wire, let fruit develop from each axil, may also remove tendrils (not cost effective at scale)
3- when the main stem is 2 leaves above the wire, cut the growing point and clip it to support the wire
4- allow 2 laterals to grow along the wire
4B- When production drops, harvest all fruit and remove the lateral, allow the next set of laterals to grow and repeat the process
2) Indeterminate unidirectional -umbrella cucumbers
Same first two steps as determinate
Continue the primary growth along the wire
Allow a lateral in the center to grow down
3) Indeterminate bidirectional variation- umbrella cucumbers
Same first two steps as determinate
Short lateral variation
Training and pruning- how do you decide with cucumbers
Density
Summer=1.5 to 2.4 plants/m2
Winter=1.1 to 1.5 plants/m2
Secondary laterals have a big impact
Multi heading
Multi heading for cucumbers
A method of increasing plant density
For hand harvested
Pollination of traditional cultivars for cucumbers
Monoecious (50:50, male:female)
Often self incompatible, need more than one plant to getting a fruit set
Pollination of gyoecious cultivars for cucumbers
Only female
Get pollinated by growing the monoecious to pollinate it
Pollination of gynoecious parthenocarpic cultivars of cucumbers
Only female, no pollination required
Seedless (small, very soft and non viable)
AKA Burpless
Stress can induce male flowers in certain cultivars, problem is that your going to get seeds
Harvest of Cucumbers
Really important
Start to fruit 14 to 21 days after transplanting
Continuous fruit for approximately 60 to 150 days, depending on cultivar
Harvest with a clean sharp blade
Fruit is harvested daily or every other day depending on production and the time of year- don’t want to let them get too big
Why you harvest cucumbers with a clean sharp blade
Reduce disease
Reduce bacteria
Promote rapid healing (callasus)
Harvest of mini cucumbers
12-18 cm long and about 2.75-3.5 cm thick
100-200 g
European or Continental cucumber harvest
25-40 cm long and about 3-4 cm thick
250-450 g
Storage of cucumber after harvest
13 degrees
Free from drafts or sources of ethylene
The fruit is shrink-wrapped often on site to avoid desiccation
Cool drafts will damage fruit dont like cool pockets
Cannabis Act
Bill C-45
Legalization 2018
Canada the second country in the world, first was Uruguay
A volatile market
Value of Cannabis
2018= $6.4 B
2023= $10.8 B
Cannabis is
An oilseed
3 Sepcies/Subspecies of Cannabis
Cannabis sativa L
Monotypic
Subspecies: Sativa, Indica, Ruderalis
Sativa Cannabis
Origin: India
Climate: warm and wet
Short day plant/photoperiod sensitive
High or Low THC: high=weed/marijuana, low= industrial hemp (<.3% THC)
2-4m tall, long internodes
Thinner leaflets
Early-late maturing
High THC types: treatment for nausea, depression, headaches, loss of appetite
Indica Cannabis
Origin: Afghanistan, Pakistan
Climate: cool and dry
Short day plant/photperiod sensistive
Higher CBD: treatment for insomnia, pain, inflammation, muscle spasms, epilepsy
1-2m tall, shorter internodes
Wide leaflets
Early maturing
Ruderalis Cannabis
Origin: Russia
0.7 to 1.1 m tall
Not known for THC or CBD
Dayneutral
Used in breeding to make day neutral/auto flower cultivars (auto flower is what cannabis growers call it)
Plants start blooming after 4 or 5 sets of leaves
Cannabis is incredibly diverse plant
Height
Seed size
Seed pattern
Fibre
Oil
Protein
Colour (leaves and flower)
Trichomes density
Light sensitivity
Cannabinoids
Terpenes
3 phases of cannabis growth
- Propagation
- Vegetative
- Flowering
Conditions: lights, temperatures, humidity, media and nutrients
Lights for Cannabis
Propagation: low intensity, can be fluorescent lights
Vegetative stage: medium intensity, more blue light desirable
Flowering stage: high intensity, more red light desirable
LED lights: more expensive to buy but cheaper to run, some are adjustable for veg and flower stages
Lights daylength for cannabis
Daylength sensitive or day neutral (“autoflower”)
Seedling and vegetative growth: 18 hr + days
Flowering: 12 Hr - days
Temperature and Humidity for Cannabis
Seedlings: some seeds have dormancy, 20-25 degrees, VPD: 0.8-1.0 kPa, humidity 65-70%
Vegetative: 22-28 degrees, VPD- 1.0- 1.2kPa, humidity 40-70%
Flowering: 20-26 degrees, VPD: 1.2-1.6 kPa, humidity 40-50%
Cool temperatures will stall growth and delay flowering
High humidity impedes pollen release
Media for cannabis
Good drainage- dont like wet feet
Total pore space 60-80%
Airspace 10-20 %
Water holding capacity 40-70 %
Acidity/alkalinity 6 pH
Electro conductivity EC 1 to 2 mS
Cation exchange capacity CEC 6 to 15 meq/100cc
Nutrients for cannabis
Big eater
N-P-K
Vegetative: 3:2:1
Flowering: 2:1:3
14 other nutrients: variable recipes for different cultivars, many variations in industry
Hydroponics and soilless mixes: easy to switch feertilizers in system
Watch out for snake oil
Dioecious cannabis
Male and female reproductive organs on separate plants
Male flower first, shed pollen and die
Seed and trichomes are only produced on the females
Monoecious cannabis
Male and female reproductive organs on the same plant
Low level of seed and trichome production on all plants
Cannabis classification
Hemp
Cannabis/weed/marijuana
Hemp
Cannabis- low THC (less than 0.3 %)
Grain and fibre
Some byproduct extraction
Cannabis/Weed/Marijuana
High THC Cannabis (above 0.3%)
Cannabinoids (extraction or smokeable)
Hemp Grain
Plant: shorter, less fibrous, broad acre production, early maturing, typically dioecious-seed is harvested as grain
Product: hemp hearts, oil, protein
Hemp Fibre
Plant: taller (up to 14’), later maturing, typically monoecious-harvested before seed seed
Product: bast and Hurd fibre, Levi’s jeans
Cannabis/Weed/marijuana flower
Plant: branchy/Christmas tree, short, dioecious femal- unpollinated
Product: Cannabinoids and terpenes found in trichomes on female flower, extracted oils, edibles, dried flower
Other Cannabinoids
Produced in the glandular trichomes of femal inflorescences: CBD, THC, OVer 100 more (CBC, CBG, CBN, etc)
CBD:THC - entourage effect
THC and CBC interact “entourage effect”
When both are present, THC does not have as strong of a psychoactive effect
Together they produce a better effect than on their own
Other compounds? Cannabis
Terpenes: volatile compounds- flavour, aromatics
Environmental impact
Found throughout the plant kingdom
Propagation material cannabis
Hemp- seed company: dioecious (grain) or monoecious (fibre), new female hybrid grain types in development
High THC cannabis- online shop or LP; very expensive up to $20/seed, dioecious type female only
Feminization Cannabis
Can occur naturally due to stress
Start with a female plant
STS (silver thiosulfate) ethylene blocker
Beware of unwanted males cannabis
Wind pollinated
Very prolific
1 male in a 10km + radius can ruin an entire seed lot
How to scale? Cannabis
Difficult with dioecious seed
Difficult with feminized seed
What about clones for cannabis
Difficult to buy: not in garden centres, online stores are expensive $60/plant and minimum order requirements, some medicinal companies may sell clone to patients with doctor prescriptions
Can’t clone autoflowrs, they just start blooming
Licensed cultivators, processors and sellers of Cannabis under the Cannabis Act
Controlled by health canada (federal government)
High THC Cannabis: individuals- no license, 4 plants/house allowed in SK, business- need to be a licensed producer to grow/sell plants, seed or flower.
Hemp: individuals- no license, 4 plants/house allowed in SK or license and grow more, Business: license (much easier to get)
How much greenhouse produce is exported to the US
80%
Total imports
50% of vegetables (excluding potatoes)- 67% USA
75% of fruits eaten in canada are imported- 36%
Greenhouse specializing in fruits and vegetables in Canada
Have been increased in value for the 11th consecutive year
Up 9.2% in 2023
$2.5 billion- doubling in size in the last decade
GH acres in Ontario
Expected to double over the next 10 years
BUT energy cost surging- investment needs to be in infrastructure run on renewable energy
Types of GH business q
3 Main types in Canada:
1- Commercial greenhouses
2- Nursery Greenhouses
3- research and educational greenhouses
1- Commercial GH
Large scale operations that grow vegetables, fruits and flowers
Sell to: wholesalers, retailers and directly to consumers
Highest value crops
Highest cost barrier: rough estimate $60,000-$200,000, depending on structure, location and technology
The big 5 commercial crops
- Tomato- largest value
2- Cucumber- Largest export
3- Peppers- 3rd largest volume and value
4- Lettuce- distant 4th, our highest field vegetable import
5- Strawberries- only 3% of Canadian GH industry
Cut flowers are on the rise
Crops to watch for commercial GH (according to economists)
1) berries- raspberries and blueberries; top 5 fruit imports
2)Spinach- net importer, currently being researched for improvements
3) Bananas- #1 fruit import by volume, yield has been increasing since 1960
4) Okra- currently representing 1% of vegetable import value, it has grown more than 50% in the past 7 years, mucilage
2) Nursery GH
Small to large scale operations that focus on growing: young plants, seedlings and saplings
They often specialize in ornamental plants, trees and shrubs
Sell to: gardeners, landscapers and other garden centres
Nursery GH range in crop value
High volume or high value
House plants
Ornamental bedding plants
Vegetable bedding plants
Indoor and outdoor potted plants
Container shrubs and trees
Nursery resale up 7% in 2023 (STATs CANADA)
Lower entry barrier: seasonal options, can start small (hobby GH, farmers market)
Types of nursery GH
- Nursery and retail: Business to customer (B2C) model, example; floral acres
- Wholesale nursery: Business to business (B2B) model, Ex; Vanabelle (B.C)
B2B is more common, it is less complex business model
3) Research and Educational GH
These facilities are used by universities, colleges and research institutions to study plant biology, genetics and horticultural practices
Sell to: rental income, service provider, landlords of greenhouse space
Need proximity to large research groups (public or private)
Diversification option
EX) floating gardens
Profability of GH business
- Commercial greenhouse
- Nursery greenhouse
- Research and educational greenhouses
But profitability varies greatly depending on factors like crop selection, location, market demand and operational efficiency
What is a business Plan
A written document that describes your business, its objectives and strategies, the market you are targeting, your financial forecast
Questions you should answer in a business plan
How will I generate profit
How will I run the business if profits drop
Who is my competition and how will we coexist
Who is my target market
What should be included in a business plan
1- executive summary (business description)
2- Identifying your business oppurtunity
3- Marketing and sales strategy of a business plan
4- Your team
5- Operations
6- Financial forecasts of a business plan
7- Other useful documentation
1) executive summary
Overview and main points of your business plan
Considered the most important part
Mission statement- what do you hope to achieve? Purpose and values
Business goals/overview
Brief description of your products or services
Should be brief, concise (no more than 2 pages) and interesting
Often it is written last
2)Identifying your business opportunity
There are different ways to analyze this:
1) S.W.O.T analysis 2)P.E.S.T analysis
Know when to collaborate instead of compete
S.W.O.T analysis
Strengths, Weakness, Opportunities, Threats
Strengths: what do you do well, areas you are better at than competitors, internal resources/I.P, assets
Weakness: things you lack, things your competitors do better, resource limitations
Opportunities: undeserved market, few competitors, emerging needs, positive media
Threats: emerging competitors, changing regulation, changing customer attitudes, negative press/media
P.E.S.T analysis
Political, economic, social and technological
A measurement used to assess the market for a particular product or business
Political- legislation/policies/conflicts, etc
Economic- home economy/taxation/capital/market/etc
Social- lifestyle trends/demographics/consumer attitudes and opinions/advertising/etc
Technological- research funding/dependent technologies/replacement technologies
SWOT and PEST= Risk analysis
3) Marketing and sales strategy of a business plan
The Four P’s of marketing: product, place, price, promotion
4 P’s of marketing
1- Product; what are you selling, trend vs consistent demand, what is the demand
2- Price; what is your unique selling proposition, usually a price or quality difference
3- Place; where will you sell, fresh, processed, wholesale, retail, direct to consumer (especially important with fresh produce)
4- Promotion; branding: differentiate and identify, add unique value in addition to the actual use of a product
“Placebo effects”
Helpful for selling fruit and vegetables
Branding
Consumers perceive a brand through associations
What does the customer think or feel
Emotional Branding
Colour
Font Imagery
Psychology of colour
Colour can influence mood and perception:
Blue= calm, soothing, cool, depressed, feeling down, lack energy
Green= nature, natural, fresh, positive
Purple= relaxing, creative, strength
Red= passionate, exciting, warning, angry, aggressive
Yellow= warm, inviting, upbeat, happy (can be overwhelming if used in excess)
Orange= warm, inviting
Serif
Reliable, traditional, stable
Sans Serif
More effective in digital marketing, clarity and simplicity= brand trust
Bespoke
Playful friendly, elegance and strength
Logo q
Branding
Simple, memorable, timeless and appropriate
Communication tool- can it tell something about your product?
Logos tailored to their customers
Advertising
Branding
Location
Type of media: radio, social media, digital, print, event sponsoring, word of mouth, product placement, many more
Informative ;Ex) family run, sustainable, organic, community focused etc.
Storytelling; humour/satire, emotion
4) your team
AKA human resource
Establish clear roles required: president/owner/CEO, Operations manager, sales team, technical staff, etc
Establish responsibilities
Write job descriptions for each role: use clear and descriptive language, maintain positive tone, highlight opportunities for growth
Turnover is expensive
5) Operations
A roadmap to your business goals
1) Strategic business plan; how are you going to accomplish your goals (funding, growth, access to markets, etc.), is it sustainable, abandon ego and be willing to pivot
2) day to day plan: key workflow plan (production, sales, logistics), timelines and monthly goals/breakdowns are helpful
3) crop production
4) research and resources
Crop production operations
1- Grow a crop you like
2- Measure first, then order: crowing crops=small fruit/veg and disease, Spread out= less yield= higher per unit production cost
3- Define your production months: year round, October-June, seasonal, etc
4- Research and resources
6- Financial forecasts of a business plan
Finance, Production, marketing
Fixed cost
Variable cost
Opportunity cost
C.O.G.S- Cost of Goods sold
Gross Profit
Gross MArgin
Fixed cost
Need to be paid, regardless if you get a crop
Ex) lease, power, water, insurance, employee salaries etc.
Variable cost
Change depending on the crop
Ex) seed, chemicals, biologicals, spray, labour, hours, nutrients, etc.
Cost of Goods Sold
Opportunity cost
Potential foregone profit of a missed opportunity
Cost of goods sold C.O.G.S
Direct costs of producing a good, often classified as variable cost
Option 1: cost/square foot (fixed cost+ variable/square ft=cost/square foot)
Option 2: Cost/unit (fixed cost+ variable/unit= cost/unit
Gross Profit
= Sales- cost of goods sold
Gross Margin
=Gross profit/sales x 100
Why is knowing your gross margin important
Can help calculate projections
Tells you how you’re stacking up with competition
Break even point
The point where total costs= total revenue: no loss or gain
1) review all costs and determine fixed vs variable
2) estimate production capacity
3) determine selling price
Break even point equation
= fixed cost contribution per unit/(selling price- variable cost)
Ways to increase profitability
Cut costs
Increase sales
Financial forecasts of a business plan
Income statement
Balance sheet
Cash flow
Income statement
Shows multiple months/years: can be used for forecasting/projections, typically shows performance over a set time
Uses total dollar value, not unit value
Helpful to include units sold for GH business
Balance Sheet
A financial snapshot (a point in time)
Assets are arranged on the top and liabilities and equity on the bottom
The assets and liabilities are typically listed in order of liquidity and separated between current and non-current
NOT a profitability breakdown
Assets
What a business owns
Ex) cash, land, inventory, market securities, accounts receivable etc
Liabilities
What a business owes
Ex) loans, accounts payable, interest, etc
Equity
The amount of cash a business owner invest in a business
Sources of equity: contributed capital, retained earnings and valuation/market gain
Assets=
Liabilities + Equity
Owned by business= owed to third party+ owed to the owner
Always balances
Current assets
Expected to be converted to cash in less than 1 year
Current liabilities
Expected to be paid in less than 1 year
Non-current assets
Expected to be held for longer than 1 year
Non-current liabilities
Repayment expected to take longer than 1 year
Cash flow
The cash position of the company
Where cash is being made vs used
Operating cash flow
Day to day business operations; revenues and expenses that have been collected and paid during the year
Investing cash flow
Non-current assets that support the business: ex) property, equipment, business acquisitions
Financing cash flow
Transactions regarding shares or debt
Company raises funds by either borrowing or issuing shares
Other useful documents for business
Documents that identify a business advantage:
References- prior business success
permits/contracts- guaranteeing freedom to operate
Partnerships- strategic partnerships are especially valuable in saturated markets Ex) aeroplane, west jet dollar, etc
Intellectual Property (IP)
Other useful documents for business
