Even’ Star Organic Farm

Abstract

This case describes a situation at an organic farm. The crops have been planted, but weather has affected the expected yields. A decision must be made about the profit-maximizing sales channels to choose given the unexpectedly limited output. The people, places, and quantitative data reflect actual observations, but some detail has been omitted or simplified for pedagogical purposes. The case was developed to integrate two academic disciplines: management accounting and quantitative methods. Once the technical aspects of the case analysis have been covered, class sessions have produced rich managerial discussions. The primary teaching objectives for this case are to explore distribution channel profitability from a differential analysis perspective and to introduce the concept of integer programming. Although the analyses can be complicated, the setting is a simple one that all students can readily visualize.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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Resources

Exhibit 1: Average Weekly Restaurant Delivery Composition (Total for 10 Customers)

Cases

Tomatoes (large)

21.75

Tomatoes (small)

35

Watermelon

4

Okra

1.5

Basil

2

Cucumbers

9

Sweet potatoes

3.33

Winter squash

2.25

Exhibit 2: Average Make-up of a Single CSA “Box”

Approximate Percentage of a Standard Harvest Case

CSA Caselot Price ($)

Extended CSA Price ($)

Tomatoes (large)

12.50%

36.00

4.50

Tomatoes (small)

8.25%

36.00

2.97

Watermelon

10.00%

20.00

2.00

Okra

5.00%

36.00

1.80

Basil

5.00%

24.00

1.20

Cucumbers

16.67%

24.00

4.00

Sweet potatoes

10.00%

36.00

3.60

Winter squash

18.75%

36.00

6.75

Total CSA-rate value of box contents

26.82

Exhibit 3: Various Production Data

Cost of Seed or Seedlings per Acre ($)

Fertilizer Cost per Acre ($)

Acres Planted

Standard Caselot Yield per Acre

Labor Hours per Acre (Plant, Care & Harvest)

Tomatoes (large)

7,000.00

36.00

1.50

310

225

Tomatoes (small)

7,000.00

36.00

1.25

540

200

Watermelon

40.00

50.00

2.00

100

15

Okra

8.00

-

0.08

1050

1000

Basil

7,500.00

20.00

0.10

720

360

Cucumbers

12.00

50.00

1.00

335

65

Sweet potatoes

1,248.00

-

0.08

1333

1350

Winter squash

12.00

50.00

2.50

53.3

27

Exhibit 4: Retail Prices per Caselot

Restaurants ($)

CSA ($)

Farm Market

Tomatoes (large)

40.00

36.00

45.00

Tomatoes (small)

26.00

36.00

40.00

Watermelon

20.00

20.00

22.50

Okra

24.00

36.00

40.00

Basil

18.00

24.00

25.00

Cucumbers

24.00

24.00

28.00

Sweet potatoes

36.00

36.00

40.00

Winter squash

36.00

36.00

40.00

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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