Alright – so today we’ve got the honor of introducing you to Andy Petran. We think you’ll enjoy our conversation, we’ve shared it below.
Andy, thanks for taking the time to share your stories with us today Let’s start with what makes profitability in your industry a challenge – what would you say is the biggest challenge?
Climate change and land access. The unstable whims of our changed climate make open field horticulture less viable annually, and skyrocketing prices and interest rates for farmland are unlikely to decrease as land gets bought up by hedge funds, residential development companies, and millionaires/billionaires viewing farmland as a stable investment opportunity to dump their funds.
Andy, before we move on to more of these sorts of questions, can you take some time to bring our readers up to speed on you and what you do?
I got my start in academia, receiving my Masters and PhD from the University of Minnesota in Applied Plant Sciences. I left my post doctoral position in 2018 to start my own farm, in an effort to continue my doctoral research on a more commercial scale. We produce strawberries and raspberries throughout an extended season, trying to do ‘more with less’ while honoring environmental sustainability.
The primary problem we’ve identified in our market revolves around the effects of climate change, and the research to address them. Most efforts to create climate resilient practices involve ‘controlled environment agriculture’; namely, greenhouses and other forms of physical protection for plants. These methods are quite effective but also are incredibly expensive, creating a financial barrier for most new, beginning and emerging farmer groups who arguably need it the most. Therefore, our primary research goal on the farm is to create a set of affordable methodologies for controlled environment small fruit production. We wish to provide means to protect valuable crops in a way that only costs thousands, instead of millions of dollars, while providing similar climate resilient benefits.
Have you ever had to pivot?
Initially, we were selling exclusively to local groceries and co-ops, with our ‘grade B’ fruit going to value added businesses in the are (pies, kombucha etc.). This felt like the best option at the time, and made the product feel more legitimate. However, revenue was unsustainably low for our current scale, due to the 30-40% cut that most grocers took from fresh produce.
In year 2 we began pivoting to farmers market sales, and obtained a cottage food license to start making our own processed goods (jams, syrups, shrubs etc.). We immediately saw a boost in revenue because 100% of sales were going straight to us. This pivot effectively saved the business. Farmers market sales didn’t ‘feel’ as legitimate from an outside perspective. However the vibrant market community, of which there are hundreds in our area, are filled with customers with an intrinsically above average willingness to pay for quality goods. There is still plenty of room to grow within this space until it becomes saturated with our delicious berries and berry products!
We often hear about learning lessons – but just as important is unlearning lessons. Have you ever had to unlearn a lesson?
Basically, I realized quick that there is no shortage of people willing to give you advice about your business. The first instinct is to follow all of it; these people have done it before and you can benefit from their experience, after all. However, I realized I needed to ‘unlearn’ lots of well-intended business guidance fairly quickly. There is a difference between intelligence and wisdom; intelligence is understanding the benefit of soliciting advice from others. Wisdom is the ability to discern which pieces of advice to incorporate and which to politely set aside. A good owner needs to be both smart, and wise. Once I realized this I began taking more agency in my instincts and complementing them with lessons that were pertinent to my endeavors.
Contact Info:
- Website: tcberries.com
- Instagram: @twincitiesberry
- Facebook: https://www.facebook.com/twincitiesberrycompany