Top problems with building intensive orchard
Ned Boske has been working on adapting new horticultural technologies to suit the local conditions of
Central Asian countries. Initially, investments in the horticulture business in this region focused on
developing intensive apple orchards. While this has been the area where the most significant experience
has been gained, it has also been noted to be the most disappointing. We have recently received a lot of feedback regarding the information we released on these orchards.
Our findings showed that the average apple yield from intensive orchards in Tajikistan in its 4th year
after planting was only 7 tons per hectare, which is much lower than what it should have been (at least
five times higher).
Our approach involved reaching out to numerous seasoned international experts who have extensive
experience in the region. Our aim was to analyze past errors and obtain advice on how to rectify them.
After receiving detailed feedback from each expert practitioner, we identified several crucial issues.
These issues are listed below in order of strategic importance, rather than in decreasing order of
significance. It's important to note that all of these issues are critical and require immediate corrective
actions, as neglecting them could result in bankruptcy.
1.) Entrusting the management and economic activity of an orchard to a relative or friend instead
of a trained specialist can lead to significant problems, as the investor is not on-site and not in
control. Despite this, many investors refuse to believe that a relative or close friend would abuse
their position. This practice often results in negative consequences for the owner, as specific
operations must be performed at an orchard, which only a specialist can fully comprehend. It is
not always possible to save the orchard and the business in such cases. Therefore, we advise
investing in this business only if you plan to be directly involved and personally supervise all
processes.
2.) Owners of farms with no prior experience in horticulture often make the mistake of starting
apple businesses by planting gigantic orchards without paying attention to the physical and
technical limitations of the land and cultivation technology. This results in quantity destroying
quality. Additionally, many owners try to plant a 1,000-hectare apple orchard in one year, which
is almost impossible. Therefore, we recommend planning an economically feasible and relatively
small-sized orchard in the first stage. Less is more. Expansion of the business can be carried out
later after gaining initial experience with the smaller orchard and developing a team of
specialists, which is also financially beneficial.
3.) In Uzbekistan, Kazakhstan, Tajikistan, and other countries in the region, it is common to see huge
apple orchards in areas where the climate does not allow the apples to develop their color. It is
essential to clarify with an expert prior to planting whether the climate is suitable for growing
apples and, if so, which varieties would grow best. Any advice from suppliers should be verified
by an independent international expert, even if you have to pay for expert guidance.
4.) Investors often overlook the importance of having an experienced agronomist and a team of
specialists. Failure to comply with even one technical element for an orchard could potentially
nullify the entire apple business. Therefore, when planning a horticultural business, it is crucial to
ensure the availability of qualified personnel. It is also essential to continually train your expert
team as technologies are constantly evolving. Employees must know English and constantly visit
the leading apple farms in the world and undergo various international training and refresher
courses.
5.) Business owners often invest millions of dollars hoping to save several thousand on
consultations, which is a mistake. In Central Asia, where the climate is challenging for growing
apples, it is impossible to achieve success by only copying achievements that work in other
countries. It is crucial to obtain high-quality technical support that would allow your team to
grow and develop professionally. The same applies to market analytics, which allows you to sell a
product at a higher price. Finally, free advice from sellers of seedlings or other supplies cannot
be considered a consulting service since their goal is to make a profit.
6.) Using poor quality elements to save money, such as low-grade planting material, cheap irrigation
systems, and low-quality supports, can lead to disastrous consequences for an orchard. For
example, we have seen an orchard quickly destroyed simply because the investor decided to
make the concrete posts to support the orchard. Therefore, when planting an intensive orchard,
it is crucial not to purchase any materials or technology from unknown suppliers. Saving on plant
protection products can also lead to low quality or a complete loss of the crop. A low-quality
apple costs, on average, 10-20 times less than a quality one.
7.) A relaxed approach to following technology, such as failure to meet deadlines or perform the
scope of work, substitution of concepts, and frequent attempts to replace necessary specific
chemicals with various generics, can distort precision planning and the structure of work. Cutting
corners can result in subpar results, such as achieving only 7 tons of apples instead of the 35-40
tons that should be produced by the 4th year of an intensive orchard.
8.) Many investors do not understand that it is physically impossible to quickly harvest and sell
apples from a large orchard without proper storage. Costs for apple storage and processing per
hectare can significantly exceed investments in seedlings, irrigation, support, netting, and even
equipment. Fruit storage is not a separate business, but an integral part of the fruit and
vegetable growing business. Constructing a storage facility at the same time as planting an
orchard is not required, as the need for storage will arise only after a couple of years.
9.) Investors often design their own storage solutions to save money, but this is an ineffective
solution. It is better to use ready-made, long-term solutions that have been precisely thought
out and tested by tens and hundreds of thousands of other investors.
10.) Investing in processing apples instead of focusing on reducing poor quality production is usually
unnecessary. Such enterprises have minimal direct correlation to the orchard and are only
profitable if done correctly. For example, to make processing profitable, it is necessary to
purchase up to 20 other types of fruits and vegetables for processing, develop many recipes,
invest in marketing and distribution, and correctly assess the cost of raw materials. Therefore, it
is advisable to reduce any waste in the orchard. The percentage of non-commercial apples at the
best farms does not exceed 5%, so it is more profitable to dispose of those apples or sell them to
professional processors than to spend hundreds of thousands of dollars trying to increase profits
from waste.
Mistakes are inevitable in any venture, but problems usually disappear over time. Don't despair if you
have made mistakes; take corrective actions. With the right goals and technologies in place, any farm can
achieve success. However, relying solely on learning from mistakes may take too long to achieve success.
Ned Boske has been working on adapting new horticultural technologies to suit the local conditions of
Central Asian countries. Initially, investments in the horticulture business in this region focused on
developing intensive apple orchards. While this has been the area where the most significant experience
has been gained, it has also been noted to be the most disappointing. We have recently received a lot of feedback regarding the information we released on these orchards.
Our findings showed that the average apple yield from intensive orchards in Tajikistan in its 4th year
after planting was only 7 tons per hectare, which is much lower than what it should have been (at least
five times higher).
Our approach involved reaching out to numerous seasoned international experts who have extensive
experience in the region. Our aim was to analyze past errors and obtain advice on how to rectify them.
After receiving detailed feedback from each expert practitioner, we identified several crucial issues.
These issues are listed below in order of strategic importance, rather than in decreasing order of
significance. It's important to note that all of these issues are critical and require immediate corrective
actions, as neglecting them could result in bankruptcy.
1.) Entrusting the management and economic activity of an orchard to a relative or friend instead
of a trained specialist can lead to significant problems, as the investor is not on-site and not in
control. Despite this, many investors refuse to believe that a relative or close friend would abuse
their position. This practice often results in negative consequences for the owner, as specific
operations must be performed at an orchard, which only a specialist can fully comprehend. It is
not always possible to save the orchard and the business in such cases. Therefore, we advise
investing in this business only if you plan to be directly involved and personally supervise all
processes.
2.) Owners of farms with no prior experience in horticulture often make the mistake of starting
apple businesses by planting gigantic orchards without paying attention to the physical and
technical limitations of the land and cultivation technology. This results in quantity destroying
quality. Additionally, many owners try to plant a 1,000-hectare apple orchard in one year, which
is almost impossible. Therefore, we recommend planning an economically feasible and relatively
small-sized orchard in the first stage. Less is more. Expansion of the business can be carried out
later after gaining initial experience with the smaller orchard and developing a team of
specialists, which is also financially beneficial.
3.) In Uzbekistan, Kazakhstan, Tajikistan, and other countries in the region, it is common to see huge
apple orchards in areas where the climate does not allow the apples to develop their color. It is
essential to clarify with an expert prior to planting whether the climate is suitable for growing
apples and, if so, which varieties would grow best. Any advice from suppliers should be verified
by an independent international expert, even if you have to pay for expert guidance.
4.) Investors often overlook the importance of having an experienced agronomist and a team of
specialists. Failure to comply with even one technical element for an orchard could potentially
nullify the entire apple business. Therefore, when planning a horticultural business, it is crucial to
ensure the availability of qualified personnel. It is also essential to continually train your expert
team as technologies are constantly evolving. Employees must know English and constantly visit
the leading apple farms in the world and undergo various international training and refresher
courses.
5.) Business owners often invest millions of dollars hoping to save several thousand on
consultations, which is a mistake. In Central Asia, where the climate is challenging for growing
apples, it is impossible to achieve success by only copying achievements that work in other
countries. It is crucial to obtain high-quality technical support that would allow your team to
grow and develop professionally. The same applies to market analytics, which allows you to sell a
product at a higher price. Finally, free advice from sellers of seedlings or other supplies cannot
be considered a consulting service since their goal is to make a profit.
6.) Using poor quality elements to save money, such as low-grade planting material, cheap irrigation
systems, and low-quality supports, can lead to disastrous consequences for an orchard. For
example, we have seen an orchard quickly destroyed simply because the investor decided to
make the concrete posts to support the orchard. Therefore, when planting an intensive orchard,
it is crucial not to purchase any materials or technology from unknown suppliers. Saving on plant
protection products can also lead to low quality or a complete loss of the crop. A low-quality
apple costs, on average, 10-20 times less than a quality one.
7.) A relaxed approach to following technology, such as failure to meet deadlines or perform the
scope of work, substitution of concepts, and frequent attempts to replace necessary specific
chemicals with various generics, can distort precision planning and the structure of work. Cutting
corners can result in subpar results, such as achieving only 7 tons of apples instead of the 35-40
tons that should be produced by the 4th year of an intensive orchard.
8.) Many investors do not understand that it is physically impossible to quickly harvest and sell
apples from a large orchard without proper storage. Costs for apple storage and processing per
hectare can significantly exceed investments in seedlings, irrigation, support, netting, and even
equipment. Fruit storage is not a separate business, but an integral part of the fruit and
vegetable growing business. Constructing a storage facility at the same time as planting an
orchard is not required, as the need for storage will arise only after a couple of years.
9.) Investors often design their own storage solutions to save money, but this is an ineffective
solution. It is better to use ready-made, long-term solutions that have been precisely thought
out and tested by tens and hundreds of thousands of other investors.
10.) Investing in processing apples instead of focusing on reducing poor quality production is usually
unnecessary. Such enterprises have minimal direct correlation to the orchard and are only
profitable if done correctly. For example, to make processing profitable, it is necessary to
purchase up to 20 other types of fruits and vegetables for processing, develop many recipes,
invest in marketing and distribution, and correctly assess the cost of raw materials. Therefore, it
is advisable to reduce any waste in the orchard. The percentage of non-commercial apples at the
best farms does not exceed 5%, so it is more profitable to dispose of those apples or sell them to
professional processors than to spend hundreds of thousands of dollars trying to increase profits
from waste.
Mistakes are inevitable in any venture, but problems usually disappear over time. Don't despair if you
have made mistakes; take corrective actions. With the right goals and technologies in place, any farm can
achieve success. However, relying solely on learning from mistakes may take too long to achieve success.