Commercial Production of Pickling &
Slicing Cucumbers in North Carolina

Marketing

Introduction

Pickling cucumbers. Cucumber production and sales can be an important source of income in an agricultural enterprise, especially for growers in the southeastern United States. Pickling cucumbers provide approximately $134 million in farm revenue to North Carolina growers. North Carolina and Michigan are the two largest suppliers of pickling cucumbers in the United States. U.S. pickle consumption has decreased slightly from 5 pounds per person in 1990 to 4.8 pounds per person in 1995.

Slicing cucumbers. Led by Florida and Georgia growers, the southeastern U.S. states provide nearly two-thirds of U.S.-grown fresh-market cucumbers during the late spring, summer, and early fall. Other important suppliers of slicing cucumbers include California, Texas, and Michigan while Mexican and Honduran growers also ship late fall, winter, and early spring cucumbers to U.S. cities. USDA estimated that the 1995 farm value for fresh cucumbers exceeded $164 million in farm revenue to growers. North Carolina ranks third in domestic planted acreage and tenth in production of fresh cucumbers (Food Institute and Research Center 1996).

Favorable spring and fall temperatures in North Carolina provide favorable growing conditions and market window opportunities for growers. Each year, North Carolina growers plant around 6,000 acres of fresh-market cucumbers (spring and fall). During the 1990s, growers have benefitted from increasing U.S. fresh cucumber consumption, with per capita consumption expanding 20 percent to 5.6 pounds per person by 1995.

Marketing Options for Pickling Cucumbers

Marketing options are limited for most pickling cucumber growers. Oftentimes, pickle packers and processors contract directly with growers. Contract terms usually dictate many production and cultural practices to be followed. At harvest time, the pickling cucumber crop is delivered by the grower to a local buying station where the crop is graded, sized, and evaluated for quality and condition. Contracts often include terms that indicate how the price paid to growers will be determined at the time of delivery and how crop-quality discounts and premiums will be paid to growers.

In recent years, an increased proportion of pickling cucumber acreage has been sold directly to retail grocery stores who offer "fresh-market pickling cucumbers" for sale in their produce departments to customers who wish to make their own pickles or simply prefer the taste of unbrined pickles. Table 14 offers a worksheet detailing pickling cucumber revenue and operating expenditures as an example for developing a marketing plan.

Table 14. Pickling Cucumbers: Estimated Revenue, Operating Expenses, Annual Ownership Expenses, and Net Revenue Per Acre

Operating Inputs	Units	Price	Quantity	Value	Your Value
Cucumber Seed	1,000 Seed	$1.44	32.0	$46.08	__________
Contract Harvest	Bushel	.90	250.0	225.00	__________
Bee Hive Rental	Each	35.00	1.0	35.00	__________
Preemergence Herbicide	Acre	14.13	1.0	14.13	__________
Postemergence Herbicide	Acre	24.50	1.0	24.50	__________
Contact Insecticide a	Acre	5.81	1.0	5.81	__________
Contact Insecticide a	Acre	8.63	1.0	8.63	__________
Contact Insecticide a	Acre	7.38	1.0	7.38	__________
Fungicide	Acre	13.75	1.0	13.75	__________
Nematicide	Acre	55.56	1.0	55.56	__________
10-10-10, dry bulk	CWT b	7.30	8.0	58.40	__________
34-0-0	CWT b	11.00	2.0	22.00	__________
Annual Operating Capital	Dollars	0.09	45.3	4.08	__________
Machinery Labor	Hours	7.50	5.7	43.19	__________
Other Labor	Hours	7.50	5.0	37.50	__________
Machinery Fuel, Lube, Repairs	Dollars			48.04	__________
Total Operating Costs				$649.05
Fixed Costs			Amount	Value	Your Value
Machinery
Interest at 10.0%			$273.98	$27.40	__________
Depreciation, Taxes, Insurance				32.02	__________
Equipment
Interest at 10%			180.00	18.00	__________
Depreciation, Taxes, Insurance				123.24	__________
Total Fixed Costs				$200.66	__________
Production	Units	Price	Quantity	Value	Your Value
Cucumbers, Pickling	Bushel	$3.75	250 c	$937.50	__________
Total Receipts				$937.50	__________
Returns Above Total Operating Cost				$288.45
Returns Above All Specified Costs				$87.79

Note: Assumes fruit grade distribution of 15% No. 1s, 40% No. 2s, 35% No. 3s, 10% oversize (No. 4s) to obtain weighted price. Fall production; 6-10 fungicide and insecticide sprays are necessary. Bulk bins prorated over 3 years.
^a Application number and prices vary with season and insecticide type used.
^b CWT=hundredweight
^c Average yield for North Carolina.
Prepared by E. Estes, Extension Economist, and J. Schultheis, Extension Horticulturist, January 1998.

Marketing Options for Slicing Cucumbers

Slicer producers can sell directly to consumers (farmers markets or roadside stands), directly to retail grocery stores, or to wholesalers. The direct marketing approach often represents the highest price available to local growers. However, direct selling to consumers is often limited because of large distances between cities and the farm, the limited volume that most markets can handle, and the amount of time and labor associated with selling direct. One of the biggest challenges facing small- to medium-size growers is trying to sell fresh cucumbers to chain stores and wholesalers. Wholesale standards for size, maturity, color, shape, and pack uniformity are high and exact. Many growers have difficulty satisfying the quality considerations without culling substantial portions of their crop. In addition, wholesale prices received for cucumbers can be favorable one day but within hours or days can fall below cost of production levels. Because of buyer volume and quality considerations, selected local growers also have the option of selling cucumbers to local shipper-packers. Shippers consolidate quantities provided by several growers, offer grading and packing services, and arrange market transport, pre-cooling, and other services needed by buyers.

How can a grower locate wholesale buyers, shippers, or both in an area? Perhaps the best way is by word of mouth. Most wholesalers and packers have been in business for a number of years and are well-known by other growers, North Carolina Department of Agriculture & Consumer Services marketing specialists, and your county Extension agents. Ask others in the industry for recommendations. The Red Book (Vance Publishing, Shawnee Mission, Kansas) and the Blue Book (Produce Reporter Company, Wheaton, Illinois) contain names, phone numbers, and financial information of buyers, shippers, brokers, and first-handlers as well as other critical marketing information such as instructions on filing a PACA (Perishable Agricultural Commodity Act) claim.

Keys to Successful Marketing of
Pickling and Slicing Cucumbers

Unfortunately, there is not a single method or set of practices that will ensure success in marketing cucumbers. What may be successful for one individual grower may fail for another grower. Growers need to examine a variety of approaches, develop a marketing plan (Table 15), and collect as much marketing information as they can. Pickling and slicing cucumber production is a profitable venture for a number of North Carolina farmers, but it will not be successful and profitable for all who plant a crop. It is important to recognize that cucumber production can be profitable only if growers (1) carefully investigate changes in consumer tastes, buying habits, and preferences, such as a consumer's desire to purchase pickling cucumbers for fresh consumption; (2) identify market window opportunities when supplies are less plentiful but demand is sufficient to attract buyer interest and a favorable price; and (3) always try to produce and pack the highest quality cucumbers possible.

Table 15. Slicing Cucumbers: Estimated Revenue, Operating Expenses, Annual Ownership Expenses, and Net Revenue Per Acre

Operating Inputs	Units	Price	Quantity	Value	Your Value
Cucumber Seed	1,000 Seed	$2.81	24.0	$67.5	__________
Custom Harvest/pack	Bushel	2.10	220.0	462.00	__________
Bee Hive Rental	Each	35.00	1.0	35.00	__________
1.1 Bu Shipping Carton	Each	1.00	220.0	220.00	__________
Postemergence Herbicide	Acre	14.13	1.0	14.13	__________
Postemergence Herbicide	Acre	24.50	1.0	24.50	__________
Contact Insecticide a	Acre	5.81	1.0	5.81	__________
Contact Insecticide a	Acre	8.63	1.0	8.63	__________
Contact Insecticide a	Acre	7.38	1.0	7.38	__________
Fungicide	Acre	13.75	1.0	13.75	__________
Nematicide	Acre	55.56	1.0	55.56	__________
10-10-10, dry bulk	CWT b	7.30	8.0	58.40	__________
34-0-0	CWT b	11.00	2.0	22.00	__________
Annual Operating Capital	Dollars	0.09	48.8	4.40	__________
Machinery Labor	Hours	7.50	5.7	43.19	__________
Machinery Fuel, Lube, Repairs	Dollars			48.04	__________
Total Operating Costs				$1,090.28
Fixed Costs			Amount	Value	Your Value
Machinery
Interest at 10.0%			$273.98	$27.40	__________
Depreciation, Taxes, Insurance				32.02	__________
Equipment
Interest at 10%			135.00	13.50	__________
Depreciation, Taxes, Insurance				92.43	__________
Total Fixed Costs				$165.35	__________
Production	Units	Price	Quantity	Value	Your Value
Cucumbers, Pickling	Bushel	$7.25	220 c	$1,595.00	__________
Total Receipts				$1,595.00	__________
Returns Above Total Operating Cost				$504.72
Returns Above All Specified Costs				$339.37

Note: Blend price for all grades harvested.
Fall production; 6-10 fungicide and insecticide sprays are necessary. Includes container assembly; bulk bins prorated 3 years.
^a Application number and prices vary with season and insecticide type used.
^b CWT=hundredweight
^c Average yield for North Carolina.
Prepared by E. Estes, Extension Economist and J. Schultheis, Extension Horticulturist, January 1996.

Developing a Marketing Plan for
Fresh-market Sales (Pickling and Slicing)

While development of a marketing plan cannot ensure marketing success, it can reduce the chances for failure. The first phase in developing a plan is collecting information. Marketing information on cucumbers is not abundant, but it is especially valuable when it (1) is timely and relevant to a particular situation, (2) is used to help make a decision, and (3) provides answers to questions. General knowledge that cucumber production or consumption is increasing may not be particularly relevant marketing information unless it is accompanied by more specific information such as "Which summer week are slicer supplies most abundant? Least abundant?" Information should be supplemented by personal visits with buyers, supermarkets, and other growers to evaluate competition and to learn what quality is needed to satisfy buyers.

Another inexpensive but effective technique is using market window analysis to examine marketing opportunities. Market window analysis involves collecting historic market price and cost data for specific locations over a defined time period (often weekly). From that information, a grower can observe regular trends in supplies and prices. This procedure helps identify periods when niche market opportunities exist. Follow-up conversations with brokers, buyers, and other farmers could support or refute the existence of a market window opportunity.

The bottom-line measure of conducting effective marketing analysis is profit. Over time, farm profits will improve with careful attention to the needs of consumers and anticipation of products and services that buyers desire. It is important to recognize that the market will not consistently provide a profit for whatever crop is planted. However, market planning and analysis will provide a grower with a reasonable expectation of a crop's market potential and the extent of profits offered by that crop. Because cucumber production is a highly competitive enterprise, prices and market contacts can change rapidly. Marketing plans must be developed, evaluated, and changed every year. Only by careful attention to all marketing details can long term profits be achieved.