1. eFarmer.us Baby Corn Production, Market, and Expected Return December 2008 copyright eStudy.us 2008 michael.roberson@eStudy.us

2. eFarmer.us Overview Baby corn is a popular Asian vegetable It is the immature ear of fully grown standard cultivars of either sweet corn or field corn Most baby corn in the U.S. has been processed and sold from Asia, mainly Thailand copyright eStudy.us 2008 michael.roberson@eStudy.us

3. eFarmer.us Market Opportunities Baby corn provides a great opportunity in the U.S. because very little is available fresh or organically grown, and it is believed to have superior taste and texture when fresh Direct Marketing – Farm Stands Wholesale Market – Regional groceries and restaurants copyright eStudy.us 2008 michael.roberson@eStudy.us

4. eFarmer.us Market Opportunities Baby corn is usually sold in cartons containing six 1.5kg tins. The price for this in the past has fluctuated usually between $15 and $17 per carton. copyright eStudy.us 2008 michael.roberson@eStudy.us

5. eFarmer.us Production Characteristics Corn will do well in all areas of Kentucky, but well-drained soils are key for results. The earliest plantings are from April 20 to May 1. Potential tillage/cropping systems include: no till, low till, strip cropping, mulch till, living cover crop, and intercropping. copyright eStudy.us 2008 michael.roberson@eStudy.us

6. eFarmer.us Production Characteristics Can be a primary or secondary crop. If primary, very close plant spacing is used and cross pollination is not a problem. Yields are higher in multi-eared starchy types For primary growers, plant populations between 34000-44000 plants per acre are used. Row spacings are 24-36 inches apart. This produces yields of about 8000-10000 lbs unhusked ears (800-1000 lbs husked ears) per acre. copyright eStudy.us 2008 michael.roberson@eStudy.us

7. eFarmer.us Production Characteristics Corn earworm is destructive in attacking sweet corn, but should be less of a problem because it attacks after silking. Other concerns are European corn borers, armyworms, Japanese beetles, flea beetles, Stewart’s wilt, leaf blights, rust, and viruses. Many of these problems can be avoided as a primary crop since it is harvested so early. copyright eStudy.us 2008 michael.roberson@eStudy.us

8. eFarmer.us Harvest and Storage Baby corn is hand harvested 1-2 days after silk emergence Ideal size is 2-4 inches long and 1/3-2/3 inches in diameter Frequent harvests of every 2-3 days are required (about 12-18 successive pickings) The harvest period lasts 2-4 weeks Sold in the husk to maintain moisture. Must be properly cooled after harvest. copyright eStudy.us 2008 michael.roberson@eStudy.us

9. eFarmer.us Production Opportunities Capital Requirements (Land, Building, Equipment) Land preparation and seed are initial investments Installation of an irrigation system would be additional start-up cost Labor Requirements (Owner, Manager, Laborers) Should be similar to sweet corn production (20 hours per acre) Harvest & packing will be considerably more labor intensive than the 55-65 hours for sweet corn copyright eStudy.us 2008 michael.roberson@eStudy.us

10. eFarmer.us Revenue & Cost Revenue sources – Only source of revenue as a primary or secondary crop. No secondary sources of revenue from baby corn. Product Cost – Attached file shows the cost of product as well as the expected return on an acre producing baby corn. copyright eStudy.us 2008 michael.roberson@eStudy.us

11. eFarmer.us Expected Return Report 50 acres Production80,000 Revenue$108,000 Market Cost$7,803 Labor Cost excluding Principle $51,812 Other Variable$5,628 Capital Cost excluding Interest $535 Production Return$42,222 copyright eStudy.us 2008 michael.roberson@eStudy.us

12. eFarmer.us Risk Market Risk – Less risk than other products. The U.S. purchased 14,310 megatons from Thailand in 1993. Fresh product is better, so US will import less. Production Risk – Weather is always a risk, but the climate in Kentucky is very suitable for baby corn. copyright eStudy.us 2008 michael.roberson@eStudy.us

13. eFarmer.us Risk continued Financial Risk (this would include discussion about banks I interest in lending to the producer) – Average Cash Flow – Requirement from initial year to average product year) – Time Value Model (NPV, etc…) copyright eStudy.us 2008 michael.roberson@eStudy.us

14. eFarmer.us Basic Summary Market Opportunity – Highly used crop, reportedly better fresh, not much domestic competition. Advantages of Kentucky – Climate – Process is very similar to corn so easily adaptable for land, building, and processing. – Labor requirements are similar to corn again, except in harvesting and packaging baby corn requires more labor. – There is risk with baby corn, but compared to other crops it is not very risky. copyright eStudy.us 2008 michael.roberson@eStudy.us

15. eFarmer.us Tips and Advice When selecting the variety of corn to use, select based on ear quality rather than yield. Small kernel size, straight row kernel alignment, and tapered tips are preferred. Also consider the ease of removing from the stalk. Plants about 6 feet in height are best for hand harvesting. copyright eStudy.us 2008 michael.roberson@eStudy.us

16. eFarmer.us Resources http://www.iit.edu/~tulsanu/gaurav.htm l http://www.iit.edu/~tulsanu/gaurav.htm l http://hort-devel- nwrec.hort.oregonstate.edu/ http://hort-devel- nwrec.hort.oregonstate.edu/ http://cru.cahe.wsu.edu/CEPublications /pnw0532/pnw0532.pdf http://cru.cahe.wsu.edu/CEPublications /pnw0532/pnw0532.pdf http://www.uky.edu/Ag/NewCrops/intr osheets/babycorn.pdf http://www.uky.edu/Ag/NewCrops/intr osheets/babycorn.pdf copyright eStudy.us 2008 michael.roberson@eStudy.us