Buy Systems And Operations Management

Buy Systems And Operations Management

Part 010- Group Presentation & Case Study

Blackberry Hill Farm

“Six years ago I had never heard of agri-tourism. As far as I was concerned, I had inherited the farm and I would be a farmer all my life.”(Jim Walker, Blackberry Hill Farm)

The ‘agri-tourism’ that Jim was referring to is ‘a commercial enterprise at a working farm, or other agricultural centre, conducted for the enjoyment of visitors that generates supplemental income for the owner’. “Farming has become a tough business,” says Jim. “Low world prices, a reduction in subsidies, and increasingly uncertain weather patterns have made it a far more risky business than when I first inherited the farm. Yet, because of our move into the tourist trade we are flourishing. Also… I’ve never had so much fun in my life”. But, Jim warns, agri-tourism isn’t for everyone. “You have to think carefully. Do you really want to do it? What kind of lifestyle do you want? How open-minded are you to new ideas? How business-minded are you? Are you willing to put a lot of effort into marketing your business? Above all, do you like working with people? If you’d rather be around cows than people, it isn’t the business for you.”

History

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Blackberry Hill Farm was a 200-hectare mixed farm in the south of England when Jim and Mandy Walker inherited it fifteen years ago. It was primarily a cereal-growing operation with a small dairy herd, some fruit and vegetable growing and mixed woodland that was protected by local preservation laws. Six years ago it had become evident to Jim and Mandy that they might have to rethink how the farm was being managed. “We first started a pick-your-own (PYO) operation because our farm is close to several large centres of population. Also the quantities of fruit and vegetables that we were producing were not large enough to interest the commercial buyers. Entering the PYO market was a reasonable success and in spite of making some early mistakes, it turned our fruit and vegetable growing operation from making a small loss to making a small profit. Most importantly, it gave us some experience of how to deal with customers face-to-face and of how to cope with unpredictable demand. The biggest variable in PYO sales is weather. Most business occurs at the weekends between late spring and early autumn. If rain keeps customers away during part of those weekends, nearly all sales have to occur in just a few days.”

Within a year of opening up the PYO operation, Jim and Mandy had decided to reduce the area devoted to cereals and increase their fruit and vegetable growing capability. At the same time they organised a petting zoo that allowed children to mix with, feed and touch various animals.

“We already had our own cattle and poultry but we extended the area and brought in pigs and goats. Later we also introduced some rabbits, ponies and donkeys, and even a small bee-keeping operation.” At the same time, the farm started building up its collection of ‘farm heritage’ exhibits. These were static displays of old farm implements and ‘recreations’ of farming processes together with information displays. This had always been a personal interest of Jim’s and it allowed him to convert two existing farm outbuildings to create a ‘Museum of Farming Heritage’.

The year after, they introduced tractor rides for visitors around the whole farm and extended the petting zoo and farming tradition exhibits further. But the most significant investment was in the ‘Preserving Kitchen’. “We had been looking for some way of using the surplus fruits and vegetable that we occasionally accumulated and also for some kind of products that we could sell in a farm shop. We started the Preserving Kitchen to make jams and fruit, vegetables and sauces preserved in jars. The venture was an immediate success. We started making just 50 kilograms of preserves a week; within three months that had grown 300 kilograms a week and we are now producing around 1,000 kilogrammes a week, all under the ‘Blackberry Hill Farm’ label.” The following year, the preserving kitchen was extended and a viewing area added. “It was a great attraction from the beginning,” says Mandy, “We employed ladies from the local village to make the preserves. They are all extrovert characters, so when we asked them to dress up in traditional ‘farmers’ wives’ type clothing they were happy to do it. The visitors love it, especially the good-natured repartee with our ladies. The ladies also enjoy giving informal history lessons when we get school parties visiting us.”

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Within the last two years, the farm had further extended its preserving kitchen, farm shop, exhibits and petting zoo. It had also introduced a small adventure playground for the children, a café serving drinks and its own produce, a picnic area and a small bakery. The bakery was also open to be viewed by customers and staffed by bakers in traditional dress. “It’s a nice little visitor attraction,” says Mandy, “and it gives us another opportunity to squeeze more value out of our own products.” Table 11.3 (a) shows last year’s visitor numbers; table 11.3 (b) shows the farm’s opening times.

Table 11.3 (a) Number of visitors last year

Month

Total visitors

January

1,006

February

971

March

2,874

April

6,622

May

8,905

June

12,304

July

14,484

August

15,023

September

12,938

October

6,687

November

2,505

December

3,777

Total

88,096

Average

7,341.33

Table 11.3 (b) Farm opening times*

January–Mid-March-Wednesday–Sunday10.00–16.00

Mid-March–May-Tuesday–Sunday9.00–18.00

May–September-All week8.30–19.00

October–November-Tuesday–Sunday10.00–16.00

December-Tuesday–Sunday9.00–18.00

*Special Evening events Easter, summer weekends and Christmas