A Practical Guide to Establishing and Operating...

Association for Promoting Inclusion

A Practical Guide to Establishing and Operating Greenhouses for People with Disabilities

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A Practical Guide

to Establishing and Operating Greenhouses

for People with Disabilities

Prepared by the Association for Promoting Inclusion (API), Croatia With the Support of the Open Society Foundations Mental Health Initiative and the Contribution of the Center for Inclusion and Social Services (CIS) Bjelovar, Croatia

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Introduction Purpose of the Guide This guide has been prepared to help service providers for people with disabilities develop agricultural activities in greenhouses1. It is based on the experiences of the Center for Inclusion and Social Services (CIS) in Bjelovar and Grubisno Polje, Croatia in building and operating two greenhouses and cultivating one open field. Ensuring a good life for people with disabilities is a priority for every quality community-based service provider. Having the opportunity to exercise the right to work is among the most pressing challenges facing people with disabilities2. This guide sets out how cultivating crops in greenhouses provides meaningful work for people, while also fostering their social and communications skills. The greenhouses that are the subject of this guide were established to provide meaningful work activities for people with intellectual disabilities. Work activities are aimed at improving their welfare, increasing their self-esteem, and teaching them valuable skills that can potentially lead to other jobs in future. With this in mind, the guide is designed so this objective supersedes a profit-making objective. If profitability and efficiency were the main objectives, the greenhouse operations would need to be enlarged and mechanized, making the involvement of people with disabilities peripheral. While community-based service providers need to consider, plan for and monitor all costs and revenue related to the greenhouses, and they should strive to break-even financially, the ultimate goal of establishing the greenhouses was to include clients in all phases of agricultural production. Agricultural activities serve two economic purposes:

- To provide income to clients by selling produce to commercial wholesalers and/or retailers, and;

- To reduce the cost of food for service providers. In non-urban areas, greenhouses are a popular income generating activity for people with disabilities, their families and their service providers. This is because:

- Many clients report that they enjoy working in agriculture. Agriculture offers an opportunity to be physically active outdoors. Clients report being most enthusiastic during harvest time when they see the fruits of their efforts which leads to a sense of accomplishment, pride and increased self-esteem.

- Since clients’ families and service providers live in rural areas, they often have

experience cultivating their own crops in private gardens. This experience is very important in successfully implementing a greenhouse project.

1 While this guide is relevant to people with various disabilities, MHI’s work is focused on people with intellectual

disabilities and people with psychosocial disabilities. 2 Throughout this guide, ‘people with mental disabilities’ are referred to as ‘clients’ of community-based service

providers.




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- New salaries from employment in greenhouses and reduced expenditure for food

provides clients with disposable income.

- Rural areas are often characterized by low economic activity and high unemployment, making it difficult to obtain employment in the open labor market.

- Working in agriculture gives clients know-how and skills that are in demand in rural

areas, potentially increasing opportunities to obtain employment in other agricultural enterprises and farms.

- Given that the main economic activity in rural areas is often agriculture, there is usually an established market for selling the produce.

Case Study: Agricultural production in two greenhouses and on one open field in Bjelovar- Bilogora County The Center for Inclusion and Social Services (CIS) built two greenhouses in April 2012 in Bjelovar-Bilogora County, Croatia. Each greenhouse covers a surface area of 300m

2. CIS has also cultivated

an open plot of land of 2,280 m2. The greenhouses and land are located on the same property and

are adjacent to community homes. The Bjelovar greenhouse and land grow crops to sell to retailers. The Grubisno Polje greenhouse grows fruit and vegetables for clients’ consumption, reducing their overall food costs. Country: Croatia Locations: Bjelovar (one greenhouse and one open plot of cultivated land) and Grubisno Polje (one greenhouse), Bjelovar-Bilogora County. Ownership and Management: The Center for Inclusion and Social Services (CIS) Bjelovar (formerly the Association for Promoting Inclusion Subsidiary Bjelovar (APISB)) Main purposes: (1) To create work for clients. (2) To grow crops for either commercial purposes to increase revenue, or to save on food costs. Number of clients working: Full-time: 21; part-time: 7.




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Content of the Guide This guide provides an overview of the important decisions and practical steps in establishing and operating a greenhouse. It does not replace a business plan or provide advice about agricultural production. Such preparation and information must be obtained before beginning any project. This guide will help you learn about the concept, choose the right experts, and interpret and evaluate results. The guide has two main parts: Part 1, the Practical Guide, explains the planning and implementation. It provides recommendations and tools that one should consider when planning to build and operate a greenhouse. Part 2, the Case Study, summarizes CIS’s experience in building and operating two greenhouses. Appendix 1 contains photos and provides descriptions of the two greenhouses. It also includes a PowerPoint presentation showing the various stages of agricultural production (from preparing the ground to harvesting and packaging for delivery to customers). Appendix 2 includes blank forms that can be used to plan your greenhouse project, and record transactions and activities. Appendix 3 includes a list of resources and on-line documents on:

- How to build greenhouses to include people with disabilities, and - How to develop your business plan.




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PART 1:

PRACTICAL GUIDE




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Phase 1: Planning Your Greenhouse

1. General notes In suburban and rural areas clients and staff are likely to have experience with household gardens and/or subsistence farms. This practical experience is a significant advantage since the lack of this know-how can jeopardize the success of a greenhouse project. It is not advisable to begin an agricultural project without any previous experience. Even if your organization is in a rural area and has staff with relevant experience, it is best to begin with a larger project after successfully growing several crops on a smaller scale for at least two years. A person who acts as the project manager is essential to the success of an agricultural project. The manager will need to immerse him/herself in the overall project and be fully engaged at all times and at all levels. The project’s success or failure, while dependent on effective teamwork, is the manager’s responsibility and the manager needs to read every contract, study every memo, and ask questions. While professionals are experts in this field, many will lack the time or the capacity to engage fully.

2. Objectives of your greenhouse project The objectives include:

- Production for your own consumption (generating savings by reducing food costs) - Production for commercial sale (generating revenue from sales) - Providing clients with meaningful work activities and increasing their self-esteem - Providing clients with work experience leading to increased skills and employability.

You must clearly outline the specifics of these objectives prior to planning the project, because they will determine the size of your greenhouse and the resources required to establish it. Once the objectives are clear, you will need to prepare a business plan indicating the required resources, greenhouse capacity, number of clients working there, and expected costs, revenue and/or savings. An immediate goal is to break even financially as soon as possible. If your objective is to produce for your clients’ own consumption, the savings should be equal to, or ideally more than the total cost of operating the greenhouse, including clients’ salaries. If the savings exceed the costs, then savings will be additional money in your total budget that you can invest in upgrading the greenhouse (e.g. in better equipment and machinery), and improving your services (e.g. organizing leisure time activities or hiring staff such as job coaches). If your objective is to cultivate crops for sale on the market, then the income generated from sales should, at minimum, cover all costs arising from operating the greenhouse.

3. Preparing the business plan The business plan is the most important part of your project, because elaborating it will tell you whether you should proceed with a greenhouse project. It will also tell you what to produce, with what resources, and to whom you should sell and at what prices. It will also indicate whether the greenhouse will be financially sustainable and/or profitable. The basic structure of the business




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plan will differ according to whether your greenhouse will grow crops for clients’ own consumption or for sale on the open market. This guide provides outlines for both objectives. In preparing the business plan you should seek assistance from both an agronomist and someone who understands business. Ideally you will have someone who has experience in both.

Contact your local agricultural department at the University to see if they can recommend people to help. Such Universities may also provide you with agronomists at no cost.

Appendix 3 has a list of on-line resources to help you develop your business plan. 3.1. Contents of a business plan when greenhouse crops are for clients’ consumption: Please note that this list does not include advice on legal, accounting and taxation matters as these are country-specific. These matters will affect your business plan and it is essential to consult an accountant and a lawyer.

Choose a legal status that makes you eligible for city, county, national or EU financial assistance in the form of subsidies, grants, low-interest loans or tax breaks.

Your business plan should include:

- The number of homes/clients who will consume the products.

- An estimate of production that sets out monthly and annual numbers.

- A projection for future consumption, if there are plans to increase the number of clients in the short to mid-term (5-7 years).

- Determination of the size of the greenhouse that is based on its expected output and

clients’ consumption levels.

- A production plan adjusted to output, soil, and regional and climatic conditions.

- Annual cost savings on food purchases based on market prices.

- Required investments include:

Land purchase

Rental of earthmoving equipment

Soil preparation

Greenhouse (construction and materials)

Installation of utilities (water, electricity, gas)

Gardening machinery and tools

Construction or renovation of storage space

Miscellaneous costs

- Sources of financing:

Own funds


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Bank loans

Grants (EU, international organizations, government, local authorities)

Donations

- Annual operating costs:

Land lease (if not owned)

Seeds, seedlings, fertilizer

Utilities (electricity, water, gas)

Maintenance and spare parts

Labor (clients, assistants, professionals, consultants)

Advisory services (agricultural, accounting, legal)

Miscellaneous costs

- Evaluation of the annual cost of depreciation3:

Greenhouse

Gardening machinery, tools and other equipment

- Cost of financing and insurance:

Loan repayment

Insurance payments

Miscellaneous costs

- Estimation of annual profits (revenues minus total costs) 3.2. Contents of the business plan when produce is to be sold on the open market (in addition to the above):

- Decision regarding the type of market for which you will produce (retail or wholesale)

Retail (selling directly to consumers at a local market or from a stall adjacent to your greenhouse). You must establish: o Number of consumers (households) within a reasonable distance o Demographics of your potential customers (e.g. average income and age) o Potential demand: Is the community in your market urban (with few household

plots), suburban (with some household plots), or rural (where most households have gardens and some produce professionally)

o Purchasing trends: Does the community tend to buy their fresh produce from the local market and road stalls, or from supermarkets?

o Socioeconomic factors that might affect the market, for example high unemployment which could prevent people from buying your products

o Whether there are competitors operating in the same area o Types, quantities and prices of the products in competing markets/shops o Advertising and marketing costs (transportation of produce to customers, fees for

setting up market stall, packaging, etc.) o Estimation of the annual revenue at net market prices (i.e. without including value

added taxes)

3 Depending on the national legal framework and accounting regulations




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Wholesale (selling large quantities to businesses such as wholesalers, individual retailers, retail chains, or cooperatives). You must establish: o Demographics of potential customers o Identify potential buyers within a reasonable distance of your greenhouse such

as wholesalers, retail chains, and large vegetable processing companies. o Types, quantities and wholesale prices of similar products o Competitors producing for wholesale in the same area. Find out how many

commercial greenhouses are active in your area and whether any new ones are planned4. Establish what they sell, to whom, and at what prices.

o Advertising and marketing costs o Estimation of annual revenue at net market prices

- The production plan (output) of the greenhouse that reflects projected sales.

- The marketing, branding and sales strategies.

When selling to wholesalers or retail chains, pay close attention to contract provisions. It may be stated that if you do not deliver on time, or of the specified quality and quantity, you must pay penalties. Negotiate to delete such clauses whenever possible. Develop relationships with wholesalers/retailers and assess their commitment to corporate social responsibility. If they are committed, they might treat you as a preferred supplier, and even support you with additional funding and technical know-how.

3.3. Contents of the business plan when the greenhouse crops are for sale on the open market AND for your NGO’s own consumption: - Determine the proportion of output to be consumed internally and that to be sold on the market. - Include the business plan components outlined in sections 3.1. and 3.2.

4. Information sources In planning your project, there are several sources of information on greenhouses, such as: - Magazines about agriculture and greenhouses - Publically available statistics on agriculture - Reports from ministries, academic/research institutes, chambers of commerce and other public agencies responsible for agriculture - Reports from local development agencies - Reports by agricultural associations (associations of producers, buyers or cooperatives) - Reports by market research agencies, industry associations or consultants - Price lists from retailers, wholesalers and producers - Documentation on similar successful projects.

4 Other larger greenhouse producers in the vicinity can pose serious competition, but you can also partner with

them as a subcontractor to provide for their customers.






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- Manuals, books and research papers in libraries in agricultural (agronomy) schools and universities, public libraries and on the Internet You should also meet with public servants, researchers, academics, experts, consultants, owners, managers and other staff from the above mentioned organizations. Representatives of agricultural companies are useful sources of information as they are often eager to share their knowledge and assist new entrepreneurs.

It is highly advisable to begin talking with greenhouse suppliers early in the planning process as there are many types available. Collect quotes and discuss technical specifications and the advantages/disadvantages of different models.

5. Knowing your resources An important part of your planning phase is to know exactly what resources you have at your disposal. Keeping in mind your organization’s capacity, you will need to decide whether you can build and manage a greenhouse business. You need to make an inventory of your human resources, capacity and technical knowhow, your short- and long-term financial resources, and the real property you have at your disposal. You are likely to find that you lack resources and capacity. This is normal, but you will need to strengthen these using internally or externally available sources of know-how, man-power and finance before proceeding further with the project. Here is a summary of resources and capacity you will need to review: - Staff: It is strongly recommended that you have a full time agronomist on your team. If your greenhouse project is small and it is not possible to employ an agronomist full-time, it is essential to be in regular contact with an agronomist for consultation, or that the project manager has experience in agriculture. This experience is essential to coping with daily challenges of agricultural production. Ideally, the agronomist will work in the greenhouse, assisting and supporting clients, and coordinating activities. An accountant (full-time or part-time) and job coaches will also be necessary. - Land: Ideally, your greenhouse should be situated on or very close to community homes so that the greenhouse is always supervised. Clients and staff often need to start work early in the morning or finish late in the evening. Proximity to housing simplifies logistics and can reduce or avoid the organizational and financial challenges of transporting clients to and from the greenhouse. Your NGO should either own, or have a long-term lease, on the land. Finance: There are two sources of financing: loans and grants. Loans are an acceptable source of financing, but you must be able to repay the amount borrowed plus interest. Due to your status as a non-profit organization, you may have access to zero- or low-interest loans from commercial, micro-credit or development banks. The best option is obtaining a grant, as you will not need to repay it. Grants may be available from ministries, agricultural, regional and/or rural development agencies, national and international donors/foundations, and/or local authorities. In any case, you will need a business plan to demonstrate your know-how and capacity to implement the project. Another advantage of grants is that often donors will promote your project and organization to demonstrate





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financially sustainable solutions to reducing poverty. CIS, for instance, has been awarded a project from the EU’s IPA funds for its greenhouses. This has helped CIS acquire a public image as an important and reliable partner.

6. Deciding what to grow and how to grow it The single most important criteria for deciding what to grow for sale is the market demand for crops. If there is no demand for a crop, do not grow it. Your agronomist will help you decide what to grow as he/she will tell you what crops are best suited to the local climatic conditions and soils. Speaking with local farmers will also give you some knowledge of what crops work best in your area.

Do not guess what types of crops might be in demand. The best way to find out is to do market research and find out what buyers want. Survey local markets and businesses, speak with neighbors, friends and local businesses, (shops and supermarkets, processing factories, etc.), and find out what they consume, sell and require.

Next, perform a soil analysis in the proposed location of your greenhouse. It is cheap and will help you and your agronomist plan what type of crops you can grow. It will also indicate whether you need to add nutrients, or if the ground has been contaminated due to pollutants or previous use of chemical fertilizers, pesticides, herbicides and fungicides.

7. Determining the size of your greenhouse The size of your greenhouse will depend on the output you aim to produce. This in turn is based on one or more of the following: - An estimate of the potential size of the market - Expressed interest by wholesalers and other buyers - Consumption needs of your organization - Available resources and capacity (human, financial, logistical) Once you know what types of crops you want to produce, you can determine the surface area of your greenhouse. The agronomist will calculate this based on output volume, soil fertility, surface area, and zoning regulations.

Try to establish contacts and formalize contracts with potential customers as early as possible, even before the construction of the greenhouse has been completed. This will guarantee a market for your produce and avoid having a surplus of fresh produce.

Evaluate alternative approaches with respect to the size of your greenhouse and conduct a simple cost-benefit analysis to help you decide between:

- a lower risk, pilot approach with a smaller greenhouse (approximately 300 m2 ) that might only meet a fraction of your demand forecast; or

- a larger greenhouse with capacity to meet demand forecast.






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Figure 1 below illustrates two models. Note the difference between single and multiple crop production, a decision that will depend on your sales and consumption plans.




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8. Choosing the location for your greenhouse Choosing a location for the greenhouse depends on several factors such as the proximity to your housing services, and where and how you choose to use/sell your produce. If you plan to sell the crops yourself, you can do so either at the local market or from a stall on the side of the road near the greenhouse. For the latter, your greenhouse should be located near a road with moderate to high traffic. You should survey how many cars and pedestrians use the road throughout the year. If your land is not located near a busy road and if you cannot acquire such a plot, you will need to look at other options to sell your produce. If you plan to sell your produce at a local market, you will need to find out how many potential customers live within a reasonable distance (10-15 minutes by car). This will indicate if there is enough demand for the quantities you need to sell to generate enough income and profit. You should also ensure that your greenhouse is near the market. Transporting fresh produce can damage it, leading to losses, especially in hot summer months. If you plan to sell wholesale, you should not be located too far from your customers or transportation costs (and the risk of spoilage) will be high. For selling wholesale, distances and quantities may be larger, but the number of trips fewer. You will need access to a larger vehicle, or the wholesaler will need to provide one. If you are looking at multiple plots of land for the greenhouse, you should obtain maps from your local land registry office. These will show you the plots’ dimensions, surface area, and exact location in relation to nearby plots, markets and roads. If you lack the above options and only have a plot of land adjacent to your community home, ensure that your sales strategy is adjusted accordingly. Below are suggestions/tips to help you choose the most suitable location for your greenhouse:

Choosing an inappropriate location or developing a sales strategy that is not realistic for your location can lead to failure of your business. If you are in an area with an insufficient

number of customers, the project will fail.

Generally speaking, consider only plots that have direct road access. If there is no direct road access, you will need written consent from neighbors to use their land.

In selecting land to lease or purchase, speak with neighbors and learn as much as you can about the region and neighboring businesses, do not rely on a potential seller who

may choose to not disclose negative attributes. Assess whether there are any threats from natural or man-made sources that could damage the greenhouse or crops. Man-made threats could include nearby factories or water treatment facilities. Natural threats include floods, fire, draughts, strong winds, snow/hail. If you can, visit the plot during different seasons. During summer, a plot may seem perfectly suitable for cultivation, but in spring or after a rainy period, you might find that the site is under water, especially if it is located in a valley.

Ask what the land was used for earlier and whether previous agricultural activities used chemical fertilizers or pesticides (this is important if you want to grow organic crops). If

you want to build a ground well, you will need to verify whether there is enough underground water, and whether you can access electricity nearby.








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It is very important that your greenhouse is located close to your NGO’s employees, housing services or other facilities. This is because someone must always be near the

greenhouse to prevent theft of produce, tools and equipment, or other damage. For instance, if your greenhouse has automatic walls to regulate indoor temperature, then negligence, a faulty thermostat, or a broken motor can cause substantial damage to crops. When the walls are elevated and a storm passes, strong wind can demolish your greenhouse.

The orientation of your greenhouse vis a vis the sun is of great importance. If the long side of the greenhouse faces the south, south-east or south-west your crops will be exposed to

more sun. If it faces east or west, there will be less sun and your crops will grow more slowly..

A bit of shade from trees is not a problem and can be a benefit during the sunniest/ warmest months, but shade should be minimal. The growth of surrounding trees should

be monitored and branches pruned to avoid possible damage to the greenhouse during storms.

Do not build your greenhouse on a slope or hillside. If your land has a slight slope, lots of holes and/or is very bumpy, you will need to level the ground. This is important to avoid

soil erosion and to ensure an equal distribution of water throughout.

Wind poses serious threats to the greenhouse and can cause considerable damage. Locate the greenhouse so that it has protection from wind. Hail can also cause

considerable damage to greenhouses. If hail is common where you are, get insurance with full coverage for damage from natural causes, and place anti-hail netting over the greenhouse. These are additional expenses that must be included in the financial plan.

Do not start the project without having acquired the legal entitlement to your land and the permission to use it for agricultural or other income-generating activities. Always consult

an official or registered real-estate lawyer for documentation regarding purchase or lease of land, and for any other legal or administrative procedures. In spite of additional costs, these professional services will help you avoid problems in future. You will also need to find out what types of permits are required. Check if neighbors need to approve the greenhouse construction and if there are any other requirements/restrictions regarding the greenhouse's dimensions (surface, height, ratio of the surface of the greenhouse to available land, etc.) and location (minimum distance from housing, neighbors and other structures, etc.). In communities where legislation changes frequently, you should request written approval to build the greenhouse from the responsible authorities, even if no permit is required at the time of construction.

If you do not own the land, you should consider buying or leasing it. You can buy or lease land from private owners, companies, the government or local authorities. Government

and local authorities might donate land without payment if they support your NGO and recognize that the project positively impacts the community. Talk to as many authorities and government agencies as possible when looking for plots to purchase. Ensure that the title to the land is clear, and consult your lawyer before signing documents or making final decisions.

Have an overview of large public works and infrastructure development projects (motorways, railroads, etc.) in your area and avoid building the greenhouse on land that

may be expropriated later. Compensation for such land is inadequate and generally covers only fixed assets (housing, sheds, etc.) and the cost of the land, but excludes financial loss from business activities.












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Phase 2: Building Your Greenhouse

1. Preparing the soil Once you have decided where to build the greenhouse and determined its size, you will need to prepare the ground surface. First, you need to remove all scrub, bushes and trees. Then you need to level the ground so the surface is even and no bumps or holes remain. Next, you need to take exact measurements of the site and mark the precise position of the greenhouse with spikes. Now you can start plowing the earth and simultaneously adding fertilizers. You can use natural dried manure as a fertilizer. Alternatively, you can buy organic fertilizers such as dehydrated pellets made from organic cattle or chicken manure. These are more convenient and cleaner to use, transport and disperse.

2. Purchasing the greenhouse After having determined the dimensions of the plot and greenhouse (based on its anticipated capacity and output) with your agronomist, you will need to collect price quotes from greenhouse suppliers. You will also need to clarify what materials should be used and what equipment will be required based on what you will plant. This section focuses on using plastic sheeting which is cheaper, safer and easier to install than glass.

Collect information on greenhouses from other greenhouse farmers. Avoid small scale producers who may see you as competition. Other sources for information on greenhouses are the agricultural chamber and agricultural agencies at national and/or local levels. Agricultural consultants are also an excellent source of information

because they do not have conflict of interest in providing you advice, but you will need to pay for their services.. When buying a greenhouse, there are three major steps: (1) Initial discussions with greenhouse suppliers, (2) evaluating the quotations, and (3) negotiating and finalizing a contract. The next sections offer advice on each of these. 2.1. Initial discussions You should obtain quotes from five or more suppliers. The more you speak with, the more you will learn, and the less likely you are to make mistakes. Consider the following tips during the initial discussions:

Speak with suppliers of greenhouses as early on as you can. Visit them in person for insight into their business, inventory, knowledge and experience. A reputable retail

supplier will be tidy, professional, and busy with employees working on new orders. The more you communicate with suppliers, the better you will get to know them. Pay close attention to what suppliers actually do, as opposed what they say they do. Exclude from your shortlist any who do not return phone calls or messages. .







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Generally, a large supplier with high sales volume is more likely to provide competitive prices and even a discount if it has production capacity in between large orders. They are

also likely to provide faster and more reliable in terms of quality of construction/installation services, and follow up to complaints.

Ask all of the questions you have of suppliers and clarify any uncertain matters. Discuss the same details with each so you can compare their answers. All companies want to sell

its products and services- keep in mind that they are salespeople!

Do not tell suppliers which other companies you are collecting quotations from. Specialized industries are small communities where people know each other and may try

to collude, or falsely accuse one another of providing poor quality to win your business. It is best to say that you are looking around and collecting quotations- they may even lower their prices or give you more for your money to beat the competition.

Do not purchase features you do not need (e.g. additional windows in roofs). On the other hand, do not try to save money on items, features and equipment that your

agronomist considers important (e.g. climate control system with automated elevation of side panels to regulate temperatures). 2.2. Evaluating quotations When studying quotations, pay close attention to differences in materials, dimensions, quantities, unit prices, discounts, warranty details and time frames (which components of the greenhouse are covered for how long), delivery dates and conditions, and the fine print.

It is best to select a supplier who can construct the greenhouse for you as their staff are more likely than other contractors to have experience with that type of greenhouse.

Warranties are also easier to enforce when the company has installed its own greenhouse. Hence, ensure that suppliers include the construction costs in the quotation.

In reviewing quotations, you will notice that they will differ in content, structure, information, details provided, and pricing information, making it difficult to make

comparisons. Consult your agronomist, call the suppliers for clarification, and request more documentation, blueprints and pictures of the various components. Verify responses with other greenhouse suppliers or independent experts.

After comparing quotations, you can often dismiss the most costly. Unless they offer superior quality or special items and services that you need, the most expensive offers

will not necessarily provide you with the best quality-to-price ratio. Do not immediately go for the lowest quotation. Pay particular attention to differences in the items, equipment and services. Often, the lowest bids deliberately exclude essential components you will need to buy later. Beware if during construction a supplier suggests additional items that were not included in the quote you accepted.

Another good source of information about suppliers is speaking with their previous customers. You can learn a lot about the greenhouse, services (including construction),

reliability and communication, and how problems were resolved.













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2.3. Negotiating with the greenhouse supplier and closing the purchase After you have shortlisted the suppliers, you need to get a second quotation from each. This second round should incorporate corrections/amendments that have been agreed. Try to get a discount! Now is the time to discuss the quotes with your agronomist and make the decision. Remember that the buyer has the upper hand, especially if s/he has cash and can pay upfront. A few suggestions on the negotiation process:

Ensure that you are reviewing the most recent quote to make the decision. With all the back and forth with suppliers and repeatedly amended quotes, you may have several from

the same company. Look at the most recent line by line and ensure that no item has been omitted, and that all details are the same.

Once you have made your choice, call the winner without letting them know that you have decided, and try to negotiate an (additional) discount, saying that you are considering

between them and others. If you have money to pay for it all upfront, but the supplier offers payment in installments, you can ask for an additional discount if you pay your installments prior to the deadlines. It is better to refrain from paying the full price at the outset, even for a larger discount as if things go wrong during delivery and/or installation, the supplier will feel less inclined to rectify the problem. If the supplier will not offer a discount, try to negotiate for extras to be included in the contract for the same price – this might include a larger and/or better quality greenhouse, additional equipment, a longer warranty, or additional construction/installation services. Also inform suppliers who were not selected.

Agree on an implementation plan and timeline. It is important that the contractor delivers and starts work on the greenhouse as soon as possible to avoid them taking on other

work and spreading themselves too thinly. Always confirm details in writing – even if you last spoke by phone, summarize the agreement in an email.

Once you inform the winning supplier, they will send you their purchase contract. Check it carefully to ensure that everything agreed is accurate. If you have little experience in

reviewing such contracts, ask a lawyer or someone with relevant experience for advice. After signing the contract, you will probably be asked to make an advance payment. This is usually a percentage of the total value of the contract. Subsequent payments will add

up to the difference between the advance payment and the total contract value.

3. Construction of the greenhouse and additional work Someone will need to be appointed to provide full-time supervision of the construction. This person must have the supplier’s contact details, final offer and related documents.

Plan for large vehicles, machinery and workers to access the construction site. If direct access is not possible, arrange with neighbors to let the construction crews use their land

to access your plot. It is imperative to agree on access to the construction site prior to signing a contract.










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In monitoring the construction, follow the implementation plan, ensuring that work is completed on schedule. If the greenhouse is being built in late winter or early spring, you

will need to plant crops immediately after it is completed as delaying can postpone cultivation and harvesting, impacting sales and revenue. This is a higher risk if you have a contract with a wholesaler to supply produce by a certain date.

Once the greenhouse is completed, you and the agronomist should carefully inspect it before signing final delivery forms. Verify that the greenhouse is built according to

specifications, and all machinery/equipment is installed and working. Insist that the company rectify any variation from the contract before making the final payment.

You might need a fence around your greenhouse to keep out animals. Animals can eat crops or contaminate them with urine, feces and diseases. If your plot is near a town or

otherwise inhabited land, rats and other vermin can cause considerable damage, and you may need to install a special fence to keep them out. Additional work may be necessary depending on location, type of greenhouse, and which crops will be grown. These additional works need to be planned when developing the business plan and deciding on what crops to grow. If possible, get the greenhouse supplier to include these works in its overall offer, or you will need to engage a separate contractor. 3.1. Additional work: Earthmoving and Drainage If your plot has significant holes or lumps, they need to be leveled. If the land is susceptible to flooding, drainage needs to be installed. When installing drainage, ensure that run-off water is not directed to neighbors’ properties. Concrete walls, pipes and culverts may be required to properly drain the land. Discuss these issues with your greenhouse supplier who should have practical solutions. 3.2. Additional work: Irrigation and water supply Drip irrigation systems are very cost-effective and save water. They are easy to install and can be rearranged when crop planting changes. Damaged parts can easily be replaced. Collecting rainwater is the cheapest way to irrigate crops. If community homes or a day center is located next to the greenhouse, rainwater can be collected from the roof and stored in large plastic barrels next to the house, or in concrete tanks dug into the ground. For a large greenhouse, you might consider constructing a large open-air concrete basin for water. Ensure that all water is filtered prior to using it for irrigation.

If you purchase second-hand plastic barrels, ensure that you clean them before use to avoid contaminating the water with chemicals. Though the barrels may seem large, water

is used quickly during dry months. It works well to install several barrels connected with hoses. The barrels should be elevated about ½ meter from the ground so the water pressure pushes water through the hose and irrigation pipes without the need for electric pumps. This way, rain water can be used for drip irrigation systems at a minimum cost. Note that underground concrete tanks and open-air basins require electric pumps.

During dry spells you can connect your irrigation system to the municipal water supply or order water to be delivered by truck. In either case, you will need to store the water in your

existing water tanks. It is best to let the water stand for a few days before using it to allow









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chemicals (such as chlorine and ammonia) to disperse naturally. Watering with municipal water straight from the tap should be avoided, except if there is serious drought.

Another source of water is from ground wells. A well provides an abundant and cheap source of water. When digging new, or deepening existing, wells, consult a specialist who

will advise on how deep a well needs to be to provide enough water. A well that is too shallow can dry out in summer when demand for water is at a peak and ground water levels are lowest. Ensure that all administrative requirements/permits are obtained prior to drilling to avoid legal disputes. You may need to buy a concession from the municipality to access groundwater. Such concessions, combined with the actual cost of drilling, can amount to significant expenses that must be foreseen in the business plan.

Relying on just one source of water is not advisable: Have at least two options at your disposal such as rain water tanks and water from the municipal grid, or a well and rain

water. Always have a full supply of water in case of emergency: Severe droughts and falling ground water levels will destroy your crops and cause financial losses.

Additional costs will be associated with whichever source of water you choose (e.g. pipes and barrels to collect rainwater, a plumber to install an irrigation system and connect it to

the municipal water supply). Ensure that you plan for these costs, and base your decision on what presents the most cost effective solution in the long run. 3.3. Additional work: Electricity Modern greenhouses have temperature, wind and humidity sensors, and automatically regulate inside temperature by elevating and lowering panels. Groundwater wells and underground water tanks need pumps, and storage facilities may need lighting and other climate regulators. Sockets may need to be installed in the greenhouse to power electric tools. If electric cables are installed underground, their exact location needs to be marked on architectural drawings and blueprints of the property. 3.4. Additional work: Heating Heating can significantly increase a greenhouse’s output during winter, and produce will fetch higher prices when fresh fruit and vegetables are hard to find. A heating system requires energy and is costly to install. Before deciding on such a system, calculate the cost/benefit of selling produce in the winter to decide if this investment makes sense for your business. Connecting to the municipal power supply generally requires additional licensing/expenses. 3.5. Additional work: Storage You will need two types of storage that should be located separately: 1. Storage for fresh and processed crops: Once harvested, produce needs to be stored in a

cool, dry, clean and safe place. This space should have room to weigh and package the produce. The storage space should be locked and sealed off when not in use to protect from vermin and theft.

2. Storage for equipment, tools and supplies: Running a greenhouse requires tools and

equipment that need to be stored. Other supplies such as seeds, fertilizer and pesticides need to be stored in a safe and dry location.








20

Both types of storage need concrete floors to avoid humidity rising from the ground, and to prevent vermin from gaining access to it. Storage helps keep accurate records of crops and supplies. If you consider it as a ‘checkpoint’, everything that comes in and goes out needs to be recorded. This will keep track of exactly what you have in stock at any given point, where your produce is heading, and what it is being used for. Keeping accurate records of inputs and outputs is the basis for making well-informed, financially and commercially viable decisions. 3.6. Additional work: Shelter If the greenhouse is located next to a community home, you may need to build a shelter, and install a permanent or portable toilet and sink to prevent everyone working in the greenhouse from going through the home.

4. Equipment, tools and supplies You will need to plan a substantial budget for machinery, tools, equipment, spare parts, clothes and supplies which are vital to operating a successful greenhouse business. Table 1 below contains a list of these under “Cost of Initial Investment”. Depending on your needs, types of crops, and the size of the greenhouse, you may need fewer or additional items. You should buy these from wholesalers at discount prices.

5. Insurance You will need to insure the greenhouse and all equipment from the beginning to minimize losses from natural causes and theft. Collect several quotes and select the best based on price and extent of coverage. In addition to requesting quotes ask every insurer for their terms and conditions and read them carefully. Speak with other local farmers about their experiences with insurance companies, as this can help you select one that is professional and pays fair amounts, on time.

6. Greenhouse maintenance You need to have a stock of basic spare parts/materials for repairing the greenhouse. It is important to note that the plastic (nylon) sheeting must be replaced about every five years. Suppliers usually state how many years their plastic sheeting can be effectively used, but many farmers use them longer without a noticeable reduction in their yields. Sheeting needs replacement when it deteriorates, and when it accumulates dirt and fungal growth that reduce the amount of light and decreases crop yields. Your long terms budget should include the costs of replacing the sheeting.




21

7. Staff You need an agronomist to support your work. Ideally, this is full time staff which is also responsible for managing sales and marketing. If the agronomist does not take on these tasks, you will need a separate project manager to manage the overall business. These key staff operate the greenhouse and are accountable to the owner. It is important to employ an accountant (full or part time) who will track expenditure and revenue. Job coaches are also key staff who are responsible for the inclusion of clients in the work. Job coaches need to be trained by the agronomist who must prepare two training programs: One for job coaches and one for clients. 1. Training for job coaches: This can either include existing job coaches, or new ones.

Regardless of whether the job coaches have prior farming experience, they must undergo training on current agricultural practices/techniques and how to use, maintain and protect the greenhouse and equipment.

2. Training for clients: Each client should be individually assessed and receive a tailor-made training plan that complements his/her abilities, addresses his/her needs, and enables him/her to acquire the knowledge and skills he/she needs.

After this initial training, the work in the greenhouses can start. It is vital that both job coaches and clients receive continuous on the job training, covering various tasks and season-specific operations and requirements. To motivate clients to participate, you can offer incentives such as informal ‘certificates of attendance’ when they complete training, and ‘certificates of acquired work experience’ for those who participate in the work. These can help clients seek employment elsewhere in the open labor market by demonstrating their abilities, skills, employability and previous work experience. When considering employing any new staff, consult an employment service or other relevant state agency about obtaining possible grants, tax breaks or other incentives that are available for employing vulnerable groups (long-term unemployed, ethnic minorities, etc.).

8. Initial investment and operating costs This section summarizes the initial investment and ongoing operating costs for the business. In addition to possible employment-related support schemes, your business that employs people with disabilities may also be eligible for grants and/or tax deductions from the state, county, city or local authorities for both initial investments and ongoing operations.




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Table 1. Costs (Initial Investment and Ongoing Operating Costs)

Cost of Initial Investment

Services: Business planning consultant, agronomist, lawyer, accountant, fees for registering business, land surveyor, soil analysis, earthmoving services, whitesmith, plumbing, electrical installation, water drilling, construction services (including construction or renovation of storage facilities), state, local and municipal permits and fees, insurance

Land: Purchase or rental fees

Greenhouse and all related equipment (motors, irrigation, electronic temperature, monitoring for moisture and wind)

Machinery: Garden cultivator, lawn mower

Equipment: - Tools [shovel, rake, leaf rake, spade, spade with t-shaped handle, garden clippers, gardening fork, hoe (heart or tobacco shaped), hoe with three pikes (three-tine cultivator), hand trowel, hand hoe with two pikes (hand two-tine cultivator), bulb dibble, dibble, weed removal tool] - Other equipment (wheelbarrow, broom, snow shovel, bucket, various open top canisters, garden hose with nozzle, ladder, rainwater container, composter, vegetable/fruit dryer, water pump, plastic mulch, hail netting, cables, nylon threads and nets, sticks, storage shelves)

Supplies: Seeds, seedlings, (organic) fertilizer, pesticides, herbicides, fungicides, boxes for vegetables, glass jars, vinegar and caps for preservation, plastic bags for freezing, packaging for dried crops, fuel and motor oil, spare parts for the greenhouse (set of common spare parts which you can install yourself in case of damage including a basic repair kit with saw, hammer, nails, pliers, screw drives, etc.), equipment and machinery

Other: Clothes [garden boots (summer and winter types), garden galoshes, caps, coveralls, work trousers, gardening gloves]

Ongoing Operating Costs

Salaries: Workers (clients), project manager, agronomist, job coaches

Services: Accounting, legal, insurance, bank fees, sales and marketing related costs, maintenance/repairs (various craftspeople)

Utilities: Water, electricity, gas, waste removal

Supplies: Seeds, seedlings, organic fertilizer, boxes for vegetables, glass jars, vinegar and caps for preservation, nylon bags for freezing, packaging for dried crops, fuel and motor oil, spare parts for the greenhouse, equipment and machinery

NOTE: Replacement of plastic sheeting after five or more years of operation




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9. Production, Work and Sales Plans Three plans need to be developed:

1. Production Plan: Your agronomist needs to prepare a production plan that will determine the quantity and type of crops, and how much space to allocate to each crop. It is important to choose crop patterns that will ensure optimal use of the plot over the entire growing season. A well-designed production plan will include as many harvests as possible during the year, and minimize the time when nothing can be cultivated. Production plans need to specify types and quantities of seeds, seedlings, and other inputs such as fertilizers, and expected yields. Ensure that the production plan is based on your sales/consumption plan (see below).

2. Work plan for staff: Based on your production plan, develop a staffing plan that sets

out the number of clients and resources needed, and describes tasks and how they will be performed to achieve the goals set out in the production plan.

3. Sales and/or consumption plans: Work and staffing plans are designed in line with the

sales/consumption plan. A sales plan must be realistic and based on the market potential for selling your produce (this is part of the business plan). A consumption plan is an estimate of what your housing services are expected to consume within a certain time period, so your production plan needs to be based on your sales and/or consumption plans. If you produce more than what you expect to sell or consume, you will have surplus produce that can be processed and eaten, or sold later. If the harvest is less than projected, revenue will be less.

Consider developing a long-term plan for the greenhouse operation. You might expand output in the greenhouse, cultivate additional land, enlarge the greenhouse, select higher yielding crops or crops that earn higher margins, start processing food, expand sales by finding new and negotiating with existing buyers, identify new markets (possibly even international), and/or start organic production. Apart from expanding the size of the greenhouse and/or land that is cultivated, you can also grow crops that earn higher margins. These do not have to be vegetables/fruit but can also be herbs and spices. Long term plans need to have an analysis setting out how changes will be financed. Expansion is easier if the initial greenhouse investment was financed by grants rather than loans that need to be repaid.

10. Records Apart from obligatory accounting for tax purposes, keep your own records to better plan and manage the business and make informed decisions about inputs, crop selection and sales. You should record:

Expenditures

Crop yields

Stock

Sales




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Consumption

Revenue

Profits

These records will help to:

Minimize/control expenditures

Keep track of and update stock

Better allocate produce for consumption

Reduce food purchases

Calculate savings from consuming own produce

Keep track of sales

Determine funds needed for future production

Reinvest savings in the following production and processing cycles

11. Crops for sale and/or consumption As a general rule, production of a single crop (monoculture) is usually intended for sale, and multiple crops are more suitable for consumption. Of course you can cultivate for both sale and consumption. If you decided to sell all your crops, you need to have already identified buyers and signed contracts with them. Keep contacting and visiting as many potential buyers as possible. These contacts will be useful if production exceeds the estimated quantities with established buyers. If you are growing for own consumption, you need to set aside a budget in case output is lower than you estimated. Agriculture is prone to high risk from weather and other factors that may create substantial variations in harvest from one year to the next, so always have a back-up plan and budget. If you plan for your crops to be partially sold and partially consumed, you will need to allocate appropriate space in the greenhouse for each purpose.

12. Crop Surplus In spite of careful planning, you might end up with surplus that you cannot sell or consume. The only option to avoid waste is to process and preserve the produce: preservation in vinegar, oil, salt, drying (in the sun or in a machine), or freezing. Processing and preserving food will generate savings during the winter. It is important to keep records of all of supplies, packaging and inputs, and of quantities and consumption. Preserved/processed food can also be sold, generally for more profit than when fresh. A preserving/processing strategy also has the advantages of reducing waste/spoilage and longer storage period. Branding and packaging fresh or preserved/processed crops and selling them under your own label will generate higher margins. This requires additional business planning, investment in




25

equipment and machinery, marketing and branding, and possibly certification and compliance with health and safety regulations.

13. Organic Production Organic production has various benefits such as higher profit margin, safer working conditions, and environmental and health related benefits. It is also associated with higher risk of loss and damage

by pests, and higher input costs. If you decide to grow organic, you need to consult a specialist for advice on production techniques, types of crops, certification requirements, and marketing suggestions. Only grow organically if you have buyers who will pay the higher prices, or have clear health benefits for clients. Preserving/processing organic produce also generates higher prices.

14. Greenhouses and Community Inclusion Developing meaningful work activities for clients in a greenhouse is an innovative and sustainable approach to income generation activities. Local authorities appreciate projects that are self-financing, contribute to the local economy and community, and have a positive impact on people with disabilities who are active members of their communities. This can all benefit your organization. You may even be able to negotiate with local authorities for more land for free or at a reduced cost if it is realistic to expand the business from financial and human resource perspectives.




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PART 2:

CASE STUDY




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Case Study: Greenhouses Built and Operated by the Center for Inclusion and Social Services, Bjelovar

This case study describes the planning and construction of two greenhouses in Bjelovar-Bilogora county that are owned and operated by the Center for Inclusion and Social Services (CIS). One greenhouse and the adjacent open field supply a supermarket chain; the other greenhouse is used to grow fruit and vegetables for consumption by clients. CIS’ greenhouse project was designed first and foremost to create meaningful work activities for its clients. Because business and financial considerations were well planned, the greenhouse broke even financially. This is a best practice example of how CIS planned and implemented meaningful work activities and created a financially sustainable business.

1. About CIS CIS was established in 2003 with the support of the Association for Promoting Inclusion (API), Zagreb to operate community-based supported housing services for people with intellectual disabilities in Bjelovar. CIS operates community homes in Bjelovar and Grubisno Polje, facilitates self-advocacy groups, and trains experts, parents and foster families.

2. Implementing the greenhouse project Bjelovar-Bilogora county has very low economic activity and high unemployment. In spite of CIS’s strong support from and excellent cooperation with the local authorities in Bjelovar and Grubisno Polje, there are few job opportunities for clients on the open labor market. To provide meaningful work for its clients, CIS has developed income generation activities, one of which is the greenhouses. CIS started the greenhouses to provide employment for clients after discussing the option with the Croatian Agricultural Chamber (CAC) in Zagreb and organic agricultural consultants Ecologica and Avalon.5 CIS also wanted to provide clients with on-the-job training and skills that increase self-esteem, and contribute to their employability more broadly. A third objective was to generate revenue that could be invested in financing its community-based services. Money saved on food purchases is also reinvested in services. 2.1. Beginning The first step was to develop a business plan. The CAC helped CIS to develop a preliminary project document and assessment pro bono. CIS, with API’s support, assessed CIS’s annual consumption of fruit/vegetables, consumption requirements of other API subsidiaries, and possible sales on the local market.

5 Ecologica (http://www.ecologica.hr) is the Croatian branch of the organic consulting NGO Avalon

(http://www.avalon.nl/) which is based in the Netherlands. Avalon has extensive experience in implementing organic agricultural projects in Central and Eastern Europe and might be a good source of information if you wish to engage in organic agriculture.


http://www.ecologica.hr/

http://www.avalon.nl/



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Based on this assessment, CIS decided that its large plot in Bjelovar would combine production for clients’ consumption (generating savings in food costs) and for sale on the market (generating revenue from sales) in one greenhouse and in an open field. The land in Grubisno Polje is much smaller than in Bjelovar, so it was decided to use that greenhouse to produce for clients’ own consumption. CIS then analyzed the soil at the sites to determine what crops were most suitable. 2.2. Production plan Production plans were prepared for both greenhouses and for one 2,280 m2

field adjacent to a community home and greenhouse in Bjelovar. The agronomist decided on types and quantities of crops to be produced and in which sequence based on clients’ demand, soil quality and greenhouses’ capacity. 2.3. Resources Next, CIS had to determine what types and amounts of resources were required to make this happen. Human resources: CIS evaluated whether its staff had experience in agriculture and found that various staff in both Bjelovar and in Grubisno Polje grew vegetables and fruit in their own gardens, and helped to cultivate small plots in gardens at the community homes. Four staff were selected to work as job coaches, two in each greenhouse. Clients were also evaluated based on their motivation and capabilities. Between five and ten clients were selected to work in each greenhouse, depending on seasonal activities, their mobility and overall health conditions. CIS also involved staff’s friends and family with agricultural experience. The overall project manager is a professional agronomist who started by volunteering as he was unemployed. He was later employed full time by API through an EU funded IPA project to operate greenhouses. CIS’s accountant also adapted procedures, records and reports to the specific demands of the greenhouse business. Land: CIS uses plots that are located on the same land as its community homes in Bjelovar and Grubisno Polje. A community home in Bjelovar has a 4,350 m2 plot adjacent to it, making it suitable for a 300m2 greenhouse and a 2,280 m2 plot for open cultivation. A community home in Grubisno Polje has a smaller piece of land behind it which was suitable for a 300m2 greenhouse. Since both plots are located near homes and day centers, there are always clients and staff who can work and protect the premises. Most clients do not need transportation to their greenhouse jobs as they either live in adjacent homes or come to attend the day center. Funds: Most of the financing for the greenhouses was provided by a donor in the form of grants. Additional financing was provided by CIS from its own resources.




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2.4. The business plan The business plan showed that the greenhouse project was economically viable and would promote the social inclusion of clients. Economic aspects: Savings resulting from growing their own food, and revenues generated from the sale of produce had clear economic advantages. Salaries paid to clients increased their quality of life. There were no loans to repay. Social aspects: Engaging clients in meaningful and regular work activities resulted in increased quality of life, skills, and future employability on the open labor market, as well as a healthier diet. Indirect benefits were advancing CIS’s reputation as an organization, improving the likelihood of attracting other donor, national and local authority funding. 2.5. Purchasing the greenhouse After the grant for the greenhouse was approved, CIS selected a greenhouse supplier. The negotiations and analysis of quotations was a very time consuming process. CIS consulted for expert advice with agriculture professors, the Croatian Agricultural Chamber, the organic NGO Ecologica, and the largest organic vegetables producer in Croatia, Eko-Sever6. These sources provided a list of reputable greenhouse suppliers and assisted CIS in the evaluation/selection process. CIS’s persistence in finding the best price and supplier paid off, as it led to an offer allowing it to purchase two 300m2 greenhouses for the price of one! 2.6. Greenhouse Characteristics

The greenhouse frames are galvanized aluminum and the plastic cover is two layers of nylon foil (with an air pocket in between for better insulation). The doors at each are also covered with the nylon foil. The sides have a motor-powered system to elevate them when the automatic climate sensor (measuring wind, temperature and humidity) records high temperatures. This system improves the efficiency of the overall operation and frees up staff for other tasks. The greenhouse structure could also be easily lengthened or shortened by adding or removing aluminum frame segments. Buying two identical greenhouses made it easier to train staff in operation and maintenance, and required only one set of spare parts. 2.7. The cost of the greenhouse The two greenhouses were purchased for $25,275. In Bjelovar an additional $19,100 was invested to connect utilities, drill a water well, install an electric pump, and build storage. In Grubisno Polje, $4,800 was invested to connect utilities, and build storage and a path. 2.8. The legal form CIS researched the regulatory framework and decided to register its business as a ‘farm’. This legal form enables it to receive agricultural subsidies andtrimubursements from the City of Bjelovar and from Bjelovar-Bilogora County.

6 http://www.eko-sever.hr


http://www.eko-sever.hr/



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2.9. Preparing the soil Immediately after deciding on the greenhouses’ locations, the soil was ploughed and organic dehydrated cattle manure fertilizer was added. The advantages of using such fertilizer were to avoid contaminating the soil with chemical fertilizers (in case organic cultivation is considered in the future) and fewer weed seeds which are often found in fresh manure. 2.10. Additional work Aside from removing a few old trees, no considerable earth moving work was required to level the ground. Used plastic water tanks were installed in both greenhouses. Each greenhouse also has a ground well. Plumbers connected the greenhouses to the tanks, wells and municipal water supply. Municipal water is only used as backup during drought when the groundwater level falls. Water meters were installed to monitor municipal water use. Drip irrigation systems, and electricity to power pumps and other electric equipment were installed. Small sheet metal warehouses were built to store crops, tools and machinery. At one of the sites a shelter was built for clients to change their clothes and shoes to avoid having to use the community home for this. The department of public works in Grubisno Polje cemented access paths and the foundations for the storage pro bono. Heating was not considered due to the high installation and energy costs. 2.11. Equipment Two garden cultivators, gardening tools and plastic containers for plants were purchased. 2.12. Supplies Seeds, seedlings, organic fertilizers, and spare greenhouse parts were purchased. 2.13. Insurance Both the greenhouses and their produce were immediately insured once the greenhouses were erected. 2.14. Production methods CIS aims to preserve the soil in case it decides to cultivate organically in future, using only organic fertilizer. It also protects crops naturally by planting herbs (mint, dill, chamomile, basil and others) between crop rows, reducing the spread of disease and repelling certain insects. CIS will also consider other natural means of protecting crops from disease if these methods are not effective enough. 2.15. Clients’ involvement Clients are supported by CIS staff in their work in agriculture. In Bjelovar’s greenhouse, there is a project manager and one assistant. In the open plot there is the greenhouse project manager and two assistants. In Grubisno Polje’s greenhouse there is a greenhouse project manager and one assistant. CIS’s experience is that once clients learn the skills, they do not need support in weeding and harvesting, and need very little support in planting seeds. They require more support in




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spreading mulch, plowing, planting seedlings, applying fertilizer and pesticide, and in sorting and preserving/processing harvested crops. Clients who work in the open field in Bjelovar also need support in assembling nets and digging holes for poles. Twenty-one of CIS’s clients are engaged in work on a regular basis: Eleven at the greenhouses and ten in the open field. Seven clients are engaged on an occasional basis (mostly during planting and harvesting) – five at the greenhouses and two in the open field. The number of hours worked depends on the type of work, but typically clients do not work longer than five hours/day, including breaks. An average daily schedule looks like this: - Arrival at greenhouse at 7 a.m. - Briefing with greenhouse project manager about the work planned for the day - Preparation and selection of tools - Assigning clients to assistants - Work activities (harvesting, weeding, assembling nets, spreading mulch, drilling, seeding, etc.) - Break after two hours (breakfast, coffee, etc.) - Work activities until noon (ending earlier on hot days) CIS’s clients have repeatedly expressed their satisfaction with the work since the beginning of the project. While people like different activities, many are most enthusiastic about harvesting when they finally see the results of their work and feel satisfied and motivated. Typical greenhouse tasks are: - Soil preparation (applying fertilizers, plowing and preparing the ground, spreading mulch, etc.) - Drilling - Planting and replanting - Weeding/hoeing - Irrigating, watering and monitoring greenhouse temperature (during hotter afternoons, the clients and assistant check the greenhouse every two hours as the drip irrigation system may need adjustment to provide more water to the plants, and the indoor temperatures may need to be adjusted. Even short exposure to excess heat and inadequate water can cause considerable damage) - Monitoring plant growth - Treating plants for disease/pests - Harvesting crops - Sorting harvested crops, and packaging, processing, conserving, etc. Typical open field tasks are: - Soil preparation (applying fertilizers, plowing and preparing the ground, spreading mulch, etc.) - Setting up poles and nets for growing cucumbers - Planting seeds in small containers - Replanting seedlings in the open field - Weeding/hoeing - Watering - Monitoring plant growth - Treating plants against diseases/pests - Harvesting crops - Sorting harvested crops, packaging, processing, conserving, etc.




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2.16. Clients’ compensation Clients are paid according to the number of hours they work. 2.17. Sales of the produce CIS signed a contract with a local supermarket retail chain to buy cornichon cucumbers that it grows in the open field in Bjelovar. The produce from the greenhouses is partly sold and partly consumed by clients.

3. Measuring financial results7 The following tables show the financial results for the first 12 months of the greenhouses’ operation. Please note that the figures will vary considerably for other greenhouse projects because of the choice of crops, soil and climatic conditions, sizes of plots being cultivated, local market and economic factors, as well as the capacity and experience of the service providers. The table below shows that the project is financially sustainable,, but revenue and profit are not large. This is because the primary aim of the greenhouses is to create meaningful work activities. The figures below are indicative for service providers wishing to establish similar greenhouse projects. The first two tables show revenue. The slight differences in savings and sales between them is because production was delayed in Bjelovar because of unexpected flooding, different cropping patterns, and a portion of Bejelovar’s greenhouse allocated to growing seedlings for its adjacent open plot.

7 All data exclude taxes.




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Total for 12 months period (May 1, 2012 - April 30, 2013)

BJELOVAR - Greenhouse BJELOVAR - Production on the open field

Operating Cost Total incl VAT (USD) Operating Cost Total incl VAT (USD)

SEEDS AND SEEDLINGS 408.50 CONSUMABLES 958.31

PLANT PROTECTION 123.00 FERTILIZERS 79.41

CONSUMABLES 268.00 INSURANCE 329.92

FERTILIZERS 204.00 FUEL 37.30

INSURANCE 145.30 WATER 526.60

FUEL 41.44 Total incl VAT 1,931.54

WATER 600.00

ELECTRICITY 192.00

Total incl VAT 1,982.24

GRUBISNO POLJE - Greenhouse

Operating Cost Total incl VAT (USD)

SEEDS AND SEEDLINGS 107.80

PLANT PROTECTION 47.42

CONSUMABLES 330.07

FERTILIZERS 198.56

INSURANCE 145.30

FUEL 41.44

WATER 582.48

ELECTRICITY 192.00

Total incl VAT 1,645.08

The following three tables show expenses. Salaries for clients, agronomist, project manager, and accountant are not included as these are financed by separate projects.




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APENDIX 1:

Pictures and Description of the Greenhouses in

Bjelovar & Grubisno Polje




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These pictures show the greenhouses and all related equipment and operational alternatives.

Site of Grubisno Polje greenhouse prior to construction behind community home. The trees had to be removed, the site of the

greenhouse marked, and the ground ploughed.

The exact plot for the greenhouse has been marked and organic

fertilizers added.

Construction of greenhouse. Spreading the plastic sheeting.

The completed greenhouse in Bjelovar Greenhouse interior prior to cultivation




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Motorized system that elevates walls to regulate

temperature. Interior climate control system.

Climate sensor on top of greenhouse (measures

outside air temperature, wind speed and humidity).

Walls of greenhouse elevated to control indoor climate.

Pump to maintain air layer between two plastic

sheets. Two layers of plastic for better insulation.




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Basil at edge of row is a natural pesticide. Dill at edge of row is a natural pesticide.

Rows of crops with drip irrigation system. Walls elevated to allow air to cool inside and maintain

ideal growing temperature.

Water tank elevated on bricks so pressure squeezes water through irrigation system. Garden

cultivator and other tools are in corner (a shed was later built to house this equipment).

Garden cultivator in use with ground recently plowed. Walls are

elevated to regulate inside temperatures. Herbs on edge are natural pesticides.

Plenty of space is left between rows to allow access for clients with

mobility issues.




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Clients picking beans from harvested plants. Strings hanging from greenhouse

frames to support growth of green beans.

Beans in summer months with elevated walls. Cornichon cucumbers growing on open plot on

nets erected to support growth. Dark plastic sheets prevent the growth of weeds.




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APPENDIX 2:

STANDARD FORMS




40

MONTH 1

CONSUMPTION OF CROPS SAVINGS ON FOOD PURCHASES SALES OF CROPS

No.

Type of crop

(IMPORTANT: KEEP THE

NAMES AND THE ORDER

OF CROPS CONSISTENT

FOR SUBSEQUENT

MONTHS AS OTHERWSE

THE CALCULATIONS WILL

NOT WORK OUT)

CROP

(kg)

HOUSING

COMMUNITY A

(kg)

HOUSING

COMMUNITY B

(kg)

TOTAL

CONSUMPTION (kg)

MARKET PRICE

(EUR/kg)

TOTAL SAVINGS

(EUR)NAME OF BUYER

QUANTITY

(kg)

PRICE/UNIT

(EUR/kg)

TOTAL

INCOME

FROM SALES

(EUR)

PROCESSED

VEGETABLES

(dried, conserved,

etc.)

(kg)

WASTED

CROPS

(for write-off)

(kg)

STOCK CARRIED

OVER FROM THE

PREVIOUS MONTH

(kg)

CURRENT

STOCK (kg)

1 0 0.00 € 0.00 € 0 0

2 0 0.00 € 0.00 € 0 0

3 0 0.00 € 0.00 € 0 0

4 0 0.00 € 0.00 € 0 0

5 0 0.00 € 0.00 € 0 0

6 0 0.00 € 0.00 € 0 0

7 0 0.00 € 0.00 € 0 0

8 0 0.00 € 0.00 € 0 0

9 0 0.00 € 0.00 € 0 0

10 0 0.00 € 0.00 € 0 0

11 0 0.00 € 0.00 € 0 0

12 0 0.00 € 0.00 € 0 0

13 0 0.00 € 0.00 € 0 0

14 0 0.00 € 0.00 € 0 0

15 0 0.00 € 0.00 € 0 0

16 0 0.00 € 0.00 € 0 0

17 0 0.00 € 0.00 € 0 0

18 0 0.00 € 0.00 € 0 0

19 0 0.00 € 0.00 € 0 0

20 0 0.00 € 0.00 € 0 0

21 0 0.00 € 0.00 € 0 0

22 0 0.00 € 0.00 € 0 0

23 0 0.00 € 0.00 € 0 0

24 0 0.00 € 0.00 € 0 0

25 0 0.00 € 0.00 € 0 0

26 0 0.00 € 0.00 € 0 0

27 0 0.00 € 0.00 € 0 0

28 0 0.00 € 0.00 € 0 0

29 0 0.00 € 0.00 € 0 0

30 0 0.00 € 0.00 € 0 0

TOTAL 0 0 0 0 0.00 € 0.00 € 0.00 € 0 0 0 0

Table 2.1. Crops per vegetable type in a greenhouse during one year. Please note that these are the minimum records that must be kept when managing a greenhouse and calculating savings on food and revenue from sales. There are various templates widely available on the internet. The template shown here is only for management purposes, an accountant needs to keep separate records for tax purposes.




41

Table 2.2. Summary of Savings and Sales.

Table 2.3. Record of expenditures.

NOTE: All applicable taxes need to be added to the table.

SAVINGS AND INCOME IN YEAR 1

DO NOT WRITE IN THIS TABLE

LOCATION SAVINGS (EUR) REVENUE FOM SALES (EUR) TOTAL (EUR)

GREENHOUSE A 0.00 € 0.00 € 0.00 €

GREENHOUSE B 0.00 € 0.00 € 0.00 €

TOTAL 0.00 € 0.00 € 0.00 €

GREENHOUSE A

RECORD OF EXPENDITURES

DATE OF

INVOICEDESCRIPTION OF EXPENDITURE

UNIT

(piece, kg, liter,

m3, pack, etc.)

QUANTITYPRICE PER UNIT

(without VAT)

TOTAL

(without VAT)VAT

TOTAL

(including VAT)

0.00 € 0.00 €

0.00 € 0.00 €

0.00 € 0.00 €

0.00 € 0.00 €

0.00 € 0.00 €

0.00 € 0.00 €

0.00 € 0.00 €

0.00 € 0.00 €

0.00 € 0.00 €

TOTAL: 0.00 € 0.00 €




42

APPENDIX 3:

USEFUL LINKS




43

1. Selected links on greenhouses Designing a greenhouse with access for people with disabilities: http://www.greenhousegrowing.co.uk/designing-greenhouse-for-disabled-access.html Arthur & Friends: newsletter about a greenhouse hiring people with disabilities http://www.norwescap.org/docs/Arthur%20&%20Friends%20Newsletter.pdf News article on how a greenhouse gives people with disabilities job training: http://abclocal.go.com/wls/story?section=news/disability_issues&id=6172590 A New Leaf: greenhouse employing people with multiple disabilities: http://anewleaf.org/about-us/greenhouse-hours/ You can also access research and publications when search the word ‘disability’ under this site: http://horttech.ashspublications.org/ http://horttech.ashspublications.org/search?fulltext=disability&submit=yes&x=0&y=0 You will find papers such as: http://horttech.ashspublications.org/content/18/4/611.full.pdf http://horttech.ashspublications.org/content/3/4/459.full.pdf http://horttech.ashspublications.org/content/5/2/134.full.pdf

2. Resources on business plans Links to business plans: http://www.acumenfund.org/uploads/assets/documents/Business%20Plan%20resources%202_YQcnCIBZ.pdf Example of a business plan: http://www.stanford.edu/~cbauburn/basecamp/dschool/homeproject/dLight%20Business%20Plan.pdf Deloitte’s instructions on how to write a business plan: http://www.deloitte.com/assets/Dcom-Luxembourg/Local%20Assets/Documents/Brochures/English/2010/lu_writebusinessplan_01042010.pdf Ernst & Young’s outline of a business plan: http://www.ott.arizona.edu/sites/default/files/EY_Bplan_Outline.pdf Ernst & Young’s business plan guidebook: http://www.andreabiancalani.it/guide2.pdf Paper on how to write a business plan (Harvard Business Review): http://serempreendedor.files.wordpress.com/2008/09/how-to-write-a-great-business-plan.pdf Writing a business plan for a social venture: http://www.jeffreyrobinsonphd.com/socialventureplan.pdf


http://www.greenhousegrowing.co.uk/designing-greenhouse-for-disabled-access.html

http://www.norwescap.org/docs/Arthur%20&%20Friends%20Newsletter.pdf

http://abclocal.go.com/wls/story?section=news/disability_issues&id=6172590

http://anewleaf.org/about-us/greenhouse-hours/

http://horttech.ashspublications.org/

http://horttech.ashspublications.org/search?fulltext=disability&submit=yes&x=0&y=0

http://horttech.ashspublications.org/content/18/4/611.full.pdf



http://www.acumenfund.org/uploads/assets/documents/Business%20Plan%20resources%202_YQcnCIBZ.pdf

http://www.acumenfund.org/uploads/assets/documents/Business%20Plan%20resources%202_YQcnCIBZ.pdf

http://www.stanford.edu/~cbauburn/basecamp/dschool/homeproject/dLight%20Business%20Plan.pdf

http://www.stanford.edu/~cbauburn/basecamp/dschool/homeproject/dLight%20Business%20Plan.pdf

http://www.deloitte.com/assets/Dcom-Luxembourg/Local%20Assets/Documents/Brochures/English/2010/lu_writebusinessplan_01042010.pdf



http://www.ott.arizona.edu/sites/default/files/EY_Bplan_Outline.pdf

http://www.andreabiancalani.it/guide2.pdf

http://serempreendedor.files.wordpress.com/2008/09/how-to-write-a-great-business-plan.pdf

http://www.jeffreyrobinsonphd.com/socialventureplan.pdf

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