EFarmer.us copyright eStudy.us 2008 [email protected] Sunflower Production, Market, and...
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eFarmer. us copyright eStudy.us 2008 [email protected] copyright eStudy.us 2008 [email protected] Sunflowe r Production, Market, and Expected Return December 2008
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Sunflower
Production, Market, and Expected ReturnDecember 2008
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Overview• The common sunflower, is native to North America
and normally grows six to eight feet tall, and there are many variations of this flower around the world.
• It is an important source of food. Sunflower oil is a valued and healthy vegetable oil and sunflower seeds are enjoyed as a healthy, tasty snack and nutritious ingredient to many foods.
• The wild sunflower is native to North America but
commercialization of the plant took place in Russia.
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Overview
• Sunflower Seeds
Sunflower seeds are an American original. Called either confection or non-oil.
• Confection sunflower seeds are normally black with white stripes and approximately five eighths of an inch long.
• Sunflowers are not recommended for oil crop production in Kentucky.
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Market Opportunities• Sunflower seeds are graded according to size and
separated into groups.
• The largest size will go into the in-shell market.
• The medium-sized seeds are usually hulled for the kernel market.
• The smallest size will go into the bird and pet feeding market.
• Most sunflower grown in Kentucky is sold to the birdseed market.
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Market Opportunities
• Regional Birdseed Packager
• Local Retail Store
• Selling Packaged seed directly off the farm• International market needs
The United States is a major global supplier of confection sunflower.
1. European Market
2. Canada
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KERNELU.S. Confection Sunflower Exports
Top Ten Markets from 2006/07 and Comparison to 2004/05, 2005/06October 1 - September 30, Shipping Weight in Metric Tons
Country 2004/05 2005/06 2006/07
Country Share Current Year
of U.S. Exports 10/07 to 09/08
2006/07*
Germany 9,032 7,237 9,600 27% 11,677
UK 3,054 7,892 5,862 17% 7,796
Mexico 1,704 4,394 2,599 7% 1,919
Canada 1,751 2,205 1,883 5% 3,464
Denmark 1,837 1,857 1,762 5% 2,558
France 1,376 927 1,675 5% 1,754
Netherlands 2,428 3,247 1,659 5% 4,043
Romania 710 565 1,498 4% 1,551
Norway 1,009 1,434 1,453 4% 3,230
Spain 712 1,441 1,147 3% 2,175
Other 3,930 9,751 6,121 17% 8,613
TOTAL 27,543 40,950 35,259 100% 48,780
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IN-SHELLU.S. Confection Sunflower Exports
Top Ten Markets from 2006/07 and Comparison to 2004/05, 2005/06October 1 - September 30, Shipping Weight in Metric Tons
Country 2004/05 2005/06 2006/07
Country Share Current Year
of U.S. Exports 10/07 to 09/08
2006/07*
Spain 24,992 27,520 31,911 34% 29,173
Turkey 3,881 13,107 20,660 22% 18,179
Romania 4,663 7,173 6,982 7% 10,466
Mexico 2,322 5,651 6,613 7% 4,130
Arab EM 0 2,005 4,261 5% 2,404
Jordan 163 4,095 3,917 4% 1,754
Syria 0 1,531 3,407 4% 39
Greece 644 1,368 2,684 3% 2,183
Israel 1,614 587 1,732 2% 1,798
Canada 4,295 1,400 1,390 1% 400
Other 5,128 6,329 9,901 11% 7,290
TOTAL 47,702 70,766 93,458 100% 77,816
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Market Opportunity in Kentucky
• The Demand for sunflower seed for both bird seed and as a snack food is on the increase.
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Confection Sunflower Seed Prices
Current Last Week Last Year
25 25 22
• As of 11/21/2008 (Dollars per 100 Lbs.)
• CHS, Inc. Grandin, ND. & Hazel, MN.
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Confection Sunflower Kernel Nutrient
Composition per 1 oz. (28.35 grams) Calories 160 Total
Carbohydrate
5g Vitamin E 11.34mg
Calories from Fat
129 Dietary Fiber
4g Thiamin (VB1)
0.65mg
Total Fat 14g Sugars 1g Riboflavin (VB2)
0.07mg
Saturated Fat
2g Protein 6g Niacin 1.3mg
Polyunsaturated Fat
9g Vitamin A <3 IU Folate 64.5mg
Monounsaturated Fat
3g Vitamin C 0.2mg Magnesium 104mg
Cholesterol 0mg Calcium 33mg Zinc 1.4
Sodium <2mg Iron 1.9mg Copper 0.4mg
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Production characteristics
• Sunflower can be grown either as a full-season crop or a double crop. From an economic standpoint, it is particularly attractive as a double crop.
• Sunflower can tolerate pH values from 5.7 to 8.0.
• Row crop production field is suitable for sunflower.
• Labor requirementsLabor needs per acre are approximately 2 hours for production and 1 hour for harvest. Additional labor would be needed for any specialty production and/or marketing.
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Production characteristics--Field preparation• Sunflower is more likely to be limited by nitrogen than any other
nutrient. If nitrogen is limited, yields and oil percentage will be reduced. Amount of nitrogen fertilizer needed depends on soil type, organic matter and the preceding crop.
• Research suggests sunflower is more sensitive to phosphorous than potassium. A 2,000 pounds-per-acre sunflower crop would take up about 40 pounds of phosphorous per acre and 80 pounds of potassium per acre.
• Preserve soil moisture, since sunflower seeds require high moisture for good germination. If soil crusting limits seed emergence, a rotary hoe can be used to help loosen the crusted layer.
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Production characteristics - Planting• For heavy soils, seeding depth should be 1 to 1.5
inches Seeding rate is especially important for sunflower
• 17,000 seeds per acre (roughly 4 pounds per acre)
• April or May plantings normally will be higher than June or July plantings
• Temperature Requirement Sunflower can germinate and emerge from soils as cool as 46 degrees Fahrenheit if the seed is of good quality. Mature sunflower also being able to withstand down to 25 degrees Fahrenheit. Mean daily temperatures for good growth are between 18 and 25°C.
• Row space: 20 to 30 inches
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eFarmer.usProduction Characteristics - Water Requirement
Water Requirements
The water requirements of sunflower vary from 600 to 1000 mm, depending on climate and length of total growing period. Percentage of total crop water use over the different growth periods
Vegetative period 20%
Flowering period 55%
The yield formation and ripening periods 25%
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Production characteristics--Risk Control• Weed
Most sunflower varieties grow rapidly and can compete effectively with weeds once they are well established.Several herbicides are registered for sunflower, Including Eptam, Treflan, Sonalan, Poast, Assert and Prowl.
• InsectsInsect pests that occasionally appear on sunflower plants include sunflower moth, maggot and beetle. Several insecticides are labeled for sunflower use, but such sprays should be used with caution during pollination with varieties that depend on insect pollinators
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Production characteristics—Risk Control• Diseases - Diseases can be a serious problem in a sunflower field.
Newer varieties have significantly improved resistance or tolerance, but once a disease occurs, little can be done for control.
• Blackbird Damage - Blackbird damage to ripening sunflower can be a serious problem with extensive yield losses. Half or more of the blackbird damage to ripening sunflower occurs in the first two weeks after petal drop.
• Cattail Management - Eliminating cattails is the single best weapon in reducing damage.
• Cannons -USDA does loan out cannons to scare blackbirds out of fields.
• Harassment - Blackbirds do not like to be harassed in the evening/night as they are settling into a wetland or tree grove.
• Desiccants - Glyphosate is labeled on sunflower as a late season weed control and works as a desiccant as well.
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Harvesting and storage • Sunflower is ready to harvest when the back
portion of the head turns brown.
• Efficient harvest requires a modified grain head on the combine.
• Seeds can be stored at up to 12 percent moisture for short periods, but should be dried to 9 percent moisture for long-term storage.
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Production Opportunity Cost• Capital Requirements • Land (One to Ten Acres of Land• Equipment1. Rotary Hoe2. Combine3. Cylinder
• Labor Requirement• Land Opportunity
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Typical grain losses in sunflowers
• Pre-harvest loss 2.2%
• Header loss 5.3%
• Threshing loss 0.1%
• Cleaning loss 1.8%
• Total 9.4%
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Cost-Return Budget (double-crop)
Estimated Returns per AcreEstimated Yield/Acre (lbs.) 1,400
Price (per pound) $0.080
LDP (per pound)* $0.035
Freight cost (per pound) $0.010
Net price (per pound) $0.105
Estimated Total Returns/Acre $147.00
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Cost-Return Budget (double-crop)Estimated Operating Costs/AcreSeed $15.00Fertilizer $20.00Crop Chemicals $6.00Machinery fuel, oil, repair $15.00Machinery hire and services $4.00Labor $21.00Misc. $5.00Operating interest (9% for 6 months) $3.87Total Operating Costs/Acre $89.87
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Cost-Return Budget (double-crop)• Estimated Ownership Cost/Acre
Machinery depreciation $29.00
Real estate taxes, depreciation, and interest (or rent)
• Total Ownership Costs/Acre $29.00
• Estimated Total Costs/Acre $118.87
• Net Return over Operating and Machinery Costs,
• Excluding Land Charges (per acre) $ 28.13
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Cost-Return Budget Direct CostSeed $17.83
Fertilizer $26.58
Herbicide $10.03
Insecticide $15.45
Machinery Operating Costs $0.00
Irrigation Energy $33.03
Irrigation Repair $3.30
Sprinkler Lease $86.54
Crop Insurance $0.00
Custom Spray/Hire $0.00
Drying Expense $0.00
Crop Consulting $6.50
Miscellaneous Expenses $10.00
Interest Expense $8.91
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Cost-Return Budget
Total Direct Costs $218.19
Fixed Costs
Machinery Ownership Costs $77.93
Total Fixed Costs $77.93
Total Costs Excluding Land $296.12
Breakeven Price to Cover
All Costs Excluding Land $13.67
Machinery Ownership Costs are based on Kansas Custom Rates, including all machinery, labor, fuel, maintenance, insurance and any other costs associated with Custom Rate Operations. Both field related machinery labor and non machinery labor are included in these custom rate based cost estimates.
Yield Per Acre: 21.7cwt/acreRecent Price: $25/100 lbs(21.7 cwt = 2430 lbs)Estimated Revenue: $608/acreNet Income: $275/acre
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Basic Summary• Good Market Opportunity• Easy to Plant in Kentucky1. Suitable Climate 2. Easy Planting Skill3. Low Cost
• Low Labor Requirement • Short Return Period• Low Risk
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ReferencesPlant• http://extension.missouri.edu/xplor/agguides/crops/
g04290.htm#siteHigh Plains Sunflowers Production HandbookMarketing• http://www.sunflowernsa.com/all-about/Nutrition • http://www.parrothouse.com/sunflower.html
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References
Financial Highlights• http://www.jeffersoninstitute.org/pubs/budgets/
double_crop_sunflower_budge.pdf
Others• http://www.fao.org/AG/AGL/AGLW/cropwater/
sunflower.stm
http://www.fao.org/AG/AGL/AGLW/cropwater/sunflower.stm
