The Challenges of Farming in Ventura & Santa Barbara Counties- Why Finding the Right Supplier Can Mean the Difference Between Success and Failure

What is happening to agriculture in Southern California? Nothing exciting. For years we have seen farmers work hard to produce harvests and during this time there have been few efforts to assist them, strengthen their hand, and help in any meaningful way. Cities and counties pile on restrictive legislation, new requirements, and build new walls. Suppliers are happy to sell fertilizers, pest control products, and chemistry but they’ve become order desks in the pockets of the company manufacturing the products they sell.

At MORR we have been able to see what others are doing, our so called “Competitors” but this does not drive our decision making. The mistakes they make we don’t want to repeat. Therefore, we want to share with you a few of the tricks in sales and marketing that drive sales but hurt the farmer.

There is a large generational farm in Carpinteria, CA that worked with a local supplier for decades. They wouldn’t entertain a quote since they had such a grateful heart for all the years between their respective companies. Short supply during COVID opened the door to unmet needs and we quickly and openly began discussing products and numbers. This experience was an eye opener for us in that we saw so clearly how long durations of time, with fixed options, and only one outside opinion can be detrimental to the health of an organization.  

At MORR, we desire to see our customers growing crops in Ventura and Santa Barbara counties flourish and promise to not repeat the common mistakes of others.

LOSS LEADERS

Many of the suppliers sell a few of the common products, the high-volume parts, at cost. PE Tubing, popular chemistries, commodity fertilizers, and similar other items. This tricks the consumer to lock up all their business with that specific distributor. Each season when you go to purchase NPK fertilizers, Nitrogen, PE Tubing, etc. they bring you the item they have racked up volume in and provide a false sense of trust and reliance based on the price point.  

Then, when purchasing other products, they charge substantially more than makes sense. If I get you to purchase a truck of PE Tubing from me at an “Early Buy” price point then you’ll come to me for all the emitters, irrigation controllers, PVC pipe, and the rest of the system even though I am over charging you and selling you inferior products. The same is true with fertilizers, get your CAN-17 here for cheap so you don’t check the bill when you purchase Potassium Nitrate. What I have seen priced on the invoices of others is ridiculous and often defies logic.

BRANDS

There are only a few global producers of fertilizers yet there are thousands of fertilizer companies. There are only a few national suppliers of isopropyl alcohol, phosphoric acid, potassium bicarbonate, calcium chloride, and yet there are countless vendors for these products. What makes one better than the other? They will convince you theirs is the best every time. Whether it is how they source the commodity or their manufacturing process. Maybe they cold-press only root stock to derive their horticultural oil, or possibly they’ve invented some new chemistry bond that allows for faster uptake.  

Whatever you believe is true or dishonest, 80% of their profits come from 20% of their sales. These specialty products, that we equate to the rows of candy and other useless items at the checkout counter in a supermarket, are what they need you to purchase to make profits. Suppliers play a ruthless game – How do we take a commodity, that is basically worthless and does not provide us with a big margin, and market it to our customers at the highest possible price? Let’s take Monopotassium phosphate, mix in an insignificant amount of Iron, and show data on how uptake doubles and yield triples.

MONOPOLY

Remember that game called Monopoly? Whoever corners the most property first gains the upper hand. Once you get the properties and start making money from tenants it’s time to build houses and begin to stack cash and take over the board. Knock out the competition and dominate the landscape and you win. The same is true in Agriculture.

Guess how hard it is to get set up to sell fertilizers and chemicals? First you contact the manufacturers that are paying, rebating, or otherwise incentivizing the big 3-4 suppliers to push their products. They have zero interest in setting up anyone new. We have told them we will purchase only full truckloads, we will pay in advance, we will not carry competing products if they meet our needs, and yet they declined us for years. To get irrigation, chemistry, and fertilizers at prices we could resell to farms took a lot of fighting and aggressive tactics we cannot discuss here.

Why should it be so hard for a company selling multi-millions of dollars of products to acquire relationships that would broaden the choices for farms, introduce new energy, vitality, and personality, and assist farmers in understanding the products they purchase? If you know our pest control advisors, irrigation technicians, chemists, and other customer-facing employees, then you know we invest in our clients. Shouldn’t we have the ability to do good business and grow our customer base? Why are not only the suppliers but also the manufacturers trying to block us from an even playing field?

PEST CONTROL ADVISORS

Many of the pest control advisors now work for the suppliers. That means they are scouting fields and then writing recommendations that are being filled by their employer. Seems odd that the person telling you what to buy, when to spray, and how much to apply, would be working for the same company that is profiting from that prescription. This is the equivalent of the pharmaceutical industry employing the doctors you trust with your life.

Many would argue “Well if you don’t like it then go get an independent PCA” and although that is possible for some farms it is hard to find these days. And not only that but how can an independent PCA compete with a PCA that works for the company selling pest control products? Where are they supposed to go get chemistry for your farm? From their competitors? The whole setup makes no sense.

Also, the suppliers have warehouses, trucks, sales representatives, and many other advantages over even a very diligent and qualified PCA. The squeeze is real and often puts hardworking and well-intentioned people out of a job. People that were previously fighting for your crop and your farm.

MORR SOLUTIONS

MORR, Inc. weighs in on these issues affecting the farmer and takes an approach that we believe will yield the best long-term results.   

LOSS LEADERS – We don’t play games on pricing. That means we don’t mark down and then mark up once you join the team. We don’t raise prices unless necessary, or the manufacturer raises prices. We know farms only survive and thrive when they can grow produce and sell it at a profit and there is no room to get rich off the back of a farmer that is putting everything he has onto his farm, into his crop, and into the harvest he is currently growing.  

Therefore, our prices are generally the lowest nationally. If we cannot make money on that item, it is not a marketing ploy, it is because there is no room for us in the equation and yet our customers still need it, and we must have it.

If we are going to custom blend fertilizers, manufacturer PVC, or distribute pest control chemistry then we must know we can do it as well and as inexpensive as anyone else out there or we are not adding value. If we are not adding value, then we don’t get involved.

We met a farm in Camarillo that was purchasing CAN-17, KTS, and a few other liquid fertilizers from a supplier in Oxnard. They were getting those products at around 3-5% above cost. Another farm in the same area was paying 15%. The differences between the two farms were minimal, they were approximately the same size and required the same volume of inputs. Both businesses were being charged around 55% mark-up on dry fertilizers. This is a lot considering they were purchasing full truckload quantities, and the supplier didn’t even need to touch the product. MORR was able to cut costs for both by going through invoices and showing where mark-ups were unwarranted. Additionally, we sell many more categories of products that allowed one-stop shopping for all the farm’s needs.

BRANDS – While other companies either carry everything or focus on margin, we focus on RETURN ON INVESTMENT (ROI). The product doesn’t have to be the least expensive if it gives the farmer a better return in the long run. Therefore, we sift through data and run trials to check efficacy and ensure the claims made by manufacturers are rooted in truth. Half-truth is not enough. If you get more yield but it does not outweigh the added costs and labor, we won’t recommend it.  

By focusing on ROI, we always put our customers first. An inexpensive commoditized product that doesn’t offer much margin when we sell it will still be our choice for your farm. This often comes at the expense of a specialty product that offers greater profits. Why? Because we believe that if we do so over a long period of time and across all our farms two things will happen. Our customers will have higher rates of success and increase overtime. And word will get out that MORR is honest and puts their customers before themselves. By doing what is right for our farmers we ensure our seat at the table.

There is a large commercial tomato grower in Oxnard, CA that was purchasing horticultural soap from one of the well-known manufacturers. This product cost him $115.00 for 2.5 gallons. There is another company called Chester Boone’s that manufacturers two products, ALL PURPOSE and PURE, and they cost substantially less and perform much better. While the first company manufactures their soap from oils purchased through a commodity exchange, Chester Boone’s sources are locally grown, organic, and high-quality inputs for saponification. Introducing this tomato grower to Chester Boone’s assisted them in controlling a broad spectrum of greenhouse pests at a fraction of the cost.

MONOPOLY – We ask to distribute, they say no. So, guess what, we ask again, and again, and again. Additionally, we start selling competing products and begin transitioning customers away from products they have used for years. We find undervalued partners that offer better products and prices but don’t fit into the corporate suppliers’ pockets as nicely. We have other tactics reserved for closed door conversations.

We get aggressive and we fight. We don’t accept their preference and instead we assert our preferences with them. And guess what, if we are true to our mission, our values, and our customers, the manufacturers eventually come around. We have been set up with companies that have not opened new distributors in over a decade. Long-standing monopolies have been broken in certain parts of the country as we have entered new markets and go after new crop types.

Although we are new, although we are self-funded, and although we are relatively small, we have been built into a formidable adversary. We are a dangerous supplier to our competitors. You need a fast decision; we can make that. You need something delivered right away, we can make that happen. Can’t find it? We will find it for you. They said sorry but no, we say no problem. Too frequently other companies are quick to fill an order but too infrequently they are willing to work for it. MORR is different.

While fighting aphids and thrips at a celery farm in Camarillo, CA a pest control advisor from another company recommended a specific brand of Azadirachtin. This product had 3% Azadirachtin listed as the active ingredient and an MSRP of $1,550.00 per 2.5 gallons of product. Our Pest Control Advisor recommended switching to Gowan Aza-Direct which is a 1.2% Azadirachtin and carries an MSRP of $640.00. The customer was confused when doing the math, “Won’t I be paying more?” Fortunately, our PCA has been doing this for over 15 years and knows the products and manufacturers well. Gowan Aza-Direct is manufactured using state-of-the-art technology in Arizona while the competing product is made in India and imported to the USA. Since Azadirachtin quickly breaks down and loses efficacy the imported product cannot compare in performance. Plus, unbeknownst to the customer, they have approximately the same usage rates. How can a 1.2% concentration and a 3% concentration have about the same usage rates? Because Aza is not the only thing in that bottle and the Gowan product has a lot more going on than meets the eye. One trial and the customer decided to switch brands. When the loser manufacturer’s sales rep called to complain that we switched his big customer you can imagine the conversation didn’t go as he would have liked, and he was unable to retrieve the lost revenue from that farm.

PEST CONTROL ADVISORS – Our pest control advisors remain independent. They can shop with us or purchase elsewhere if desired. There is no binding contract. We work to ensure they have the best prices but if that were not the case they are instructed to act in the best interests of the customer. We cannot be everything to everyone and there are some crops, some farms, and some areas that benefit from utilizing another vendor. We still offer services and support through our professional team and product availability. No need to go out to dinner or kickback a farm manager, we stay true to our values, practice honest business, and do our part every time.

Additionally, we support countless farms that are not using our Pest Control Advisors. Many farms that don’t trust a PCA buying chemistry from their employer ensure honest business practices by shopping with MORR. Independent Pest Control Advisors also love our quick turnaround times, large inventories, website order portal, and guaranteed low prices.

There is a large, sweet pepper grower in Somis, CA that was using a PCA from the local supplier. He acknowledged that conflicts of interest can occur but didn’t think it was worth worrying about and said, “Everyone does it”. We stayed in close contact and even worked together on irrigation, mulch, lay flat tubing, and a host of other consumables and durable goods. Yet for a long time we could not get the pest control business. That is, until we found out that the PCA was making recommendations of only specialty products with much higher costs than commonly available products. This farm was going to need to pay more for liquid fertilizers if they switched to us since we didn’t have a tank farm as close, but they were going to save on chemistry and the pest control advisor services themselves. After we discussed the financial situation and moved around the decimal points we were able to pick up his business and save him large sums of money. Word spread to other farms, and we began picking up new accounts in the area ever since. If you have ever been to Somis, CA you know it’s a beautiful area and we love visiting frequently, this costly mistake opened the doors to our growth in the area. Thank you.

IN SUMMARY

Commercial agriculture has been around since Noah came out of the arc, invented farming equipment like the plow, and planted a vineyard. Many of the companies and products we rely on have also been around for a long time. Now is the time to give a new company a chance.  

A wise man once told me that in business you shoot the dogs, ride the horses, and feed the lions. Dogs are worthless suppliers that don’t offer value, they need to quickly go away. Horses are charging now, and you can jump on board and see how far they carry you. You ride horses. Lions are the kings of the jungle. They go out and kill prey, they feed the pack, and they never rest. There are not a lot of lions in the jungle but when you meet one you know.

Farms in Ventura, Oxnard, Somis, Saticoy, Santa Paula, Camarillo, Somis, Fillmore, Piru, Moorpark, Ojai, Carpinteria, Santa Barbara, Lompoc, Buellton, Los Alamos, and up to Santa Maria and beyond are specifically struggling with these issues and more. We meet farms that are overpaying for common items, picking up last minute needs shopping retail, and turning over the keys to supposedly reputable people that cost them large sums of money. There are great farm managers, PCAs, and suppliers for sure, but there are also lots of problems, and the goal of any business is to successfully navigate those straits without hitting rocks. 

MORR works with farms across this territory, and we can tell you from experience there is a lot going on that requires change. If you see yourself working hard to build a farm that will offer generational wealth to your children and grandchildren, then MORR is the manufacturer/supplier for you. Call today and let’s get to know each other.

MORR, Inc.

Crops Want MORR

855-TRY-MORR

sales@MORR.com

www.MORR.com