Charm Berry

Prompt: How might we disrupt the unsustainable food system while creating value for local restaurants who need produce all year long?

Proposal: A hydroponic container farm startup, Charm Berry, that grows exotic and familiar varieties of strawberries in the off season.

Process

Burning Platform

Strawberries are grown in a way that aggressively consumes fertilizer and necessitates heavy use of pesticides. In order to pick and package strawberries, producers hire thousands of workers, usually in exploitative conditions. In order to survive their growing circumstances and last through a cross-country trip to the East Coast, strawberries are bred to be large and sturdy. Overall, the life of a 1 pound package of strawberries sitting in a Safeway in Baltimore is a history of genetic manipulation, intensive growing resources, exploitative worker practices, and thousands of miles of travel.

The Opportunity

Over my years as a farmer, I reflected that the American public loves the classic red strawberry unconditionally but the growing practices that supply most strawberries are fraught with exploitation and waste. Rather than hustle to familiarize people with weird crops, if I could find a way to offer strawberries that were delicious but grown locally, with great intention, and with sustainable practices, I could compete with supermarkets and convert more people to the new sustainable agriculture. In short, I believe the American strawberry is ripe for hacking.

Value Proposition

Charm Berry is a company that operates a shipping container farm that houses 363 strawberry plants, grown hydroponically using NFT, or, Nutrient Film Technique. Charm Berry distinguishes itself by:

Growing in the off-season. This farm operates in two growing cycles, January through April and September through December, in order to avoid the flooded summer season and intrigue customers with local, winter strawberries.

Unusual and familiar varieties. Charm Berry would offer a mix of classic red Sonata berries and Natural Albino pineberries. There is currently no other commercial grower of pineberries on the East Coast.

Local, small farm. Given the immense resources it takes to grow and ship strawberries across the United States, it is important that Charm Berry focus on the local market. If there is sufficient demand from outside of Baltimore, I would consider starting container farms in DC or in Philadelphia to service those areas.

Operations

The start-up construction costs total $15,330.97 and each operation cycle costs $4,086.73. After the first year, the only expense is the operation costs. Costs in the second and third year can be reduced slightly by using the strawberries natural inclination to produce “runners” or bare root stocks. With 363 plants producing for 3 months in each growing cycle, the system will produce a total of 3,168 pounds per year. By selling each pound of strawberries for $5, the farm is capable of bringing in revenues of $15,840 a year.

With the start-up year running at a net loss, the entire farm could pay for its construction in 1.5 years and then create a profit of $7,666.54 per year, an average profit margin of 48%.

Potential Partnership

The Foodshed restaurant group is a collection of premiere farm-to-table restaurants in Baltimore. Each restaurant sources nearly all of their ingredients from local farms and prides itself on offering a seasonal menu. Offering Charm Berry’s strawberries and pineberries to these restaurants would be an attractive proposition because keeping to a strictly local and seasonal menu usually eliminates annual fruits like strawberries from the menu until summer. By buying from Charm Berry, the chefs could incorporate strawberries into their dishes while keeping the promise of locally sourced food and creating a customer education opportunity.