Capitalizing On Cuttings

Hatchett Creek Farms has found a formula for profitability and longevity.

By Tacy Callies
Field Editor
George Griffith, Hatchett Creek Farms
George Griffith, Hatchett Creek Farms
Photos by Tacy Callies

George Griffith is a man of diverse interests and talents. He’s an avid Florida Gators fan and an active trader in futures and options. You may find him high in the sky piloting his plane or diving deep in the sea exploring marine life. But most often, you’ll find him on land overseeing operations at Hatchett Creek Farms (HCF) in Gainesville.

With degrees in public administration and zoology from Florida Atlantic University, Griffith was once a professional diver at a Florida tourist attraction. “I wanted to be Jacques Cousteau, but my French was not good enough,” he laughs.

Griffith began growing in the 1970s with a small u-pick blueberry farm. “I was looking for more year-round income from the farm,” he says. “Having a science background, I was enamored with greenhouse production. A seed salesman at the time said he could not find any rooted cuttings. I saw a market unfilled, and went for it. We got in on the beginning of the change from seed to vegetative cuttings. Twenty two years later, it is like the Energizer Bunny. I had no idea I was going to jump on a tidal wave.”

Keeping Control

Although vegetative cuttings have provided a good living for Griffith, it’s not always an easy living. But he’s learned a lot over the years and has the necessary systems and equipment in place to meet challenges that arise.
 
Hatchett Creek Farms
www.hatchettcreek.com
Owner: George W. Griffith Jr.
Year Founded: 1988
Location: Gainesville, FL
Size: 200,000 square feet in production
Number of Employees: 40
Main Crops: Tropical perennials
Annual Production: Approximately 5 million plants
Region Served: Primarily U.S., Canada, and the Caribbean, but ships worldwide
Customers: Growers and garden centers via brokers
Member of: Florida Nursery, Growers & Landscape Association and the University of Florida President’s Council
Business Philosophy: “Customer service, customer service, customer service.”
“George is a no-nonsense kind of guy who figures out precisely how to create the greatest return on his investment and then makes sure that everything is working at peak efficiency,” says friend and fellow Gainesville grower Alan Shapiro of Grandiflora. “He is not afraid to gamble and borrow money to buy the best equipment and structures that can be had, and then keeps them running to crank out high-quality, uniform product.”

“One of the biggest differences in growing liners as opposed to finished material is that things can go wrong very quickly,” Griffith says. “In field production, if you see a little yellowing on your lantana on Friday, you can wait until Monday to fertilize without a problem. On liners, 15 minutes can be important. There are no weekends.”

A waterline break in the mist system, a pump in a well that fails, or a botrytis outbreak can spell disaster for liners if quick action is not taken. That’s why Griffith is a big proponent of having redundancies in place. “Redundancy is not doubling of expenses, but an inexpensive insurance policy,” he says.

For example, HCF has a loop of propane tanks to provide even distribution throughout the nursery. So if a valve breaks or tank becomes empty, the next tank in the loop is automatically accessed. Other redundancies include multiple, interconnected wells and full generator power to operate the nursery during power outages.
 
Slideshow
Click here to see a slideshow of more photos of Hatchett Creek Farms.
All watering is done by hand at HCF. Some may see it as an outdated or inefficient method, but Griffith wouldn’t have it any other way.

“Hand-watering means employees have their eyes on the plants, and are frequently inspecting them, so they can catch problems early on if they occur,” he says. “We do a live inventory every week, but it’s much more important to know the condition of your inventory than its location.”

Broker Business

When Griffith first opened the doors to HCF in 1988, the nursery sold a lot of proprietary material, but today the focus has shifted to mass-produced, low-cost, solid-performing color.
“We grow the generics of the industry,” says Griffith. “This material does not require special tags, marketing charges, or royalty charges and can compete with the plant material that does.”
 
Strategies To Stay Profitable
Hatchett Creek Farms Owner George Griffith offers the following advice to maintain a strong business in a weak economy:
• Keep debt under control.
• Keep business ethics high.
• Don’t think you are the sharpest knife in the drawer; you’re not.
• Keep things simple. Once you buy specialized, proprietary software, you are owned.
• Grow what customers want, not what you grow.
• Offer free health insurance. Yes, it’s a huge expense, but it’s important to employees.
• Keep employees informed.
• Preserve your knowledge bank. Adjust work assignments rather than hire temporaries.
Keep a team concept with employees.
• Remind them how connected everything is.
Give some increase in pay rate.
While the plants HCF sells may be common, the nursery’s approach to sales is not. From the start, HCF has sold almost exclusively to brokers. “We are here to service our customers — not to build palaces and not to fuel our egos. The broker system is a tried and true system that works, and we are dedicated to it,” Griffith says. “Staying with and supporting the broker system is the answer, not trying to replace it with eBay. We always are asked to work around them, and we decline to do so.”
 
Griffith’s goal is to make it easy for brokers to buy. The use of eMail communication and electronic billing help accomplish that goal, as does delivered pricing that puts the freight bill up front rather than months after the fact.

Of course, if a customer needs something fast and can’t reach their broker, HCF has the flexibility to work directly with customers, but the pricing and billing go back through the broker.

“We are small-customer oriented as well as equipped to handle large programs,” says Griffith. “We do a large number of special orders for customers. We ship what customers need and want, not just what we have in our catalogue.”

Custom programs include requests for a specific number of cuttings per cell, special sizes, and even growing in customers’ own containers.

Shipping Solutions

One key advantage HCF offers to customers is reliable, economical shipping.
“FedEx came to us a few years ago and said we were one of their largest shippers in north-central Florida and wanted a stronger relationship,” says Griffith. “As a result, we have developed special programs and provide mixed-palletized shipments — even internationally.”
 
The Pros Of Pallets
According to George Griffith, pallet shipping offers several advantages, including:
• Better Handling: Pallets are not sent down high-speed conveyor belts or carried upside down.
• Product Priority: Cargo will not be bumped for passengers.
• Better Product Quality: Plants are able to have air flow, which reduces risk of damage from being packed in boxes.
• Less Cost: Shipping in bulk reduces freight and cardboard costs.
• Easier Billing: Product, packaging, and freight are all on one invoice.
HCF has negotiated highly competitive rates with FedEx for palletized shipments, translating into substantial shipping savings for customers. Pallets are designed to hold a combination of sizes, from liners to 4-inch pre-finished material. A minimum of 24 trays are required to ship palletized freight. FedEx also offers a limited freeze-protection service, which blankets the shipment during the cool shipping season.

“We’re designed to ship,” says Griffith. “We don’t want our customers to have to jump through hoops to get their plants.”

While shipping is clearly one of HCF’s strengths, one area Griffith says he’d like to expand in is automation.

“But with most equipment coming from Europe, and the Euro so strong and the dollar so weak, now is a good time to pull back and be more prudent,” he says. “One thing the economy has shown me is that your past metrics mean nothing at this time and maybe for awhile. There is too much variability and volatility in the economy to predict the future. It’s tough to dream and think of the next step yet, but I can tell you we’re here for the long run.”

 

Comments:

Submitted by: mike
November 9, 2009
can i cut back my bougainvillea save it for next season we live in pittsburgh pa. i think we are in zone 5 or 6 i have the plant in doors. will it re grow. thank you mike
Submitted by: Eric
November 10, 2009
Yes, you can cut it back to take indoors for the winter. Keep it in a brightly lit room or with sun exposure.It would also be beneficial to but it in the tub or shower and rinse the foliage off every 2-3 weeks. This will help prevent spider mite problems. Also keep it on the dry side, water only when the soil dries out.. It should survive fine over the winter.

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