What just happened?

Witness case studies of some high profile business failures in recent memory. Sears, Kodak are two examples of companies that once thrived but didn’t adapt.  One could fix blame upon disruptive technologies or market upheaval. Such companies stick with their game plan because either status quo or complacency or denial.  Capital investment in infrastructure can make it difficult to evolve.

Our enterprise is no different and we know that we are at a crossroads. The decision has been made to shift gears.  Whereas previously, we were Almond Orchard and Wine Grape farmers with emphasis on the almond tree side. We will now transition solely to the vineyard business going forward.

Background Note

An orchard has a typical lifespan of 20-25 years. When an orchard is no longer viable it is deleted and re-established. There is a 5 year wait for tree replants to grow from nursery size to the threshold of crop [income] production.  Ours (new in 1998) is soon approaching EOL.

Risk

1. Almond commodity prices are fairly stable for the moment but are experiencing downward pressure from the endless additions of new acreage year by year.
2. Irrigation water is about to become much more expensive with government entities seeking to monitor and regulate its usage.
3. The existing trees are enduring the effects of increasing salts  attributable to the aquifer and our local soil characteristic.
4. New orchard development costs are immense.

Objective

Strengthen the empire that Estee Strombotne has built during the last several decades and to position ourselves for future greatness. Ready to come about? This new direction will offer challenges and exciting times ahead!