1
Unit Standard 7087
version 3
AGRICULTURAL AND HORTICULTURAL SCIENCE
Analyse and evaluate relationships between market forces and a primary product.
level:
3
credit:
8
final date for comment:
December 2003
expiry date:
December 2004
sub-field:
Science
purpose:
People credited with this unit standard are able to: analyse
the effects of market forces on the supply of a primary
product; analyse the effects of market forces on the demand
for a primary product; and evaluate interactions between
market forces operating on a primary product and its market.
entry information:
Open.
accreditation option:
Evaluation of documentation by NZQA.
moderation option:
A centrally established and directed national moderation
system has been set up by NZQA.
special notes:
1
A primary product is the unprocessed plant or animal
crop produced by the grower from the land, without
any processing to change or modify its characteristics.
2
Market forces may include: quality, quantity, price,
attributes, seasonality, reliability of supply.
3
A local primary product can be any product produced
within the learners local region; an export primary
product is one which is exported.
Elements and Performance Criteria
element 1
Analyse the effects of market forces on the supply of a primary product.
performance criteria
1.1
The analysis identifies the market forces in terms of the supply of the primary
product.
1.2
The analysis evaluates the market forces in terms of their effects on the supply of
the primary product.
2
element 2
Analyse the effects of market forces on the demand for a primary product.
performance criteria
2.1
The analysis identifies the market forces in terms of demand for the primary
product.
2.2
The analysis evaluates the market forces in terms of their influence on demand
for the primary product.
element 3
Evaluate interactions between market forces operating on a primary product and its market.
performance criteria
3.1
The evaluation specifies the market forces in terms of the primary product and its
market.
3.2
The evaluation analyses interactions between market forces in terms of supply
and demand.
3
Unit Standard 7089
version 3
AGRICULTURAL AND HORTICULTURAL SCIENCE
Analyse a husbandry practice within a schedule of operations for a primary product.
level:
3
credit:
5
final date for comment:
December 2003
expiry date:
December 2004
sub-field:
Science
purpose:
People credited with this unit standard are able to construct
a schedule of operations for a primary product, and assess a
husbandry practice within a schedule of operations for a
primary product.
entry information:
Open.
accreditation option:
Evaluation of documentation by NZQA.
moderation option:
A centrally established and directed national moderation
system has been set up by NZQA.
special notes:
1
A systems diagram of a schedule of operations is a
structured format that links production processes with
time of year.
2
Primary product attributes refers to those normally
present in the generic product at harvest.
3
A schedule of operations links the husbandry practices
with time, over the production cycle.
4
Husbandry practices within a schedule of operations
may relate to: the environment, cultivar or breed
selection, crop or livestock production technique.
5
A production technique is any husbandry activity
carried out by the grower to produce the primary
product. This can include practices such as pest and
disease control, nutrient application or feed
requirements, environmental control.
4
Elements and Performance Criteria
element 1
Construct a schedule of operations for a primary product.
performance criteria
1.1
The schedule of operations is presented in terms of a systems diagram.
element 2
Assess a husbandry practice within a schedule of operations for a primary product.
performance criteria
2.1
The assessment of the husbandry practice is in terms of its effect on the product
quality or quantity.
2.2
The assessment predicts the effects of the husbandry practice in terms of
maximising profits.
5
2006
AGRICULTURAL AND HORTICULTURAL SCIENCE
Level Three
Unit standard 7087
Analyse and evaluate relationships between market forces and a primary product.
Credits: 8
And
Unit standard 7089
Analyse a husbandry practice within a schedule of operations for a primary product
Credits 5
“A Growing School”- Lettuce Grow
Student Instructions Sheet
Primary production has moved from being production driven to being market driven.
Few growers would grow a product if there were little or no market demand. As a
result growers will only respond to market signals which reflect consumer demand. If
necessary, they will change their production practices to produce a product
demanded by the consumer.
This assessment requires you to research the growing of a crop, and present a
written report on the marketing and the manipulations of the management practices
used in the production processes to satisfy market requirements for the crop you
choose.
Marketing focuses on the market forces, while the production processes involve all
aspects of production from site selection and establishment until the crop leaves the
grower’s control. You will need to include the calendar of operations and the
management practices needed to produce the crop with the attributes required by
your selected market opportunity.
Specific learning outcomes:
At the end of this project each student should have:
1. Chosen a suitable crop which can be monitored while at school through the decision
making process
2. Completed a market survey on the consumers who are most likely to buy the crop and
consumer preferences/requirements.
3. Selected one suitable market opportunity and establish its requirements.
4. Researched the market forces (supply and demand) that affect the marketability of the
crop locally and in New Zealand
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5. Produced a detailed production plan and time line which can be followed to meet market
demand for the market opportunity selected.
6. Manipulated the management practices to produce a marketable product for the selected
market opportunity
7. Followed the production plan and monitored the crop in a growers situation.
8. Marketed the crop.
9. Recorded and evaluated the enterprise in an annual report.
10. Listed a detailed list of references.
Products which are suitable for this project could include:


Lettuces
Cabbages


Tomatoes
Potatoes
In making your choice of crop, consider your interests, time available to research the
product, availability of resources and access to commercial growers. Check with your
teacher before making a final choice.
The research project report will be due WEEK 1 Term 3. You will be given
2 -3 periods each week for approximately 10 weeks, in addition to your independent
study to work on this assessment task.
To help you, an outline of the research project requirements is given on the following
page.
Presentation:



The report should be written up in your project book (1B5). If you choose to
use the computer the report must be bound, no clear files will be accepted
Each section of the report should be presented on a separate page or pages
Diagrams, photos, tables and graphs should be used where appropriate
Outline of the research project
The times given are an indication only of in class time and additional independent
research time is required. Some Tasks could be carried out at the same time.
All the project details are to be recorded and handed in for marking in a 1B5
exercise book.
Task 1:
A. The product (approximately 7 hours)
 Select a crop to research and supply to one market opportunity
The product should be:
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Construct a detailed decision tree of how you arrived at your choice. The tree should
show that you considered at least two crops and the reasons for your choice.

Check with your teacher to get information on local growers and resources
available, as well as recent grower publications, to make sure the crop chosen will
cover all of the research project requirements.
B. Meeting the Market Requirements.
Research requirements of the chosen market opportunity for your animal product and
the requirements for the product produced on a commercial scale.
You need to
1. Identify the chosen market opportunity
2. Identify a commercial outlet which sells the product (This may be done by
email or visiting the outlet)
3. Explain in detail the market requirements for these markets such as what attributes they want,
 why they demand these attributes
 preferred quantities and timing of supply, etc.
Where possible the attributes should be quantified and units included.
To gather this information you will need to:
Design and carry out a simple market survey to establish the requirements of each
the market opportunity:
 That there is a market for your chosen product
 The characteristics of the consumers who will buy the product ( restaurants,
households, supermarkets)
 The attributes (sellable characteristics ) the potential consumers prefer ( size,
colour, flavour, variety etc.)
 The quantity you will need to grow to supply the market. This may also include
the quantity of different varieties that may be required.
 When the consumers would prefer to be supplied with the product
 The size and quality the consumers are looking for
 The price range that the consumer is looking for
Repeat this survey with reference to commercial production
Refer to Appendix 0ne : “How to carry out market research”
MILESTONE MARKING DATE FOR STEPS ONE AND TWO WILL BE
__________________
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Task 2: Planning the production process (approximately 4 hours)
Explain, in detail, the production process used to grow your crop.
 It will be necessary to produce a flow chart showing the stages in the
production process from site selection and establishment until the crop leaves
the your control and the management practices involved in each stage.
 Outline the management practices involved at each stage of the production
process.
Explain, in detail, how ONE management practice used in the production process
affects your product so that it meets the requirements of the selected market
opportunity. For example –
 what attributes they want,
 why they demand these attributes
 preferred quantities and timing of supply, etc.
Develop a calendar of operations for the market opportunity.
(Refer to the appendix for layout guidelines –electronic format is available)
MILESTONE MARKING DATE FOR STEP THREE WILL BE
________________________________________________
Task 3: Crop production
Following the planned production process and calendar of operations to grow and
market the product.
This part of the project should be completed by the
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7089 E1.1
7089 E2.1
7089 E2.2
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Task 4: Market forces (approximately 10 hours work)
1. Establish which ONE market opportunity you have chosen to supply.
Market Opportunity: ________________________________________
Market Forces: List some market forces that affect your chosen product related to supply
and demand for the market opportunity listed above.
SUPPLY





Demand




3. Out of this list Choose FOUR market forces: TWO for supply and TWO for demand which
affect the supply and demand for your specific product.
Explain how these factors influence supply and demand of your product focusing on
the commercial aspects.
Complete:

the one summary sheet for a commercial opportunity by visiting/contacting a
market, grower or outlet that supplies the product.
Use the format provided in Appendix 3 - electronic copy available
It will be useful to collect articles, information and relevant annual data that illustrate
the market forces influence on the supply or demand to use as resources in writing
your report.
MILESTONE MARKING DATE FOR STEP FIVE
_____________________________________________
7087 E 1.1
7087 E 1.2
7087 E 2.1
7087 E 2.2
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Task 5: Evaluate the interactions between the market forces operating on your
primary product and its chosen market.(approximately 5 hours) (Refer to appendix
three for format which is available electronically)
Presentation:



The report should be written up in your project book (1B5). If you choose to
use the computer the report must be bound, no clear files will be accepted
Each section of the report should be presented on a separate page or pages
Diagrams, photos, tables and graphs should be used where appropriate
Report Order:
1. Introduction
Explain:
 Characteristics of the crop related to the chosen market.
 Photo/diagrams/photocopies/computer images of varieties
2. Requirements of the market opportunity
Explain, compare and contrast the requirements of each opportunity. This should
include:
 Consumer type
 Preferred attributes
 Venue
 Time and seasonality
 Quality required
 Quantity supplied
3. Summary of financial returns
This information can be used as data in your explanations and justification. This
should include:
 Statement of fixed and variable costs
 Yield per unit area
 A brief gross margin analysis
 The economic efficiency of supplying the two different opportunities
4. Summarise the factors impacting on supply and demand.
This will be a brief summary from your discussion in task 5.
5. Explanation of management practices
Explain in detail the management practices used to meet the attributes, quantity
quality, timing and price requirements of the market opportunity.
6. Manipulation of management practices used
Explain how THREE management practices within the production process were
manipulated to produce a product to meet the market requirements. Use data
and information gathered from tasks 1 – 4 and points 1 -6 of this task.
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7. References
List any of the following used in research:
 Personal contacts
 Books magazines, papers, magazines etc
 Website addresses
The evaluation and justification must use data and information gathered during
the project to provide the DEPTH of answers required.
Where possible several examples should be given to provide the BREADTH
required.
PROJECT COMPLETION DATE
_______________________________________________________
(note this date is final for assessment purposes)
3.1
3.2
.
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TIMELINE FOR THE RESEARCH PROJECT: US 7087 / 7089
Term 2:
Crop choice
Term 2: Due date
Market research
Tick on completion
Step 1
Step 2
Market requirements established
Term 2: Due date
The production process
7089 Element 1
Step 3
Term 2 Due date
Crop production and marketing
7089 Element 2
Market forces research
7087 Element 1
7087 Element 2
Research project due Monday
7087 Element 3
Step 4
Term 2: Due date
Term 2 Final due
Date
Step 5
Step 6
CHECKLIST FOR THE REPORT
The written report should include:

Title page and introduction

A contents page with sub-headings for each new section of work

Requirements of the two market opportunities

Budget and relative returns for animal product grown

Summary of factors impacting on supply and demand
US 7087
Explanation of management practices
US 7089
Manipulation of management practices used
US 7089
A bibliography listing all your sources of information with the date you
accessed and used the resource.





An appendix containing supporting evidence such as raw data
signed authenticity statement
The report is due on ____________________________ and must
include the information you collected as part of the research.
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APPENDIX ONE
HOW TO CARRY OUT MARKET RESEARCH
Market research is used to:
 Establish the market potential of a product – the feasibility of selling the product
i.e. is there a market for the product?
 Investigate the consumer preference for various attributes of a product through
product research
 Discover the market segment which is likely to buy the product i.e. who in the
community is most likely to buy the product, their spending power and lifestyle
 Types of market opportunities available e.g. fancy lettuces, iceberg, mescalun,
etc
It is essential to complete market research:
 To monitor changes in market preference for an existing product
The results of the market research may:
1. Encourage a grower to grow a new type of crop because a potential market has
been isolated and it looks financially viable
2. Discourage a grower from producing a new type of product because a potential
market has not been isolated and it does not look financially viable
3. Provide the grower with information about the preferred attributes of the product
and those which the consumer does not want. This may impact on the grower by
helping make the choice of varieties with the preferred attributes and avoiding
those with the less popular attributes
4. Allow the grower to time the production of the product so that it will be on the
market when there is high demand
5. Ensure that the grower budgets to produce the product so that it can be sold at
a price which suits the market segment
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Steps to follow when conducting market research
1. Decide how the consumer will be approached – this generally involves some type of
survey e.g. orally – interview or by phone or written response – through a questionnaire
2. Plan and design the survey carefully: (Use the check list to ensure your survey will
provide the information you need)






List what information you wish to learn from the survey
Using this information write out a series of questions which should give you the
answers you want. Aim the level of the questions at the type of consumer you are
surveying ( e.g. very simple for younger consumers)
Only ask a few clear questions ( Four or five will give you most of the information you
need)
Design a response format which is easy to record and analyse e.g. a choice of three
options with a “tick the box” response
When designing a questionnaire generally only cover the maximum of one side of A4
paper.
Make the questionnaire look attractive with relevant pictures or cartoons
3. Conduct the survey using a minimum sample of ten consumers. These consumers
should be potential buyers of the product. They should also span a range of potential
market opportunities e.g. staff, students, parents, general public.
4. Analyse the results of the survey. The information should be averaged and summarised
in such a way that it can be used by the grower to plan the production of the crop, or,
change the crop so that it better suits the market. Tables and graphs should be used
where appropriate.
5. Present a report evaluating the analysis and summary. This should include advice to the
grower on how the information could be used in planning crop production and marketing.
Detail should be given including:
 Varieties preferred
 Volumes of different varieties required to be grown
 Quality (Attributes, consistency, uniformity, presentation) required
 When the product should be ready for sale
All the statements in the evaluation should be justified using detailed information (values
where possible) gathered in the survey.
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Survey Check list
Introduction: Explanation for the survey to
potential consumer
Name of product
Varieties available: Photocopied pictures or
digital photos may help
Potential end uses: (at least 2)
Potential points of sale: (at least 2)
Timing: When the consumers for each
opportunity would prefer the crop to be ready
Quality : Size and presentation of product
preferred by each opportunity
Quantity: Number of units each consumer
envisages buying
Acceptable price range: The price the
consumers are willing to pay for the size and
presentation selected
APPENDIX TWO
Presentation of flow diagram

SITE
SELECTION
Choice of:
Environment
choice of :
method
irrigation
pest and disease
control
PROPAGATION
HUSBANDRY
pest and disease control
choice of:

base fertiliser
timing
HARVEST
method
Procedure and presentation for the calendar of operations:
1. Develop a time line showing the sequence of production activities of your crop
product. This should :
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


Span the intended period of production in months
start at site selection and conclude at where the product leaves your control
(harvest/sale)
show the periods when each activity is at its peak
Method of drawing up a calendar of operations:
1. Make a list of the major management practices required in crop production
2. Note: (a) How long each practice takes ( I week/1 monthe/1 day etc.)
(b) The time each practice begins and ends
3. List practices on the left hand side , with weeks/ months etc across the top
4. Using the information gathered in 1 – fill in the practices in order
5. Using the information gathered in 2 – fill in the time bars.
e.g.
Management
practice
(examples)
july
A
u
g
Sep
Oct
Nov
Dec
Jan
Feb
Mar
April
May
Key management practice selected for detailed investigation.
__________________________________________________________
APPENDIX THREE
Task 4: Market forces
Market forces
Supply
Factor One:
Factor Two:
Demand
Market Opportunity :
June
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Factor One:
Factor Two:
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APPENDIX FOUR
TASK FIVE:
Explanation and justification of management practices used in the production
process.
1. Introduction: Describe the characteristics of the product and those specific
to the varieties grown include photo/diagrams/photocopies/computer images
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2. Requirements of the market opportunity: Explain the requirements of the
market opportunity supplied including: ( use the information gained from your
survey)
a. Consumer type
b. Preferred attributes
c. Venue
d. Time and seasonality
e. Quality required
f. Quantity supplied
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3. Summary of financial returns:
a.
b.
c.
d.
Statement of fixed and variable costs
Yield per unit area
A brief gross margin analysis
The economic efficiency
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4. Summarise the market forces impacting on supply and demand: Include
your sheet of the commercial production of the product (US 7087)
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4. Explanation of management practices: Explain in detail the management
practices used to produce the product. ( insert task 3) (US7089)
5. Manipulation of management practices used:
Choose THREE management practices which were manipulated to meet at least
TWO of these requirements of the market opportunity:
a. Preferred attributes
b. Time and seasonality
c. Quality required
d. Quantity supplied
USE VALUES AND OBSERVATIONS GAINED FROM THE PREVIOUS TASKS TO
PROVIDE DETAIL
Management practice One :
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Management practice Two :
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Management practice Three :
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6. References: List names of personal contacts, magazines, papers, books or
website addresses used in this research.
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