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Swanton Berry Farm Summary
Davenport, California, US: Swanton Berry Farm www.swantonberryfarm.com
Swanton Berry Farm is known for its signature strawberries, which farmer Jim Cochran fell in love with 25 years ago. “I already knew about the chemical way of growing strawberries,” he recalls. “I felt like it might be possible to grow them without chemicals, even though most people thought that was crazy and couldn’t be done.” He became the first organic farm in the country to become 100% unionized and to offer family medical and dental coverage, profit-sharing, a stock ownership plan, retirement plans, and vacation and holiday pay—all while keeping the operation profitable. Now expanded to 200 acres, Swanton Berry Farm’s produce is sold via two U-Pick locations, stands in 14 farmers markets, several independent grocery stores, and 15 Whole Foods Market stores in the San Francisco Bay Areas. His annual profits grow by about 3%.
With high quality organic growing methods and a labor force highly motivated by fair compensation, a product can command a higher price. Moreover, quality and social responsibility solidify brand loyalty, which makes possible direct sales to committed consumers that yield a higher profit margin.
Cochran relies on three target groups to account for these sales: consumers who can afford to pay more, "committed food people" who will seek out his strawberries' exquisite flavor, and the accidental customers who come to pick his berries and fall so in love with the product that they become hooked.
Thanks to benefits and stock options, his workforce is comprised of many long-term employees who are knowledgeable and who have a vested interest in the farm’s success. He also keeps an open-books policy; staff can check on the accounting of the business. “It is culturally a little bit weird to be next door to the Silicon Valley and its get-rich-quick model,” he admits. “To be doing okay by going slow and living right next door, it’s hard to watch sometimes. But I can’t complain too much about the Silicon Valley gazillionares—because they are buying my strawberries!”
