| Strictly Business Magazine |
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| Strictly Business Magazine Copyright 1990-2003 A division of S&S Enterprises, a Floyd Snyder Production. Santa Maria, California. |
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| Home Grown Success of Agro-Jal Farms September 1994 The Maldonado family has been farming in the Santa Maria Valley since 1965. Abel Maldonado, Sr., began working for Adams Farms and developed a reputation that led Jack Adams to call him “the best employee I’ve ever had”. The hard work that earned that praise was applied to their first humble 3-acre parcel in 1977 with a co-op farm venture. By 1987, with the applied efforts of the entire family he resigned his position with Adams Farms and began farming 50 acres of strawberries on their own. Abel Maldonado, Jr., after completing his studies in 1988 at Cal Poly in San Luis Obispo, returned to assist in the family farming operation. That year Abel negotiated an additional 180 acres with the intention of growing broccoli and cauliflower as well as incorporating as Agro-Jal Farms. During 1988 Afro-Jal Farms, Inc. introduced its first strawberry label, “Red Diamond”. The amount of land leased for farm production by the company was 180 in vegetables and 96 acres in berries. In 1990, they introduced they introduced their second label as “Paloma” (Dove) and increased their vegetable production to 230 acres. In early 1991, Agro-Jal Farms, Inc. purchased a 5.25-acre industrial parcel on West Main Street with the future intentions of developing a corporate office and cooler plant. This year they were able to realize their dream of their own cooler with the ad of a loan fro Mid-State whit the assistance of Jack Pellerin and the Central Coast Development Corporation with the SBA loan. During the last five years, Agro-Jal Farms, Inc. has shown steady growth in both land in production and profitability. In 1992 they negotiated two large land leases adding nearly 900 acres to their current totals. One of the main reasons Agro-Jal Farms has been so successful is because the entire family is so dedicated to their work. Maldonado Sr. brings 28 years of farming and field management. He has implemented the majority of company standards regarding crop production, crop rotation and labor duties and responsibilities in the company fields. His numerous years of personal experience in all the above-mentioned related areas offer tremendous benefits to the other family members along with all the employees. Maldonado Sr. also has brought valuable personable standards for the other family members and employees to follow. For example, the family always has worked had and the business has experienced a number of profitable years in succession. Yet, all family members only draw minimal monthly income from the business. The family places the majority of the company profits back into the business for future expansion. While the company nearly tripled its land leases form 1990-1992, the equipment loan totals were increased minimally. In other words, Agro-Jal Farms will not over leverage its production. Instead “our company money is in our crops rather than borrowed money.” One of the obvious advantages to this thinking is that our companies’ cost of operation is low and if the market is off for a certain period Agro-Jal Farms, Inc. dies not need as much to sustain the cost of operation as those competitors that have a higher leveraged position in their crops. Abel Maldonado, Jr. has worked on the family farm since early in elementary school. Although he is only 27 years old he has over 16 years of farming experience. His father had taught him all the aspects of farming. He has brought new management ideas to their farming operation that has greatly enhanced the profitability and the growth the company has experienced in the last 4 years. Abel has largely been responsible for much of the negotiation of the most recent land acquisitions. The idea to expand the farm operation into shipping was also Abel’s. His management skill regarding income and expenses reflect very positively. Operating expenses are constant. Workman’s comp is low and on the decline. Debt-to-operating acreage ratio even after the large 900-acre increase in leas land production in 1992 is extremely small. The above factors reflect a conservative yet profit oriented management team. Abel’s siblings, 23-year-old twins Frank and Patty, are also major factors in the company’s success. Frank has worked on the family farms since a young boy. He also has the benefit of having learned all the important skills that are necessary to manage this large of a farm operation. Patty, the only Maldonado daughter, also plays a tremendous important part in the company. Her sales and computer skills allow her to control all the computer database, handle payroll, maintain daily income and expense data for accounting purposes, etc., moreover assist Able with the office management needs daily. Also, their mother, Gloria, is the company receptionist and secretary. The key to Agro-Jal Farm’s success has been honestly, hard work, loyalty, and their father, Maldonado Sr. Agro-Jal Farms as a corporation only started n 1988, and since that time they have increased the size of their operation from 230 acres to 1400 acres. It was only 4 years ago that the company began to distribute or sell its own produce. Agro-Jal Farms, Inc. began with only a few buyers then, and now has over 120 customers. It was not easy getting into the distribution of their produce; but now that people have had the opportunity to see the consistent quality and packaging of the Agro-Jal berries and vegetable produce, “they buy again and again form us”, says a company spokesman. As a company, Agro-Jal Farms emphasizes that we do the growing, the packing, and the shipping so that we have control of our product from the field to placing it on the truck. After 3 years with the Paloma and Red-Diamond labels being on the streets throughout much of the United States, Agro-Jal Farms has a reputation of providing their customers with a consistent quality product and service. |