7A – Testing the Hypothesis P1

Ø  Opportunity: The declining supply of Pine straw in Florida due to a Marco decrease in Pine Tree fields due to changing climate conditions in Florida.

·       The who: Pine straw companies that spread or sell pine straw in Florida.

·       The what: They will be unable to spread Pine straw because they will be lacking sufficient product.

·       The why: Insufficient Pine fields are being planted and racked because of the lack of healthy fields.

·        Testing the who: Spreaders of pine straw are in dire needs of an increased supply of pine straw as fields become less productive and shrink in size. Most of these fields shrink because the changing climate, which is uncontrollable. As quality wanes, it will be more difficult for spreaders to maintain large contracts and to attract new customers.

·        Testing the what: Certain fields are affected right now with younger fields having been more affected by the changing climates where older fields have dealt with the stress better. However, These older fields will be harvested soon, with the majority being harvested in 5-10 years. After this, pine straw will increase in value. 

·        Testing the why: There will be certain people that oppose climate change altogether but those people cant be argued with. Even so, they to will feel the difference in product supply and quality soon. Many people will argue that the decrease in labor will cause the shortage but I would argue that the decrease in profitability will decrease in labor because they get paid by the bale as well. Less Bales means less money for the laborers.

·        Interview #1: Pine straw trucker

·        In this interview, I interviewed a Pine straw trucker. He has been making his living for 7 years transporting pine straw as a “mercenary” of sorts working for whoever is the largest company at the time.  He seemed indifferent about the possibility of moving product from Georgia because it wouldn’t make much of a difference to him. When asked about the possibility of there being less pine straw in the next 5-10 years due to climate change. He notes that many people rely on this industry to survive and that would be catastrophic for many peoples lives. He notes that immigrant labor in north Florida would be highly affected.

·        Interview #2: Immigrant Laborer

·        I interviewed his man in one of the pine fields in Alachua county. He said he would prefer to stay in the area and wouldn’t like to go so far in order to work but that who knows many who wouldn’t mind. Many workers, he remakes, don’t have families or roots in the area. “I do have roots with my wife and kids in school”. He states he would have a hard time leaving and changing career because he worked in pine straw for many years.

·        Interview #3: Pine Straw Club Leader

·        This is a very important person in the supply chain for product. The Club leader is the person who organizes the labor, equipment and who often has the land contracts from local land owners. He seemed very excited about the possibility of working Georgia because he sees first hand who quality and quantity has been deteriorating in northern Florida.  He says that he can no longer guarantee and “Price per Acre” rate to his landowners because the quality has been slowly deteriorating. He says that most land owners in Georgia plant less pine trees because they haven’t had a market to sell their product.

·        Interview #4: Land Owner in Florida

·        Pine Fields are given to Club leaders under contract. They are paid a “price per bale” rate for every bales taken from the fields. They oversee proper maintenance of the fields. He seemed very against the idea of moving any pine fields to Georgia. He says that the climate isn’t appropriate and that the soil isn’t adequate. (should be investigated). I knew that this would be the most opposed part of the equation. Land owners have invested for years to rack and grow pine trees and they will be opposed to any plan that doesn’t include their property.

·        Interview #5: Pine Straw Spreading Company Manager

·        This was a critical component to the opportunity because they would be the customer that purchases the product and resells to the final consumer. He expreesed that it doesn’t matter much where the product comes from as long as the quality of the product stays the same. The transportation costs don’t vary much from where most of the pine fields now are if they stay close to I-75. The most expensive part of the transportation is leaving the rural field areas.

·        Given your interviews, what do you know about the opportunity that you didn't know before? 

·        The interviews were very insightful because they would the variety of perspective on the issue of the supply of pine straw. It also showed that I wasn’t alone in noticing that decreasing supply problem.  #3, The club leader, also noticed how quality was starting to wane because landowners weren’t making as much. The lack of the “Per Acre” price means that landowners have to monitor the product leaving the fields which means they have to be more involved. Which, for many, defeats the whole point of having a long-term stable product like pine trees.  

·        I find that the majority of laborers wont have a problem moving to Georgia or a more northerly region. Replacement workers could be found in these areas as well. The logistical challenges of raking in Georgia wouldn’t be difficult as long as contracts and planting began immediately.