"If you're making a 10% margin, it's way too low," says Jonah Krochmalnek, founder of Microgreens Consulting. "Too many growers don't analyze their costs and their pricing to ensure that they're actually making a good profit."
After a career in corporate finance, Krochmalnek's interest in agriculture was sparked during a volunteer experience at a local farm. What started as a home-based experiment grew into Living Earth Farm, one of Canada's leading organic microgreens producers. After nearly a decade, he sold the business to focus fully on helping other growers build sustainable, profitable operations through Microgreens Consulting.
When pricing is the problem
"You can just see what other people are selling in your marketplace," Krochmalnek suggested. "If you're selling at like 20, 30% less, maybe you should adjust your pricing higher, unless you're strategically having your price lower to get new customers in a fast manner."
Krochmalnek recommends using tools like the Microgreens Cost Calculator. "It lets you see exactly how much every tray is costing you, and where you're losing money." The calculator breaks down inputs like seed, soil, electricity, labor, and packaging per crop, giving growers a precise understanding of their margins. "The minimum I would suggest on a cost of goods sold basis would be roughly 60%. Ideally, you want higher than that."
"The Microgreens Cost Calculator is a great tool that will allow you to assess the financial viability of your microgreens farm in total, and also the individual crops you grow." He added that not all crops are equally profitable, and understanding which ones are worth growing is key.
Be ruthless with crop choices
"Some crops just don't make financial sense," Krochmalnek said. "If one of your varieties is barely breaking even, you need to either raise the price or drop it." He encouraged growers to treat crop evaluation as a routine part of business operations, not a one-time decision.
His company offers support for growers at every stage, from beginners to commercial farms. The goal, Krochmalnek emphasized, is to help farmers build operations that are lean, informed, and built on clear financial logic.
Profit depends on product quality
"Even when you're using synthetic fertilizer, you can burn the crops, especially at a young age, like the microgreen stage, from having too much fertilizer," Krochmalnek noted. He recommends organic powdered fertilizers as a better alternative for taste, shelf life, and overall crop health.
"If the product doesn't taste good or doesn't have a good shelf life, it's much less likely that customers are going to come back and keep buying from you," he said. Quality, he argued, directly affects customer retention and, ultimately, profit.
Building a lean, profitable system
Krochmalnek's position is clear: profitability isn't just about volume. "Lean doesn't mean cheap. It means smart," he said.
Tools like the Microgreens Cost Calculator and planning strategies can help farmers produce high-quality crops with minimal waste. He encourages growers to get clear on their costs, use data to make decisions, and avoid assuming that full trays equal financial success.
Learn more here.
For more information:
Microgreens Consulting
Jonah Krochmalnek, Founder and CEO
[email protected]
www.microgreensconsulting.com