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Re: tigerpac post# 42374

Wednesday, 03/14/2018 9:30:37 AM

Wednesday, March 14, 2018 9:30:37 AM

Post# of 58279
Thank you for sharing! PGUS

"Visited Huy Fong Foods today. Absolutely massive 650K sq ft facility.

Confirmed that Underwood Ranches is no longer providing peppers. They are sourcing peppers from surrounding farms in the Ventura area for now. Peppers are harvested over a 10 week period from Aug-Oct. (which is their entire supply for the next year). Trucked to factory in Irwindale, CA where the peppers are processed into "feed" and stored in plastic drums for a period of 12-18 months until the drums are emptied and the feed is used to create one of three sauces.

Because of the length of time they store the feed they can absorb an extra day of transportation from Mexico without problems. Huy Fong does everything itself, even creating the bottling onsite using massive injection molding machines. Nine production lines, two shifts, and not a single price increase in 34 years. If David Tran likes your company and you can provide a reliable, quality product you can be a customer/vendor for life.

Huy Fong will obviously continue to use local farms as a source as ProGreen Farms gets larger in size. ProGreen will likely start out as a 10% supplier and "sky's the limit" as the years go by. I'd guess that within 5 years, if everything goes as planned than Progreen could provide 50% of Huy Fong's pepper needs as Huy Fong has current revenue of $100 million and is growing at 20% per year. 50% would likely equal about $15 million annual sales for Progreen Farms. "

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