South Coast REC studies pesto profitability for small-scale basil growers

UC ANR advisors, staff research methods in conserving highly perishable product

If you visited the greenhouse at the University of California South Coast Research and Extension Center in early fall, you would have smelled a sweet aroma with notes of lemon, pepper and licorice.

In one of the conservatories, a team of UC Cooperative Extension advisors and staff grew seven varieties of basil and by the end of October, the plants stretched nearly two feet tall with leaves large enough to warrant a closer look. The wonderful smell would soon become delightful tastes, as the team planned to turn the basil into pesto.

"The rationale was to provide a high-value crop and a value-added solution for urban horticulture, transforming a highly perishable product into something that can be conserved," said Gerardo "Gerry" Spinelli, UC Cooperative Extension production horticulture advisor for San Diego County, who initiated the passion project.

After noticing a sign at South Coast REC asking consumers to use produce grown onsite in their everyday cooking, Spinelli felt inspired. The sign also requested photos of homemade dishes be sent to South Coast REC's interim director, Lindsey Pedroncelli, to generate content for the REC's Instagram account.

Envisioning a "bigger picture" for this effort, Spinelli turned to Pedroncelli for support. The two agreed that the basil project demonstrates a viable pathway for urban growers who have limited space, and positions South Coast REC as an ideal partner for such endeavors. Uniquely located in urban Irvine, South Coast REC has nearly 200 acres of land reserved for agricultural research and is one of nine RECs housed under UC Agriculture and Natural Resources.

"Urban growers are constantly looking for new ways to grow food and market their products. Growing plants using the Kratky hydroponic system is a low-input method that is simple to establish and easy to maintain," said Pedroncelli.

Aside from its research purposes, the project was the perfect opportunity to engage other advisors and staff at South Coast REC. The extra hands and taste buds that helped with this effort would later be known as the South Coast REC Pesto Task Force.

Growing in hydroponics

Given Spinelli and Pedroncelli's Italian ancestry, it was no question that the basil would be used to make pesto - a traditional sauce originating from Genoa, Italy that's commonly consumed on pasta. In just about two months, the following basil varieties flourished in a hydroponic system: cinnamon, Mrs. Burns' Lemon, Kapoor Tulsi, Thai Towers, Amethyst Improved, Red Rubin and the traditional Genovese. With these varieties, Spinelli and Pedroncelli were also interested in testing how taste and color affect the pesto.

Since learning about the Kratky method, a passive hydroponic technique developed by Bernard Kratky at the University of Hawai'i, Spinelli has championed it as an easy and affordable way to grow food. He has produced several videos in English and Spanish about the technique on his YouTube Channel and created a fact sheet that can be downloaded from his website.

Some of its advantages are the low initial capital investment, excellent water and nitrogen use efficiency, short cycle of production and the fact that it is modular and easy to set up, move and store - a major advantage for growers who only have access to space for a limited time and investments on immobile structures are not justifiable.

For the setup, eight 2'-by-3' tubs were used, and each was filled with 20 gallons of water before adding a fertilizer mix that contains one ounce of calcium nitrate, one ounce of magnesium sulfate or Epson salt and 0.6 ounce of lettuce formula. With the additional steps of seeding, drilling holes into the Styrofoam, and placing the net cups with seedlings into each hole, Spinelli estimated about 30 minutes of setup for each tub.

Estimating potential profit for urban growers

Although prices per quantity vary, he also estimated about $25 for the 20-gallon tub, a panel of Styrofoam and net baskets, which can all be reused. In addition, the fertilizer and propagation materials, including seeds and pellets, will cost roughly $68. When breaking these materials down according to the number of growing cycles, about one to two months each, the cost amounts to approximately $5 per tub for 25 cycles.

Using basil sold at Trader Joe's for reference, Spinelli estimated that each ounce of basil grown is worth about 70 cents. The "million-dollar question," as Spinelli puts it, is how much profit one can earn from this endeavor. Because the Amethyst Improved and Red Rubin varieties had the lowest yields of 12 and 18 ounces, they were combined to make 40 ounces of pesto. In contrast, Genovese had the highest yield of 51 ounces of basil - which produced 64 ounces of pesto.

Using a ratio of 0.7 to 0.9 ounces of basil for every liquid ounce of pesto, and calculating projected value based on Trader Joe's pricing, the Amethyst Improved and Red Rubin combined pesto had a projected value of $21, whereas Genovese had a projected value of $36. Without being combined with any other variety, however, the smallest projected value was the Kapoor Tulsi variety which had a yield of 22.5 ounces, making 28 ounces of pesto and resulting in a $16 projected value.

There are a few costs that Spinelli and Pedroncelli could not account for, such as hypothetical transportation to the market for sale, and the various prices of ingredients used to make pesto - almonds and walnuts, for instance, could be used as a cheaper alternative to the traditional pine nuts.

"With a traditional recipe you spend $5 for the basil and $25 for the other ingredients to produce eight 8-ounce jars of pesto. If you can sell each jar for $10 at the farmers market, there are $50 for profit - maybe more if you can sell one jar for $15, or you can save with non-traditional ingredients," Spinelli explained.

An additional advantage, which may come with additional expenses, is that pesto can be conserved. The business model could be that the grower sells basil at the farmers market and transforms the unsold product into pesto before it goes bad.

"Getting involved in agriculture can be intimidating and costly, so researching and showcasing inexpensive methods that can easily be scaled to fit your needs is incredibly helpful for both new and seasoned growers," Pedroncelli said.

South Coast REC staff offer taste buds at 'pesto party'

Following their harvests in October, Spinelli and Pedroncelli hosted two "pesto parties" for staff at South Coast REC. Although traditional pesto is made with Genovese basil, pine nuts, garlic, Pecorino cheese and olive oil, Spinelli and Pedroncelli experimented with different cheeses and nuts across the seven varieties of basil. Staff offered their tastebuds and critical review of each pesto, advising the two chefs to add more or less of a particular ingredient.

Eager to share their progress and vision with UC ANR's senior leadership, Spinelli and Pedroncelli carefully preserved and packaged eight jars of homemade pesto and had it specially delivered to Vice President Glenda Humiston.

"This is a creative way to demonstrate innovation and a fantastic opportunity to support our urban communities. It's not just practical, but economically feasible," said Humiston, who was pleasantly surprised by the pesto delivery. "Plus, I love pesto!" she added.

What started out as a passion project quickly turned into an opportunity to show how a resource hub like South Coast REC can empower its urban clientele both educationally and economically. It was also the perfect opportunity to engage South Coast REC staff in an activity outside of their day-to-day responsibilities, making for excellent photo ops and social media posts.

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