Updated 6/07/06

Marketing

Marketing is the study of what to sell, where to sell it, who to sell it to, and what price to charge. The more you know about marketing the more money you will generate by making better-informed decisions.

The Pacific Northwest is becoming a much more culturally, and ethnically diverse community. This diversity creates an unmet need to supply Restaurant and Specialty Grocery stores with hard to find, high quality produce and meats. Chefs at high end restaurants are also looking for Organic and gourmet items.  Farm to Cafeteria is a new concept.  it is an effort to improve the nutrition of school age children.

The following links provide information and tools to assist you in your marketing efforts:

Tips for Successful Marketing

• Before embarking on a new marketing strategy, talk with other farmers who use it or have tried it. Different strategies work for different folks. You will find that your most valuable information comes from other farmers.

• Remain consistent with the quality of your product, and customers will return again and again.

• Don’t undersell yourself. Determine the cost of producing your product, set the price, and stay there. By offering bargains, customers will come to expect low prices and may be turned off when they have to pay more next time.

• Don’t undersell your neighbor. By lowering prices, you may sell more product, but you set a low price standard. If farmers wish to be paid higher prices, they need to work together to establish a higher standard.

• Keep a connection with your customers. Maintain an e-mail or mailing list of customers to remind them of current products, issues, and opportunities.

• Be attentive to changes in market trends. Consult magazines or periodicals for ideas and updates about gourmet foods, food trends, etc. Flexibility and creativity will give you a broader range of opportunities to sell your product.

• Consider adding value to your product. Examples of added value are flower bouquets with gift cards, specialty jams and sauces, pre-washed and mixed packages of salad greens, and meats sold by the cut.  Regulations regarding food processing can be found in the Selling Specific Products section.

• Always strive to deliver on time a product of the quality you promised.

• Be organized. With any marketing technique it will benefit you to know your product well, be able to quote your prices, know where your receipt book is, and when you can deliver next. A multitude of organizational qualities will help you to present yourself as a professional.

• Pay attention to the marketing techniques used to sell all kinds of products. Creative packaging, advertising, signs and a unique product are examples of these techniques.

• Utilize your advantages. Do you have a beautiful old farm that is attractive to on-farm customers? Consider agri-tourist activities. Do you live in a diverse community with many different ethnic backgrounds? Consider catering to the tastes of the different people who live around you.

• Remember, "If you build it, they will come - BUT ONLY IF THEY KNOW YOU ARE OUT THERE!"  There are many inexpensive ways to advertise your farm business.  Radio ads, flyers posted at targeted places, newsletters mailed to lists of customers, and business cards will help you build your clientele. Sometimes local newspapers are looking for bright spots of human interest, such as the delicious heirloom tomatoes at your new farm stand, complete with a recipe and a photo of happy people enjoying your ripe tomatoes.

• Know that your product is just what people are looking for and tell them so, often.  You are your best form of advertising.  

Direct Marketing Regulations
http://www.metrokc.gov/wsu%2Dce/agriculture/PDFs/Regulations.PDF

Growing for Market
http://www.growingformarket.com

USDA Marketing Assistance Programs
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?navid=MARKETING_ASSISTANCE&parentnav=AGRICULTURE&navtype=RT
The USDA marketing assistance programs assists farmers, agribusinesses, and state agriculture departments by increasing commodity production through financial assistance, research and promotion, and market stabilization. Information available on variety of topics such as product loss assistance, loan programs, exporting, marketing improvement, research and promotion programs, direct marketing resources by state, direct marketing publications, direct marketing action plan, & farmer’s markets.

Puget Sound Fresh
http://www.pugetsoundfresh.org/
Promote your products to local businesses on this Website. Puget Sound Fresh - Puget Sound Fresh is a program begun by the King County Agriculture Commission to encourage consumers, wholesalers, retailers and restaurants to seek out and purchase locally-grown products. Information available on harvest schedule, Puget Sound Farmer’s Markets, farm and crop finder, agricultural events, & farm facts.

Agricultural Marketing Resource Center (AgMRC)
http://www.agmrc.org/agmrc/default.html
The Ag Marketing Resource Center is an electronic, national resource for producers interested in value-added agriculture. AgMRC offers producers the ability to investigate value-added opportunities for agricultural commodities and products. Gather information on market and industry trends learn how to create and operate a business, study research, results of value-added markets and businesses. Locate national, state and local value-added resources. Information available on commodities and products, markets and industries, business development, research, and directories and state resources.

Marketing, Business and Risk Management
http://attra.ncat.org/marketing.html

Good Agricultural Practices (GAPs)
http://www.gaps.cornell.edu/

Value-Added Enterprises for Small-Scale Farmers
http://www.metrokc.gov/wsu%2Dce/agriculture/PDFs/ValueAdded.pdf

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Community Supported Agriculture

Community Supported Agriculture is a member driven marketing format.  The Farm offers shares in its harvest to its members.  A share purchased before the start of the planting season provides cash to the farm much earlier than the sale of produce at harvest. The Farmers diversify their crops to provide a broad spectrum of produce and may partner with local bakeries, meat producers, or other specialty producers.  The diversity of crop reduces risk to the farmer and makes membership more valuable. This can be an excellent strategy for farms located near  densely populated metro areas.

Communicating With Shareholders is Important It is not uncommon for a shareholder to refer to the CSA in which they belong as “their farm”.  Maintaining good communications with customers is very important.  One aspect involves communicating clearly the seasonality of crops to the shareholder.  Knowing that they will not receive tomatoes in June, or that the early spring deliveries will be less diverse than those in the fall will help avoid disappointments that result in a loss of participation in the program.  Weekly newsletters that contain farm updates, descriptions and recipes for unusual crops, and other farming information is useful for not only communicating with customers, but for enhancing consumer awareness of agricultural production. Many CSA farms host farm tours, work parties, or other activities to involve their shareholders.

photo by Leslie Zenz

Community Supported Agriculture Resources
http://www.wilson.edu/wilson/asp/content.asp?id=804
http://www.tilthproducers.org/

SARE-Alternative Farming Systems Information Center
http://riley.nal.usda.gov/nal_display/index.php?tax_level=1&info_center=2

CSA listing for Puget Sound
http://www.pugetsoundfresh.org/

What is Community Supported Agriculture
http://king.wsu.edu/agriculture/PDFs/CSA.pdf
 

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Farmers Markets

Farmers Markets are a rapidly growing resource for farm and food processors. The Washington State Farmers Market Association (WSFMA) lists over 90 members throughout the state. It has established farmer oriented standards for the markets, provides educational opportunities for market managers and vendors, and offers low cost liability insurance to members.

Treat Farmers Markets Like a Storefront
Selling through a Farmers Market can be a good choice for many producers and food businesses.  Remember, however, that it is a retail operation. You need to think of it as a store front.  It needs to be attractively laid out, signs need to be clearly written and lettering large enough to read from a short distance. Whoever represents you at the Market must be comfortable working with the public, ready to put a “face” on the food, and interact to educate the buyer on why Direct to Market, locally produced foods, are better quality, and important to the environment. Visit the links listed to find out more about how to become a member of a local market, and more details on best practices for Farmers Markets.

Farmers Markets are Opportunities to Learn and Profit
There are about 100 farmers markets statewide.  Farmers markets provide a large customer base for farm products; a training ground to develop marketing skills and customer preferences; the opportunity to network for other types of direct marketing (CSA programs and direct-to-restaurants); and some of the best prices and return on produce.       

Farmers Markets are a Good Place to Start
Farmers markets are the most common place for producers to get their start in direct marketing. By participating at a farmers market you can learn about customer expectations and the nuances of successfully marketing your product.  Many experienced farms also make use of farmers markets. It is not unusual for farms to attend several different markets each week.

Farmers Market Resources
http://www.ruralroots.org/FMD/FMDListing.asp
http://www.wafarmersmarkets.com 
A listing of farmers markets across the state that are members of the Washington State Farmers Market Association.
http://www.pugetsoundfresh.org/farmers_markets.htm
A listing of Puget Sound area farmers markets.

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Specialty Markets

U-Pick and On-Farm Stands
Crops that are best suited for U-pick marketing are those that harvest easily and where ripeness is easily determined. Small fruits, pumpkins, and Christmas trees are the most common U-pick crops, yet some farms  allow U-pick for a full range of vegetable crops. U-pick is a good method for reducing harvesting expenses, but a great deal of time may be required to manage the public effectively – from sales transactions and harvesting instruction to field management for a thorough harvest.

Agri-tourism
Also known as “entertainment farming”, agri-tourism is becoming a popular way to attract customers and bring more income to the farm.  Tourists today are considered “knowledge seekers” and many are visiting places closer to home.  They are seeking authentic experiences of farm life.  Cultural heritage and eco-tourism are the fastest growing sectors of the tourism industry.  All these trends lend themselves to the success of agri-tourism activities.

Agri-tourism Resources
http://www.mda.mo.gov/AgBusiness/resources/agritourism.htm
http://www.nrcs.usda.gov/technical/RESS/altenterprise/resmanual.html

Internet Marketing and Mail Order
Mail order marketing through catalogs and/or the Internet is a good way to reach a broad-based audience.  Research conducted by USDA in 2001 on the use of the Internet for marketing farm products showed that the return in sales was greater than the investment costs for developing a website. However, you should not rely solely on marketing through a website.  

Websites are great for providing information about your farm and facilitating sales once your customer is already familiar with your products.  Mail order marketing is best used for products that have a long shelf life and are easily packaged for shipping. However, there is opportunity for selling live plants, fresh flowers, meats, and produce.

Marketing Herbs
http://king.wsu.edu/agriculture/PDFs/HerbMarketing.pdf

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Direct-to-Restaurants and Retail

Many restaurants and grocery retail stores are looking for your produce or food products.  Like any other business you want to get the best prices available.  It pays to get to know the retail establishments and learn marketing techniques to help you get higher prices.  The following links will assist you in your search.

Start with Local Restaurants and Grocery Stores
When seeking restaurant and grocery accounts, start with independently owned businesses that boast that the food they prepare or sell is organic or locally grown. Inexpensive and franchise restaurants, accustomed to wholesale produce and prices, may not be able to give you a competitive price.  However, don’t feel this market is too limited.  Recently, larger restaurant chains in the Northwest have purchased local foods, illustrating the potential growth of this market.

The Guide to Local & Seasonal Products
http://www.farmerchefconnection.org
A free listing & marketing opportunity for both buyers and producers of local foods.

PCC Natural Markets
http://www.pccnaturalmarkets.com/sc/index.html

Agricultural Marketing Off-Farm
http://www.smallfarmsuccess.info/marketing_offfarm.cfm

Seattle Chapter of Chefs Collaborative
http://www.forksproject.org/
The Seattle Chapter of the Chefs Collaborative, is a networking organization of chefs that works with chefs and the greater food community to celebrate local foods and foster a more sustainable food supply.

Growing for Market Journal for Direct Market Farmers
http://www.growingformarket.com/

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Farm to Cafeteria

Selling product to institutional cafeterias, such as schools, senior congregate meal sites, hospitals, and correctional facilities, can be a good market for farms.  Public awareness of childhood and adult obesity rates has drawn attention to environmental solutions such as bringing more healthy foods into school and worksite cafeterias.  Local farms have an advantage in supplying fresh and flavorful foods, which have been shown to increase consumption of fresh fruits and vegetables.  Farm-to-Cafeteria programs in schools often include agriculture and nutrition education into curriculum or student activities, such as growing a school garden. 

Institutional Markets can be a Good Market Although many small farms sell to institutional cafeterias, this is also a good market for medium sized farms that have experience producing for a wholesale market.  Pricing is very tight, and farms that are used to receiving higher premiums at farmers markets may find selling to institutions unfavorable.  However, farms that sell, or sold to wholesale markets may find institutional sales profitable. Selling to institutions offers the opportunity to sell large quantities to fewer customers, reducing transportation and labor costs. Farm-to-Cafeteria Connections Handbook (PDF) Published 2003.  This publication contains information on Farm-to-Cafeteria programs for farmers, food service professionals, and community members.  It provides locally relevant information, how-to ideas, and case studies of successful projects from across the country.   A Salad Bar Featuring Organic Choices: Revitalizing the School Lunch Program (PDF) Written April 2003. An in depth report of the Olympia School District School Lunch program, which features an "Organic Choices Salad Bar" and purchases direct from local farmers.  It provides an in depth look at how their farm-to-cafeteria program started, and discusses how the district was able to make changes to school lunch offerings and keep the program financially stable.

photo by Vanessa Ruddy