+ local foods marketing dr. tim woods university of kentucky economics
TRANSCRIPT
+
Local Foods Marketing
Dr. Tim WoodsUniversity of Kentucky
Economics
+Local Foods Marketing
1. Knowing the markets
2. Product development
3. Branding, differentiation, competition
4. Taking advantage of support programs, agencies, and training
Economics
+Marketing Channels for Local Food
Community Farm Markets
On-Farm Retail Markets
CSAs
Local Wineries
Direct Market Venues
+Marketing Channels for Local Food
Restaurants
Grocers
Auctions
Institutional buyers
Farm to School
Direct to Retailer and WholesaleMarket Venues
• Number of U.S. farmers markets up dramatically since mid-1990s
From 1,755 in 1994 to
8,144 by 2013
More than 5,000 new farmers
markets since 2000, an
increase of 175%
2,500+ vendors in KY
U.S. Farmers Market Growth: 1994-2013
Source: Diamond, USDA-AMS 2011; USDA AMS
0
1000
2000
3000
4000
5000
6000
7000
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9000
Economics
Kentucky Produce Marketing Channels: Farms Selling More Than 10% into One Channel
(2003 and 2012)
---Markets--- 2003 2012Farmers’ markets 52% 41%On-farm markets 50% 41%Cooperative/Assoc 15% 3%Non co-op wholesale 17% 14%Direct to restaurant 12% 7%Auction 9% 17%CSADirect to retail groceryFarm-to-school
3%21%
3%16% 1%
Source: Kentucky Produce Marketing and Planting Intentions Survey, 2004, 2012
Economics
+ What are consumers thinking?
+Local food as an experience good
Distinctive value propositions are highly relational
+Why Consumers Value “Local”
Minimizing food miles/energy dependency
Land and environment
Perceived Safety and Quality
Support local ag and economy
Thilmany, Bond, Bond (2008)
Heritage
Quality/Health benefits
Environment and Economy
Citizenship and community
Woods & Williamson (2013)
Social media a strong tool to convey these value propositions
3 C’s of Farm to School
• Community– Engage the community
• Cafeteria– Use the cafeteria to promote local foods and
farms• Classroom
– Implementing a Farm to School curriculum and learning experiences
3 C’s of Farm to School
“We did a taste testing with heirloom tomatoes and the farmer actually came and was passing out the tomatoes, and we said this is the farmer…. The
kids were just like ‘Oh wow, a real life farmer!’ It was just really exciting.” -Fayette County FSD
+Getting to know the markets
Directories Farm to school (KDA) Farm markets (KDA) On-farm retail markets (KFB Roadside Markets) CSAs (KDA) Restaurants (KDA- Restaurant Reward Program) Auctions (UK Crop Diversification Center) Wholesalers and Processors (KDA, UK MarketReady, KCARD,
UK Specialists) Grocery Buyers (KDA, UK MarketReady)
+Getting to know the markets
Visit the markets, talk to buyers
Talk to peer producers selling either similar products or into similar markets
Evaluate competing products for (1) number, (2) price, (3) similarity
+Product Development
Value-added products
Packaging, logos, branding expectations from buyers
+ University of Kentucky Food Systems Innovation Center
Provides technical services, marketing intelligence, business services and training components to aid in developing the food industry of Kentucky Food Chemistry Testing Nutrition Labeling Analytical Services Microbiological Testing Sensory Evaluations
Brand New! www.uky.edu/fsic/
+ MarketReady Modules
Communication & Relationship Building Packaging Labeling Pricing Supply Delivery Storage Invoicing Insurance Quality Assurance & Temperature Control Certifications & Audits Satisfaction Guarantee Working Cooperatively Marketing – An ongoing process Local Products for Local Markets
+Branding, Differentiation, Competition
Building the “local” brand – consumer awareness
KY Proud programs Membership – at cost POP materials, signage POP Grant program Restaurant Rewards
Farm Estate Branding
+Support Programs and Agencies for Local Food in Kentucky
MarketReady, Better Process Control School, FSIC
UK Crop Diversification Center
KDA Farm Market Program, KY State Health Dept
KY Farm Bureau Certified Roadside Market Program
Network of Certified Kitchens (KSU/UK/FSIC)
KY Center for Ag and Rural Development
+ …
Presenter:
Dr. Tim A. Woods
Extension Professor, University of Kentucky Agricultural Economics
[email protected], 859.257.7270 x.274
Questions?