Organic Direct MarketingOrganic Direct Marketing

Why Direct Marketing?Why Direct Marketing?►►SmallSmall--scale producers can compete in a scale producers can compete in a

local market.local market.►►Puts power back into the hands of the Puts power back into the hands of the

producer.producer.

►►Produces new relationships between the Produces new relationships between the producer and the consumer.producer and the consumer.

►►Value in knowing where food Value in knowing where food comes from and how it is comes from and how it is produced.produced.

►►Maximizes income by selling direct to the Maximizes income by selling direct to the consumer.consumer.

““Knowing whatKnowing what’’s happening in the marketplace is the s happening in the marketplace is the difference between the farmer who makes it and the difference between the farmer who makes it and the

farmer who doesnfarmer who doesn’’t make it.t make it.””--Don Anderson, Don Anderson,

Specialty Vegetable Grower* Specialty Vegetable Grower*

*taken from *taken from ATTRAATTRA’’ss publication publication Direct MarketingDirect Marketing

Challenges to Direct MarketingChallenges to Direct Marketing

►►Time!Time!

►►Good communication & people skills.Good communication & people skills.

►►Quality and consistency.Quality and consistency.

►►Legal regulations.Legal regulations.

►►Market saturation and Market saturation and oversupply of niche oversupply of niche markets.markets.

Tips for Successful Direct MarketingTips for Successful Direct Marketing►► Talk with other farmers.Talk with other farmers.

►► Do your market research and find a niche.Do your market research and find a niche.

►► Create a marketing plan.Create a marketing plan.►► Remain consistent.Remain consistent.►► DonDon’’t undersell your product or your neighbor.t undersell your product or your neighbor.►► Stay attentive to market changes.Stay attentive to market changes.►► Add value.Add value.►► Stay connected with your customers.Stay connected with your customers.►► Be organized and deliver on time.Be organized and deliver on time.

►► Know the value of your product and donKnow the value of your product and don’’t be afraid to t be afraid to tell people how good it is.tell people how good it is.

Market ResearchMarket Research►►Who is your target audience? Who is your target audience? ►►Talk with customers, local stores, food Talk with customers, local stores, food

clubs, ethnic stores, restaurants and find clubs, ethnic stores, restaurants and find out if there is an unfilled niche. out if there is an unfilled niche.

►►What are the ages, incomes, lifestyles and What are the ages, incomes, lifestyles and ethnic affiliations of your buyers? What ethnic affiliations of your buyers? What are their wants? are their wants?

►►Where do they live? Where do they live? ►►Develop a customer profile based on the Develop a customer profile based on the

answers to these questions.answers to these questions.

Market ResearchMarket Research►►Who is your competition?Who is your competition?

►►Why do people buy from your Why do people buy from your competitors? Are there ways you can competitors? Are there ways you can improve on what they are doing?improve on what they are doing?

►►How is their product similar or different How is their product similar or different than yours? What have they done to stay than yours? What have they done to stay in tune with market trends?in tune with market trends?

Market ResearchMarket Research►►Understand your product. Understand your product.

►►Be on top of the trends by Be on top of the trends by reading culinary magazines reading culinary magazines and talking with and talking with restaurateurs. restaurateurs.

►►Read everything you can about your Read everything you can about your product product –– sources, marketing, production, sources, marketing, production, processing, packaging and sales. processing, packaging and sales.

►►Innovate!Innovate!

3030--mile market techniquemile market technique►►Most customers of small, direct market Most customers of small, direct market

farmers live within thirty miles of point of farmers live within thirty miles of point of sale. Do your research within this area.sale. Do your research within this area.

►►Thorough market research will reduce Thorough market research will reduce business risk, identify problems in the business risk, identify problems in the market as well as new opportunities for market as well as new opportunities for profit.profit.

►►Avoid wasting time and money marketing Avoid wasting time and money marketing to the wrong people by knowing your to the wrong people by knowing your market well.market well.

Building a Market PlanBuilding a Market Plan

►► Create a marketing plan based on your research. Create a marketing plan based on your research.

►► Can be one component of your whole farm Can be one component of your whole farm business plan. business plan.

►► A good plan will define the consumer, the A good plan will define the consumer, the products and services they want, AND the most products and services they want, AND the most effective promotion and advertising strategies for effective promotion and advertising strategies for reaching those customers. reaching those customers.

►► Clarifies objectives, appropriate actions, projected Clarifies objectives, appropriate actions, projected income, pricing structures, costs and potential income, pricing structures, costs and potential profitability.profitability.

Elements of a Marketing PlanElements of a Marketing Plan►► Marketing situationMarketing situation ~ your customers, your products, your ~ your customers, your products, your

competition, etc.competition, etc.

►► Marketing objectives Marketing objectives ~ your goals, diversification ideas and ~ your goals, diversification ideas and future markets.future markets.

►► Marketing strategies Marketing strategies ~ how you will promote or advertise, ~ how you will promote or advertise, your marketing channel, what you will produce.your marketing channel, what you will produce.

►► BudgetsBudgets ~ estimated costs and return based on sales and ~ estimated costs and return based on sales and strategies for monitoring costs.strategies for monitoring costs.

►► Action plan Action plan ~ steps to reach your goal (i.e., newspaper ~ steps to reach your goal (i.e., newspaper advertisement, make flyers or brochures, get a space at advertisement, make flyers or brochures, get a space at the farmersthe farmers’’ market etc.)market etc.)

►► Evaluation Evaluation ~ summary of progress on your marketing ~ summary of progress on your marketing objectives (monthly, annually etc.)objectives (monthly, annually etc.)

Niche MarketsNiche Markets►► Niche marketing is a method of differentiating your Niche marketing is a method of differentiating your

product from all the other products on the market.product from all the other products on the market.

►► Types of niche markets include grassTypes of niche markets include grass--fed and grassfed and grass--finished, organic, freefinished, organic, free--range, salmonrange, salmon--safe, natural and safe, natural and family farm.family farm.

►► You can differentiate your product through adding value, You can differentiate your product through adding value, i.e. garlic braids, cut flower bouquets, sausages, bagged i.e. garlic braids, cut flower bouquets, sausages, bagged salad mix, etc.salad mix, etc.

Niche MarketsNiche Markets►► Educate your consumers about the Educate your consumers about the

benefits of your niche product. If raising benefits of your niche product. If raising grassgrass--fed meat, fed meat, tell a story about the tell a story about the animals, the farm, the grass, everything animals, the farm, the grass, everything and all that goes into your product.and all that goes into your product.

►► Build a relationship with your customer. Know Build a relationship with your customer. Know their names. Create a bond and build trust. their names. Create a bond and build trust.

►► Create a mission statement for your farm and Create a mission statement for your farm and display it boldly so people can understand why display it boldly so people can understand why you are in business. you are in business.

►► Stay current with niche market trends. Stay current with niche market trends.

ValueValue--Added MarketingAdded Marketing►►By processing or modifying your product By processing or modifying your product

through cooking, churning, culturing, through cooking, churning, culturing, drying, etc. you add value. drying, etc. you add value.

►►It is more laborIt is more labor--intensive, requires more intensive, requires more management and investment, but you can management and investment, but you can charge more for your product.charge more for your product.

►►Relies heavily on good marketing Relies heavily on good marketing skills and promotion.skills and promotion.

►►Be aware of rules and Be aware of rules and regulations regarding processing.regulations regarding processing.

Rules & Regulations for Direct Rules & Regulations for Direct MarketersMarketers

►► There are various special inspections, exemptions and other legaThere are various special inspections, exemptions and other legal l issues for livestock producers to understand in order to market issues for livestock producers to understand in order to market directly directly to consumers.to consumers.

►► Whichever type of direct marketing channel you choose, there areWhichever type of direct marketing channel you choose, there arelaws and rules to consider. laws and rules to consider.

ResourcesResources►► The Legal Guide for Direct Farm The Legal Guide for Direct Farm

MarketingMarketing

►► OSU Extension Small Farms OSU Extension Small Farms http://smallfarms.oregonstate.edu

►► Oregon Department of Oregon Department of Agriculture Food Safety Division Agriculture Food Safety Division www.oda.state.or.uswww.oda.state.or.us

How Law Relates to How Law Relates to Direct Farm MarketingDirect Farm Marketing

►► Can raise issues of customer satisfaction and Can raise issues of customer satisfaction and liability.liability.

►► Processed food can raise food safety concerns.Processed food can raise food safety concerns.►► Specialty items like eggs or meat have licensing Specialty items like eggs or meat have licensing

and inspection requirements.and inspection requirements.►► Local zoning laws and business licensing come Local zoning laws and business licensing come

into play with oninto play with on--farm sales.farm sales.►► Subscription sales and home deliveries raise Subscription sales and home deliveries raise

concerns about payment and business relations.concerns about payment and business relations.►► Issues of liability and landIssues of liability and land--use come into play with use come into play with

agriagri--tourism and entertainment farming.tourism and entertainment farming.

Types of Direct MarketingTypes of Direct Marketing►► FarmersFarmers’’ MarketsMarkets

►► Roadside Markets, Farm Stands and OnRoadside Markets, Farm Stands and On--Farm SalesFarm Sales

►► Institutional MarketingInstitutional Marketing

►► RestaurantsRestaurants

►► CSA and SubscriptionCSA and Subscription

FarmersFarmers’’ MarketsMarkets

►►FarmersFarmers’’ markets are hot!markets are hot!

What You Need to Know About What You Need to Know About FarmersFarmers’’ MarketsMarkets

►► FarmersFarmers’’ markets offer a secure, regular and flexible outlet for markets offer a secure, regular and flexible outlet for marketing where a vendor can sell a wide range of products.marketing where a vendor can sell a wide range of products.

►► FarmersFarmers’’ markets are a good place for beginning farmers to market markets are a good place for beginning farmers to market their products.their products.

►► You can sell beef, pork and lamb directly to the consumer at a You can sell beef, pork and lamb directly to the consumer at a market as long as the meat has been processed at a licensed USDAmarket as long as the meat has been processed at a licensed USDAfacility. You must have a license from ODA as well.facility. You must have a license from ODA as well.

►► You can sell eggs at the farmersYou can sell eggs at the farmers’’ market without an egg handlermarket without an egg handler’’s s license and without any labeling as long as you are selling eggslicense and without any labeling as long as you are selling eggsfrom your farm and no one elsefrom your farm and no one else’’s farm.s farm.

►► Poultry processors of 20,000 birds or less per year are exempt fPoultry processors of 20,000 birds or less per year are exempt from rom the USDA inspection requirements if they raise, slaughter and sethe USDA inspection requirements if they raise, slaughter and sell ll their own product. their own product.

►► Selling at the farmersSelling at the farmers’’ market can lead to other sales, i.e. ethnic market can lead to other sales, i.e. ethnic markets or subscription sales.markets or subscription sales.

More on FarmersMore on Farmers’’ MarketsMarkets►► All farmersAll farmers’’ markets have rules developed by the farmersmarkets have rules developed by the farmers’’ market market

board that vendors must agree to follow in order to sell at the board that vendors must agree to follow in order to sell at the market.market.

►► Vendors will have to pay a daily fee for the booth space, usuallVendors will have to pay a daily fee for the booth space, usually y around $15 per space (most vendors take two spaces).around $15 per space (most vendors take two spaces).

►► There is a market manager for each market, who is responsible foThere is a market manager for each market, who is responsible for r running the market and enforcing rules. running the market and enforcing rules.

►► Ashland and Medford FarmersAshland and Medford Farmers’’ Market: Tuesdays and Thursdays, Market: Tuesdays and Thursdays, Rogue Valley Growers and Crafters Market, 888Rogue Valley Growers and Crafters Market, 888--826826--9868 or 9868 or http://http://roguevalleygrowersandcraftersmarket.comroguevalleygrowersandcraftersmarket.com//

►► Grants Pass: Saturdays at 4Grants Pass: Saturdays at 4thth & F Street, 541& F Street, 541--476476--5375, or 5375, or http://http://www.growersmarket.orgwww.growersmarket.org/ /

►► Other towns have smaller farmersOther towns have smaller farmers’’ markets like Selma or Eagle markets like Selma or Eagle Point, which may be a good way to break into your area. Point, which may be a good way to break into your area.

Subscription Farming & Subscription Farming & Community Supported AgricultureCommunity Supported Agriculture

►► CSA movement began in the U.S. in the 1980s.CSA movement began in the U.S. in the 1980s.

►► It is a communityIt is a community--based food system that relies on trust based food system that relies on trust

between the farmer and the eater.between the farmer and the eater.►► A formal arrangement between farmer and eater where A formal arrangement between farmer and eater where

the farmer supplies food on a weekly basis to the eater the farmer supplies food on a weekly basis to the eater with a set price paid at the beginning of the season.with a set price paid at the beginning of the season.

►► The farmer and eater share in the risk of farming together, The farmer and eater share in the risk of farming together, celebrating a bountiful harvest and sharing in the risks of celebrating a bountiful harvest and sharing in the risks of crop failures.crop failures.

►► Many CSA farms require the members to commit time to Many CSA farms require the members to commit time to the farm so that they can understand what growing food is the farm so that they can understand what growing food is all about. all about.

More on CSAMore on CSA►► You can also have dairy CSA, where customers buy shares You can also have dairy CSA, where customers buy shares

in the cow or goat as well as supply meat and eggs to CSA in the cow or goat as well as supply meat and eggs to CSA

members.members.

►► Planning and organization is key to CSA from planning the Planning and organization is key to CSA from planning the

staggered harvests to managing the CSA subscription list.staggered harvests to managing the CSA subscription list.►► Offers a secure and reliable market for farmers and Offers a secure and reliable market for farmers and

produces healthy and fresh food for urban dwellers and produces healthy and fresh food for urban dwellers and others.others.

►► Provides upProvides up--front income to the front income to the farmer at the beginning of the farmer at the beginning of the season in order to budget out season in order to budget out expense needs. expense needs.

►► Puts a face on food and Puts a face on food and reinvigorates community. reinvigorates community.

Good CSA WebsitesGood CSA Websites►►Fully Belly Farm Fully Belly Farm

http://http://www.fullbellyfarm.comwww.fullbellyfarm.com//

►►Angelic Organics Angelic Organics http://http://www.angelicorganics.comwww.angelicorganics.com//

►►Siskiyou Sustainable Cooperative Siskiyou Sustainable Cooperative http://http://www.siskiyoucoop.com/index.htmlwww.siskiyoucoop.com/index.html

►►Gathering Together Farm Gathering Together Farm http://http://www.gatheringtogetherfarm.comwww.gatheringtogetherfarm.com//

Farm Stands & OnFarm Stands & On--Farm SalesFarm Sales►► If you are located on a busy road, consider If you are located on a busy road, consider

putting together a farm store in your barn putting together a farm store in your barn or other farm structures.or other farm structures.

►► It is easier to sell your produce straight It is easier to sell your produce straight from your farm and encourages getting to from your farm and encourages getting to know your customer.know your customer.

►► Building materials, permits, insurance and Building materials, permits, insurance and other expensive legal obligations can be a other expensive legal obligations can be a barrier to opening a farm stand.barrier to opening a farm stand.

►► Sell products from other farms like honey or soaps. This Sell products from other farms like honey or soaps. This attracts more customers if you have diversity of product.attracts more customers if you have diversity of product.

Restaurant & Specialty Food StoresRestaurant & Specialty Food Stores►►Health food stores and restaurants pay Health food stores and restaurants pay

good prices for quality produce, meat and good prices for quality produce, meat and eggs.eggs.

►►It takes time to establish a relationship with It takes time to establish a relationship with restaurants and stores. restaurants and stores.

►►Quality, consistency and postQuality, consistency and post--harvest harvest handling are big issues that growers must handling are big issues that growers must face. face.

►►Restaurants provide opportunities for Restaurants provide opportunities for developing specialty and niche products. developing specialty and niche products.

More on Restaurants & Stores More on Restaurants & Stores

►►Restaurants buy in limited quantities, so Restaurants buy in limited quantities, so lining up a few restaurants can justify your lining up a few restaurants can justify your deliveries.deliveries.

►►Talk with stores and restaurants before your Talk with stores and restaurants before your growing season and ask them what they growing season and ask them what they would buy or use in their menus.would buy or use in their menus.

►►Take samples of your Take samples of your product to restaurants and product to restaurants and stores. stores.

Institutional MarketingInstitutional Marketing►► Selling directly to institutions gives farmers new Selling directly to institutions gives farmers new

and reliable markets.and reliable markets.►► Consumers gain access to higherConsumers gain access to higher--quality food quality food

and more food dollars are invested into the local and more food dollars are invested into the local economy.economy.

►► One constraint is that most institutions use One constraint is that most institutions use national food distributors so it is hard to break national food distributors so it is hard to break into this system. into this system.

►► Also, education is key. Also, education is key.

What You Need to Know about What You Need to Know about Institutional MarketingInstitutional Marketing

►► Program coordination is key.Program coordination is key.

►► Farmers must be able to supply food in quantities that Farmers must be able to supply food in quantities that meet the needs of the institutionmeet the needs of the institution

►► Producers must be able to assure food quality and food Producers must be able to assure food quality and food safety and follow federal meat processing regulationssafety and follow federal meat processing regulations

►► You will need to create a marketing arrangement with You will need to create a marketing arrangement with the institution and efficiently distribute and transport the institution and efficiently distribute and transport products to institutional buyers.products to institutional buyers.

►► Initial program implementation takes time and energy. Initial program implementation takes time and energy.

Distribution ApproachesDistribution Approaches►► A farmerA farmer’’s cooperative.s cooperative.

►► A local nonA local non--profit group acts a distributor and broker. profit group acts a distributor and broker.

►► A local wholesaler acts as a distributor and broker.A local wholesaler acts as a distributor and broker.

►► FarmersFarmers’’ markets serve as the central location for pickmarkets serve as the central location for pick--up of farm products. up of farm products.

►► Private food service companies that contract with Private food service companies that contract with colleges or other institutions to procure, process and colleges or other institutions to procure, process and deliver local food from farmers.deliver local food from farmers.

Last Thoughts on Institutional Last Thoughts on Institutional MarketingMarketing

►► If interested, find a facilitator or coordinator who If interested, find a facilitator or coordinator who can begin researching the possibilities for can begin researching the possibilities for institutional marketing locally (i.e. college student, institutional marketing locally (i.e. college student, nonnon--profit, faculty member).profit, faculty member).

►► Form a food advisory committee, which will Form a food advisory committee, which will include farmers, food purchasers, kitchen include farmers, food purchasers, kitchen personnel, school board members, and other personnel, school board members, and other representatives (extension, etc.).representatives (extension, etc.).

►► Start slow and do the necessary research to Start slow and do the necessary research to ensure success.ensure success.

Resources for Information on Resources for Information on Institutional MarketingInstitutional Marketing

►► OSU Small Farms Program can assist and facilitate a group OSU Small Farms Program can assist and facilitate a group of farmers interested in designing an institutional buying of farmers interested in designing an institutional buying program that works for them. Other partners might include program that works for them. Other partners might include THRIVE, SOU, Jackson County School District, Rogue THRIVE, SOU, Jackson County School District, Rogue Community College, SWCD, etc.Community College, SWCD, etc.

►► ATTRA, ATTRA, www.attra.orgwww.attra.org

►► Community Food Security Coalition, Community Food Security Coalition, www.foodsecurity.orgwww.foodsecurity.org

►► National Farm to School Program, National Farm to School Program, www.farmtoschool.orgwww.farmtoschool.org

Local Diversified Marketing FarmsLocal Diversified Marketing Farms►► Whistling Duck Farm, Applegate ValleyWhistling Duck Farm, Applegate Valley

►► Farming 22 organic acres since 1992.Farming 22 organic acres since 1992.

►► Sell to a variety of retail outlets including the Sell to a variety of retail outlets including the Ashland Food Coop, Gooseberries and Shop NAshland Food Coop, Gooseberries and Shop N’’Kart as well as restaurants, growers marketsKart as well as restaurants, growers markets’’, and , and a farm stand.a farm stand.

►► Niche marketing includes certified organic and Niche marketing includes certified organic and salmon safe.salmon safe.

►► They add value by preThey add value by pre--washing and bagging salad washing and bagging salad mix.mix.

Siskiyou Sustainable Cooperative Siskiyou Sustainable Cooperative CSA ProgramCSA Program

►►10 farms growing diverse veggies10 farms growing diverse veggies►►105 families subscribe105 families subscribe►►Distribution in Grants Pass, Medford & Distribution in Grants Pass, Medford &

AshlandAshland►►Farmers sign up for crops, come together Farmers sign up for crops, come together

once a week to pack boxesonce a week to pack boxes►►Limited marketing by farmers, organized by Limited marketing by farmers, organized by

coordinators, guaranteed market at coordinators, guaranteed market at beginning of seasonbeginning of season

ResourcesResources►► USDA Agricultural Marketing Service, USDA Agricultural Marketing Service, www.ams.usda.govwww.ams.usda.gov

►► Oregon State University Small Farms Program, Oregon State University Small Farms Program, http://extension.oregonstate.edu/sorec/about/smallfarmhttp://extension.oregonstate.edu/sorec/about/smallfarms.phps.php

►► Appropriate Technology Transfer for Rural Areas Appropriate Technology Transfer for Rural Areas (ATTRA), (ATTRA), www.attra.orgwww.attra.org

►► The New Farm: FarmerThe New Farm: Farmer--toto--Farmer KnowFarmer Know--How, How, www.newfarm.orgwww.newfarm.org

►► USDA Sustainable Agriculture Research and Education, USDA Sustainable Agriculture Research and Education, www.sare.orgwww.sare.org

►► New Farm Options New Farm Options http://www.uwex.edu/ces/agmarkets/index.htmlhttp://www.uwex.edu/ces/agmarkets/index.html

More ResourcesMore Resources►Direct Farm Marketing and Tourism Handbook

http://ag.arizona.edu/arec/pubs/dmkt/dmkt.html

► Robyn Van En Center www.wilson.edu/csacenter

►Oregon Small Farms Farm Direct Marketing Conference in February.

► Attend the annual Food Connection where chefs meet up with growers to establish marketing connections.

► Alternative Farming Systems Information Center www.nal.usda.gov/afsic

►North American Farmers’ Direct Marketing Association www.nafdma.com

Last Thoughts on Direct MarketingLast Thoughts on Direct Marketing

►►Be creative and innovative.Be creative and innovative.

►►Diversify and differentiate.Diversify and differentiate.

►►Go for quality, consistency and flavor and Go for quality, consistency and flavor and your markets will grow.your markets will grow.

►►Be organized and on time. Be organized and on time. ►►Develop very good communication and Develop very good communication and

shrewd marketing skills.shrewd marketing skills.

►►Tell your story and donTell your story and don’’t forget to have fun.t forget to have fun.