t	Direct Marketing - Business Management Series
h	IS A PROJECT OF THE IS A PROJECT OF THE IS A PROJECT OF THE IS A PROJECT OF THE N N N NATIONAL ATIONAL ATIONAL ATIONAL C C C CENTER FOR ENTER FOR ENTER FOR ENTER FOR A A A APPROPRIATE PPROPRIATE PPROPRIATE PPROPRIATE T T T TECHNOLOGY ECHNOLOGY ECHNOLOGY ECHNOLOGY 800-346-9140 Appropriate Technology Transfer for Rural Areas DIRECT MARKETING Abstract: This publication on direct marketing alternativesówith emphasis on niche, specialty and value-added cropsófeatures many farm case studies, as well as information on enterprise budgets and promotion/publicity. A new section discusses implications of Internet marketing and e-commerce for agriculture. ATTRA is the national sustainable agriculture information center funded by the USDAís Rural Business -- Cooperative Service. Introduction.............................................................2 Alternative marketing.........................................2 Present system...................................................2 Exploring alternatives.........................................2 Why direct marketing? .......................................3 Importance of marketing....................................3 Niche marketing .................................................7 Specialty crops and diversification .....................9 CONTENTS: Value-added marketing .............................................. 11 Pricing and profitability ............................................... 13 Direct marketing alternatives ...................................... 15 Marketing on the Internet........................................... 18 Promotion and publicity .............................................. 19 Conclusion ................................................................... 23 References .................................................................. 23 Resource list................................................................ 25 www.attra.ncat.org BUSINESS MANAGEMENT SERIES // DIRECT MARKETING Page 2 By Katherine Adam, Radhika Balasubrahmanyam, and Holly Born NCAT Agriculture Specialists November 1999 Introduction Many growers, especially new ones, are inclined to start production without giving a second thought to the business of marketing. Good marketing is an absolute must for a successful agricultural enterprise. Some would even argue that it ranks higher in importance than production itself! especially for farmers planning to diversify. After all, what good is a product if one cannot sell it consistently for a profit? Diversification out of commodity crops may mean becoming familiar with, or even creating, new marketing systems. Existing marketing channels very often do not accommodate the new producer well! especially the small producer. This publication describes direct marketing of produce (and to a lesser extent livestock) and lists additional resources for those who are interested. ATTRA has more information on marketing animal products. Some farmers may use direct marketing for particular products while simultaneously participating in traditional markets. No two growers are the same, and the reader will have to determine through trial and error what works best. Alternative marketing Formal research on alternative marketing mechanisms has been scattered and hard to access by producers. It is mostly experiential and unrecognized by the agricultural establishment and official information channels. Small farmers and grassroots farm groups are the most likely to develop and use innovative marketing methods (1). The assumption that farmers must either ìget big or get outî is being challenged, however, by the emergence of alternatives. It is possible for innovative farmers to stay small or medium-sized and make a comfortable and successful living from agriculture (2). Present system Less than 2% of the U.S. population farms, a fact often cited as proof of the extraordinary efficiency of U.S. agriculture. Technical strides in production and processing have made more food available to more people around the year. For better or for worse, farmers are constrained by a highly specialized system characterized by a few large farmers and processors, and a production and distribution system increasingly integrated at all levels for the sake of efficiency and economies of scale. Vertical integration of markets and consolidation of processing are especially pronounced in the livestock industry, where a handful of firms control broiler production, as well as hog and cattle slaughter. By 1996, almost 100% of broiler production was by contract (3). Since 1996 hogs sold to packers by ìpre-arranged agreementsî (contracts) have increased from 17% to over 60%, according to a study by agricultural economist Glenn Grimes of the University of Missouri (4). In many cases, the products are specified in such great detail in the contract that the farmer is not selling an agricultural product, but is selling his labor (5). Exploring alternatives Sustainable farming, which received a boost following the farm crisis of the 1980s, has given impetus to diversified, decentralized systems in which farmers take greater control of marketing by bypassing traditional channels and marketing When Mike and Jennifer Rupprecht sell beef direct to consumers, they make approximately $200 more per animal than if they had sold it to a large packing plant. Their consumers save at least $250 over what it would cost them to buy the equivalent amount in steak, roasts and hamburger in the store... ...The Minnesota Department of Agriculture estimates that in 1994, more than $31 million were generated through the stateís 354 custom meat plants in sales and processing fees, from directly marketed meat. Of this, farmers received an estimated $22.1 million. From The Land Stewardship Letter, November-December 1995. // DIRECT MARKETING Page 3 directly to consumers at the local and regional level. Foods that do not require much processing before consumption!like fruits, vegetables and meat!are ideal for one-on-one marketing. Direct marketing is often quite unorthodox and may take the form of roadside stands, pick-your-own operations, farmersí markets, and sales to restaurants, upscale retail or specialty stores!even supermarkets and institutional food service. Prospects for direct farmer-consumer interaction are particularly promising at the rural-urban fringe, where producers can take advantage of specialty market niches and the demand for local and ethnic food and nontraditional products, while promoting agricultural tourism and education. Why direct marketing? It is the excesses of the conventional marketing system that have forced the return of direct marketing. Consumers tired of tasteless supermarket produce and factory-raised meat (and with increasing concerns about food safety issues) want fresh food with flavor, as well as more control over their food supply, and are willing to pay a premium price for it. Direct marketing, also called ìshopping with a human face,î promises ìvine-ripened tomatoes that wonít bounce if dropped and are full of the flavor you remember (6).î Direct marketing can give the farmer a larger share of the food dollar and possibly a higher return on each unit sold, offset to some extent by loss of economies of scale. For some farmers, adding value or marketing some minimally processed farm products directly to the consumer is a way of enhancing financial viability. Farmers who are unable to compete in, or are locked out of, distant markets can build a thriving local business. However, finding the right niche and marketing directly to the public is a hard and labor-intensive job requiring time and effort, creativity, ingenuity, sales expertise, and the ability to deal with people in a pleasant and positive manner. Agricultural producers must be absolutely sure they are ready for the job. Importance of marketing For too long, farmers have thought of marketing as simply how to dispose of their products. Locked into producing a very small number of major crops and insulated from the market, they have not been required to have a clear understanding of ever-changing consumer wants and needs. Producers have traditionally taken whatever price they could get while wholesale and retail distribution networks undertook the business of marketing. Marketing does not begin after production, but well before the first seed is planted. For farmers working outside the conventional system, the importance of marketing cannot be overemphasized. Consumer-focused marketing is the single most important factor that determines the success of an enterprise. Marketing is not just about selling. It requires a clear and astute understanding of what consumers want and the ability to deliver it to them through the most appropriate channels for a profit. It includes the planning, pricing, promotion and distribution of products and services for consumers, both present and potential. According to specialty vegetable grower Don Anderson: ìKnowing whatís happening in the marketplace is the difference between the farmer who makes it and the farmer who doesnít make itî (7). Enterprise evaluation A good marketing strategy begins with making sure the enterprise is right for you and is feasible. This will require a review and evaluation of your present situation, goals, possible enterprises, What are the qualities of a successful marketer? Not afraid to take risks Takes pride in the product and is not shy about saying so Willing to plan, research and experiment Flexible Independent Creative Thrifty From Market What You Grow by Ralph J. Hills, Jr. // DIRECT MARKETING Page 4 physical, financial and marketing resources, and market potential. The evaluation should help you answer some key questions, chiefly: Is this really what you want to do? Is there a market for the product? Do you have the necessary skills to do it? Are you going to develop the market? Or will you raise a crop for which there is a preexisting market? Will it be profitable? Can you expand in the foreseeable future? A sample feasibility study for an agricultural enterprise may be found on the University of Georgia Extension website at: http://www.ces.uga.edu/pubed/b1066-w.html (9). !Start by listing your business and personal goals. Prioritize them. !Is this going to be a full-time enterprise? !Is your family involved and supportive? !Inventory physical resources like land, soil, machinery, water, buildings, livestock etc. Define constraints. !Is family and/or off-farm labor available? !Is your spouse involved in the planning? A spouseís knowledge of medicinal herbs or cooking could spin off into an additional on-farm enterprise. !Do you have access to financial resources in the form of savings, credit or investment by family or friends? !What are some of the crops that will grow well in your area and will fetch the price you need? !What are the marketing resources in your region? Check out the farmersí markets and the retail stores. Is a roadside stand feasible? Talk to others who have one. Are there restaurants, grocery stores and supermarkets willing to buy locally raised produce or meat? !Who are your potential customers? Would they like to buy direct-marketed products or do they prefer buying at mass retail outlets where price is the main consideration? Is there scope in your business plan for consumer education? Have you considered the potential for entertainment farming and tourism? !What information and resources do you need to help you along the way? How can you best access such resources? Market research Following this preliminary survey, begin to identify and define your product. Get all the information you can about sources, marketing, production, processing, packaging and sales. This will require a good bit of systematic research. Check the libraries in your area. Read all the USDA and Extension publications you can lay your hands on as well as trade journals and periodicals, books on market gardening and seed catalogs. Talk to your Extension agent, visit the local stores (gourmet and otherwise) and supermarkets to see what is selling, and why one product appears more appealing than another. Talk to customers, local stores, food clubs, specialty distributors, ethnic stores, restaurants and other prospective outlets in your region. What do they want? Is there an unfilled niche? With your production, labor and marketing resources, will you be able to fill this niche? Market development There are four basic ways to create a market (8): "market penetration, where the producer uses more of his current product mix to meet the needs of the market. This could mean boosting sales by improving linkages between the buyer and seller and serving more customers in the existing market or by increasing consumption per customer. "market development, where the producer looks for new uses or new markets for the product. "product development, where a new product is produced for the existing market. This could be something that is less expensive to produce, or value added to the original product or crop so that it meets the customerís needs better. "diversification, where the grower raises new products for completely new markets. // DIRECT MARKETING Page 5 Find out what your prospective competitors are doing. Look for ways to improve upon what they are offering. Useful exercises for defining the competition and customer base can be found in Geraldine Larkinís book 12 Simple Steps to a Winning Market Plan (see Resources). For use in researching the market for new farm-based enterprises, Judy Green of Cornell University has compiled a list of agricultural alternatives. (For a copy of this list, request the ATTRA information on evaluating a rural enterprise.) Information on doing your own market research is also available from ATTRA. You can either start small and grow bit by bit, or you can start in a big way from the very beginning. Either way, you must be prepared to do your homework and get to know your markets to be successful. One way to identify potential markets that exist in your area is by using the ì30-mile market techniqueî (12). Most customers of direct marketers are believed to live within 30 miles of the point of sale. Market research within this radius will unearth useful information about production possibilities and the presence of competitors. Detailed market analysis and research is imperative before you promote and sell your product. Not only does it reduce business risk by providing credible information, it can help identify problems in the market as well as little-known opportunities for profit. By knowing the size and makeup of your market, its geographic location, demographic and behavioral characteristics, it will be easier to create the appropriate marketing strategy and you will avoid wasting time and money marketing to the wrong people. Marketing plan Marketing is an essential element of a small agricultural enterprise. The marketing environment will ultimately exert a strong influence on the nature of the business. The crop grown will be determined less by the farmerís personal tastes than by what the market will absorb at a price the farmer is willing to take. A good market plan broadly aims to define the consumer, the products or services they want, and the most effective promotion and advertising strategies for reaching those consumers (13). It clarifies objectives, appropriate actions, projected income, pricing structures, costs and potential profitability. A step-by-step business planning tutorial for a direct marketing enterprise is available at http://fbimnet.ca/bc/. Why market research? Information from market research helps to formulate a market strategy and project profitability. Two levels of information may be obtained: General: Food shopping habits; What are some trends in lifestyles? convenience? Emphasis on family time and homecooked meals? What is the ethnic and racial make-up of population, what are its food preferences? What are the trends in food safety, health and nutrition? What are the marketing trends? Growth in organics? An emphasis on freshness? Specific: Who are the buyers? What are their ages, incomes and lifestyles? What are their wants? Size of the market, number of buyers; Number of competitors; are they successful? What are their weaknesses? What price can you expect? How much of the market can you expect to hold? What are packaging and labeling requirements? What are the barriers to market penetration for the products you have in mind? // DIRECT MARKETING Page 6 A market plan alone does not guarantee success, but it does indicate that many of the factors that affect the profitability and continued survival of the operation have been given consideration. A market plan is usually part of a larger business plan that includes production, financial, staffing and management plans. The process of writing a business plan is not within the scope of this paper but listed at the end of this section are resources to help you find more information on the subject. A good place to start is the Small Business Administration, a federal agency that operates small business institutes and development centers, SCORE (Service Corps of Retired Executives) and publishes business publications. Each state has an SBA office that may be approached for help with developing a marketing or business plan. Elements of a marketing plan are (14): "Marketing situation!a summary of your present situation, what you are currently selling and how, who your customers are, what their needs are, your competition, your own strengths and weaknesses, how you are promoting your product, what the current food and marketing trends are, etc. "Marketing objectives!a summary of your short and long term goals, product diversification, additional market segments (alternative outlets) to tap. Objectives should be realistic and measurableóe.g., you would like to increase sales by 10% within the next year. "Marketing strategies!ways to achieve your goals, what you will produce, how you will promote and advertise the new product, the channels of sale, how you plan to beat your competition. "Budgets!include estimated costs and return based on sales, and strategies for monitoring and curtailing costs. "Action plan!immediate steps (e.g., look in the yellow pages for graphic artists to design logo, shortlist names of newspapers for a press release, assign person to deliver products to market, etc.) "Evaluation!a summary of progress on marketing objectives. The frequency of evaluation depends on the plan and could be each month, every six months or annually. Objectives and strategies are a dynamic part of the planning process and change depending on the market situation and competition. Domestic food demand - some trends to keep an eye on: Demography: There will be fewer new U.S. households formed through the year 2010. There will be a greater proportion of single-person households as well as families without children. Households with two adults and one child will fall from 25% of the total to 20% over the next 15 years. The Packerís annual Fresh Trends survey found that one-person households already account for 25% of buyers. This information implies larger demand for single-serve products and produce, and higher per capita food spending in one and twoperson households. Health and nutrition (10): #1) Products perceived to be fresh will have the strongest competitive advantage. According to a survey reported in The Packerís 1997 supplement ìFresh Trends,î 17% of the respondents had purchased one or more new fresh vegetables every year. #2) Shoppers are looking for taste and may be less willing to compromise this for health. So, if a product is both healthy and tasty, it is guaranteed to be a winner. #3) Since 1990, the claims ìnaturalî and ìgrown without pesticidesî are the only two labels that have grown in importance relative to others. #4) Aging baby boomers will push new product positionings and define the market for health foods. #5) More and more consumers will recognize the connection between nutrition and health. Safety (11): The buzzword in 1999 is ìlocal.î ìCountry of Originî labelling was overwhelmingly (85%) favored by produce consumers participating in the Packer Survey. In fact, 63% favored mandatory labelling. This can only work to the advantage of local producers. // DIRECT MARKETING Page 7 Niche marketing Anyone can pick a bunch of vegetables or fruits, set up a stand at the local farmerís market et voila! a direct marketer is born. However, what is it that differentiates a successful marketer from the rest of the pack? James McConnon, Business and Economics Specialist at the University of Maine Coop Extension says that in order to survive in a world of mass retailers, it is absolutely imperative to find and fill a niche that is not filled by the mass retailer (Wal-Mart, Safeway) (15). In addition, he lists three other survival strategies: good promotion, good service, and good customer relations. The following section focuses on creative marketing tips, including specialty and valueadded marketing, using examples of farmers who have built a successful direct marketing business. What is a niche market? "A target group whose market responses are similar to each other, but different from other groups. What makes a niche market worthwhile for the farmer? "There must be accessible information about the group. "The group must be reachable through clearly identified information channels. "The group must be big enough and sufficiently profitable to make it worth targeting. "The nature of a niche market is that it tends to disappear after awhile. Frieda Caplan, whose company introduced the kiwi to America, stopped selling kiwis in 1990 because oversupply and falling prices had eliminated the niche. Product differentiation A very elementary way of differentiating oneís product is to take it directly to the consumer. It is relatively easy for a direct marketer to promote a product as farm-fresh and different from the one sold at the mass retail store. Other ways to differentiate your product are by producing it earlier in the season, marketing it as low-spray (see box) or organic or naturally-raised, and by adding value to it in some other way. Cut flowers arranged into bouquets, garlic turned into decorative braids or wreaths, prewashed and bagged vegetables, bunched fresh herbs!these are a few simple ways to add value to products. Consumer concerns with pesticides in food, freshness, nutrition, and flavor have turned the organic food movement into a multi-million dollar industry. The changing racial and ethnic mix of the population signals an increase in the demand for exotic and unusual vegetables and meats. Not least exciting of all is that people are rediscovering the pleasure of fresh ingredients from local farms!a more meaningful connection to the land (16). The one advantage that direct marketers have over retailers is the ability to build their relationships with customers over time. Indeed, good marketing is about building trust and personal loyalty in the relationship. Good sellers know and use the customerís name. Consumers who feel an emotional bond to the grower are likely to remain loyal, even though the product is available at the grocery store at a cheaper price. Marketing gimmicks will not hold customers unless accompanied by an excellent product and superior service. Conventional marketing wisdom has it that 80% of sales come from 20% of Blemishes Only Skin Deep, says Orchardist ATTRA specialist Guy Ames of Ames Orchard and Nursery markets his low-spray apples as ecologically raised. Ames, committed to growing healthy food for the community, is forced to spray for the plum curculio, an insect he is unable to control entirely through organic means. He uses Imidan once or twice during the season (unlike conventional growers who rely heavily on more persistent pesticides, spraying up to 12-14 times in the season for a cosmetically perfect product). Part of Amesí marketing strategy is to educate consumers to disregard minor blemishes on fruit and instead appreciate its freshness and wholesome flavor. Buyers can get a taste of the produce at the Fayetteville, AR, farmersí market three times a week in season. (see Resources for publications on eco-labeling.) // DIRECT MARKETING Page 8 customer base. The grower must build a core customer base and let them know how important they are. Word-of-mouth advertising is the most effective and inexpensive way to attract new customers (17). Stay on top of consumer trends. The best-made product in the world will not sell if it isnít something people want. Education of the consumer plays a big part in salesmanship. Most people, for instance, are oblivious to the environmental and health benefits of livestock raised on forage. Conveying information about the farm, how the product is raised and why it is raised the way it is, the effect of recent weather on the crops, and other farm-centered conversation is important. Not only is this good for business, it also is a small step toward the development of consumer awareness of the farm and of social and health issues. Once customers know that you are providing healthy food, they gladly take on the responsibility to support local farmers. Help them help you run your business successfully and profitably. Write up your farm or companyís mission statement and display it to your customers and employees. Let them know why you are in business and the direction youíd like to go. A simple mission statement may read like this: ìHelping people stay healthy with fresh, locally grown food!î Keep up with trends. Flexibility allows you to adapt your product mix to market fashion and trend. Remember, by the time you read that ìcrop Xî is THE hot thing this year, itís probably already too late to cash in on it. You have to be the first to capture, or better yet, create the next hot thing. Visit specialty stores and restaurantsó even if you arenít interested in selling to themó to find out what food items professionals see as the trends to watch. Food fashions get started by upscale restaurants and trickle down to the consumer gradually. Read what your target customers are reading. Food and food trade magazines and womenís magazines, in particular, offer great information. Another source is medical research on the health benefits of various foods, as reported in the popular press (also an excellent source of promotional information in todayís healthconscious society). Some resources you can use to educate the consumer about the benefits of fresh fruits, vegetables, and meat are: !Nutrition Action Health Letter Center For Science in the Public Interest Suite 300, 1875 Connecticut Avenue NW, Washington DC 20009-5728 202-332-9110; e-mail cspi@cspinet.org, http://www.cspinet.org !Produce For Better Health Foundation 1500 Casho Mill Road Newark, DE 19711 302-738-7100 http://www.dole5aday.com PBHF has been licensed by the National Cancer Institute to promote the 5-a-day Program developed by NCI. PBHF is sponsored by the produce industry. !Mothers and others 40 West 20 Street New York, NY 10011-4211 e-mail: Mothers @mothers.org, http://www.mothers.org West Coast Office: e-mail: WestCoast@mothers.org (Publishes The Green Guide. Its primary project aim is to build demand for a better quality food system, to open the marketplace to make it more responsive to consumer needs, and to create market opportunities for regional, sustainably produced food.) // DIRECT MARKETING Page 9 Specialty crops and diversification Because an enterprise has a better probability of survival if it has a range of products to sell, diversification (especially into a mix of specialty or high-value crops) will benefit many producers. Specialty crops are generally not produced and sold in mass quantities. They have a high cash value per acre, grossing between $4000"$20,000 per acre. They are not necessarily exotic and include crops that need a lot of care to raise (and are therefore outside the traditional wholesale loop). They may be crops with special attributes like vine-ripened tomatoes or lean meat, or those raised especially for ethnic markets (7). David and Lisa Reeves Waterfall Hollow Farm, AR Niche marketing with grass-fed beef (18) #The two defining characteristics that differentiate the Reeves from other beef cattle farmers are their product and market. When they first set out to direct market, they were determined to give the public an opportunity to eat the kind of beef they grew for themselves. Convinced that there was a niche market for clean, range-grown beef, they proceeded to sell a product that was free of unwanted chemicals, growth hormones, and antibiotics. The Reeves maintain that conventional wisdom does not apply in the marketing of grass-fed beef. Beef raised entirely on grass has the leanness of wild game and the flavor of sweet beef. It is not heavily marbled as is grain-fed beef. The cattle are butchered between the ages of 18-20 months!the younger the steer, the more delicate and tender the meat. Not much fat needs to be trimmed off the carcass and the beef is sold with cooking instructions and recipes. It took some time and some ìcrushingly expensive mistakesî for the Reeves to learn how to tap into their niche market. Glossy advertising in the local tourist guides (Bon Appetit, Eureka Springs Dining Guide, Guide to Local Businesses), press releases and bulk mailings brought few or no sales. The poor response convinced them that they were better off addressing themselves exclusively to the small percentage of meat-eaters who frequent health food stores or similar establishments and who would buy organic meat. On the down side, of course, was the fact that many health food stores themselves steer clear of red meat because of perceived health risks. Their mission is now to: convince them that there are people out there who will joyfully eat clean, ìrangeîgrown beef, precisely because of the health benefits. We show them photos, An eggsample of creative marketing According to Jeff Ishee, a farmer with many years of marketing experience under his belt, if only people knew how commercial layers are managed, they would be flocking to the local market to buy free-range or humanely produced eggs. Laid by hens that are allowed to roam free and have access to fresh air and a rich and varied diet, these eggs have a rich yellow yolk compared to the pale watery insides of factory-produced eggs, and a freshness and good taste that only old-timers recall from their childhood. To take advantage of the market potential for farm-fresh eggs, talk to buyers about the differences between eggs raised naturally and those sold at the store. Explain why your product is nutritionally superior (a little research helps!see box above), present your point of view pictorially, display photographs of your hens and let the consumers connect. The education helps not just to aid in consumer awareness, but is also a great sales booster. People who feel responsible for their health and recognize instinctively the value of your product will be back for more. And they wonít mind paying more for your eggs! // DIRECT MARKETING Page 10 and describe the ranch and the lives of our cattle. We point out the obvious that beef is a very high-quality, nutrient-dense source of protein and obscure nutrients like B12, folic acid and zinc, that it is utterly delicious and deeply satisfying. Today, their main wholesale outlet is the Ozark Cooperative Warehouse in Fayetteville, Arkansas. The warehouse itself markets only their ground beef but trucks orders to buying clubs!groups of private individuals in 11 states!and allows the Reeves to ship on their truck. This is an enormous bit of luck because it allows them to ship their product out of state for very little expense. The other, and more costly alternative, would be to use delivery services like UPS and Federal Express, which do not have freezer trucks and require insulated packaging. Lisa notes that they really ought to invest more time and effort into in-store presentations and demonstrations. Theyíve refrained from this partly because they do not wish to offend vegetarians present in the store and partly because they are still uncomfortable playing the role of salespeople. Yet, store managers have found their obvious naivetÈ and lack of sophistication refreshing, their ìhemming and hawing and just talking about their productî different from the spiel of professional sales people. The couple do not make ìcoldî calls but prefer to write a letter of introduction in advance before paying a visit to the store. Their ideal marketing strategy would entail getting to know all the mainstream grocery stores with alternative clientele, and health food stores within a three-hour driving radius, contact them on a regular basis!perhaps weekly, bi-weekly or monthly!and keep the stores regularly stocked with their product. So far, they have been able to sell everything they produce without actively marketing. Recently, they have been in contact with ranchers in Missouri and Arkansas who share their philosophy. The Reeves hope to buy some of their cattle or contract with them to grow beef animals, and expand the marketing end of their business soon. Joan and Richard Wrench, Helena, MT Montana-based growers Joan and Richard Wrench have been raising garlic as a specialty crop since 1971. They currently give about 8 seminars a year at universities and through USDA, available at reasonable cost, to teach other farmers how to create a plan for farm independence through raising specialty crops. They are willing to help individual growers or groups wanting to establish a specialty crop enterprise with developing a market and business plan. They may be reached at 406-752- 3127 between 8-9:30 am MST. James and Alma Weaver, Kutztown, PA The Weavers grew tobacco and cattle on their 80- acre farm for several years before making the switch to specialty farming. The change has permitted them to survive in agriculture when other less flexible operators have been forced to bail out. The Weavers raise approximately 100 different kinds of herbs, a range of flowers, several varieties of ornamental colored corn, more than 100 varieties of peppers, 54 varieties of heirloom tomatoes, 30 different vegetables including some odd-sounding heirloom varieties like Cherokee Trail of Tears beans, Speckled Mennonite lettuce, and Amish Moon and Stars watermelons (19). Steve Salt, Kirksville, MO #Steve Salt (20), a Missouri-based farmer who raises 600 kinds of vegetables, fruits, and herbs for sale at farmerís markets, restaurants, and via household subscriptions, has a book coming out in November 1999 on specialty ethnic produce. Salt says that Asians, Middle-Easterners, Mediterranean Europeans, and Latin Americans, all of whom have a higher per capita consumption of fresh fruit and vegetables than Americans of northwest European heritage, also have a strong tradition of buying their produce unpackaged, at open air markets where they can examine or taste it before purchase. Supermarkets have been unable to cater to the needs of these people, and Salt writes that raising produce for ethnic markets offers a promising specialty niche // DIRECT MARKETING Page 11 where the small grower can compete profitably with the big growers. In addition to direct retail sales, he recommends small-scale (wholesale) marketing to ethnic restaurants and grocery stores (21). A wide variety of Asian vegetables, once a stronghold of the ethnic market, more and more cross over into the mainstream produce section. Primary markets are ethnic stores, grocery store chains and restaurants. Market data is hard to obtain partly because the truck farmers who raise crops for ethnic markets have generally operated outside conventional channels. Some information on prices and availability may be obtained from The Packer and Produce Business (see Resources). Frieda Caplan, an authority on specialty produce (see her home page at http://friedas.com/about.cfm) says that consumer education is extremely important when marketing specialties to the general public. This is no less true of Asian vegetables, the popularity of which has been fueled by ethnic restaurants and educational campaigns by retailers to demystify the preparation of Asian foods through user-friendly packaging and recipes. For a brief summary on market potential, refer to the publication The U.S. Market For Miscellaneous Oriental Vegetables by Mihir Desai (listed in the Resources section). Value-added marketing Value-added is a relatively new term in direct marketing jargon. Simply put, it means processing or modifying the product through ìcooking, combining, churning, culturing, grinding, hulling, extracting, drying, smoking, handcrafting, spinning, weaving, labeling, and packagingî (22). Other ways to add value to an agricultural product include: #growing something in a way that is acknowledged as safer, or #adding a component of information, education or entertainment The customer is spared the additional work and the producer charges extra for adding value. Take garlic, for example. Sold in bulk it brings $4/lb. When braided, it may bring up to $7/lb as a decorative item. Adding value holds the promise of additional income especially in the off season, but it is certainly more labor-intensive and requires more management, more investment in equipment, and an awareness of legal and regulatory issues pertaining to on-farm processing. Value-added products do not have the same economies of scale as mass-produced goods, and their success hinges heavily on the producerís retail strategy, especially advertising and promotion. An alternative agricultural specialty currently attracting a great deal of attention is agritourism. Although not every family is willing or able to entertain the public, for those who enjoy meeting new people or hosting groups, a farm entertainment enterprise is a good opportunity for selling on-farm processed items. On-farm processors must be aware of regulations governing their enterprise. If a food product is being produced, usually a commercial kitchen is required. Specific regulations vary by state. A good overview may be found in a recent book by Neil Hamilton (see Resources section). Many farmers find it easier to lease space in an approved food processing facility, rather than spend the $100,000 or more required to build and maintain a commercial kitchen on-farm. You should be aware that most states prohibit small children from entering a commercial kitchen, or anyone who is ill, or domestic meal preparation taking place there. A separate packaging facility may be needed. There are specific labeling requirements to be met, and additional regulations may apply in the case of interstate sales. Your state agriculture department and county health department are good places to start gathering information. // DIRECT MARKETING Page 12 An organization that can provide information on developing food products is the Institute of Food Technologists (see Resources). In some places, governments, university centers or non-profit organizations (examples that come to mind are Minnesotaís Agricultural Utilization Research Institute, the University of Nebraskaís Food Processing Center, Iowaís Wallace Technology Transfer Foundation) assist rural micro-enterprise or other homebased food processing businesses in getting started. University food technology departments may be able to provide handbooks and guides for value-added food processing, technical assistance, and funding opportunities, as well as information on rules, responsibilities and marketing options. Food processing incubators (FPI) have been a popular rural development strategy. FPIs, for a fee, provide commercial kitchen space and processing equipment, as well as technical assistance with product formulation and packaging. Some include peer group counseling to talk over manufacturing or marketing issues. Arcata Economic Development Corporation #In Humboldt County, California, the Arcata Economic Development Corporation (AEDC) constructed the Foodworks Culinary Center to help develop micro industry in the region (23). The Center served as an incubator for 12 local gourmet and specialty food companies and includes 1000 sq. feet of shared commercial kitchen space in addition to each companyís personal kitchen, 4000 sq. feet of warehouse space, and central office services. Products being made by the companies include baklava, pastas, Finnish coffee bread, smoked salmon and garlic cream cheese spread, tofu products, ice-cream and toppings, jams, flavored honey and chocolate confections. Tenants have formed a marketing cooperative and a mail order catalog featuring the products was made available to promote them all across the country. For more information, call (707) 822-4616. Little is known yet about the economic impact of FPIs, as they are a relatively new concept.Duncan Hilchey at Cornellís Farming Alternatives Program (see list of organizations under Resources) has conducted case studies of four incubators to get a better understanding of their working and impact. His findings are due to be published early in 2000. Advance copies may be requested. Meanwhile, those interested in exploring this subject further should get a copy of the publication called Establishing a Share-Use Commercial Kitchen from: Bob Horn Next Level Training Network University of Colorado at Denver Campus Box 128, PO Box 173364 Denver, CO 80217-3364 800-873-9378 (cost is $58 plus $4 s&h) (303) 556-6651 FAX Elizabeth Ryan, who sells a wide variety of valueadded productsósuch as cider, fruit sauces, chutneys and salsaóat farmerís markets in and around New York City says that one way to make on-farm processed goods more profitable is to give farmers access to a commercial processing plant on a timeshare basis. This kind of support has traditionally been unavailable to value-added enterprises. Small farmers with specialty meat products have had particular difficulty finding and gaining access to USDA-certified processing plants. Arkansas-based graziers Lisa and David Reeves searched for three years to locate a good USDAinspected facility to process their direct-marketed beef. Large processors, although certified by the USDA, will not differentiate between the small farmerís product and the large volume of meat they process and so are not a real option. (In other words, the farmer cannot retain ownership of the product.) USDA certification is mandatory for interstate sales and in states that lack an ATTRAís Value-added and Processing Series Overview: Adding Value to Farm Products Small-Scale Food Dehydration Grain Processing Small-Scale Oilseed Processing Soyfoods // DIRECT MARKETING Page 13 inspection program (24). Pricing and profitability If you donít have a percentage of people walking away from you at market, youíre selling too cheap, says Tim Kornder, a farmer from Belle Plaine, Minnesota. Setting a price is one of the more challenging tasks faced by the direct marketer. How does one know how much a pound of tomatoes or a head of lettuce is worth? On what information are these pricing decisions based? In general, prices are set by production and marketing costs at the lower end, while the upper limit is set by what your customers are willing to pay, how much competition you have, and your own desired profits. It pays to figure your costs and set your prices accordingly, rather than just going by what others are charging; steady, consistent prices encourage steady, consistent customers. Knowing your costs of production, both fixed and variable, is the first step in pricing strategy. Keeping good records for each item that you produce allows you to assess the profitability of each item in your product mix. Variable costs refer to costs directly associated with that item. These include costs such as field preparation and seed that will be there, even if nothing is harvested, as well as expenses directly related to yield such as harvest and packaging costs. Fixed costs, or overhead, include costs such as loan repayments, property taxes, insurance, and depreciation and maintenance on buildings and equipment, which will be there even if nothing is grown. In addition, it is important to include some kind of wage or salary for yourself in your fixed costs. Donít forget marketing costs. Itís usually easiest to include these in overhead. For the small producer, the biggest marketing cost is probably his or her time spent in finding and serving customers, doing promotions, making deliveries, and so on. Other costs could include advertising, free samples, and fuel and vehicle upkeep. These fixed costs are allocated to each item you produce, perhaps by the precent of total acreage or total production that each item accounts for. So if 10% of your land were in corn, then 10% of your total overhead would be included in the costs to produce that corn, for example. Break-even analysis The break-even point refers to the price and quantity sold that will just cover all costs, leaving zero profit. At this price and sales level, while no profits are made, you wonít be losing money. The break-even point is calculated as follows: Sales Price x Quantity Sold = Revenues ó Variable Costs per unit x Quantity Sold = Contribution Margin (ìcontribution that the item makes to covering fixed costs. This concept is useful because it is often very difficult to decide what part of fixed costs can be assigned to a particular item. Rather than trying to figure out that your rutabaga crop accounts for 5% of the cost of your tractor, you can figure out which items contribute the most and plan your product mix accordingly). ó Fixed Costs = Zero, or you can substitute a desired profit margin, such as 5% of sales. Understanding this concept allows you to experiment with different combinations of prices and quantities, as well as different levels of variable and fixed costs, to assess potential profitability of various items. If you canít sell a product for more than cost, you had better not grow it in the first place. The new grower can start the educational process by studying wholesale prices and comparing those with retail rates at the store. USDAís Agricultural Marketing Service publishes daily wholesale prices for produce, which may be accessed at http://www.ams. gov/marketnews.htm. Some growers call wholesalers for current prices; others check in with local chefs and local retail stores, especially on comparable specialty items. Wholesalers usually market up by 50%, while retailers mark up by as much as 100%. This kind of information is useful in setting a realistic price for direct- // DIRECT MARKETING Page 14 marketed products. Keep in mind, however, that stores sell ìloss leaders,î items that are not marked up, which serve to draw in buyers. How much would you have to sell to break even at these prices? What about at farmersí market prices? Or you can start by estimating how much of each item you think you can sell, and then figuring what price you would need to break even. Is that price reasonable for the markets you plan to access? If the price is too high, how much would you have to reduce your costs or increase your sales in order to break even at a more reasonable price? If it appears that the breakeven requirement is met, then you can begin figuring how high your prices can go. Again, base your estimates on research. For example, you could talk to growers at markets you won't be attending, so that they won't be giving information to a competitor. How much of each item do they sell over the season? Cost-plus pricing is an easily used option. Once variable costs are figured per unit of the item produced, you just add a percentage of unit cost to the cost to get the price. That percentage should be enough to cover fixed costs and your desired profits. A 40% markup is about average for a direct marketer, although perishable items and items with higher storage costs are marked up higher (27). For more information and assistance with pricing, Extension and your local small business development center should be able to help. Beginning lessons in pricing strategies are often best learned at farmersí markets. Direct marketer Andy Lee says that he usually takes a quick walk around just before the market starts to note other displays and prices. Being the only organic grower at many of the markets he sells in, he marks his prices about 10% higher, especially if he sees that his products seem as good as or better than the others. Leeís high prices may discourage some buyers but usually, he says, customers donít complain once they taste the ìdelicious homegrown goodiesî (17). In one survey of 3000 customers, people were asked to rate the eight most important factors in their decision to buy sweet corn. Price ranked fifth behind freshness and other quality considerations (25). Less than 15% of the sample thought price was a significant factor in purchasing corn. Roadstand growers who experimented with two piles of corn, one priced at $3.50 and the other at $3.00, found that the more expensively corn sold out faster than the cheaper corn. The reason may be that people assumed the higher-priced corn was fresher (25). The above experiment may have turned out the way it did because of the factors unique to corn, but it suggests that price may not be the only consideration for a prospective buyer. Growers emphasize the importance of setting a price at the beginning of the season and holding on to it. Customary pricing, as it is called, compels the buyer to disregard price and base their purchase on other considerations. Laurie Todd, a small-scale grower based in New York, says that people will pay top dollar only if quality and service are guaranteed (26). To attract consumers, he suggests giving samples so that people can taste the product, using attractive displays and packaging, and emphasizing the productís uniqueness. Like other growers, he does not recommend that you lower prices even when your competitors are reducing theirs. Fulltime growers complain about hobby growers who donít price realistically and virtually give away their produce for free. Many markets try to educate growers not to undercut the next person. Growers who hold their price all season have the option of multiple-unit pricing to move extra volumes or attract buyers who want to buy in bulk for canning or freezing. Mark Brown, Massachusetts #Mark Brown of Brownís Provin Mountain Farm in Feeding Hills, Massachusetts, tries to set retail prices twice as high as wholesale rates and says he likes to remain within ìreasonableî range of store prices while making sure his production and sales costs are covered (27). In the event of lower prices, either from a sale or a Clearly marked prices are a must to let customers know exactly how much a grower is charging. // DIRECT MARKETING Page 15 market glut, Brown prefers to retain his base price and add extra value to his product instead of reducing his price. So, when the competition is selling corn for $2.75/dozen (0.23 cents an ear), Brown maintains his base price of 35 cents an ear and sells 6 ears for $2 with a seventh tossed in for free, or $3.75/dozen with two ears free. Brown finds that more people buy 14 ears for $3.75, and he still makes 4 cents/ear more than his competitors. Finally, this advice from growers: $ Donít sell your goods for a lower rate at the end of the day; $ Compete fairly on quality and service, never undercut; $ Donít badmouth other growers; $ Raise a good product and ask for a good price. Direct marketing alternatives Ordinarily, retail markets command the highest price per pound of product, while wholesale markets move more of the product than retail markets but at lower prices. Farm sales and farmersí markets, You-Pick, mail-order are typically low-volume markets. Restaurants, retail stores, cafeterias, health food stores, and caterers constitute mid-volume markets, where prices are better than wholesale but on the lower end of retail. Smaller farmers may find that selling to low- and mid-volume markets works best for them. Mid-volume markets, especially, offer the advantage of small to medium crop production as well as medium to better prices (28). Some direct marketing options are outlined here. State departments of agriculture or Cooperative Extension may have published guidebooks outlining the laws and regulations for direct marketing in the state. Check with local authorities before starting. Organizing and selling at farmers' markets There has been an explosive growth in the number of farmersí markets around the country. In the mid-seventies, there were fewer than 300 markets in the United States. Two decades later, there are more than 2,400 farmersí markets, with approximately 1 million people visiting them each week. The Madison, WI, farmersí market is first in the nation to have a website advertising the market. See http://www. madisonfarmersmarket.com/. Several states have centralized information on farmersí markets, and a number of state-wide farmersí market associations have been formed. A comprehensive address list of farmersí markets is available on the Internet at http://www.hort.purdue.edu/newcrop/Farm MARKET/FMIndex.html. Guides for organizing and selling at farmersí markets are published by the Cooperative Extension Service in some states. A publications list including direct marketing and other information published by the Hartford Food System may be requested (see Resources). A new publication offers guidance on selling local produce to school systems. Florida A&M University has initiated the ìSchool Lunch Projectî to assist small farmers in marketing to institutional food programs. A network of small farmers cooperatively produces and markets selected produce items to institutional buyers. Many states offer help in promoting locally grown fruits and vegetables, sometimes with a special logo. City government, tourist departments and chambers of commerce can often be enlisted to help promote farmersí markets. Farmersí markets seem to work best for growers who offer a wide variety of produce of the type desired by customers. Consumers want markets to be easily accessible with good parking facilities. A little related entertainment never seems to hurt!seasonal festivals, street musicians, tastings, demonstrations, etc. Sales help must be pleasant and courteous, willing to answer questions. Farmers interested in this marketing method can find opportunities for creative selling and fresh ideas through participating in the local farmersí market association and direct marketing meetings. Additional information on farmersí markets is available from ATTRA. // DIRECT MARKETING Page 16 Community Supported Agriculture (CSA) Community Supported Agriculture (CSA) plans operate in several different ways. One involves a single farmer selling "subscriptions" or "shares" at the beginning of the season and then delivering, on a regular schedule, baskets of whatever is produced. Another method involves consumers who band together to rent land and hire a farmer to raise food for them. A new book, Sharing the Harvest, provides case histories, models, and strategies for starting a CSA (see Resources). The CSA of North America (see list of Associations) can provide more information on how CSAs work, including a video, It's Not Just About Vegetables, and accompanying handbook. An e-mail networking list on CSA was started in February 1996 and subscription is free. To subscribe, send a message to: listproc@prairienet.org. In the body of the message, type subscribe csa-l followed by your first name and your last name. For an overview of Community Supported Agriculture, ask for ATTRAís publication on CSAs. On-farm sales and agri-tourism On-farm sales include pick-your-own (P-Y-O) and roadside stands or farm markets. Pickyour-own began in response to the 1974 energy crisis, appealing to customers (mainly families) who had the time and the necessary expertise to process their own foods in quantity. More recently, PYO enterprises have been integrated into the growing ìfarm entertainmentî sector. Marketing strategies may include educational tours, an on-farm market with opportunities to buy fresh produce or value-added products, ready-to-eat food, festivals, classes, seasonal events such as a personalized pumpkin patch, or agricultural mazes. A buffalo ranch, besides selling hides and meat, charges admission to view the animals. The Rombach Farm, Chesterfield, MO Beginning each July, the Rombach Farm becomes a pumpkin wonderland. From late September on, partner Steve Rombach works 7 days a week. Besides pumpkins, apples, and squash, the farm market sells sweet corn (in season) and other vegetables, handcrafted yard furniture, and yard ornaments. Most of the familyís remaining 700 acres (100 acres have been lost to development) remain in soybeans and wheat. The biggest profit, however, is from farm stand sales. Many of the pumpkins are raised on the farm, rotated with wheat. Rombach is thinking of strip cropping pumpkins with wheat, however (because the wheat is not ready when pumpkins must be planted). He uses one field near the house as a display area after the wheat is harvested. The mid-size 20-lb. pumpkin is his best seller, but bigger ones are popular. Few are bought for pie-making. Those left unsold after Thanksgiving are composted in the woods, where wildlife enjoy them. The bulk market for canning does not exist here. Besides family labor, Rombach hires a lot of parttime help and depends on good friends to volunteer in creating seasonal displays. These elaborate displays are extremely creative and colorfulóemploying small buildings, 10-ft. high mounds of pumpkins, and Halloween figures. They attract up to 1000 cars a day at the peak of the season. They are not dismantled until the final two weeks ìbecause so many schools come.î Backdrops are corn shocks or castor bean plants. Rombach is now looking into offering hayrides. Insurance is high. The farm carries 5-6 policies, including an umbrella liability policy. Many repairs, seed orders, fertilizer, etc. are undertaken in the off season. The Rombach farm has been totally rebuilt since 1993, when Missouri River flooding put it under seven feet of water. Initially, the farm enterprises included Christmas tree sales, and acres of U-pik strawberries. But Rombach says they lost money on the trees and PYO customers ìtrampled too much.î Children would throw the berries // DIRECT MARKETING Page 17 around. He now does retail sales only. (A few items offered at the farm market are procured from other farmers.) Rombachís grandfather started hosting parties in the pavillion in 1928; his parents began the retail sales. Steve Rombach, his brother, and a cousin incorporated in 1993, the year they rebuilt by starting the pumpkin venture. Rombachís father, who is retired, now works for him. Mrs. Rombach works off the farm (29). Such enterprises work best when farms are within thirty miles of a major population center, preferably on or near a good road. Pick-yourown is most adapted to crops which require stoop labor to harvest. Plans and layout for farm markets are published in the NRAES booklet Facilities for Roadside Markets, available from Cornell and in Bypassing the Middleman, from Rodale Press (see Resources). In addition to the expected parking, restrooms, harvesting instructions, creative signage, and playgrounds, adequate liability insurance must, of course, be in place. Direct marketers can get liability insurance through the North American Farmersí Direct Marketing Association (NAFDMA) (30). Comprehensive information on legal issues for all types of direct marketing is available in The Legal Guide for Direct Farm Marketing (1999) by Neil Hamilton (see Resources). In some areas of the country, fee hunting is combined with farming. One Nebraska farmer combines fee hunting with hunting lodge accommodations (and a gift shop) during the slow winter season on his 1500-acre grain farm. A publication of interest is Agritourism in New York: Opportunities and Challenges in Farm-Based Recreation and Hospitality, available from Cornell Media Services at Cornell University (607-255-2080) for $13.85. (This publication is currently being reprinted.) For more information, ask for ATTRAís publication Pick-Your-Own and Agri-Entertainment. Selling to restaurants and stores According to some reports, over 50% of American meals are now eaten away from home. This would appear to be a growing market for direct sales of produce. However, most highvolume meal servers (institutional food service and restaurant chains) require huge volumes, typically procured through centralized purchasing. It is still possible, however, to find an individually operated restaurant buying some foods locally. High quality is a prime requisite for sales to such restaurants. Such specialty crops as herbs, garlic, mushrooms, salad greens, cut flowers, and edible flowers for restaurants may be grown on very small parcels of land. One of the main requirements for selling to an upscale restaurant seems to be developing a good relationship with the chef. In some instances sales by local farmers to local institutions may be arranged. The Hartford Food Project (see list of organizations) has a publication describing creation of such marketing channels. ATTRA has some additional information on marketing to restaurants and specialty stores. Mail order and home delivery Mail order sales generally involve value-added products or (primarily in Florida and the West Coast) fresh fruits. Value-added products are often decorative, rather than culinary. Home delivery of fresh farm products was much more common in the U.S. fifty years ago than it is today. The sight of a horse-drawn farm wagon loaded with bushels of apples, squash, potatoes, and live chickens making its way slowly through a residential neighborhood while the farmer (or his children) knocked on doors was not unusual. But it is still possible for farmers to meet consumers at the doorstep and deliver quality food. This method is currently most used by dairy and meat producers. Nowadays arrangements are made in advance by telephone and meats are usually frozen. Some CSAs home deliver. // DIRECT MARKETING Page 18 Marketing on the Internet Plans for selling groceries on the Internet are taking their place along with other forms of e-commerce. Most such plans ask the consumer to pick up an Internet order at their local supermarket. High-value, nonperishable, low-weight, specialty food products and nutritional supplements have been available from a growing number of websites for some time. Delivery is by conventional package delivery systems; this form of e-commerce may be considered another another form of mail-order. Another way to utilize the WWW is to have a farm or business homepage purely for advertising purposes (perhaps cooperatively packaged). Examples include the Madison, WI, farmers market website mentioned previously and the Virtual Virginia Agricultural Community, at: http://www.vvac.org,which facilitates regional communication. The Minnesota Land Stewardship Projectís on-line directory of CSA farms (with e-mail and website contacts) is at http://www.misa.umn.edu/lsphp.html. According to Jennifer-Claire V. Klotz (USDA/AMS), who spoke at the October 1999 National Small Farms Conference in St. Louis, 92 million potential customers are now on the Internet, one-third of them making purchases. Internet users tend to be older, with above-average educations and higher incomes. Interestingly, Internet users share these characteristics with direct market customers in general. Farms can do business on the Internet either by maintaining their own individual websites, or participating in a directory listing. Research providers and costs; look at bartering to get a website designed. Look at Internet marketing as an opportunity to attract a new clientele, but first determine whether existing customers are on the Internet. Do they have e-mail? Be aware of certain barriers to Internet buying: ï pricing (include shipping costs) ï potential return hassles ï credit card concerns of customers ï privacy issues ï navigating the site Do everything possible to show you are honest and reputable. Do not sell or lease email addresses. Have a privacy statement that you wonít sell customer information. Customers like a website that is easy to use, quick to download, and updated frequently. Be cautious about graphics that take a long time to come up on screen. At least give customers the option to bypass graphics. Look into ways to increase search engine results for your site, so that it appears in the first five or ten that come up. (There is a way to bid on ìebayî to get you into the top 5.) Klotz advises that existing customers (for example, at your farmersí market) should be approached slowly for information for your database. Remember that ìcustomers are selfish and there is a lot of competition on the Net.î Invite people to your website; donít ask for the customerís e-mail addresses right away. Have a prize lottery to get customersí names and addresses for your mailing list. Or have on-line coupons they can print out (10% off, etc.). Then ask for their e-mail address so they can receive your newsletter. With another individual or business website, offer something if they put in a link. Call the local press (Food or Business section, not Agriculture), and offer an interview. Harps Supermarket, Fayetteville, AR, has joined the ValuPage website offering Web Bucks to customers who print out coupons from the web page and purchase certain products. Web Bucks may then be used to buy anything else in the store. This is a premium for customers to visit the website. See http://www.valupage.com. Customers may also sign up for regular e-mailed coupons. // DIRECT MARKETING Page 19 Put your web address everywhereóon all stationery and items that go out. Offer freebies (samples) when filling orders. Have a raffle. Develop a kids e-mail mailing list and send birthday cards. Send fall holiday greetings. List your competitorsí prices (shown to be effective). Bid on words for headings (eBay, etc.) to make the top five results from browsers. Make your website interesting. When creating your web page, call the first page ìindexî to aid search engines. Constantly test and evaluate your site. Promotion and publicity Associations such as the Organic Trade Association (OTA) help promote members through materials and a calendar of events. Promotions help to increase sales per customer and the number of clients, and enhance the image and visibility of the farm, company and/or product. For an overview of promotion strategies and advertising, refer to Sell What You Sow!, The New Farmersí Markets and Extension publications such as the Pacific Northwest Cooperative Extension series Farmer-to-Consumer Marketing (especially no. 3., Pricing and Promotional Strategies) (see Resources). Promotions come in different shapes and sizes but they all have some common characteristics. ! They draw attention and communicate information; ! They provide an incentive or premium to the consumer; ! They invite the consumer to buy. Word-of-mouth advertising by satisfied customers is priceless and cannot be purchased or engineered except by providing good service and a good product. Because an estimated 80% of business comes from return buyers, the focus is on rewarding loyal customers by offering discounts, gift certificates or a free service. Coverage by the local newspaper or radio/television station can bring in more sales than any paid advertisement. Events on the farmóa Halloween festival for children, availability of a new and unusual food item, a cider-tasting contestómay lure reporters in search of human-interest or weekend-event Some Home Pages for U.S. Farms Claymont Court, Shepherdstown, WV http://www.claymont.org Cromwell Valley CSA http://www.earthome.org Earthlands North Quabbin Farm http://www.tiac.net/users/elandspc/ Eco Farms, Lanham, MD http://www.ecofarms.com Glen Oshira, Hawaii http://www.smallfarms.com Howell Farm, Titusville, NJ http://www.americanmaze.com/PR98Howell.htm. Massachusetts Farm Directory http://www.massgrown.org http://www.massgrown.org/youpick.com Peacework Organic Farm, Newark, NY http://www.gvocsa.org Three Sisters Farm, Sandy Lake, PA http://www.bioshelter.com Dog Wood Knob Farm, Mt. Vernon, KY http://www.geocities.com/RainForest/8450/ Mountain Gardens, Burnsville, NC 28714 http://gardens.webjump.com Tate Family Farm/Goat Lady Dairy Climax, NC http://www.goatladydairy.com Wollam Gardens, Jeffersonton, VA 22724 http://www.wollamgardens.com Angelic Organics, Caledonia, IL 61011 http://www.AngelicOrganics.com Elixir Farm, Brixey, MO http://www.elixirfarm.com Inn Serendipity, Browntown, WI 53522 http://members.aol.com/innseren/public/ innserendipity.html Susanís Garden, Plattsburg, MO http://ianwhite.stanford.edu/susansgarden/ Camas Meadow Farm, Noti, OR http://members.aol.com/camasfarm/ Emandal, Willits, CA http://emandal.com // DIRECT MARKETING Page 20 stories. Invite the local newspaperís food editor over for a dinner of grass-fed beef, or pastured chicken so she or he can taste the difference from supermarket fare. While writing up a press release, look for the news peg that makes the storyóan accomplishment, an award, anything that seems interesting or valuable to the community. Give the press plenty of notice, good photo opportunities, and always return phone calls. Paid advertising is the non-personal promotion of an idea, product or service directed at a mass audience. Its aim is to generate an increase in sales, induce brand recognition and reinforce the îunique selling point,î inform potential customers about the availability of a product, and create demand for that product. An advertisement should emphasize benefits, not objects. What will people get from your product or from a visit to your farm? High-quality, fresh, delicious produce or meat? Family fun? Friendly service? You can either advertise continuously through the season to maintain your presence in the marketplace, or you can advertise just before a product is available. Advertising budgets generally range between 4 and 10 percent of sales. Letís say you rely heavily on radio spots for continual advertising during the six months you are open (31). If projected sales are $50,000 and you commit 4% to the advertising budget, this means you have $2,000. If 60% of this is allocated to continual advertising through the 6-month marketing season, you have $1,200 for that period. The balance of $800 would be allocated to each of those months depending on the percentage of seasonal sales that occurs in that month. If 50% of sales occur in July, then $400 would be allocated to that month over and above the base budget for April. This amount can be used for other forms of promotion such as direct mailings, or newspaper ads. If competition is high, ad budgets may need to increase. Reevaluate an ad campaign if it does not bring about a quick increase in sales. Attractive road signs are another effective form of advertising. Signs that are legible to the speeding motorist are a way to induce people to stop and visit the roadside market or farm-stand. Signs should have a logo and should reflect the kind of goods being sold!more upscale if they are highpriced and a ëno-frillsí sign if otherwise. Signs that advertise an unusual or out-of-the ordinary roduct will draw the curious to the farm. The first sign should be placed a good distance (at least 2500 feet) before the market to give the motorist time to decide whether or not to stop. Keep signs neat and well-maintained. Direct mail is advertising with a personal touch and requires an up-to-date and extensive mailing list. Postcards with pictures of your farm, a logo and a promotional message may be sent just before a farm festival or when produce is available. Direct mailing is only as effective as its mailing list (i.e. its targeting of people who will buy your product). Mailing lists should be revised each year. Target groups of people likely to buy your product (e.g., members of a health food store or co-op). A mailing list can be developed by asking people to sign up for mailings. Also, ask them where they heard about your product or farm. This information will help you plan future advertising. Peggy Frederick, Whitney Point, NY #Peggy Frederick of Strawberry Valley Farm in Whitney Point, New York, mails customers a specially-designed card listing the vegetables and strawberries available for U-pick. For Christmas, she sends out the ìgiftboxî brochure which lists gift items from the farmís bakery and consignment gift shop. Ellie MacDougall, Maine #In her catalog, Ellie MacDougall, a Mainebased grower, inserts a little promotional mailing on behalf of a local turkey grower, who in turn sells her poultry and turkey stuffing seasonings (32). Many of her seasonings and // DIRECT MARKETING Page 21 vinegars are cross-sold by produce growers at other markets and farm stands. The catalog is a marketing tool that serves many purposes. Common elements of a catalog are (33): " It should tell a story. It should differentiate your business from others and explain why and how you are different. " It should work like a reference, providing detailed information about the product, service and business. " It should be a sales tool. In addition to providing information, it must promote your product, service and business. " It should create a good first impression. Business cards have a way of sticking around in peopleís wallets long after they have been distributed. Print and hand out business cards with your name, phone number, farm location and product. The Internet offers a whole new world of marketing opportunities. Its key features are 24- hour accessibility by anyone with Internet capabilities and greatly expanded reach without the costs and limitations of direct mail. Customers may be to able to place an order on line, but the chief value is the publicity an attractive website can bring to a producer. Another advantage is making your on-line catalog available to Internet users. The first North American Agricultural Internet Marketing Conference ìInternet Goes Ag, Making it Work For You!î was held in October 1996, in Chicago. An excellent source of information and current resources is the Washington State University Extension (King County) publication Internet Marketing for Farmers (available on-line at http://king.wsu. edu/Ag/ internetmarketing.htm). More information on e-commerce is available from USDAís Small Farm Center (see Resources). Papa Genoís Herbs, Lincoln, NE #Within six months of setting up a Web page and beginning an e-mail newsletter, Gene Gage of Papa Genoís Herbs found that plant orders from the Internet had surpassed those from his traditional mail-order catalog (34). Size of the average order through the Internet was higher. Gage sends his e-mail newsletter out 15 times a year. Advertising on e-mail is cheaper, he says. It would cost him 50 cents to send a post card to each customer. Direct mailings to 40,000 people would cost him $20,000. The same people, assuming they had access to a computer, could be reached by e-mail for $5. Each day he receives 100 messages via e-mail. These are in addition to the orders that an employee takes in from her home. The hard work involves spending 20-40 hours a week online, for business and ìschmoozing.î Gage is constantly on the lookout for links to add to his web page and spends hours giving advice free of charge as resident herb expert of America Online and the gardening site Garden Escape. One disadvantage is that he has had several bad checks from Internet customers, a problem he has never had to face in retail and paper catalog sales. A lively and regular newsletter, written in the first person, discussing upcoming produce, recipes, farm events and life on the farm, makes the reader feel more involved and connected. Ideas for content may come from customers or from employees. Flickerville Mountain Farm and Groundhog Ranch, Flickerville, PA #Cass Peterson and her late husband, Ward Sinclair, who farmed with great flair and ingenuity for several years, published an annual newsletter for subscribers to their CSA called The Groundhog Report. With just the right touch of wry humor, the publication put together by the former Washington Post reporters informed consumers about prices and included tips on cooking vegetables, news from the farm, and quotable quotes. When creating a newsletter, consider the following (35): $ What items do you want to promote? $ What should you say to induce readers to buy? // DIRECT MARKETING Page 22 $ Are readers made to feel included and important? $ Have necessary details such as farm hours, phone number, deadlines, etc. been included? $ Is the newsletter uncluttered and visually pleasing? Including a map of how to get to the farm is always helpful. Newsletters may also be sent to the news media or published as an insert in the regional newspapers. Angelic Organics, Caledonia, IL #Kimberly Rector, formerly of Angelic Organics, a biodynamic farm northwest of Chicago used packaging to promote and educate people about the product (36). An artist by training, Rector chanced upon a motif for the farm, and used it on specially crafted paper labels with the farm logo and information about the product, on packaging for specialty items such as herbs, on signs designed for the farm stand and at the farmersí markets, and on specially-designed point of purchase posters. That increased demand for produce. Rector recommends retail packaging as a plus for farmersí markets and sales to stores. Single event promotions like harvest festivals, Easter egg hunts, and Halloween costume contests can be combined with ongoing promotions like school tours or Friday happy hours or open house. Publicize the promotions well ahead to ensure a good turnout. Lost Nation Orchard and Cider Mill #The Lost Nation Orchard and Cider Mill is a good example of the use of a mix of sales strategies. In addition to creating a striking cider label with a logo to enhance their presence on store shelves, partners Michael Phillips and David Craxton promote Lost Nation as a community farm (37). People trade labor for cider, helping to pick wild apples, label jugs or dig planting holes for new orchards. Phillips and Craxton write occasional press releases promoting apple tastings and harvest festivals, or providing early-season tips to growers. They also run ads regularly in these newspapers. The format generally remains the same, but photographs and text may vary. Advertising budgets average 5% of gross receipts. The idea behind their marketing strategy is to promote the experience of authentic country life, its fun and friendliness and generosity of spirit, in their advertisements, their brochures, at their annual harvest festival, at the school tours hosted on Friday mornings, and on the Lost Nation trading cards - educational cards with a little snippet of information that is handed to the consumer with each purchase. All in all, it makes for a wonderful tourist experience. The ideas, the insight and the creativity behind the marketing package, says Phillips, happened only because they loved and believed in what they were doing. Conclusion Finally, some parting advice to people considering direct marketing or processing of farm products. First of all, do something you love and enjoy doing. Success will follow. Invest time and, if necessary, money in research. Try to have a well-considered plan before proceeding but donít be rigid. Learn as you go. Start small and keep your costs and debt as low as possible. Provide a reliable supply of high quality products and build a good relationship with your customers. Take time to listen to their wants, identify market possibilities, and find a unique market niche for your product. Be adaptable to shifting market opportunities. Ensure diverse markets, so that if one fails, you can fall back on the others. Set a fair price and avoid competing directly with big business, especially on price. References: 1. Thompson, Allen R. 1980. Marketing and the Small Farmer. The National Rural Center, 1828 L Street NW, Washington, DC. p. 4. 2. Thompson, Allen R. 1980. Marketing and the Small Farmer. The National Rural Center, 1828 L Street NW, Washington, DC. p. 7. // DIRECT MARKETING Page 23 3. Martinez, Steve W., and Al Reed. 1996. From farmer to consumers: Vertical coordination in the food industry. U.S. Department of Agriculture Economic Research Service Report. Agriculture Information Bulletin Number 720. June. 4. Staff. 1999. [news item.] Pork. April .p. 54. 5. Thompson, Allen R. 1980. Marketing and the Small Farmer. The National Rural Center, 1828 L Street NW, Washington, DC. p. 12. References:(continued) 6. Nothdurft, William E. 1986. Going to Market: The New Aggressiveness in State Domestic Agricultural Marketing. Council for State Policy and Planning Agencies, Washington, D.C. p. 12. 7. Gibson, Eric. 1994. Sell What You Sow! The Growerís Guide to Successful Produce Marketing. New World Publishing, Carmichael, California. p. 17. 8. Hall, Charles R. et al. No date. A Guide to Marketing Organic Produce. Texas Ag. Extension Service. Varied paging. 9. Schermerhorn, R.W. 1991. Is Your Agribusiness Project Feasible? University of Georgia Cooperative Extension, Athens, GA. 15 p. AT: http://www.ces.uga.edu/pubed/b1066-w.html 10. Gilbert, Linda. 1998. Tracking 1998ís top trends. Natural Foods Merchandiser. January. p. 41, 48, 50. 11. Staff of The Packer. 1999. Fresh Trends: A 1999 Profile of the Fresh Produce Consumer. p. 4, 14. 12. Rocky Mountain Institute (ed.) 1987. ìMarketingî How To Survive As A Small Farmer. RMI, Snowmass, Colorado. p. 17. 13. Bjergo, Alan. 1986. Marketing: Why Have a Marketing Plan? University of Montana Coop Extension Service, Missoula, MT. 10 p. 14. J.E. 1997. Marketing ideas for small farmers. Maine Organic Farmer & Gardener. JuneAugust. p. 18. 15. McConnon, James C. 1996. ìSurviving in a world of mass retailers.î p. 142. In: Proceedings 1996 North American Farmersí Direct Marketing Conference. February 22-24, 1996. Saratoga Springs, New York. 16. Caplan, Frieda. 1997. Specialty crops spelled out. Small Farm News. April-May. p.1. 17. Lee, Andy. 1993. Backyard Market Gardening: The Entrepreneurís Guide to Selling What You Grow. Good EarthPublications. p. 4. 18. Bala, Radhika. 1998. Unpublished paper. Fayetteville, AR. 19. Byczynski, Lynn. 1997. Peppers are hot on Pennsylvania farm. Growing For Market. January. p 10. 20. Steve Salt Green Valley Farm RR 1, Box 263 Kirksville, MO 63501-9734 e-mail: saltsgvf@istlaplata.net 21. Salt, Steve. 1997. Growing for the cuisines of other countries sustains this family farm, even in a rural area. Growing For Market. June. p. 8. 22. Richards, Keith and Wechsler, Deborah S. 1996. Making It On The Farm. Increasing Sustainability Through Value-Added Processing and Marketing. Southern Sustainable Agriculture Working Group. p.2. 23. Anon. 1994. Moving start-ups out of the kitchen. In Business. March/April. p. 25. 24. OíNeill, Kelly. 1997. Emerging Markets for Family Farms. Center for Rural Affairs, Walthill, Nebraska. p. 9. 25. Anon. 1994. Lessons from the big retailers. (Reprinted from Cornell Small Fruits Newsletter, Oct. 11, 1993) Vegetable Notes, October. p. 1. Another perspective on marketing. (Reprinted from Cornell Small Fruits Newsletter, Oct. 11, 1993) October. p. 2. 26. Todd, Laurie. 1996. ìThe reality of establishing prices.î p. 153. In: Proceedings 1996 North American Farmersí Direct Marketing Conference. February 22-24, 1996. Saratoga Springs, New York. 27. Brown, Mark G. 1996. Setting prices for a farmersí market. Proceedings 1996 North American Farmersí Direct Marketing Conference. February 22-24. p. 155. // DIRECT MARKETING Page 24 28. Warr, A.M. 1993. Basil, Chives, Parsley...Idea Sheet: Farming and Farm-Related Business Ideas. Skylands Small Business Development Center at Warren County Community College. 2 p. 29. From talk delivered by Steve Rombach on October 14, 1999, at Rombach Farm to touring participants in the 2nd National Small Farms Conference, St. Louis, MO. Notes taken by Katherine Adam. 30. NAFDMA 62 White Loaf Road Southampton, MA 01073 (413) 529-0386 (888) 884-9270 http://www.nafdma.com 31. Ashley, Richard A. 1995. Planning your advertising campaign. Yankee Nursery Quarterly. Spring. p. 11. 32. MacDougall, Ellie. 1995. Expand your business by cross-selling. Growing For Market. May. p. 6. 33. McCoy, Miles and Laurent, Carla. No date. Produce a Catalog For a Reasonable Investment. Pimento Marketing, West Linn, Oregon. 503-657- 7550. Also see http://www.plantzone.com/articles/catalog.html 34. Byczynski, Lynn. 1997. Herb plant business thrives on the Internet. Growing For Market. November. p. 8ñ10. 35. Frederick, Peggy. 1996. ìNewsletters to encourage customer loyalty.î p. 124. In: Proceedings 1996 North American FarmersíDirect Marketing Conference. February 22-24, 1996. Saratoga Springs, New York. 36. Byczynski, Lynn. 1995. Artistic farmers find an appreciative audience. Growing For Market. April. p. 10 37. Phillips, Michael. 1995. Light-hearted marketing helps orchard thrive. Growing For Market. August. p. 9. By Katherine Adam, Radhika Balasubrahmanyam, and Holly Born NCAT Agriculture Specialists November 1999 The electronic version of Direct Marketing is located at: http://attra.ncat.org/attra-pub/directmkt.html The ATTRA Project is operated by the National Center for Appropriate Technology under a grant from the Rural Business-Cooperative Service, U.S. Department of Agriculture. These organizations do not recommend or endorse products, companies, or individuals. ATTRA is located in the Ozark Mountains at the University of Arkansas in Fayetteville at P.O. Box 3657, Fayetteville, AR 72702. ATTRA staff members prefer to receive requests for information about sustainable agriculture via the toll-free number 800-346-9140. // DIRECT MARKETING Page 25 www.attra.ncat.org Publications Beck-Chenowith, Herman. No date. Free-range Poultry Production & Marketing. [3-ring binder]. Back Forty Books, Creola, OH. 120 p. Order for $39.50 + $4.50 s/h from Back Forty Books, 26328 Locust Grove Road, Creola, OH 45622. Call (740) 596-4379 for information about short courses for farmers. Byczynski, Lynn. 1997. The Flower Farmer; An Organic Growerís Guide to Raising and Selling Cut Flowers. Chelsea Green Publications, VT. Chelsea Green Publications, VT. P.O. Box 428 205 Gates Briggs Bldg. River Junction, VT 05001. 800-639-4099 Campidonica, Mark. 1997. How to Find Agricultural Information on the Internet. Publication 3387. University of California. Walks readers through real life examples of how farmers and others have used e-mail and the Internet to improve their business. Available for $15 ppd from: UC DANR Communication Services 6701 San Pablo Avenue Oakland, CA 94608-1239 800-994-8849 or 510-642-2431 Internet address is www.sarep.ucdavis.edu/ CAPAP (ed.). 1990. The Alternative Field Crops Manual. Center for Alternative Animal and Plant products, Minnesota. Provides information on the production of many minor or new field crops. Costs $45. Also available is the Alternative Agricultural Opportunities, a bibliography listing over 1600 articles on alternative plants and animals. Cost is $5. Contact: CAPAP 352 Alderman Hall 1970 Folwell Avenue St. Paul, MN 55108. 612-625-4707; FAX 612-625-4237 http://capap.coafes.umn.edu DIRECT MARKETING: RESOURCES Sustainable Farming programs, such as those as Cornell University and the University of California, are often the best sources of recently published guides, as are private initiatives such as the Hartford Food Project. Increasingly, such information is most easily accessed through the Internet. Extension personnel in several states say that all their current publications are listed (and should be accessed) on their websites, as did other organizations. For out-of-print Extension publications, a U.S. Government Documents repository (generally located at a major landgrant university) or private library may provide access. Publications which inform small farmers and specialty growers on direct marketing options include The Business of Herbs, Small Farm Today, Growing for Market, and the new electronic publication Sustainable Farming Connection at http://sunsite.unc.edu/farming-connection. A variety of conferences on marketing and agriculture are held every year around the country. The largest is the national North American Farmers' Direct Marketing conference held at the beginning of each year. The Year 2000 conference will be held on February 10 "12 Cincinnati, OH. For information on conferences or proceedings, contact Vicki Parker-Clark at (208) 667-6426. (There is no conference website this year.) Information on the annual Mid-Atlantic Direct Marketing Conference, usually held in mid February, may be obtained from Dr. Ramu Govindasamy at Rutgers Coop Extension at 732-932-9171, ext. 25. ATTRA is the national sustainable agriculture information center funded by the USDAís Rural Business -- Cooperative Service. 800-346-9140 Appropriate Technology Transfer for Rural Areas BUSINESS MANAGEMENT SERIES // DIRECT MARKETING Page 26 Publications: (continued Desai, Mihir. 1994. The U.S. Market For Miscellaneous Oriental Vegetables. A Lac Tech Report, U.S. Agency for International Development, Washington, D.C. 20523. Available free from USAID. Economic Research Service (ERS) ed. No date. Agricultural Research and Development, Public and Private Investments Under Alternative Markets and Institutions. AER-735. ERS-NASS, Virginia. (703) 605-6900. A copy may be obtained by sending a check or money order for $29.50 to: ERS-NASS 5285 Port Royal Road Springfield VA 22161 800-999-6779 See publication at www.econ.ag.gov/ Order from ers.nass@ntis.fedworld.gov Engel, Allison and Engel, Margaret. 1991. Food FindsóAmericaís Best Local Foods and the People Who Produce Them. Harper Perennial, New York, NY. 346 p. Gibson, Eric. 2000 [in press]. The New Farmers Markets. New World Publishing, Vista, CA. Gibson, Eric. 1996. Farmers Markets 96: The Whatís Hot/Whatís Not Guide for Growers and Managers. New World Publishing, Vista, CA. 12 p. Interviews with market managers and vendors from around the country. Available for $5 from: New World Publishing 3037 Grass Valley Highway #8185 Auburn CA 95602 916-823-3886 Gibson, Eric. 1994. Sell What You Sow! The Growerís Guide to Successful Produce Marketing. 302 p. Available for $25.50 from New World Publishing (see above address). Gregson, Bob and Gregson, Bonnie. 1996. Rebirth of the Small Family Farm. IMF Associates, WA. 65 p. The book focuses on what to grow and how to sell it. Available for $9.95 ($10.65 for WA residents) from: IMF Associates PO Box 2542 Vashon Island, WA 98070. Growing For Market (ed.) Marketing Your Produce: Ideas For Small-Scale Farmers. Fairplain Publications P.O. Box 365 Auburn, KS 66402. Grubinger, Vernon. 1999. Sustainable Vegetable Production from Start-Up to Market. NRAES. Cornell Cooperative Extension, Ithaca, NY. $49.85. Hakenson, Dan. 1995. The Small Commercial Garden: How to Make $10,000 A Year In Your Backyard. 198 p. Send $20.90 (ND residents $20.98) to: PC-Services PO Box 7294 Bismarck, ND 58507-7294. 800-871-4296. Hall, Charles R. And Johnson, Jeff L. 1992. A Guide To Successful Direct Marketing. Texas Agricultural Extension Service, Texas A&M University, College Station, Texas. 32 p. Send $12 by check payable to: Account 5500 Texas Extension Education Foundation Attn: Charles Hall 464 Blocker Building College Station, TX 77843-2124 409-845-1772 Hall, Stephen F. From Kitchen to Market; Selling Your Gourmet Food Specialty. Upstart Publishing. Available for $24.95 from: Upstart Publishing 155 N. Wacker, Chicago, IL 60606. 800-235-8866. Hamilton, Neil D. 1999. The Legal Guide for Direct Farm Marketing. USDA/SARE grant. 235 p. Order for $20.00 from: Agricultural Law Center Drake University Des Moines, IA 50311 515-271-2947 Henderson, Elizabeth with Robyn Van En. 1999. Sharing the Harvest: A Guide to Community Supported Agriculture. Chelsea Green Publishing, White River Junction, VT. $25.00. Order from Chelsea Green Publ., 205 Gates-Briggs Bldg., P.O. Box 428, White River Junction, VT 05001. (800) 639-4099 http://www.chelseagreen.com // DIRECT MARKETING Page 27 Publications: (continued) Ishee, Jeff. 1997. Dynamic Farmersí Marketing. Bittersweet Farmstead, 130 p. Bittersweet Farmstead P.O. Box 52 Middlebrook, VA 24459 Describes how family farmers can make the best of the explosive growth in farmersí markets. Copies may be obtained by calling 540-886-8477. Send 14.95 plus $2.50 shipping and handling. Island Meadow Farm (ed.) Fifty Small Farm Ideas. Send $3.75 to: Island Meadow Farm 295 Sharpe Road Anacortes-Fidalgo Island, Washington, 98221. Jenkins, R.P. 1991. Establishing and Operating A Farmers' Market: A Manual for Sponsors, Boards of Directors, and Managers of Farmers' Markets. University of Tennessee Agricultural Extension Service. 24 p. Order as Pub. 847 from: Wanda Russell, Co-op Ext. (423) 974-7360 Jozwik, Francis X. How To Make Money Growing Plants, Trees and Flowers: A Guide to Profitable Earth-Friendly Ventures. Andmar Press. 180 p. Andmar Press P.O. Box 217 Mills, WY 82644. Also by the same author: Perennials For Profit or Pleasure: How To Grow and Sell in Your Own Backyard. 80 p. Kamoroff, Bernard. 1992. Small-Time Operator: How to Start Your Own Small Business, Keep Your Books, Pay Your Taxes and Stay Out of Trouble! Bell Springs Publishing, Laytonville, CA 95454. 188 p. Larkin, Geraldine A. 1992. 12 Simple Steps to a Winning Marketing Plan. Probus Publishing Co., Chicago, IL. 217 p. Lee, Andy. 1993. Backyard Market Gardening: The Entrepreneurís Guide to Selling What You Grow. Good Earth Publications. 351 p. Good Earth Publications P.O. Box 898 Burlington VT 05482 Practical guide on growing food for income. Describes membership gardens, CSA, growing for restaurants, producersí cooperatives, farmersí market etc. To order call 802-425-3201 or e-mail goodearth@igc.apc.org. Makus, L.D. et al. 1993. Planning Your Business. CIS 978. University of Idaho, Coop. Extension System. Ord. #422 Available for 50 cents from: Ag. Publications Idaho Street University of Idaho Moscow, ID 83844-2240. 208-885-7982. http://info.ag.uidaho.edu/catalog/Catalog.html Also available are: Makus, L.D., J.F. Guenthner, and J.C. Foltz. 1992. IS942. Pricing Nontraditional Products and Services. Cooperative Extension, University of Idaho. 4 p. Ord. #386. and: Parker-Clark, V.J. 1992. Marketing Your Produce Directly To Consumers. University of Idaho, Coop. Extension System. 6 p. Ord. # 620. Parker-Clark, V.J. 1989. Assessing the Potential for Farm and Ranch Recreation. EXT699, Ord. #596. $1.00. Smathers, R.L. 1992. Understanding Budgets and the Budgeting Process. CIS 945. University of Idaho Coop. Extension, Moscow, ID. 5 p. Order. 389. $1.00. Maue, Patricia et al. 1995. Growing Your Own Specialty Food Business - From Farm to Kitchen to Market. Publication of the NYS Small Business Development Center, Ulster County Community College, Stone Ridge, NY. MSAWG (compiler). 1996. Direct Marketing Resource Notebook. Midwest Sustainable Agriculture Working Group. Contains over 100 pages of practical information on direct marketing with examples of farmers, contacts for state and federal marketing regulations in the midwestern states, and other resources. Send check for $20 (NE residents add $1 per copy) payable to: Nebraska Sustainable Agriculture Society An update of this book is being planned for 2000. PO. Box 736 Hartington, NE 68739 402-254-2289. Mississippiís Southern Rural Development Center produced the Food Processing Industry!Resource Directory (1997) as a step toward addressing food processing development issues in the southern region. SRDC #205 is currently out of print, but hard copies, when available, will be $10 from: SRDC Box9656 Mississippi State, MS 39762. 601-325-3207 // DIRECT MARKETING Page 28 Publications: (continued) NRAES. No date. Facilities For Roadside Markets. Northeast Regional Agricultural Engineering Service (NRAES) Cornell University Ithaca, NY 14853-5701. The booklet, NRAES-52, is available for $5.50. Also available from NRAES are: Farming Alternatives: A Guide to Evaluating the Feasibility of New Farm-Based Enterprises (NRAES- 32) for $8 plus $3.50 s&h and Produce Handling For Direct Marketing (NRAES-51) $7 plus s&h. Write to: NRAES 152 Riley-Robb Hall Cornell University Ithaca, New York 14853. 607-255-7654; FAX 607-254-8770 Nebraska Extension (ed.) Setting Up Your Own Business: Financing Your Business (NebFact 96- 278). Note: Only available from NE county extension offices. See www.ianr.unl.edu/pubs. Nebraska Sustainable Agriculture Society. No date. The Direct Market Resource Notebook. Hartington, NE 68739. To order, send $20 to: NSAS, P.O. Box 736, Hartington, NE 68739. 402-254-2289. OíNeill, Kelly. 1997. Emerging Markets for Family Farms. Center for Rural Affairs, Walthill, Nebraska. 62 p. Available for $7 from: CRA PO Box 406 Walthill, NE 68067-0406. 402-846-5428. Pacific Northwest Coop. Extension (ed.) 1980. Farmer-to-Consumer Marketing: An Overview. Published by Washington State University Coop Extension, Oregon State University Coop. Extension, University of Idaho Coop. Extension and the USDA. Also available are: "1. Farmer-to-Consumer Marketing: An Overview "2. Farmer-to-Consumer Marketing: Production and Marketing Costs "3. Farmer-to-Consumer Marketing: Merchandising, Pricing and Promotional Strategies "4. Farmer-to-Consumer Marketing: Place of Business and Product Quality "5. Farmer-to-Consumer Marketing: Personnel Management "6. Farmer-to-Consumer Marketing: Financial Management Order on-line at: http://caheinfo.wsa.edu/pub_home-page/pub.html Packer, The (ed.) [Yearly]. The Packerís Produce Availability and Merchandising Guide. The Packer, Lenexa, Kansas. Information about display and promotion, post-harvest handling of major vegetable and fruit crops. Also publishes Fresh Trends annually. Contact: The Packer 2000 Guide Circulation Department 10901 West 84th Terrace Suite 20, Lenexa, KS 66214. 800-255-5116. Visit http://www.thepacker.com. The 2000 guide will be available in June. Richards, Keith and Wechsler, Deborah S. 1996. Making It On The Farm. Increasing Sustainability Through Value-Added Processing and Marketing. Southern Sustainable Agriculture Working Group. For copies, send check for $12 payable to SSAWG Publications PO Box 324 Elkins, AR 72727 Rocky Mountain Institute (ed.) 1987. ìMarketing,î How To Survive As A Small Farmer. Rocky Mountain Institute. 40 p. Rocky Mountain Institute 1739 Snowmass Creek Road, Snowmass, CO 81654 Salatin, Joel. 1995. Salad Bar Beef. Polyface, Inc., Swoope, VA. 368 p. Salatin, Joel. 1993. Pastured Poultry Profits. Polyface, Inc., Swoope, VA. 330 p. Salt, Steve. 1999. Specialty Ethnic Produce. Order from Steve Salt, Green Valley Farm, Kirksville, MO. E-mail: saltsgvf@istlaplata.net. Schermerhorn, R. W. 1991. Is Your Agribusiness Project Feasible? University of GA Cooperative Extension, Athens, GA. 15 p. At: http://www.ces.uga.edu/pubed/b1066-2.html. Schmidt and Acock. Marketing Fruits and Vegetables. #570. Mississippi State Extension, Mississippi State, MS 39762. // DIRECT MARKETING Page 29 Publications: (continued) Smith, Lauren K. and Cathy Roth (ed.) 1993. To Market! To Market!: Promotional Ideas That Will Bring Customers to Your Farmers' Market. AGMARK. Cooperative Extension, University of Massachusetts, Pittsfield, MA. 20 p. To order a copy of this booklet, send $1.50 to: US Extension Bookstore Draper Hall, B32010 Amherst, MA 01003-2010 413-448-8285. (no phone orders) Sullivan, G.H. et al. 1981. Direct Farm to Consumer Marketing: A Profitable Alternative for Family Farm Operations. #HO-160. Purdue University Extension Service, West Lafayette, IN 47907. Sustainable Agriculture Research & Education. 1999. Farming for Profit, Stewardship & Community. Tipsheet #2: Add Value Through Marketing. http://www.sare.org/san/tipsheet/tip2.htm 3 p. University of California (ed.) 1999. Specialty and Minor Crops Handbook. Publication #3346. Division of Ag. and Natural Resources, Oakland, CA. Available from the Small Farm Center for $30 (see list of organizations for address). University of California (ed.) No date. Growing Across the Seasons: A Season and Harvest Extension Guide for the Small-Acreage Farmer. UC Extension. Available for $13.73 ppd from: UC Coop Extension 11477 E. Avenue Auburn, CA 95603 Should I Sell at the Farmerís Market available from UC Davis Coop Extension, Davis, CA 95616 University of Delaware (ed.) No date. Guide to Planning the Farm Retail Market. University of Delaware Cooperative Extension. 85 p. Available from: University of Delaware College of Agricultural Sciences Ag. Experimental Station Cooperative Extension Newark, DE 19717-1303 University of Illinois Urbana-Champaign College of Agriculture(ed.) 1990. A Growerís Guide to Marketing Fruits, Vegetables and Herbs in Illinois. Available from: Cooperative Extension Publications 69 Mumford Hall 1301 West Gregory Drive Urbana, IL 61801 University of Wisconsin (ed.) No date. Direct Marketing of Farm Produce and Home Goods. Coop Extension. Available from: Extension Publications 630 W. Mifflin St. Room 170 Madison, WI 53703-2636 608-262-3346 Wallin, Craig. 1989. Backyard Cash Crops: The Sourcebook for Growing and Selling Over 200 High-Value Specialty Crops, Homestead Design, Inc., Friday Harbor, WA. 231 p. Whatley, Booker T. 1987. How To Make $100,000 Farming 25 Acres. Regenerative Ag. Association, Emmaus, PA. 1987. Focuses on location, crop selection and mix, and marketing. Gives insight on marketing strategies, equipment, high value crops. Available for $22.50 from: American Botanist Sellers P.O. Box 532, Chillicothe IL 61523. 309-274-5254; FAX: 309-274-6143. Directories: National Organic Directory (400 + p) Available for $50.95 (CA residents add $3.48) from: CAFF PO Box 363 Davis, CA 95617 800-852-3832 (lists farmers, buyers, and brokers, sustainable agriculture publications, organic certification groups, state laws etc.) Agencies/Associations: Alternative Farming Systems Information Center National Ag. Library 10301 Baltimore Avenue, Room 304 Beltsville, MD 20705-2351 301-504-6559; E-mail: afsic@nal.usda.gov Farming Alternatives Program 17 Warren Hall Cornell University Ithaca, NY 14853 607-255-9832 Food and Agricultural Products Research and Technology Center Oklahoma State University Stillwater, OK The Centerís objective is to help develop successful value-added enterprises in OK. For a free fax subscription to the Food Fax Newsletter, fax a request to Peter Muriana at 405-744-6313 or call him at 405-744- 5563. // DIRECT MARKETING Page 30 Agencies/Associations: (continued) Food Processing Center University of Nebraska 60 Filley Hall Lincoln, NE 68583-0928 402-472-5791 Contact Allis Burney The Entrepreneur Assistance Program helps prospective manufacturers with issues like product development, food safety, market research and selection, packaging and label design, business risk protection, product pricing, image development, regulatory issues, etc. Hartford Food System (Mark Winne) 509 Wethersfield Ave. Hartford, CT 06114 860-296-9325; FAX: 860-296-8326 Institute of Food Technologists 221 N. LaSalle St., Suite 300 Chicago, IL 60601 800-IFT-FOOD Missouri Alternatives Center 628 Clark Hall Colombia, MO 65211 573-882-1905 or 800-433-3704 Provides information on alternative crops, small farm options and alternative rural opportunities. National Farmers Direct Marketing Association 14850 Countryside Drive Aurora, OR 97002 503-678-2455 Organic Farmerís Marketing Association 8364 S. State Road 39 Clayton, IN 46188 317-539-6935; E-mail: cvof@iquest.net Publishes The Organic Organizer. Restorative Development Initiative Collective Heritage Institute 826 Camino de Monte Rey, Suite A6 Sante Fe, New Mexico 87505 505-986-0366; FAX 505-986-1644 Program linking family farmers, including native American growers, directly with progressive companies and markets to facilitate the creation of an alternative agricultural economy outside the commodities market. Small Farm Center University of California Davis, CA 95616-8699 916-752-8136 Published the Specialty and Minor Crops Handbook that describes seed sources, cultivation, production and marketing alternatives for 62 crops. A bimonthly newsletter called Small Farm News is also published. Also available are Considerations in Enterprise Selection, How to Determine Your Cost of Production, Direct Marketing and Quality Control, Marketing Cooperatives, and Setting Up a Roadside Stand, three booklets that cover marketing opportunities for small farmers, and the Small Farm Handbook (169 pp, $24.55) an easy to follow book for prospective farmers, new farmers and farmers who want to start new enterprises. USDA/RBS Program Stop 3201, 1400 Independence Avenue S.W. Washington, D.C. 20250-3201 202-690-4730 (Rural Business-Cooperative Service (RBS) helps farmers and other rural residents develop cooperatives to obtain supplies and services at lower cost and to get better prices for the products; advises rural residents on developing existing resources through cooperative action to enhance rural living; helps cooperatives improve services and operating efficiency; informs members, directors, employees, and the public on how cooperatives work and benefit their members and their communities; and enclurages international cooperative programs. RBS also publishes research and educational materials, including the Farmer Cooperatives magazine). Periodicals: Acreage Advisor 15400 N 56th St. Lincoln, NE 65814-9706 402-785-2220 Bimonthly 24-page publication geared toward the small farm and acreage owner. One year subscription is $9.95. Contact Phil Pfeiffer. American Fruit Grower American Vegetable Grower Meister Publishing Co. 37733 Euclid Avenue Willoughby, OH 44094 216-942-2000 // DIRECT MARKETING Page 31 Periodicals: (continued) The Business of Herbs 439 Ponderosa Way Jemez Springs, NM 87025-8036 505-829-3448; FAX 505-829-3449 E-mail: olives @jemez.com Bimonthly, $20 per year. Country Journal P.O. Box 500 Mt. Morris, IL 61054 Farm Direct Marketing Digest P.O. Box 4612 Pasco, WA 99302 509-547-5538; FAX 509-547-5563 Farmers Market Monthly and Farmers Market Outlook PO Box 4220 Culver City, CA 90231 310-673-8366 Bi-monthly newsletters on Californiaís farmers markets. Carries farmer profiles, updates on new crops, legal and regulatory issues, interviews with chefs, authors, policy-makers and others with and interest in farmers markets. Annual subscription costs $20. Farming Alternatives Newsletter c/o Farming Alternatives Program 17 Warren Hall Cornell University Ithaca, NY 14853 607-255-9832 Gourmet News PO Box 1056 Yarmouth, ME 04096 The Gourmet Retailer 3301 Ponce de Leon Boulevard, Suite 300 Coral Gables, FL 33134 305-446-3388 Growing for Market Fairplain Publications P.O. Box 365 Auburn, KS 66402 Subscription is $24/yr. Labels: Linking Consumers and Producers Free monthly electronic newsletter from the Institute for Agriculture and Trade Policy that provides news, events and resources related to the labeling of products for environmental, social and regional sustainability. To sunscribe, send e-mail to majordomo@igc.apc.org. Leave subject blank. In body, type subscribe label-news. MFA Marketing Digest Minnesota Food Association 2395 University Avenue, Room 309 St. Paul, MN 55114 612-644-2038 Contact: Anne deMeurisse Reports information of interest to small-scale food producers and processors who are creating a sustainable food system in Minnesota. Features profiles of producers, processors and buyers. Maine Organic Farmer and Gardener PO Box 2176 283 Water Street Farrell Building, 4th Floor Augusta, ME 04338 207-622-3118 The March-May issue 1996 is full of marketing and production ideas from the Farmer-to Farmer conference. Back issues are available for $4.50. The Packer 10901 West 84th Terrace Suite 20 Lenexa, KS 66214 800-255-5116 Gives weekly news about marketing and production of fruits and vegetables. Produces The Packerís Produce Availability and Merchandising Guide with information on vegetable and fruit crops, display and promotion, post-harvest handling, major production areas and other useful details. Produce Business Phoenix Media Network P.O. Box 810425 Boca Raton, FL 33481 561-447-0810 A monthly magazine available for $48. Ask for Fran. Rural Enterprise P.O. Box 878 Menomonee Falls, WI 53052-0878 414-255-0100 (discontinued but some back (1986-1992) issues still available. $3 each.) // DIRECT MARKETING Page 32 Periodicals: (continued) Small Farm Digest USDA-CSREES Mail Stop 2220 1400 Independence Avenue S. W. Washington, DC 20250-2220 800-583-3071; FAX 202-401-5179 smallfarm@reeusda.gov Free quarterly newsletter on farm-related trends and developments, announcements,e tc. Also available from this office is the ìGetting Started in Farmingî series and other factsheets. See http://www.reeusda.gov/smallfarm. Small Farm Today 3903 Ridgetrail Road Clark, MO 65243-9525 800-633-2535 Specialty Crop Digest Homestead Design, Inc. P.O. Box 1058 Bellingham, WA 98227 360-676-5647 Stockman Grass Farmer P.O. Box 2300 Ridgeland, MS 39158-2300 800-748-9808 University of Wisconsin Coop Extension Direct Marketing Newsletter c/o John Cottingham Ag. Marketing Specialist 717 Pioneer Tower University of Wisconsin, Platteville Platteville, WI 53818-3099 608-342-1392 Videos and Audios: High-Value Marketing. 1992. Farmer-To-Farmer Series. Rodale Press, Emmaus, PA. To order, send $29.95 to: Farm Videos, c/o Rooy Media 7407 Hilltop Drive, Frederick, MD 21702 301-473-8797 Contact Rooy Media for other titles in the series. Gerber, Michael. 1995. The E Myth Seminar. Nightingale-Conant Corp., Niles, IL (Six sound cassettes on how to run a business. Suggests that most businesses are started by people who want to turn a beloved interest into an occupation.) Databases and listservs: Foodline is a trio of databases providing international coverage of food marketing, technical and regulatory information. Foodline: International Food Market Data is a bibliographic database of global market information from approximately 250 food and beverage and related publications, Foodline: Food Science and Technology, which consists of abstracts from over 550 journals, books, reports and papers; and Foodline: Current Food Legislation, a database summarizing provisions of current food additive regulations and food composition and labeling standards for the U.S. and seven European Union countries. The USDAís market news service gives daily or weekly updates on wholesale produce/herb/cut flower prices. http://www.ams.usda.gov/marketnews.htm The Maine Organic Farmers and Gardeners Association started a bi-weekly price report in 1996. Prices are compiled by interviewing 20 farms about what they are charging for currently available organic produce. Items for which retail and wholesale prices are listed include vegetables, berries,tree fruit, herbs, bunched flowers, seedlings, and organic meats. Report available by mail for $10 per season from: MOFGA, PO Box 2176, Augusta, ME 04338. The Massachusetts Department of Ag. Has information on farmersí markets and direct marketing, mail order businesses at their website www.massgrown.org For 12 years of research reports, including marketing, try the SARE dababase at www.sare.org/san/projects/. New Crop Resource Online Program at http://www.hort.purdue.edu/newcrop provides a look at new and specialty crops. A discussion group about marketing is available on the Internet. To subscribe to direct-mkt, send the following message to majordomo@reeusda.gov subscribe direct-mkt For a similar discussion group for small farmers, send message to majordomo@reeusda.gov Leave subject blank. In the body, type: subscribe smallfarm-mg Organic Farmers Marketing Association web site has a public page and a private page where certified organic farmers can discuss markets, prices and other subjects. The private page is open only to members of the Organic Farmers Marketing Association. Send $25 to: OFMA PO Box 159 La Farge, WI 54639 Or look up http://www.iquest.net/ofma/ // DIRECT MARKETING Page 33 Databases and listservs: (cont.) SMALLFARM-MG is a listserve that identifies small farm contacts, farmers and others interested in strengthening the capacity of small and mid-size farmers to improve their income through a systems approach. To subscribe, send mail to majordomo@reeusda.gov. Leave subject blank. In the body, type subscribe smallfarm-mg Sustainable Farming Connection is an interactive website with innovative production and marketing information. Visit http://sunsite.unc.edu/farming-connection Contact: USDA AMS, F&V Division Market News Branch, Room 2503 South Building, PO Box 96456 Washington DC 20090-6456 http://www.ams.usda.gov/marketnews.htm A privately published report called the Organic Market News is available for $65/year by mail and $75 by fax. Contact Farmerís Information Network PO Box 2067 Santa Clara, CA 95055 408-247-6778 Another is the Organic Food Business News Fax Bulletin available for $205 and published by: Hotline Printing and Publishing P.O. Box 161132 Altamonte Springs, FL 32716 407-628-1377 A private website promising Todayís Market Prices has, as of October 1999, ìreopened the registration to consultî their daily ahd historical prices database, free of charge. See http://www.todaymarket.com for culinary herbs, fruits, and vegetables. The CA-based federal-State Market News Service gives daily reports of prices and supplies, annual summaries of shipments and prices. California Department of Food & Agriculture Division of Marketing Services State Market News Service 1220 N Street Room 126 Sacramento, CA 95814 (916)654-1240 http://www.cdfa.ca.gov Compiled by Katherine Adam, Radhika Balasubrahmanyam, and Holly Born November 1999 IP113 // DIRECT MARKETING Page 34 Notes: Notes: // DIRECT MARKETING Page 35 Feedback Feedback Feedback Feedback 1. Does this publication provide the information you were looking for? How could it be improved? 2. Do you know a farmer who is implementing techniques discussed in this publication? Can you provide their address and phone number? 3. Do you know of any related research that would add to the information presented here? 4. Do you know a good related website not listed in this publication? 5. Please add any other information, or comments that you wish to share. // DIRECT MARKETING Page 36 Thank You FOR YOUR VALUABLE FEEDBACK ñññññññññññññññññññññññññññññññññññññññññññññññ FOLD ñññññññññññññññññññññññññññññññññññññññññññññ NCAT /ATTRA PO Box 36 57 Faye tte ville , AR 72702
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w	demand	164	0
w	for	164	0
w	singleserve	164	0
w	products	164	0
w	and	164	0
w	produce	164	0
w	and	164	0
w	higher	165	0
w	per	165	0
w	capita	165	0
w	food	165	0
w	spending	165	0
w	one	165	0
w	and	165	0
w	twoperson	165	0
w	households	165	0
w	Health	165	0
w	and	165	0
w	nutrition	165	0
w	Products	165	0
w	perceived	165	0
w	fresh	166	0
w	will	166	0
w	have	166	0
w	the	166	0
w	strongest	166	0
w	competitive	166	0
w	advantage	166	0
w	According	166	0
w	survey	166	0
w	reported	166	0
w	The	166	0
w	Packer	166	0
w	1997	166	0
w	supplement	166	0
w	Fresh	167	0
w	Trends	167	0
w	the	167	0
w	respondents	167	0
w	had	167	0
w	purchased	167	0
w	one	167	0
w	more	167	0
w	new	167	0
w	fresh	167	0
w	vegetables	167	0
w	every	167	0
w	year	167	0
w	Shoppers	167	0
w	are	167	0
w	looking	168	0
w	for	168	0
w	taste	168	0
w	and	168	0
w	may	168	0
w	less	168	0
w	willing	168	0
w	compromise	168	0
w	this	168	0
w	for	168	0
w	health	168	0
w	product	168	0
w	both	168	0
w	healthy	168	0
w	and	169	0
w	tasty	169	0
w	guaranteed	169	0
w	winner	169	0
w	Since	169	0
w	1990	169	0
w	the	169	0
w	claims	169	0
w	natural	169	0
w	and	169	0
w	grown	169	0
w	without	169	0
w	pesticides	169	0
w	are	169	0
w	the	170	0
w	only	170	0
w	two	170	0
w	labels	170	0
w	that	170	0
w	have	170	0
w	grown	170	0
w	importance	170	0
w	relative	170	0
w	others	170	0
w	Aging	170	0
w	baby	170	0
w	boomers	170	0
w	will	170	0
w	push	171	0
w	new	171	0
w	product	171	0
w	positionings	171	0
w	and	171	0
w	define	171	0
w	the	171	0
w	market	171	0
w	for	171	0
w	health	171	0
w	foods	171	0
w	More	171	0
w	and	171	0
w	more	171	0
w	consumers	171	0
w	will	172	0
w	recognize	172	0
w	the	172	0
w	connection	172	0
w	between	172	0
w	nutrition	172	0
w	and	172	0
w	health	172	0
w	Safety	172	0
w	The	172	0
w	buzzword	172	0
w	1999	172	0
w	local	172	0
w	Country	172	0
w	Origin	173	0
w	labelling	173	0
w	was	173	0
w	overwhelmingly	173	0
w	favored	173	0
w	produce	173	0
w	consumers	173	0
w	participating	173	0
w	the	173	0
w	Packer	173	0
w	Survey	173	0
w	fact	173	0
w	favored	173	0
w	mandatory	173	0
w	labelling	174	0
w	This	174	0
w	can	174	0
w	only	174	0
w	work	174	0
w	the	174	0
w	advantage	174	0
w	local	174	0
w	producers	174	0
w	DIRECT	174	0
w	MARKETING	174	0
w	Page	174	0
w	Niche	174	0
w	marketing	174	0
w	Anyone	175	0
w	can	175	0
w	pick	175	0
w	bunch	175	0
w	vegetables	175	0
w	fruits	175	0
w	set	175	0
w	stand	175	0
w	the	175	0
w	local	175	0
w	farmer	175	0
w	market	175	0
w	voila	175	0
w	direct	175	0
w	marketer	175	0
w	born	176	0
w	However	176	0
w	what	176	0
w	that	176	0
w	differentiates	176	0
w	successful	176	0
w	marketer	176	0
w	from	176	0
w	the	176	0
w	rest	176	0
w	the	176	0
w	pack	176	0
w	James	176	0
w	McConnon	176	0
w	Business	177	0
w	and	177	0
w	Economics	177	0
w	Specialist	177	0
w	the	177	0
w	University	177	0
w	Maine	177	0
w	Coop	177	0
w	Extension	177	0
w	says	177	0
w	that	177	0
w	order	177	0
w	survive	177	0
w	world	177	0
w	mass	178	0
w	retailers	178	0
w	absolutely	178	0
w	imperative	178	0
w	find	178	0
w	and	178	0
w	fill	178	0
w	niche	178	0
w	that	178	0
w	not	178	0
w	filled	178	0
w	the	178	0
w	mass	178	0
w	retailer	178	0
w	WalMart	178	0
w	Safeway	179	0
w	addition	179	0
w	lists	179	0
w	three	179	0
w	other	179	0
w	survival	179	0
w	strategies	179	0
w	good	179	0
w	promotion	179	0
w	good	179	0
w	service	179	0
w	and	179	0
w	good	179	0
w	customer	179	0
w	relations	180	0
w	The	180	0
w	following	180	0
w	section	180	0
w	focuses	180	0
w	creative	180	0
w	marketing	180	0
w	tips	180	0
w	including	180	0
w	specialty	180	0
w	and	180	0
w	valueadded	180	0
w	marketing	180	0
w	using	180	0
w	examples	181	0
w	farmers	181	0
w	who	181	0
w	have	181	0
w	built	181	0
w	successful	181	0
w	direct	181	0
w	marketing	181	0
w	business	181	0
w	What	181	0
w	niche	181	0
w	market	181	0
w	target	181	0
w	group	181	0
w	whose	182	0
w	market	182	0
w	responses	182	0
w	are	182	0
w	similar	182	0
w	each	182	0
w	other	182	0
w	but	182	0
w	different	182	0
w	from	182	0
w	other	182	0
w	groups	182	0
w	What	182	0
w	makes	182	0
w	niche	182	0
w	market	183	0
w	worthwhile	183	0
w	for	183	0
w	the	183	0
w	farmer	183	0
w	There	183	0
w	must	183	0
w	accessible	183	0
w	information	183	0
w	about	183	0
w	the	183	0
w	group	183	0
w	The	183	0
w	group	183	0
w	must	184	0
w	reachable	184	0
w	through	184	0
w	clearly	184	0
w	identified	184	0
w	information	184	0
w	channels	184	0
w	The	184	0
w	group	184	0
w	must	184	0
w	big	184	0
w	enough	184	0
w	and	184	0
w	sufficiently	184	0
w	profitable	185	0
w	make	185	0
w	worth	185	0
w	targeting	185	0
w	The	185	0
w	nature	185	0
w	niche	185	0
w	market	185	0
w	that	185	0
w	tends	185	0
w	disappear	185	0
w	after	185	0
w	awhile	185	0
w	Frieda	185	0
w	Caplan	185	0
w	whose	186	0
w	company	186	0
w	introduced	186	0
w	the	186	0
w	kiwi	186	0
w	America	186	0
w	stopped	186	0
w	selling	186	0
w	kiwis	186	0
w	1990	186	0
w	because	186	0
w	oversupply	186	0
w	and	186	0
w	falling	186	0
w	prices	187	0
w	had	187	0
w	eliminated	187	0
w	the	187	0
w	niche	187	0
w	Product	187	0
w	differentiation	187	0
w	very	187	0
w	elementary	187	0
w	way	187	0
w	differentiating	187	0
w	one	187	0
w	product	187	0
w	take	187	0
w	directly	188	0
w	the	188	0
w	consumer	188	0
w	relatively	188	0
w	easy	188	0
w	for	188	0
w	direct	188	0
w	marketer	188	0
w	promote	188	0
w	product	188	0
w	farmfresh	188	0
w	and	188	0
w	different	188	0
w	from	188	0
w	the	189	0
w	one	189	0
w	sold	189	0
w	the	189	0
w	mass	189	0
w	retail	189	0
w	store	189	0
w	Other	189	0
w	ways	189	0
w	differentiate	189	0
w	your	189	0
w	product	189	0
w	are	189	0
w	producing	189	0
w	earlier	189	0
w	the	190	0
w	season	190	0
w	marketing	190	0
w	lowspray	190	0
w	see	190	0
w	box	190	0
w	organic	190	0
w	naturallyraised	190	0
w	and	190	0
w	adding	190	0
w	value	190	0
w	some	190	0
w	other	190	0
w	way	190	0
w	Cut	191	0
w	flowers	191	0
w	arranged	191	0
w	into	191	0
w	bouquets	191	0
w	garlic	191	0
w	turned	191	0
w	into	191	0
w	decorative	191	0
w	braids	191	0
w	wreaths	191	0
w	prewashed	191	0
w	and	191	0
w	bagged	191	0
w	vegetables	192	0
w	bunched	192	0
w	fresh	192	0
w	herbsthese	192	0
w	are	192	0
w	few	192	0
w	simple	192	0
w	ways	192	0
w	add	192	0
w	value	192	0
w	products	192	0
w	Consumer	192	0
w	concerns	192	0
w	with	192	0
w	pesticides	192	0
w	food	193	0
w	freshness	193	0
w	nutrition	193	0
w	and	193	0
w	flavor	193	0
w	have	193	0
w	turned	193	0
w	the	193	0
w	organic	193	0
w	food	193	0
w	movement	193	0
w	into	193	0
w	multimillion	193	0
w	dollar	193	0
w	industry	194	0
w	The	194	0
w	changing	194	0
w	racial	194	0
w	and	194	0
w	ethnic	194	0
w	mix	194	0
w	the	194	0
w	population	194	0
w	signals	194	0
w	increase	194	0
w	the	194	0
w	demand	194	0
w	for	194	0
w	exotic	195	0
w	and	195	0
w	unusual	195	0
w	vegetables	195	0
w	and	195	0
w	meats	195	0
w	Not	195	0
w	least	195	0
w	exciting	195	0
w	all	195	0
w	that	195	0
w	people	195	0
w	are	195	0
w	rediscovering	195	0
w	the	196	0
w	pleasure	196	0
w	fresh	196	0
w	ingredients	196	0
w	from	196	0
w	local	196	0
w	farmsa	196	0
w	more	196	0
w	meaningful	196	0
w	connection	196	0
w	the	196	0
w	land	196	0
w	The	196	0
w	one	196	0
w	advantage	196	0
w	that	197	0
w	direct	197	0
w	marketers	197	0
w	have	197	0
w	over	197	0
w	retailers	197	0
w	the	197	0
w	ability	197	0
w	build	197	0
w	their	197	0
w	relationships	197	0
w	with	197	0
w	customers	197	0
w	over	197	0
w	time	198	0
w	Indeed	198	0
w	good	198	0
w	marketing	198	0
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w	building	198	0
w	trust	198	0
w	and	198	0
w	personal	198	0
w	loyalty	198	0
w	the	198	0
w	relationship	198	0
w	Good	198	0
w	sellers	198	0
w	know	199	0
w	and	199	0
w	use	199	0
w	the	199	0
w	customer	199	0
w	name	199	0
w	Consumers	199	0
w	who	199	0
w	feel	199	0
w	emotional	199	0
w	bond	199	0
w	the	199	0
w	grower	199	0
w	are	199	0
w	likely	200	0
w	remain	200	0
w	loyal	200	0
w	even	200	0
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w	product	200	0
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w	the	200	0
w	grocery	200	0
w	store	200	0
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w	Marketing	200	0
w	gimmicks	200	0
w	will	201	0
w	not	201	0
w	hold	201	0
w	customers	201	0
w	unless	201	0
w	accompanied	201	0
w	excellent	201	0
w	product	201	0
w	and	201	0
w	superior	201	0
w	service	201	0
w	Conventional	201	0
w	marketing	201	0
w	wisdom	201	0
w	has	202	0
w	that	202	0
w	sales	202	0
w	come	202	0
w	from	202	0
w	Blemishes	202	0
w	Only	202	0
w	Skin	202	0
w	Deep	202	0
w	says	202	0
w	Orchardist	202	0
w	ATTRA	202	0
w	specialist	202	0
w	Guy	202	0
w	Ames	203	0
w	Ames	203	0
w	Orchard	203	0
w	and	203	0
w	Nursery	203	0
w	markets	203	0
w	his	203	0
w	lowspray	203	0
w	apples	203	0
w	ecologically	203	0
w	raised	203	0
w	Ames	203	0
w	committed	203	0
w	growing	203	0
w	healthy	203	0
w	food	204	0
w	for	204	0
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w	community	204	0
w	forced	204	0
w	spray	204	0
w	for	204	0
w	the	204	0
w	plum	204	0
w	curculio	204	0
w	insect	204	0
w	unable	204	0
w	control	204	0
w	entirely	204	0
w	through	205	0
w	organic	205	0
w	means	205	0
w	uses	205	0
w	Imidan	205	0
w	once	205	0
w	twice	205	0
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w	the	205	0
w	season	205	0
w	unlike	205	0
w	conventional	205	0
w	growers	205	0
w	who	205	0
w	rely	206	0
w	heavily	206	0
w	more	206	0
w	persistent	206	0
w	pesticides	206	0
w	spraying	206	0
w	1214	206	0
w	times	206	0
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w	season	206	0
w	for	206	0
w	cosmetically	206	0
w	perfect	206	0
w	product	206	0
w	Part	207	0
w	Ames	207	0
w	marketing	207	0
w	strategy	207	0
w	educate	207	0
w	consumers	207	0
w	disregard	207	0
w	minor	207	0
w	blemishes	207	0
w	fruit	207	0
w	and	207	0
w	instead	207	0
w	appreciate	207	0
w	its	207	0
w	freshness	207	0
w	and	208	0
w	wholesome	208	0
w	flavor	208	0
w	Buyers	208	0
w	can	208	0
w	get	208	0
w	taste	208	0
w	the	208	0
w	produce	208	0
w	the	208	0
w	Fayetteville	208	0
w	farmers	208	0
w	market	208	0
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w	times	209	0
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w	season	209	0
w	see	209	0
w	Resources	209	0
w	for	209	0
w	publications	209	0
w	ecolabeling	209	0
w	DIRECT	209	0
w	MARKETING	209	0
w	Page	209	0
w	customer	209	0
w	base	209	0
w	The	209	0
w	grower	210	0
w	must	210	0
w	build	210	0
w	core	210	0
w	customer	210	0
w	base	210	0
w	and	210	0
w	let	210	0
w	them	210	0
w	know	210	0
w	how	210	0
w	important	210	0
w	they	210	0
w	are	210	0
w	Wordofmouth	210	0
w	advertising	211	0
w	the	211	0
w	most	211	0
w	effective	211	0
w	and	211	0
w	inexpensive	211	0
w	way	211	0
w	attract	211	0
w	new	211	0
w	customers	211	0
w	Stay	211	0
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w	consumer	211	0
w	trends	211	0
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w	something	212	0
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w	want	212	0
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w	consumer	213	0
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w	big	213	0
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w	people	213	0
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w	instance	213	0
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w	oblivious	213	0
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w	environmental	213	0
w	and	213	0
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w	livestock	214	0
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w	forage	214	0
w	Conveying	214	0
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w	farm	214	0
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w	product	214	0
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w	raised	215	0
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w	and	217	0
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w	know	217	0
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w	you	217	0
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w	take	218	0
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w	responsibility	218	0
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w	local	218	0
w	farmers	218	0
w	Help	218	0
w	them	218	0
w	help	218	0
w	you	218	0
w	run	219	0
w	your	219	0
w	business	219	0
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w	truck	317	0
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w	Food	346	0
w	Processing	346	0
w	Center	346	0
w	Iowa	346	0
w	Wallace	346	0
w	Technology	346	0
w	Transfer	346	0
w	Foundation	346	0
w	assist	346	0
w	rural	346	0
w	microenterprise	346	0
w	other	347	0
w	homebased	347	0
w	food	347	0
w	processing	347	0
w	businesses	347	0
w	getting	347	0
w	started	347	0
w	University	347	0
w	food	347	0
w	technology	347	0
w	departments	347	0
w	may	347	0
w	able	347	0
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w	handbooks	348	0
w	and	348	0
w	guides	348	0
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w	valueadded	348	0
w	food	348	0
w	processing	348	0
w	technical	348	0
w	assistance	348	0
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w	funding	348	0
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w	and	349	0
w	marketing	349	0
w	options	349	0
w	Food	349	0
w	processing	349	0
w	incubators	349	0
w	FPI	349	0
w	have	349	0
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w	rural	349	0
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w	strategy	350	0
w	FPIs	350	0
w	for	350	0
w	fee	350	0
w	provide	350	0
w	commercial	350	0
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w	well	350	0
w	technical	350	0
w	assistance	350	0
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w	packaging	351	0
w	Some	351	0
w	include	351	0
w	peer	351	0
w	group	351	0
w	counseling	351	0
w	talk	351	0
w	over	351	0
w	manufacturing	351	0
w	marketing	351	0
w	issues	351	0
w	Arcata	352	0
w	Economic	352	0
w	Development	352	0
w	Corporation	352	0
w	Humboldt	352	0
w	County	352	0
w	California	352	0
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w	Arcata	352	0
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w	Development	352	0
w	Corporation	352	0
w	AEDC	352	0
w	constructed	352	0
w	the	353	0
w	Foodworks	353	0
w	Culinary	353	0
w	Center	353	0
w	help	353	0
w	develop	353	0
w	micro	353	0
w	industry	353	0
w	the	353	0
w	region	353	0
w	The	353	0
w	Center	353	0
w	served	353	0
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w	for	353	0
w	local	354	0
w	gourmet	354	0
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w	and	354	0
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w	1000	354	0
w	feet	354	0
w	shared	354	0
w	commercial	354	0
w	kitchen	354	0
w	space	354	0
w	addition	355	0
w	each	355	0
w	company	355	0
w	personal	355	0
w	kitchen	355	0
w	4000	355	0
w	feet	355	0
w	warehouse	355	0
w	space	355	0
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w	central	355	0
w	office	355	0
w	services	355	0
w	Products	355	0
w	being	356	0
w	made	356	0
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w	companies	356	0
w	include	356	0
w	baklava	356	0
w	pastas	356	0
w	Finnish	356	0
w	coffee	356	0
w	bread	356	0
w	smoked	356	0
w	salmon	356	0
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w	garlic	356	0
w	cream	357	0
w	cheese	357	0
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w	tofu	357	0
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w	icecream	357	0
w	and	357	0
w	toppings	357	0
w	jams	357	0
w	flavored	357	0
w	honey	357	0
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w	chocolate	357	0
w	confections	357	0
w	Tenants	357	0
w	have	358	0
w	formed	358	0
w	marketing	358	0
w	cooperative	358	0
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w	mail	358	0
w	order	358	0
w	catalog	358	0
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w	made	358	0
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w	For	359	0
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w	707	359	0
w	8224616	359	0
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w	known	359	0
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w	economic	360	0
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w	FPIs	360	0
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w	are	360	0
w	relatively	360	0
w	new	360	0
w	conceptDuncan	360	0
w	Hilchey	360	0
w	Cornell	360	0
w	Farming	360	0
w	Alternatives	360	0
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w	exploring	363	0
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w	publication	363	0
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w	from	364	0
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w	Horn	364	0
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w	Colorado	364	0
w	Denver	364	0
w	Campus	365	0
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w	128	365	0
w	Box	365	0
w	173364	365	0
w	Denver	365	0
w	802173364	365	0
w	8008739378	365	0
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w	303	365	0
w	5566651	365	0
w	FAX	365	0
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w	chutneys	366	0
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w	farmers	368	0
w	access	368	0
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w	timeshare	368	0
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w	farmers	369	0
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w	USDAcertified	370	0
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w	plants	370	0
w	Arkansasbased	370	0
w	graziers	370	0
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w	SmallScale	375	0
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w	Oilseed	376	0
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