Farmers today are adding even more duties to their job description, as they are incorporating savvy marketing to capture more of the food dollar through value-added agriculture.
A producer or farm adds more value to raw agricultural goods by smoking, packaging, distributing, weaving, labeling, processing, cooking and so forth. By doing so, a farm can open new markets, expand the season, establish farm identity and offer a larger return on investment.
According to Stewart Smith’s “Is There Farming in Agriculture’s Future?” the producer’s share of the food dollar has seen a steady decline since 1900. But, farmers are attempting to reverse the decline by engaging in direct marketing of value-added products such as cut flowers, jams and jellies, pasture beef, chicken and pork, hanging baskets, agritourism, creameries, soaps and lotions and a list of other products.
The farmers that enter this type of market typically relish constant contact with consumers and sell products at farmers’ markets, through community supported agriculture (CSA), restaurants, institutions, grocery stores, by mail order and online.
Producers launching new value-added enterprises will have a learning curve to overcome in the areas of food safety, regulations, liability, marketing and production. Plus, a farm must ensure their product(s) are ready for the market before showcasing to the consumer.
Earnie and Martha Bohner operate Persimmon Hill Berry Farm in Lampe, Mo., a “u-pick” berry operation. They advise producers to always strive for the highest quality.
“From the very beginning we were committed to quality,” explained Earnie. “That may require more time and capital, but it will be worth it in the end.”
The Bohners have perfected a variety of farm fresh recipes that incorporate their berries and shiitake mushrooms. Plus, farm visitors can enjoy the farm’s famous blueberry Thunder Muffins, which the farm also sells online and ships across the nation.
A farm should build slowly on product development and do homework on market potential, these producers agree.
“Consumers aren’t forgiving,” said Nancy Rasmussen of Sunny Lane Farms in Lockwood, Mo., a grass-finished beef and pasture poultry operation. “It’s important to build slowly and perfect your products and marketing yearly.”
For a producer to be successful in this type of venture, National Sustainable Agriculture Information Service, ATTRA offers the following keys to success:
1. Start small and grow naturally
2. Make decisions based on good records
3. Create a high-quality product
4. Follow demand-driven production
5. Get the whole family or partners involved
6. Stay informed
7. Plan for the future
8. Evaluate continuously
9. Persevere
10. Capitalize adequately
11. Focus
12. Establish a loyal customer base
13. Choose something you love to do, that fits your personality and goals.
