As with any new business, organic farming requires a great deal of time and money. While the demand for organic produce is high, jumping into the organic farming industry will seem overwhelming without a structured and organized plan. Before planting any crops it is necessary to do everything possible to ensure that what you plant will be sold. Studies have shown that the premium prices charged at farmers markets are not pure profit and less-costly wholesale marketing produced the highest profits (Hardesty). However, wholesale marketing requires the supplier to have consistently available and high quality products. It is very difficult for first time suppliers to convince retailers you have quality products without a background to prove it.
With the organic farming industry growing at such a rapid rate is it important to constantly stay on top of the current trends in the industry. Although the demand for organic goods is growing, consumers are beginning to have choices of where and when to buy their produce. It is no longer the case that most cities have just one place to buy organic produce. That being said, it is crucial for a new farmer to find location that is not saturated. Many people still have to travel farther than they would prefer to buy organic produce. New farmers should specifically target these customers to raise brand awareness and create product loyalty. Supplying product to consumers at their convenience will be a staple in establishing a network to later expand on.
Direct marketing methods are a great way for new farmers to get their product out on the market while still making adjustments to perfect and maximize personal crop expectations. There are several direct marketing methods, all of which have their unique advantages and disadvantages. Tailgate marketing is one of the simplest forms of direct marketing. It involves parking a loaded vehicle with product on a road or street with hope that people will stop and purchase the product (Bachmann). This method is ideal for Michigan farmers who go through four seasons a year and sell in-season regional produce. Additionally, the tailgate method is great for first time farmers because it takes very little investment and can be set up on a short notice. Farmers will be able to improve and customize their crops without long-term commitment risks and pressures.
Farmers’ markets are another great place for a beginning farmer to sell their crop. They do not require the supplier to consistently bring high quality produce and tend to be relatively flexible. Farmers’ markets are also a great place to start relationships with competitors and create loyal customers. These relationships can lead to marketing channels that are necessary for expansion. Possible disadvantages include the need to spend time away from the farm and the possibility of having produce left over at the end of the day (Bachmann). Depending on the location and accessibility of your farm, on-farm marketing strategies can be another great way to establish relationships and sell your product. On-farm marketing strategies include road-side or farm stands and pick-your-own arrangements. Although these strategies require the farm to look presentable and welcoming, many farmers have found that customers who come for the enjoyment of spending time in the field will often purchase harvested crops.
Once the farmer has decided which products they can grow consistently at high quality they can direct their distribution methods towards more profitable markets such as grocery stores and local restaurants. Before entering these markets farmers must recognize their strengths and weakness. Wholesale marketing is not for everyone and may require additional labor, time and money. It is very important for farmers to take all responsibilities into consideration before entering into a long-term contract. Having the constant pressure to deliver quality product can be stressful and take the enjoyment out of farming.
