Small Farms Program Emerging Farm Marketing Opportunities in
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Small Farms Program Emerging Farm Marketing Opportunities in Skagit County Best Western, Mt. Vernon November 8, 2004 Marcy Ostrom
WA Agriculture is Changing: • Increasing numbers of farmers and consumers seeking alternatives to mass markets • Rapid diversification into higher value production, distribution, and marketing channels
Negotiating New Market Relationships • Direct Marketing • Farm Stands/You-Pick • Farmers Markets • Community Supported Agriculture/Subscription • Institutions (schools), restaurants, retailers • Internet/mail order • Producer Processing and Marketing Cooperatives • Adding Value § Processing and packaging § Labeling—Skagit’s Own, Puget Sound Fresh, Heart of WA • Regional, organic, fair trade, eco-labels • Branding, creating authentic farm identity • Agri-tourism/educational farm experiences
Assessing the Extent of Marketing Alternatives in WA: Farmer Survey • Sample drawn from list maintained by state (WASS) • Minimum of 10% of farms in each county • 3, 718 surveys sent out in 2002 • Relatively representative by farm size and type in comparison with Ag. Census • Funded by Farming and the Environment, W. K. Kellogg and USDA NRI • 1, 201 completed surveys • Adjusted return rate just under 50%
Direct Marketing Becoming Common
73% of Skagit Farmers Say Direct Marketing is Effective
Skagit Growers Very Interested in Trying New Marketing Strategies Skagit County State-Wide More Direct Marketing to Consumers 40% 25% Diversify Products Grown on Farm 31 24 Explore Greenhouse Production 12 6 Add On-Farm Packing/Processing 15 4 Join Producers’ Co-operative 5 10
Common Themes of New Agricultural Enterprises • Linked to local communities and economies • Entrepreneurial--flexible production tailored to specific local or known markets • Diversified • Intensive, high-value crop production per acre, net more of gross • Knowledge/management intensive • Environmental Stewardship • Require strong consumer support
The Role of Consumers in New Farming Approaches • WA Consumer Surveys Show Recognition of Civic and Environmental Value of Agriculture • Two telephone polls of around 900 WA residents, Farming and the Environment Group and WSU(2000, 2002) • Respondents saw profitable family owned farms and food enterprises as important components of the local economy • Appreciation of multi-functional nature of agriculture • • Want healthy, safe, and secure food supply Most see economic benefit to keeping farms in business Many see environmental, wildlife, benefits Many see aesthetic and cultural benefits • 7 in 10 said WA Farmers are responsible environmental stewards (Farming and Env. 2000) • Over 80% want to increase local purchasing (2002)
Current frequency of Direct Purchasing from Farmers Twice a month 26% or more Once a month or less Never
Interested in more direct purchases of: Vegetables Fruits Eggs Dairy Beef Poultry 82% 81% 52% 44% 36% 34%
Relative Importance of Food Purchasing Criteria
If locally grown foods were available, how much extra would you pay? Not Willing to Pay More 23% Would Pay 10% More 54% Would Pay 25% More 21% Would Pay 50% More 3%
Reasons for not Purchasing Food Directly from Farmers • Convenience a bigger factor than price • Want foods available where normally shop, eat • Grocery stores, discount stores, restaurants, cafeterias • Want farmers markets nearby in neighborhood • Want to shop at convenient times • Want easy parking • Not always aware of available options for buying local • A third say there are no markets/stands nearby (even though in many cases there are) • Most (83%) are unfamiliar with CSA • Unaware that current purchases are not local
Consumers and Farmers Favor Labeling • 94% consumers believe food should be labeled to show origin • 94% consumers think having a WA label would help WA farmers • 77% farmers think that a WA label would help them
Small Farms Program • Discussion Points A significant amount of activity and interest in direct marketing from growers and consumers • New levels of acceptance, moving beyond a niche? • Growth possible given high consumer and farmer interest • Only partial solutions • Farmers not operating in global vs. direct markets, but rather a strategic mix. • Need more availability—local into existing commercial and retail channels • Health, quality, local/family farm are big selling points • Health increasing in importance, especially for children • Consumer education, branding, and labeling are key § Need distribution and processing infrastructure § Important sectors left out (meats, apples, grains) • locality and commodity specific § Many farmers don’t like marketing/time intensive § Will niches be saturated? § Diversification of markets is a top farmer priority
- Marketing strategies for emerging markets
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