Farmer Direct Marketing Newsletter
Spring 2000
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Contents:USDA Farmers Market Season Starts!
New Publication: "Innovative Marketing Opportunities for Small Farmers: Local Schools as Customers"
New Publication: "Direct Marketing Today: Challenges and Opportunities"
New Publication: "Increasing Food Recovery From Farmers' Markets: A Preliminary Analysis"
2000 National Farmers Market Directory Available!
Farm-to-School Marketing Outreach Workshop Held in Kentucky
"Markets, Tools, and Opportunities for Limited Resource Farmers" - Workshop in California
"Why Customers Like Stores Run by Farmers" (Canadian Farm Manager, January/February 2000)
"Ontario Farm Manager Discovers the Joys of Retailing: Turns
100-Year-Old Building into a Store"
(Canadian Farm Manager,
January/February 2000)
Creating Innovative Newsletters to Reach Your Customers - Part II
Presentation by Jane
Eckert at the 2000 National Farmer's Direct Marketing Conference
New in Print or on Video About Direct Marketing:
North American Farmers Direct Marketing Association 2000 Conference Audio Tapes and Proceedings
"Marketing Options for Commercial Vegetable Growers" (University of Kentucky Cooperative Extension)
New England Vegetable and Berry Growers Conference 2000 Proceedings Available
"The Farmers' Market Cookbook"
John Ikerd's Sustainable Agriculture Publications On-Line
Return to Farmer Direct Marketing Newsletter Index to view previous editions
USDA Farmers Market Season Starts!
The USDA Farmers Market season kicked off with a special market on May 19. The regular market season started on June 2 and will run until November. The USDA Farmers Market, held at USDA Headquarters in Washington, D.C., is on Friday from 10:00 a.m. until 2:00 p.m. These markets feature fresh produce, baked goods, meat, honey and maple syrup, jellies and relishes, and more from 14 vendors from Maryland, Virginia, Pennsylvania, and West Virginia.Look for more details about the USDA Farmers Market soon!
Information on vending at the USDA Farmers Market is available at http://www.ams.usda.gov/farmersmarkets.
"Innovative
Market Opportunities for Small Farmers: Local Schools as Customers"
"Innovative Market Opportunities for Small Farmers: Local Schools as Customers" is now available in print and can be accessed on line (as a pdf document) at http://www.ams.usda.gov/tmd/tmpubs.htm.
Summary: "Small farmers in the United States are declining in number and experiencing economic difficulty. Within that group, the number of African-American farmers has dramatically decreased since 1910, when 1 million African-American farmers owned 15 million acres of land. In 1998, fewer than 20,000 African-American farmers owned 2 million acres.
The U.S. Department of Agriculture's (USDA) Agricultural Marketing Service (AMS) and Natural Resources Conservation Service (NRCS), the West Florida Resource Conservation and Development Council (WFRCDC), and the Small Farmer Outreach Training and Technical Assistance Project, Florida A&M University (FAMU) have worked together on this pilot project to create marketing opportunities for limited resource growers. The cooperators used A Time to Act, the report produced by USDA's National Commission on Small Farms, as a guide. A group of small farmers in the Florida Panhandle organized into the New North Florida Cooperative and established a location in Marianna, FL, 70 miles west of Tallahassee. The Cooperative recognized a considerable opportunity in serving local school districts with fresh agricultural products. This pilot project made substantial progress over the 1997/98 and 1998/99 school years.
The Cooperative overcame initial difficulties, including lack of organization, economic difficulties, social attitudes, existing customer preferences, and lack of equipment. Realizing that effective organization was critical, these limited-resource growers formed a management team as a governing body. The management team addressed problems and handled day-to-day business activities in a unified, methodical way. The Cooperative acquired capital and purchased necessary startup equipment, such as a refrigerated trailer, cutting machines, and wash sinks.
The Cooperative developed a good working relationship with the food service director for the Gadsen County School District by providing high-quality produce, prompt deliveries, fair prices and courteous professionalism. The vending experiences over the 1997/98 and 1998/99 school years were positive steps for the Cooperative in building a long-term, reputable business. The Cooperative's main produce was fresh-cut, leafy greens, but watermelons, strawberries, blackberries, and muscadine grapes were also sold. Word-of-mouth advertising has portrayed the Cooperative as a reputable vendor and opened doors of opportunity in other school districts, including Jackson, Leon, and Walton Counties."
For more information or to obtain a copy of the publication, contact Dan Schofer, USDA-AMS-TMP-MTA, Room 1207-S, 1400 Independence Avenue, SW, Washington, DC 20250, tel. 202-690-1170, fax 202-690-3616, or e-mail Dan.Schofer@usda.gov.
"Direct
Marketing Today: Challenges and Opportunities"
USDA - Wholesale and Alternative
Markets has a new publication available - "Direct Marketing Today: Challenges
and Opportunities."
The publication may be viewed in its entirety (as a pdf document) at http://www.ams.usda.gov/directmarketing/directmar2.pdf. To order a print version, please email Velma Lakins at velma.lakins@usda.gov or call (202) 720-8317.
From the Executive Summary:
"The U.S. Department of Agriculture (USDA) - Agricultural Marketing Service's (AMS) Farmer Direct Marketing Action Plan (August 1998) identified the need for public input on farmer direct marketing issues and opportunities. A goal of this plan is to translate this participation into the development of an effective programmatic strategy for USDA-AMS that reflects the needs of the direct marketing community, promotes direct marketing alternatives, and improves market access for small farmers. The first step toward gathering public comment was a farmers market forum in July 1998. The second step was to expand the collection of information through focus group meetings with marketers and individuals who work with small farmers or support direct marketing (facilitators).
Five focus group meetings were held with marketers and facilitators in three locations (Sturbridge, MA; Grand Rapids, MI; Memphis, TN). The diversity of locations afforded balanced contributions from a broad constituency and an opportunity to investigate regional differences in production and marketing strategies. Forty direct marketing facilitators and 27 direct marketers from 34 States participated.
Direct Marketing Opportunities and Challenges
Pressing issues are producer perceptions of cost and returns, financial capacity of direct marketing businesses, availability of technical assistance and grants, and the overall regulatory environment faced by direct marketing firms. Of lesser concern were the status of producer marketing skills, availability of insurance, and the status of information and networking in the direct marketing community. Finally, relatively few focus group participants judged consumer interest to be a large problem for direct marketers.
Market facilitators and marketers do not always hold similar opinions. A greater proportion of facilitators consider direct marketing success to be problematic, while marketers have a more buoyant attitude. Marketers downgraded capacity issues related to producer marketing skills, while more than 60 percent of facilitators indicated that lack of these skills is a major impediment to direct marketing. Both groups are wary of costs and returns associated with direct marketing but do not consider consumer interest a big problem in the direct marketing of farm products. Facilitators assigned greater significance to problems stemming from lack of technical assistance or grants and the regulatory environment faced by the direct marketing community.
Implications for USDA-AMS Programs
Participants placed substantial emphasis on persuading USDA to expand data collection and applied research. Facilitators seek information that enhances their efforts to assist marketers and documents the significance of direct marketing. Marketers are looking for information that helps them make better business decisions and increase their income. Another high priority for both groups is developing 'how to' manuals on a variety of direct marketing subjects.
Information needs that focus groups identified present program opportunities for USDA-AMS and for other USDA agencies. Although they agreed on the need for information, participants (especially marketers) voiced caution about 'government' involvement in direct marketing. They also voice concern that the Federal Government not duplicate what the private sector or State agencies are doing, but that it become a partner in enhancing direct marketing efforts. Facilitators, in particular, were interested in having USDA collaborate with or stimulate new initiatives through grants using existing expertise."
"Increasing
Food Recovery From Farmers' Markets: A Preliminary Analysis"
by Charlene C. Price and J. Michael Harris
USDA - Economic Research Service
"Abstract: Collecting unsold food discarded at farmers markets has the potential to allow nonprofit food recovery and gleaning organizations to distribute significant quantities of wholesome, unsold fruits and vegetables to needy families. Donations of this unsold produce by the participants at these markets can generate tangible benefits: increased private food assistance and better nutrition for lower income families. The Geographical Information System (GIS) analysis presented in this study indicates that there is potential to strengthen the links between farmers markets and nonprofit food recovery and gleaning organizations in many areas of the United States."
The report can be downloaded at no cost at http://www.ers.usda.gov/epubs/pdf/fanrr4/. Information on how to order hard copies can also be found at this location.
"2000 National
Directory of Farmers Markets Available!"
USDA - Wholesale and Alternative
Markets has finished collecting data for its 2000 National Directory of Farmers
Markets. Check the USDA Farmers Market Website (http://www.ams.usda.gov/farmersmarkets)
for updates to the website version!
A print version will be available later this summer. E-mail Velma Lakins (velma.lakins@usda.gov) to order a copy.
"Farm-to-School
Marketing Outreach Workshop Held in Kentucky"
On May 1, AMS partnered with USDA's Food and Nutrition Service, the
University of Kentucky's Cooperative Extension Service, and the Kentucky Department of
Agriculture to conduct an outreach workshop in Georgetown, KY, on farm-to-school marketing
issues. More than 180 participants attended the workshop, including school food
service directors, farmers and representatives of farm cooperatives, Extension Service
agents, government and university agricultural marketing specialists, and officials in
charge of Federal and State school lunch procurement. According to University of
Kentucky Cooperative Extension Service officials, the workshop has already spawned a
flurry of requests from school food service buyers eager to meet with local producer
groups and identify which locally grown commodities are potentially available for use in
their school feeding programs. The University of Kentucky Cooperative Extension
Service and the Kentucky Department of Agriculture plan several followup meetings
throughout the State to match school food service customers with local agricultural
producers.
AMS is developing an educational report summarizing "lessons learned" at the Georgetown, KY, outreach workshop and will maintain its current advisory role in a broad-based coalition seeking to sponsor additional farm-to-school outreach workshops in other locations. (Coalition members include representatives of USDA's Food and Nutrition Service and Cooperative State Research, Education, and Extension Service; the Coalition for Community Food Security; and university Cooperative Extension Service personnel.)
"Markets,
Tools, and Opportunities for Limited Resource Farmers"
Workshop in California
"Markets, Tools, and
Opportunities for Limited Resource Farmers" will be held October 31-November 2 in
Modesto, CA. For more information call Karen Jameson, U.S. Department of
Agriculture, Agricultural Marketing Service, at (202) 720-5731.
The purpose of this conference is to offer limited-resource farmers strategies for improving small farm business profitability. Record keeping, how to apply for loans and grants, a marketing plan, interpreting market information, the importance of diversifying products, new products with potential for small-scale producers, value-added products, agro-tourism, and avenues for direct marketing will be covered in breakout sessions. Small farm tours and demonstrations will present information on lucrative specialty markets.
"Why Customers Like
Stores Run By Farmers"
(Canadian Farm Manager, January/February 2000)
Canadian Farm Manager is a bimonthly farm management newsletter published by the Canadian Farm Business Management Council. To view the newsletter in its entirety, visit http://www.cfbmc.com/cfm-eng/jan2000/.
"Farm Managers who operate retail outlets say farm-owned stores are a big hit for a number of reasons:
- Competitive prices compared to commercial grocery stores.
- Homemade products and farm freshness are appealing to customers looking for natural produce.
- People in the community trust their farmers.
- Small stores take more care. For example, Ontario Farm Manager Corry Martens has beef aged 20 days, making it much more tender than grocery store meat.
- Small community stores are also social meeting places where neighbours can get to know each other.
- People like to support local businesses."
"Ontario
Farm Manager Discovers the Joys of Retailing:
Turns 100-Year-Old Building into a Store"
(Canadian Farm Manager, January/February 2000)
"Is
retailing a logical option for diversification? Farm Manager Corry Martens,
who operates a beef and cash crop business in Iroquois, Ontario, south of Ottawa, with her
husband, says yes, but she cautions, "you have to be patient." Recently, Martens turned a 100-year-old farm building on her property into a small store, selling beef from the farm but also selling a wide range of local food products produced by her neighbours and friends. "
The shelves in the Martens store are packed with local produce. 'We have Ontario grown tomatoes, preserves and jams, maple syrup and honey and nonfood items as well,' she told CFM. Among the other products are locally produced candles, oatmeal soap bars, cast iron driveway markers and rustic birdfeeders. But can you make money? Martens predicts the store will break even in about a year and start to turn a profit in about three or four years, but it will never be a huge money maker on its own. 'The store is a value added part of our business,' she says, pointing out that location is everything, and in her case, the location is less than ideal, 'so we need to do some extra curricular activities to draw people to our location.' The family farm is on an unpaved road off the highway. 'We would do much better if we were located right on the highway, but right now, we have no plans to move.' Expenses are low for the store with Corry and her husband sharing shopkeeper duties. The old building is next to their house, part of the farm property. 'We don't have to worry about paying any rent.' Marketing can be fun Marketing the store is a joy for Martens who likes to test different ideas to see what works. One thing is for certain: advertising in local publications has not worked for her. 'We have put in ads and received no response. Our sign off the highway, directing people here, costs us nothing and has been the most effective system.' But Martens hasn't stopped there. She's promoted her store at local home and trade shows and each September, she holds an 'Open House' on the farm, inviting the public in for a barbeque. Posters placed in other local businesses also help. Under way is a newsletter that features store specials, new products, cooking tips and recipes sent to a growing number of customers. A web site is also under consideration. Martens has this advice for other farm managers thinking of opening up a store: 'Make sure you have a lot of energy and patience and build the business slowly. It will likely begin as a hobby and grow from there.'" |
Creating Innovative Newsletters to Reach Your Customers - Part I
Presentation by Angie Eckert at the 2000 National Farmer's Direct Marketing Conference
Creating Innovative Newsletters to Reach Your Customers - Part II
Presentation by Jane Eckert at the 2000 National Farmer's Direct Marketing Conference
Jane EckertEckert's Country Store and Farms
(618) 233-0513
"Preparing and producing a frequent newsletter is a tremendous task and commitment! I do not suggest this form of advertising for everyone. At Eckert's we have been producing and mailing four newsletters a year since 1996 to coincide with our four retail seasons.
You must commit to build and maintain a database!
We began to build our customer database in 1989. At all three of our farm locations, customers can complete a form to be added to our mailing list. This form asks for their name and address, crops they like to pick, special interest information (i.e. gardening, children's activities and other), plus we ask for their email address if they would like to receive our email updates. (See sample.)
Our newsletter is mailed to our database in advance of a coming season. The Eckert database is now approximately 18,300 names. The database also includes compiled names from our school tours, motorcoaches, gift basket buyers and other specialized lists. The database is also used for smaller mailings to these targeted audiences.
How much does it cost?
The cost of a newsletter and how it fits into your overall advertising budget is also an important consideration. The expenses related to a newsletter are: writing, design and layout, printing and paper, mail house (if done externally) and postage. Our format is a newsprint tabloid 11" x 17" folded. Format size is a personal decision based on your newsletter design and number of articles. Our average cost of a printed piece is .062 cents each. Our average postage and mailing cost is .272 each. Total cost per customer is approximately .334 cents. The cost of printing our color edition was .129 cents. (See samples.)
Why should I produce a newsletter?
I feel the benefits of producing a farm newsletter are as follows:
1. Frequent communication with a known customer
2. Direct delivery into their home (this is not junk mail - it has been requested)
3. Opportunity to tell your customer what's new, what's coming, etc.
4. Cost efficient advertising to reach your known customer
5. Opportunity to strengthen customer loyalty and connection to your farm and family
E-mail database - the next logical progression
Our first year to acquire e-mail addresses was in 1999. I decided to do this after spending much time last winter on-line examining other retail and tourism Websites. We now have an e-mail database of 1,400 names. I have been very pleased and disappointed with the sign-up response. I was hoping that at some point in the near future that I might be able to eliminate the printed newsletter and go entirely to an email newsletter. I don't see this happening for at least a minimum of five years.
An e-mail database is also a commitment! Currently I write a one-page newsletter weekly in the midst of our very busy season and cut back to a monthly frequency in the off season. The benefits that I have seen are enormous. Not only do they parallel the benefits as discussed for a printed newsletter but also the additional benefits make this a very rewarding endeavor.
I have found some of these people to be some of our most loyal and frequent customers. The information and written newsletter is just not enough for them. I would call these e-mail customers the "Eckert farm groupies." They want to know the exact times of specific weekend events, who are the musicians, times to enter contests, special offers in our restaurant and bakery, etc. This year I plan to add coupons to the email newsletter so I can better track readership and response. (See samples.)
A real benefit to the farm from this communication is we get immediate feedback. If a customer doesn't understand something I have written or perhaps omitted they write me a sentence or two and hit "reply." It is truly the most beneficial and rapid form of customer feedback I have ever experienced. While most people never take the time to write you a positive letter, I have received many this year. Yes, we have made it easier to send us a gripe but that's also what we want to hear.
Just as we made it easy to sign up for this database, the customer can be removed just as easily and I think that is also very important. A requested newsletter is not "spam," however you should make it easy for a customer to have their name removed from our list.
Make the commitment!
I am a big proponent of farm newsletter because I think that it is an effective advertising method to reach your intended audience. It certainly cannot replace all other forms of advertising in your budget but I strongly suggest that you consider its place in your overall advertising mix."
Back to Contents
New in Print or on Audio/Video About Direct Marketing
North American Farmers Direct Marketing Association 2000 Conference Audio Tapes and Proceedings
Miss the North American Farmers Direct Marketing /Ohio Fruit and Vegetable Growers Conference 2000?Audio tapes are available for all presentations such as "Determining Your Farm Market's Potential," "Creating Attractive Displays and Signage at Farmers' Markets," "Using a Variety of Methods to Sell Herbs," "Locating and Designing Your Farm Market," "Organizing Farmers' Markets Along Turnpikes," and more.
For more information write to:
Audio Productions, Inc., 12127 7th Place, SE, Lake Stevens, WA 98258, or call 1-800-488-5455.
Proceedings are available for $10.00 and can be obtained by mailing a check (payable to the Ohio Fruit and Vegetable Growers Congress) to Ohio Fruit and Vegetable Growers Congress, P.O. Box 479, Columbus, OH 43216.
Back to Contents
"Marketing Options for Commercial Vegetable Growers"
(University of Kentucky Cooperative Extension)
While there are many good articles and publications available, "Marketing Options for Commercial Vegetable Growers" by Brent Rowell, Tim Woods, and Jim Mansfield had an interesting table in it. (This link is to a pdf document.)
The table compares six marketing options (direct, produce options, marketing cooperatives, local wholesalers, regional wholesalers, and processors/fresh-cut). These six marketing options are compared in three categories (each with five subcategories): production and marketing challenges, investments, time and money, and income and potential. By rating the marketing options in each category, a producer can look at the table and assess what may be the better marketing option. Back to Contents
New England Vegetable and Berry Growers Conference 2000 Proceedings Available
A publication with conference proceedings from the New England Vegetable and Berry Growers Conference in Sturbridge, MA, is now available. Almost 1,000 growers attended this conference! The publication (355 pages, bound) includes 101 presentations. Categories include marketing to maximize income, farming on the Internet, herbs, specialty crops, strawberries, tomatoes, and more. The proceedings from the 3-day conference cost $14. To order, send a check payable to UMCE to Conference Proceedings, UMCE, P.O. Box 9300, Portland, ME 04104-9300. Back to Contents
"The Farmers' Market Cookbook"
"Why shop at a farmers' market:(From back cover of "The Farmers' Market Cookbook.")
"The Farmers' Market Cookbook" gives recipes on "how to use those fresh goodies from your local farmers' market." Recipe areas are "Appetizers and Beverages;" "Main Dishes;" "Salads;" "Soup;" "Pie;" "Cake;" "Cookies & Bars;" "Other Desserts;" and "Breads, Rolls, Muffins."
Author B. Carlson has also printed a series of regional cookbooks and books such as "Iowa Cookin'," "Midwest Small Town Cooking," and "Wisconsin's Roadkill Cookbook." "The Farmers' Market Cookbook," as are all of the cookbooks, is available to organizations as a fundraiser.
For information on how to order, write or call Hearts and Tummies Cookbook Company, 1854 345th Ave., Wever, IA 52658, call 1-800-571-2665, or email heartsntummies@hotmail.com
From the cookbook: Peach Pancakes
"This batter works well with all kinds of fruit and for corn pancakes, too.
2 1/2 cups all-purpose flour
4 1/2 tsp. sugar
3 eggs
1/4 cup melted butter
4 1/2 tsp. baking powder
1/2 tsp. salt
2 cups milk
1 cup chopped peaches - well drained
Sift dry ingredients. Beat the eggs and add milk. Add milk and egg mixture to dry ingredients stirring only enough to combine. Add melted butter. Fold in the fruit.
Heat 1/8 inch melted fat in skilled. Spoon batter carefully into the hot fat. (One-third cup of batter makes a three inch pancake.) Fry until brown on one side, turn and fry until done. Drain on paper toweling.
Yield: 12 pancakes
Hint: Other fresh, frozen or canned fruits may be used. Be sure the fruit is well drained. The same batter may be used with corn or cooked rice."
Back to Contents
ATTRA (Appropriate Technology Transfer for Rural Areas) has many publications available on-line at http://www.attra.org. ATTRA can be contacted by phone at 1-800-346-9140. Their materials list includes publications on a range of topics. Several of the publications in their "Marketing and Business Series" have been recently updated. Titles in this series include: "Community Supported Agriculture," "Direct Marketing," "Farmers' Markets," "Pick-Your-Own and Agri-Entertainment," and "Resources for Organic Marketing." Visit ATTRA at http://www.attra.org to get your copies! Back to Contents
John Ikerd, Extension Professor and Co-coordinator of the Sustainable Agricultural Systems Program at the University of Missouri has written many publications, articles, and speeches on sustainable agriculture. Dr. Ikerd is extremely popular with conference attendees. His recent papers, such as "New Farmers for a New Century" and "Sustainable Farming and Rural Community Development," are available on-line at http://www.ssu.missouri.edu/faculty/JIkerd/papers/default.htm. His many publications are at http://www.ssu.missouri.edu/faculty/JIkerd/pubs89-96/default.htm. You can learn more about Dr. Ikerd's background at http://www.ssu.missouri.edu/faculty/JIkerd/. Back to Contents Return to Farmer Direct Marketing Newsletter Index to view previous editions