Transcript Emerging Markets in Skagit

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
Farmer Use of Direct Marketing Methods
Vegetable
Growers
(N=118)
Fruit Growers
(N=332)
All Growers
(N=1,166)
Roadside Stands
46.3%
21.2%
12.2%
Farmers’ Markets
35.2%
15.3%
8.2%
13.7%
U-Pick Sales
23.4%
12.9%
6.8%
9.71%
CSA
8.4%
2.1%
1.7%
2.9%
Use any of direct
methods above
59.3%
29.8%
19.9%
35%
Plan to increase
direct marketing
45.8%
22.6%
25.3%
40.4%
Skagit
(N=102)
22%
73% of Skagit Farmers Say Direct
Marketing is Effective
Direct marketing is an effective way to keep
farming viable in my county.
Strongly Disagree
4% 6%
36%
18%
37%
Somewhat Disagree
Neither Agree nor
Disagree
Somewhat Agree
Strongly Agree
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
10
5
Market Directly to Stores/Restaurants/
Cafeterias
15
7
Use Product Labeling (e.g. “green”)
16
6
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%
26%
or more
31%
43%
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
Percent Rating Very Important
Freshness
Taste
Nutritional Value
Convenience
Helps Local Farms
Appearance
Price
Environment
Grown in Washington
Grown Locally
Organic
-20%
0%
20%
40%
60%
80%
100%
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