| | Selling direct makes sense, but it isn’t easy. Fortunately, there’s plenty of information available.
Kerry Engel believes that becoming a retailer and marketer, as well as a producer, is a realistic ambition for many Alberta farmers and ranchers. She’s seen many take the plunge successfully in the past, but believes there might be no better time to do it than the present.
“There’s a tremendous interest from consumers today in locally grown foods,” says Engel, Farm Direct Marketing Specialist with Alberta Agriculture and Food. “More and more, people want to know where and how their food was grown and they want to meet the people who grew it. So on-farm retailing addresses a powerful demand in the marketplace.”
The growth of farm direct marketing
The concept of farm direct marketing would have been second nature to your great-grandparents. Back then, when most people lived in the country or in small towns, people often grew their own food or knew those who grew it on their behalf.
Then came the 20th century, bringing urbanization, food processing and food retailing on a vast scale. Many urban people – who might account for 95% of the population – have no clue where their food comes from. But here in the 21st century, the pendulum is swinging back.
For reasons of health, environment and nostalgia, more people today want to buy direct from the producer. Farmers and ranchers who fill this need are -- to put a new label on an old practice -- farm direct marketers.
In Alberta, the most popular products for direct-to-consumer sale include fresh fruits and vegetables, flowers, bedding plants, herbs, meat, jams, pies and sausages.
“Consumers want to eat, shop and experience something new,” says Engel. “Often their first taste of this is at a farmer’s market. Once consumers learn about your product, they’re often willing to come to your farm to get it. From there, you can evolve into a farm store, a greenhouse, a café or a U-Pick.”
Research show it works
Many farmers and ranchers find lots to like about farm direct marketing. You’ll be taking back control of your product and how it’s marketed. You can be a price-setter, not a price-taker. You can expand revenue and thus bring the younger generation onto the farm.
Consumer interest in locally grown foods may translate to opportunities for farm direct marketers.
Does it work? In 2005, Michigan State University joined forces with the North American Farm Direct Marketers Association (NAFDMA) to find out. Of the 1,241 diversified farming operations surveyed (22% of them Canadian), 75% of respondents said their net income increased as a result of this diversification. Some 92% would diversify again, and 52% were planning to take this strategy even further.
If farm direct marketing sounds appealing in theory, why not spend some time this winter looking at how it would work in practice? The fact is, there’s a lot to learn.
“The big thing is, you are changing from a producer to a marketer, and working with the consumer is a different world,” says Engel. “You will be introduced to a new set of regulations and governing bodies that influence how you do business.”
Start online
Alberta Agriculture and Food and other organizations have developed a wealth of information to guide would-be direct marketers through the rules and regulations associated with this business. In addition to studying regulatory requirements, take some time to consider whether you have the personality and passion for direct marketing, because not everybody does. These websites will get you started:
www.exploredirect.ca
www.albertafarmfresh.ca
www.farmcentre.com
www.NAFDMA.com
For more information, please contact the Alberta Agriculture and Food direct marketing specialist nearest you:
Kerry Engel, Edmonton, 780-644-2967;
Karen Goad, Grande Prairie 780-558-5629; and
Marian Williams, Camrose, 780-679-5168.
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