Direct Marketing Meats Resource Guide

How do I produce what the customer wants? | Product: What does the customer want? | On-farm production: produce what your customer wants | Processing: Processing what your customer wants | Marketing: ‘Meating’ market needs | Business management: everything else | Alberta Agriculutre, Food & Rural Development Staff resources

December, 2004

Definition of farm direct marketing
Farm direct marketing occurs when producers/processors sell their quality agri-food products direct to consumers through a variety of marketing channels.

Farm direct marketers have a customer focus. They find out what the customer wants and then produce it for them. Remember you are no the target market!

Farm direct marketers believe the customer is king; they know their customers and their customers families. Their products solve a need, and customers trust both the producer/processor and their products. Farm direct marketers recognize that their business profits come from delighting the customer, not from the products and services produced.

Farm direct marketing allows the producer to assume the accountability and rewards of delivering a product directly to the consumer.

How do I produce what the customer wants?

Start small with a test market. Determine what level of risk you can take. Build on this checklist as you develop your business. The biggest failure in farm direct marketing meat is starting too big.

Successful farm direct marketers are creative, networked, and customer focused with strong marketing skills. If you aren’t a ‘people person’ or you don’t have one representing your business, don’t start a farm direct marketing enterprise!

Are you a farm direct marketer?
FS 1834-10	Personal and Family Considerations
Farm Direct Marketing
FS 420/821-3	Direct Marketing Profit$…Beef Enterprise
FS 450/821-1	Direct Marketing Profit$…Poultry Enterprise
FS 450/821-3	Direct Marketing Profit$…Cheese Production and Marketing Enterprise
FS 845-6	Direct Marketing For Rural Producers
FS 845-7	Farm Direct Sales - Know The Regulations
FS 848-5	Marketing: Will It Sell
ISBN 1-894148-68-1	Marketing On The Edge: A Marketing Guide for Progressive Farmers, 2002. Canadian Farm Business Management Council. Phone (888) 232-3262
Agdex # (coming soon)	Direct Marketing Meats
Agdex # (coming soon)	Direct Marketing Meats... Selling Meat at AB Approved Farmers' Markets
Agdex # (coming soon)	Direct Marketing Meats... Selling Lambs at AB Approved Farmers' Markets
Agdex # (coming soon)	Direct Marketing Meats... Selling Freezer Lambs
Agdex # (coming soon)	Direct Marketing Meats... Selling Freezer Chicken
Agdex # (coming soon)	Direct Marketing Meats... Selling Freezer Pork
Agdex # (coming soon)	Direct Marketing Meats... Selling Freezer Beef

Resources:
Fact sheets available from Alberta Agriculture, Food and Rural Development Publications, (800) 292-5697

Product: What does the customer want?

Do your customers want what you’re marketing from your deep freeze? Understanding your customers’ needs and wants will help you define what makes your product special, unique or different. The following characteristics will help you differentiate your product to meet your customers’ needs.

Size
determine what your target market wants (for example 2 lb vs. 4 lb vs. 6 lb roasts or 2 vs. 4 vs. 6 chops per package)
seniors vs. family vs. foodservice
Volume
buying ½ carcass vs. buying by the pound, cut or piece
Quality
thickness of cuts
marbling, aging (dry vs. wet aging)
slaughter age (mature vs. youth)
grading
gender of animal (male vs. female vs. adjusted) % lean
shelf life
sausage - curing agents (nitrates vs nitrates)
Food safety
safety assurances of drug use withdrawal and health of animal
use only licensed drugs and pesticides as directed on animals for human consumption
inspected slaughter at a licensed abattoir
licensed and inspected processing
frozen storage temperature: -18 Degrees C or colder; segregated freezer
1-3 day fresh chilled temperature: 4 Degrees C or colder
hand washing
Business philosophy
Niche marketers target consumers by identifying their needs, and producing consistent, high quality products that satisfy those needs. Example niche market descriptions include: organic, natural, grass fed, lean, pastured, no antibiotic, hormone free, locally grown, humanely raised, family farm, convenient, etc.
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Packaging
Today’s customer is not typically buying meat by the side, quarter or whole. You need to think of innovative ways to bundle prime and less tender cuts together. i.e. BBQ pack – steaks, chops, sausages, roasts, ribs family pack - rump roasts, rolled shoulder roasts, ribs, bacon comfort pack – pot roast, short ribs, steaks, sausage value added pack - peppered/breaded cutlets, sausage, jerky budget pack - ground meat, stew, ribs ground pack - ground vs. preformed patties high-end pack - prime rib/standing ribs, rib roasts, loin cuts meals in minutes - stir fry, thin cut chops, jerky, sausage, mixed meats convenience pack - grouping different species together in a boxed product
wrapping type eg. cryovac vs. brown paper
label (Canadian Food Inspection Agency [CFIA] staff will review prototype) nutrition labelling
quantity of volume packaged together (i.e. 2 chops/pkg, 6 sausages/pkg)
fresh chilled vs. frozen

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Resources:
Ropin’ The Web www.agric.gov.ab.ca
CFIA website www.cfia-acia.agr.ca

Service to customer
	delivery: where? when? farm pickup?
	frequency: weekly vs. monthly vs. on demand
	format: ready to eat vs. ready to cook
	fresh (must be chilled adequately) vs. frozen
	payment: up front, terms, credit or debit cards, cash, cheque
	facilitate quality control services eg. provide thermometer, styrofoam coolers for transportation of perishables in customer’s vehicle
	recipes & promotional materials - check with your industry association

On-farm Production: Produce what your customer wants.

What issues do you need to address so that you can produce what your customer wants? Responsible stewardship may be a purchasing factor for customers buying meat direct from the producer. It may be a point from which you can differentiate your product.

Feed management days on feed and feed type
	forage vs. grain grain source - pesticide free vs. organic vs. commodity

Resources:
Ropin’ The Web www.agric.gov.ab.ca
Ag-Info Call Centre, 866-882-7677

Animal type
	genetics
	frame size/frame score
	male vs. female
Animal source
	when purchasing stock does your source have the same Best Management Practices (BMP) or better than you do?
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Supply year round vs. seasonal Animal Welfare pasture raised vs. confinement bedding, outside access, space, etc.
. Best Management Practices (BMP) Food safety
	on farm food safety programs

Resources:
Quality Starts Here? Program (Canadian Cattlemen’s Assoc.), Phone: 403-275-4400
Canadian Quality Assurance Program (Canadian Pork Council), Phone: 780-477-6729
Safe, Safer, Safest (Chicken Farmers of Canada), Phone: 780-488-2125
The Canadian Turkey Marketing Agency, Phone: (905) 564-3100
Western Canadian Flock Health Program,
Bison Centre, Phone: 780-986-4100
Alberta (Canada) Elk Commission, Phone: 780-980-7582
Other industry OFFS programs, please visit and follow the link:, Phone: 780-427-0840
Alberta Agri-preneur Newsletter, April 2002, food safety issue
Agri-Food Systems Branch, Phone: 780-415-4522 and 780-427-4587 (poultry & eggs only)

Animal health
	consult your local veterinary practitioner
Best management practices (BMP)
	due diligence
	guidelines available
	value chain partners have the same best management practices or better

Resources:
AFAC-AB Farm Animal Care,
Emergency Livestock Care Response Plan
Recommended Code of Practice for the Care and Handling of Farm Animals, Canadian Agri-food Research Council,
Alberta Environmental Farm Plan, AESA
Alberta Beef Producers,
Beneficial Management Practices: Environmental Manual for Alberta Cow/Calf Producers Manual. 2004., 420/28-2
Beneficial Management Practices: Environmental Manual for Alberta Hog Producers Manual. Alberta pork and Alberta Agriculture, Food & Rural Development, 2004., 440/28-1
Recommended code of practice for the care and handling of farm animials – Pigs by Agriculture and Agri-food Canada; Publication # 1898/E
Beneficial Management Practices: Environmental Manual for Alberta Poultry Producers Manual. 2004., 450/28-1

Transportation
	live animal laws

Resources:
http://laws.justice.gc.ca/en/H-3.3/C.R.C.-c.296/
SPCA, Farm Animal Care
Ag-Info Call Centre, Phone: 866-882-7677

These standards combined with your processing standards will define your protocol.

Processing: Processing what your customer wants.

What issues do you need to address so that your processor provides you with what your customer wants?

What can your processor do for you?
	slaughter
	process/package
	storage
	transportation
	specialty items
Type of processor
	for sales within the province of Alberta slaughtering and processing must be done in provincially inspected plants. Contact Alberta Agriculture, Food & Rural Development (AAFRD) Regulatory Services or Agri-Processing Branch (slaughter) or Regional Health Authorities (RHA) (processing)
	federally inspected facilities are required for sales outside the province and for some retail and foodservice operations. Contact CFIA (see Resources).
	for a listing of federal and provincial meat processors in Alberta consult http://www.agric.gov.ab.ca/food/process/fdprcdir/index.html
	meat from animals slaughtered by a mobiler can not be sold. It is for personal consumption only.
	if you have meat slaughtered in a federally registered facility and processed in a provincially inspected facility, the meat can only be sold within Alberta.

Resources:
FS 845-7 Farm Direct Sales: Know The Regulations
CFIA website
Regulatory Services Branch, Phone: 780-422-7197
Agri-Processing Branch, Phone: 780-427-7325
Alberta Health & Wellness (Regional Health Authority listing)

Selecting processing partners
	can they provide co-packing? Secondary processing for specialty products?
	are they willing to sign a contract so you maintain quality assurance and creative/marketing control?
	can your processor give you the product your customer needs or just a standard product?
	are they licensed by the appropriate agency that your target market requires?
	cleanliness? Does it meet provincial standards? Does it meet your standards?
	do they use the packaging system your target market desires? ie. cryovac, brown paper, etc.
	boxing. What size? Weight?
	labeling. Do they do it?
	will they do custom mixes or bundles? (see page 5)

Resources:
FS 845-9 Management Considerations in Agricultural Contracting

Quality assurance
	includes quality parameters of your business ie. service, product quality, product recall procedures, food safety, etc. which ensures that a consistent, high quality product leaves your farm gate every time.
	Good Manufacturing Practices (or Prerequisite Program) including facility layout and product flow, handling, storage, transportation, sanitation, recall, personal hygiene, etc.
	Hazard Analysis Critical Control Point (HACCP), a systematic prevention based approach to food safety
	food safety program. Is it compatible to your requirements?
	‘fresh’ frozen vs. ‘stale’ frozen (frozen after a period of time)
	provide proof of quality control services, ie thermometers; storage temperature record; coolers or refrigerated transportation and storage options
	display food establishment permit or other licenses
	alternative energy supply system in case on emergency or power loss

Resources:
Alberta Agri-preneur newsletter, April 2002, food safety issue (PDF 994 KB)
Food Safety Division, AAFRD, HACCP program
Alberta Food Processors Association

Storage, transportation and distribution
	processor storage
	on-farm storage meets the regulations of federal or provincial governments
	transported in a safe and controlled manner

Resources:
Alberta Public Health Act Food Regulation
Regional Health Authority Public Health Inspector
CFIA Website

Inventory control
	storage time
	batches, turn-over, ordering, seasonal demand
	minimum order size
	product lot identification and pull date (where it cannot be sold anymore)
Regulations
	labeling, packaging, advertising and product claims
	nutrition labeling
	Measurement Canada - scale verification is required for all products sold by weight

Resources:
CFIA website
Measurement Canada 780-495-2491
Nutrition labeling

Standards
	industry standards - contact appropriate industry associations for information on standards/normal practices eg. foodservice prefers cryovac wrapped meats, shipping box size, pallets, etc.
.	what standards of excellence offer you a competitive advantage?
Resources: AAFRD, Ag-Processing Branch, Alberta’s Agricultural Processing Industry Directory, Alberta Food Processors Association, www.preparedwithpride.com - consumer side and www.afpa.com/main.shtml - industry side Grading/Index
	are animals being graded? What is the associated cost, if any?
	processor needs to be aware of what grade of cuts your customer is demanding

Resources:
Meat Inspection Act
Canadian Grading of Ovine Carcasses
Canadian Beef Grading Agencies
Beef Information Centre
AAFRD provincial meat inspectors

• Airdrie 403-948-8505
• Edmonton – Grande Prairie 780-427-5039
• Lethbridge 403-381-5179
• Vermilion 780-853-8235
• CFIA Website

Industry knowledge
	are you familiar with how meat flows through slaughter and processing facilities?
	how will the animal be cut to maximize yield and profit? What percentage will be ground meat?

Trends
current consumer trends Consumer Food Trend Series - This series looks at the current and emerging food consumption trends in order to define market opportunities and provide recommendations to the Alberta agri-food industry in their business decisions. It's target audiences are the Alberta producers, small-to-medium size processors, food marketers, industry associations and AAFRD staff.

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Resources:
Consumer Food Trends
AAFRD staff, industry magazines, books

Pricing Pricing Tools
	FS 845-1The Essentials of Pricing
	FS 845-2Methods to Price Your Product
	FS 845-3Pricing Processed Food Products

Meat Pricing Factsheets - available Spring 2005

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Alberta Farm Fresh

Direct and Local Meat Meating site from the University of Kentucky

..

. Customer service
	warranties
	return policies
	complaints policy
	servicing your customers
	customer support eg. website, 24 hour answering machine, 1-800 number

Resources:
AAFRD Diversification Resource Librairies
Delight Me… The Ten Commandments of Customer Service by Richard George and John Stanton 1997. ISBN 0-9642657-3-7

Competition Who is your competition? What makes you different?
	direct competition vs. co-opetition
	size
	market position can be based on quality, price or service. Where is your position in the market place? High end? High quality? Frequent service?
	products
	customer service
	customers
	pricing policy
	promotions
	years running
	strengths
	weaknesses
	opportunities and challenges
Market research
	FS 845-1 Essentials of Pricing. Ag Strategies. 1999.
	FS845-2-Methods to Price Your Products. Ag Strategies. 1999.
	FS845-3-Pricing Processed Food Products. Ag Strategies. 1999.
	FS845-4-Pricing Horticulture Products. Ag Strategies. 1999.
	FS845-5-Food Brokers. Ag Strategies. Revised 2003.
	FS845-6-Farm Direct Marketing for Rural Producers. Ag Strategies. Revised 2003.
	845-7-Farm Direct Sales - Know the Regulations. Revised 2003.
	FS845-9-Management Considerations in Agricultural Contracting. Ag Strategies. 2002.
	FS845-10-Managing Risk for Farm Direct and Ag Tourism Ventures. Ag Strategies. 2003.
	FS846-1-Developing a Promotional Plan. 1999.
	FS848-5-Marketing - Will it Sell? Ag Alternatives. Revised 2003.
	FS848-6-Market Research. Ag Strategies. 2003.

.. Target market You need to know your customers’ needs. You are not your customer! Repeat frequently, “I am not the target market.”
	identify customer needs
	why are they buying?
	what’s motivating them to buy?
	number, size of customer base
	demographics eg. age, gender, buying habits, locations, etc.
	psychographics eg. values, beliefs, attitudes
	market size, changing dynamics

Resources:
AAFRD staff Finding New Markets program materials, AAFRD Diversification Resource Libraries
AAFRD Marketing Program, contact Heather Shewchuk, Phone: (780)422-8622

Branding
	a brand is the collective impact or lasting impression that results from all that is seen, heard or experienced about a company and/or its products and services.

Resources:
Alberta Agri-preneur newsletter, Summer 2001 branding issue (PDF 957 KB)
Differentiate or Die, Survival in an Era of Killer Competition by Jack Trout and Steve Rivkin 2000. ISBN 0-471-35764-2
AAFRD staff

Other distribution channels
	restaurants, fundraising, specialty stores, health food stores, farm stores, Alberta Approved Farmers' Markets…

Resources:
Alberta Farmers' Market Info
Alberta Farmers' Market Association
North American Farmer Direct Marketing Association website
AAFRD staff
Marketing On The Edge: A Marketing Guide for Progressive Farmers, 2002.
ISBN 1-894148-68-1. Canadian Farm Business Management Council. Phone (888) 232-3262
Sell What You Sow: The Grower’s Guide to Successful Produce Marketing by Eric Gibson 1994. ISBN 0-9632814-0-2
Direct Marketing Meats… Selling Meat at AB Approved Farmers’ Market (Agdex #)
Direct Marketing Meats… Selling Lambs at AB Approved Farmers’ Market (Agdex #)

Promotions
Resources:
Mock brochure for farm direct marketers
Northwest Processor newsletter, Spring 1999 marketing issue. Contact Marlene Abrams for a copy.
Sell What You Sow: The Grower’s Guide to Successful Produce Marketing by Eric Gibson 1994. ISBN 0-9632814-0-2
Fresh Grown Promotions by Jane Eckert & Diane Kline, ISBN 0-9666168-8-0
Fresh Grown Promotions by Jane Eckert & Diane Kline, ISBN 0-966168-9-8
AAFRD Staff
AAFRD Diversification Resource Libraries
Alberta Farm Fresh Producers Association
Innovative Marketing on a Limited Budget, Lori Colborne

. Advertising
	regulations

Resources:
CFIA website
Alberta Farm & Ranch Directory (Green Book) by Rural Education & Development Association

Location
	distance from target market

what else is on your road or in your area that will attract/distract people?

signs

Resources:
Alberta Transportation website

Partnerships
Traditionally agriculture tends to be production focused where you produce something and then sell it. You need to develop a market focus when selling direct to the consumer. Find out what the market wants and then produce that item for that market. It’s all about developing relationships with your customers so that you can fill their needs. It’s also about developing relationships with your industry networks.

	relationship development and networking
	market focused
	cooperative competition or coopetition where “competitors cooperate for mutual gain.”
	value chain or strategic alliance where producers, processors and retailers collaborate to meet a specific market objective over the long term and for the mutual benefit of all.

Resources:
Northwest Processor newsletter, Spring 2000 value chain issue, contact Marlene Abrams for a copy.

Test marketing
	marketing your prototype to your target market for evaluation
	do your customers like the packaging , size, price, flavor, product itself?
	what other products can be combined with your product?
	sampling, demos
	starting small, growing big
	many direct marketers use farmers’ markets, trade shows, and community events to test market their products

Resources:
AAFRD has secured a booth at the Old Strathcona Famers' Market (OSFM) beginning the first Saturday of July 2004. Over the year, we intend to sub-lease the space for four weeks at a time to producers (subject to approval by the OSFM). The OSFM is an extremely busy market and will provide clients with an excellent opportunity for generating market research about product quality and packaging, as well as offer sales opportunities. The OSFM has indicated that they are interested in products with some added value. High-season rates for the booth are $55 per week including GST. If you have clients who may be interested, please let me know and I will be happy to forward their name to the manager of the Market for their consideration. Contact: AAFRD, Alan Dooley 780-422-2559
Alberta Farmers’ Markets

Merchandizing
	point of sale materials
	add-ons, ie. thermometers, coolers
	recipes, promotional materials - check with your industry association
	displays
	product sampling

Resources:
promotional materials available from industry associations

Public relations
	image consistent on all materials and all that you do
	use local newspaper, radio, television to get your story out free of charge

Resources:
The Guerilla Marketing Handbook by Jay Conrad Levinson and Seth Godin 1994. ISBN 0-395-70013-2
Fresh Grown Publicity by Jane Eckert & Diane Kline, ISBN 0-966168-9-8


Business Management: Everything else.

Enterprise feasibility
	Ag-Venture (series). These Agriculture Business Profiles provide an objective overview of the key management issues associated with a new enterprise. Industry highlights, market basics, production basics, economic and financial basics, and resource lists are included in each Ag-Venture. Key management issues are summarized by species.
	Profit$ (series). These fact sheets provide economic information on specific diversification enterprises by species.
	Ag-Alternatives (series). This series of fact sheets helps you evaluate the feasibility of a new agricultural or rural based business. Worksheets help you think about your own situation. Topics include: FS 811-2 Identify Alternatives - What are the possibilities? FS 811-3 Financial Feasibility FS 811-4 Production Requirements FS 811-5 Decision Making FS 811-6 Profitability FS 1834-10 Personal & Family Considerations FS 848-5 Marketing – Will it Sell?

Resources:
http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/ipc4687

Finance
	record keeping
	projections
	budget, cash flows – cash flow forecaster
	investment required

Resources:
This tool will help you project cash flows. It’s especially useful when cash flow is tight, usually during business start-ups, reorganizations or periods of financial uncertainty. Cash flow management won’t ensure that you business is profitable but it may provide enough time to make the changes needed for long term viability.
http://www.agric.gov.ab.ca/economic/mgmt/spreadsheet/cashflow.html

Costing
	cost of primary production
	product costing
	marketing cost including: distribution, storage, advertising, telephone costs, time, website, etc.

Resources:
AAFRD Foundations of Product Development and Product Costing

Pricing
	know all your input production costs before establishing pricing schedule

Resources:
FS845-1 Essentials of Pricing. Ag Strategies.
FS845-2 Methods to Price Your Products. Ag Strategies.
FS845-3 Pricing Processed Food Products. Ag Strategies.
FS845-4 Pricing Horticulture Products. Ag Strategies.
AAFRD Price It Right

Risk management
	insurance/liability
	contract issues
	co-packing
	proprietary issues, secret recipes
	guarantees/warranties

Resources:
Managing Your Risk: A Factsheet For Farm Direct Marketing and Agritourism Ventures - Agdex FS 845-10

Human resources
	personal skills - Do you have the ability to be a marketer?
	labor management

Resources:
Alberta Agri-preneur newsletter, Fall 2001 agri-preneur issue (PDF 1957 KB)
Employers handbook for agriculture and horticulture

Education/training
	permits, licensing, emergency response, HACCP, etc.

Resources:
Business Basics for Alberta Processors: A Planning Guide
www.agric.gov.ab.ca/diversify
http://www.agric.gov.ab.ca/assurance/programs.html
local municipality
Alberta Permit Pro (800) 411-9511
Regional Health Authority health unit
Alberta Environment

Industry information

Associations Alberta Farm Fresh Producers Association (AFFPA) Alberta Food Processors Association (AFPA) North America Farmers’ Direct Marketing Association (NAFDMA) Alberta Restaurant and Foodservices Association (ARFA) Canadian Federation of Chefs and Cooks (CFCC) Alberta Farmers’ Market Association (AFMA) Alberta Beef Producers Alberta Bison Association (ABA) Alberta Chicken Producers Alberta Deer Association (ADA) Alberta Egg Producers Alberta Elk Commission (AEA) Alberta Pork Alberta Sheep & Wool Commission Alberta Turkey Producers Alberta Goat Breeders Association

Directories Alberta’s Agriculture Processing Industry Directory 2005 REDA-Alberta Farm & Ranch Directory

AAFRD Staff Resources

Farm Direct Marketing Protein Team Key Contacts

• Rod Carlyon, AAFRD Westlock, E-mail: rod.carlyon@gov.ab.ca, Phone: 780-349-4466
• Bert Dening, AAFRD Barrhead, E-mail: bert.dening@gov.ab.ca, Phone: 780-674-8247
• Jim Hansen AAFRD Cardston, E-mail: jim.hansen@gov.ab.ca, Phone: 403-653-5132

• Bert Dening, Karen Goad, Cindy Cuthbert

AAFRD Protein Team (Rod Carlyon, Cindy Cuthbert, Bert Dening, Karen Goad, Jim Hansen, Keri Sharpe, Barb Vanden Bosch)

Industry Ron Hamilton Brad Mcleod