Marketing Potential for Organic Vegetables and Fruits in Ohio

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Marketing Potential for Organic
Vegetables and Fruits in Ohio

• Shoshanah Inwood
• The Ohio State University
• Rural Sociology Program
• Department of Human Community Resource
  Development
• Organic Food Farming Education and Research
  Program

January 16th 2006
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(No Transcript)
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Marketing Outlets in a Local Food
SystemAdvantages and Disadvantages

• Farmers Markets
• Community Supported Agriculture (CSA)
• Pick Your Own Operations
• Restaurant
• Retail Food Outlets
• Auction Houses
• Wholesale Distribution

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Farmers Markets

• There are 74 Farmers Markets in Ohio
• Good place to test the waters of direct
  marketing
• Can sell a wide range of fresh produce, plants
  and value added farm products
• Meet your customers
• Network with other farmers
• To locate farmers markets in your area
• call USDA Ag Marketing Services
• 202-720-8317
• or www.ams.usda.gov

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Community Supported Agriculture (CSA)

• Consumers become members of your farm by paying
  before the growing season in exchange for weekly
  supplies of fresh produce. They share in the
  risk and in the bounty of farming
• CSAs come in multiple formats
• Growers Need to Consider
• Proximity to customers and
• ability to distribute produce
• Communicating
• with members
• Variety of Produce

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Pick Your Own Operations

• Turn the job of harvesting, packing and
  transporting to your customer!
• Fruits over vegetables
• Producers need to consider
• Location
• Liability insurance
• Space for parking
• Attention Getting Signage
• Ability to supervise customers
• A willingness to host the public especially
  families

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Restaurants

• Farm Fresh, Seasonal, Local and Organic produce
  are ways for chefs to draw customers
• Upscale restaurants pay 10 more then wholesale
  prices for quality produce, herbs and hard to
  find items
• Strategies for selling to restaurants
• Target independent chef owned restaurants
• Call and deliver between the hours of 2 - 5 pm
• Weekly price and availability lists
• Maintain personal contact and relationships
• High demand for fresh herbs and heirloom produce
• Stay on top of food trends with cooking magazines
  like Gourmet, Bon Appetite, and Food Arts

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Retail Food Stores

• Stores are responding to consumers increasing
  interest in organic and health based foods
• Producers Need to Consider
• Packaging and UPC Codes
• Strategies for selling to retail stores
• Contact produce manager around 11 or after lunch
• Consider in store appearances to promote your
  product.
• Provide a display

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Assessing Opportunities for Local and Organic
Ohio Proud Foods

• Networking Opportunities
• Chamber of commerce, better business bureaus,
• the restaurant association
• Sources of Information
• 70 reported using
• the internet
• 50 reported using trade
• and food magazines
• 12 said their modes
• of information
• feature organic produce
• Inwood et al. 2003

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Distribution Options

• I would love to buy local and from the farmers.
  But, Im a small business, I dont have a lot of
  time to go around to all the different farmers,
  it would be easier to have a distributor.

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Cooperative Marketing

• Producers share marketing expenses, risks and
  negotiate with buyers as a team
• Creates opportunities for reaching new markets
• Example Vermont Quality Meats put 100,000 to
  150,000 extra profit into its 52 member farms in
  less then a year
• Instead of throwing our product away at the
  auction and supporting a bunch of middleman,
  were doing all the steps ourselves. Lydia
  Ratcliff , Vermont Quality Meats
  Founder

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Wholesale and Auction House

• Success depends on
• Management
• Your product
• Distribution streams
• Wholesale and Auction Houses provide options for
  managing your marketing streams

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Ethnic Markets

• Midwestern population demographics are composed
  of heritage ethnic populations
• and new immigrant groups
• See increasing demand for new flavors
• and ingredients
• Only differences between preferred fruits
• and vegetables may be size and variety
• Middle Eastern customers prefer young
• and tender okra (right) while Indian
• customers favor mature and fibrous
• okra(left)

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New Markets Offer Opportunities for New and Old
Farm Products!
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Strategies for Direct Marketing

• Taste
• Aesthetics
• Target independently owned
• Establishments
• Explore regional ethnic communities
• Make buyer contacts early
• Provide a sample basket price list
• Concentrate production strategies
• Sequential Plantings!!!
• Establish a distribution route, and/or partner
  with other growers
• Network with other growers and local economic
  bureaus
• OEFFA, IFO and Chamber of Commerce conferences

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Tools Resources

• Local and Market City Chamber of Commerce
• Dining Guides e.g Zagats, internet
  www.citysearch.com
• Daily Newspapers Weekly Free Newspapers
• Pricing
• Rodale New Farm Organic Price Index
  www.newfarm.org
• Terminal Market Reports
• USDA Wholesale Auction Price Index
• Fintrac Inc. Agribuisness Information Network
• http//www.fintrac.com/gain/

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Produce

• Season Extension
• Sequential Plantings
• Interest in heirloom and unusual varieties of
  crops
• Baby vegetables
• Herbs
• Salad greens, micro-greens, sprouts
• Exotic mushrooms
• Berries and stone fruits

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Meat

• Uniformity in taste and texture
• Processing
• Poultry
• preference for no-antibiotics or hormone
• Lamb and Goat
• High demand in Muslim, Middle Eastern, Caribbean
  and African and communities
• Pork
• Neeman Ranch very popular with restaurants
• Beef
• Restaurants demand select cuts
• Consideration of growing methods
• Restaurants have low demand for grass meats

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Dairy

• Milk
• Non-dairy beverages
• Free Range Eggs
• Cheese
• Huge demand for artisinal cheeses

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Questions?