Bismarck Farm & Ranch Guide
03/02/06
‘Food with a face' - connecting farmers with consumers
By HANNAH FLETCHER, For Farm & Ranch Guide
WINTERSET, Iowa - Ken Henrichsen sells beef with his face on it - well, not
exactly.
But, he has been direct marketing his beef to consumers for eight years, a
method some people call selling “food with a face” or a way to connect farmers
with their consumers.
At the beginning of each year, Henrichsen buys about 700-pound yearlings from
producers he trusts. That way, he knows the animals' genetic and carcass
information, he said.
“I know exactly where it is coming from and how it's been handled,” he says.
The same can be said for Henrichsen's customers. He guarantees the beef's
tenderness and quality.
“Since I started eight years ago, I have guaranteed my product. So far, I've never
had anyone exercise that,” he notes.
Henrichsen takes pride in keeping his customers happy, and many of his clients
are repeat customers.
He says some of his clients are interested in his product because it tastes
different than supermarket beef does.
“I always ask for feedback. I can't tell you how many times I hear someone say,
‘This reminds me of Grandma's beef.'”
On average, Americans are two to three generations removed from the farm and
where their food comes from, says Mary Holz-Clause, program manager for
the value-added agriculture program at Iowa State University in Ames.
“About 25 percent of the U.S. population has expressed an interest in the foodwith-a-face approach,” she says.
While it can be tricky to develop and maintain a direct-marketing venture, there is
a market for it, Holz-Clause says.
“We need to figure out how to make that connection between the producer and
the consume,” she says.
To begin with, she suggests selling only a small portion of the herd through direct
marketing.
“The key is to start small. You need to crawl before you can walk,” to begin with
Holz-Clause says.
Also, test the water with relatives and friends to see if they would be interested.
“The best customers are the ones you probably have a relationship with relatives or relatives' friends - at least to begin with,” she explains.
Once producers build a small market, word-of-mouth will help them grow a
customer base, Holz-Clause says.
That small market can be useful for working out the details, such as processing,
packaging and delivery.
For a successful direct-marketing endeavor, she says it is most important
producers remember to treat it as a business, paying close attention to costs and
profits.
“It's hard for a lot of producers to know what the costs are,” Holz-Clause says.
“Sometimes, you can go at a loss for a while but not for too long. That's a basic
truism for all business.”
In direct marketing, the producer is also in charge of processing and delivery, she
notes.
Direct marketing takes a level of dedication that is not required of conventional
production.
Henrichsen says he and his wife, Jeanne, had to learn to be salespeople, which
was new to them.
Being a veterinarian has helped him find customers through clients at the clinic.
Since his first year, the numbers of Henrichsen's clients and size of herd for
direct marketing has increased.
The first year, he bought five animals to sell. Last month, the Henrichsens
purchased 32 for sale this June. He has found it is easier to sell beef in the
beginning of summer.
Henrichsen sells beef in quarters, halves and whole carcasses and offers a
discount for those who wish to buy a whole carcass.
He favors raising small breeds because the beef is easier to package and sell.
“I'm very prejudiced to the English breeds,” he said. “It's a better quality product
and meat consistency for this type of market.”
Also, the breed's tenderness and animals' demeanor are considerations for
Henrichsen.
“I always select Choice animals,” he said. “And, I make sure the animals are as
gentle as possible.”
Also, he said it is important to take good care of the cattle. His cattle know his
voice, and they look for him to come home over his lunch hour.
“He pampers all his cattle,” Jeanne explained.
Henrichsen's beef is produced without antibiotics, hormones, chemicals or
synthetic feed additives.
“There is a market for that,” he said. “There are people out there who are more
aware of what they're eating.”
Also, the meat ages for a minimum of 14 day to improve quality.
For the most part, his customers are pleased with meat's quality and knowing the
producer firsthand.
Henrichsen said he enjoys the connection with his customers.
Holz-Clause said the opportunity to give feedback also is a plus for consumers.
“For both, the farmer and the consumer, a relationship is developed,” she said.
“There's an assumption of trust and quality that comes with knowing where your
food came from.”
With that connection, producers are able to earn premium prices in direct
marketing, she said.
“It has a lot of profit potential,” Henrichsen said.
As his operation blossomed, he has become better at marketing. He now offers
brochures and recently created a Website, http://www.iowanaturalbeef.com