Virginia Farm Bureau, VA
11-16-06
Farmer tells Ag Summit participants to embrace market
DANVILLE—Dr. Fred Kirschenmann kicked off the 2006 Virginia Agriculture
Summit by asking attendees a simple question: The market is ready. Are you
ready for the market?
Kirschenmann, a longtime leader in national and international sustainable
agriculture and distinguished fellow for the Leopold Center for Sustainable
Agriculture at Iowa State University, emphasized to the estimated 135 in
attendance that the days of mass marketing with no production definition are
dwindling.
“We as farmers sometimes forget that we are running a business,” said
Kirschenmann, who also operates his family’s 3,500 acre certified organic farm in
North Dakota. "We need to ask ourselves, ‘What is the market telling us?’
Providing undifferentiated commodities is becoming increasingly difficult.”
Noting a report released by the Hartman Group, he listed primary marketplace
trends and their implications, including a return to “soul values,” localization,
freshness and authenticity.
“This is now a value-driven market,” Kirschenmann said. “About 62 percent of
consumers prefer products that represent their values. They are relying on social
networking for consumer information and have little respect for companies
speaking at them.”
Regarding “soul values,” Kirschenmann explained that consumers are seeking a
return to personal relationships; they’re seeking to interpret what they perceive
as “the good old days” and integrate that into today’s lifestyle. He noted that
demand for local food does not necessarily refer to geography, but whether the
food is grown in a location and in a way with which consumers can identify.
Perception is the marketing key, and that also pertains to freshness. Consumers
prefer fresh to packaged foods, because of the perception that packaged food is
not fresh and is shipped in from far away.
“Your product has to taste good, of course. But consumers also have to feel good
about what you’re selling,” Kirschenmann said. “Romance adds value to the
product. Provide an opportunity for customers to build a relationship with you.”
Kirschenmann said those continuing trends could prove beneficial for mid-level
farmers, those who make between $50,000 and $500,000 in sales annually and
are the most quickly disappearing demographic among producers. Through
direct-marketing and cooperative networks, he believes those farmers can
increase market interaction, making their product a better value to consumers.
“Part of what the public wants is to know that the farmer is being fairly
compensated,” he said. “Otherwise, the value of the purchase decreases in their
eyes. We have a historic opportunity to make the value chain work because of
what the public wants. To succeed, a mid-level farmer needs to become a
partner in the value chain and an input provider in the supply chain.”
Contact Kirschenmann at 515-294-5588 or Chris Cook, VFBF agriculture
enterprise development coordinator, at 804-290-1111.