VOLUME 3, ISSUE 2
Direct Marketing
Rural Entrepreneurship &
Business Development Update
ALABAMA A&M UNIVERSITY
COLLEGE OF AGRICULTURAL, LIFE AND NATURAL SCIENCES
March, 2014
Direct marketing strategies are numerous and varied. Before beginning to sell direct,
identify markets with special needs that offer large enough volumes to provide
profitable returns. Also, consider researching and writing a business plan, which will
help you evaluate alternatives, identify new market opportunities, then communicate
them to potential business partners and commercial lenders. Consider selling at farmers
markets, opening a CSA operation, developing value-added products, offering on-farm
activities like educational tours, selling via the Internet or marketing to restaurants and
schools. You can do it alone, or you can team up with others in a cooperative. Most
farmers use a combination of marketing methods — both value-based strategies
bringing higher returns and volume-based channels selling more products — finding
that diverse marketing strategies provide stable profits and a better quality of life.
Which marketing option fits you?
FARMERS MARKETS — Most farmers markets offer a reliable, flexible outlet
where vendors can sell a wide range of fresh produce, plants, honey, value-added
products like jams or breads and even (depending on local health regulations) meats,
eggs and cheeses. For beginning direct marketers, farmers markets can be a good place
to start.
To locate farmers markets in your area, go to www.ams.usda.gov/farmersmarkets/
What makes a successful farmers market stand. As the old cliché’ says, “You have to
have a quality product at a good price. People need to have a reason to come back.”
Customers develop loyalty to particular farms based on price, quality, the range of
offerings, their desire to support local farmers and the personal connection they feel
with you and your farm.
COMMUNITY SUPPORT AGRICULTURE (CSA), A Marketing Method in which
members of a community invest in a local farm operation by paying up-front for a
share of the harvest, has been growing steadily since it first appeared in the U.S. in the
late 1980s.
ON-FARM SALES AND AGRITOURISM— Farmers are becoming more attuned to
ways they might maximize their offerings. Some pick-your-own operations, for
example, have expanded into wedding facilities, farm camps and gourmet specialty
stores. Potential agritourism enterprises abound. Figure out what’s unique about your
farm and your skills and use those things to create an enjoyable, educational experience
that will appeal to your customers. The key to agritourism is authenticity and
creativity. Making the most of your direct marketing efforts requires being able to
explain to customers why your product is better than what they can find in their local
supermarket. To make specific nutritional claims for your product, consider getting
samples tested by an independent lab.
SALES TO RESTAURANTS & INSTITUTIONS— Chefs and restaurant patrons pay premium princes for
top-quality, distinctive, locally grown products. The challenge often lies in getting farmer-chef relationships
established. In some areas, organized sampling events have brought farmers and chefs together to talk about seasonal
availability, preferred crops and varieties, volume, post-harvest handling and delivery logistics.
The chains of the different marketing methods
Small Farms Research Center, Alabama A&M University
4900 Meridian Street
James I. Dawson Building, Room 219
Normal, AL
35762
Small Farms Research Center Background. The Small Farms Research Center was developed to assist small farmers with limited resources in Alabama’s underserved communities. The center was first
developed in 2000 to assist minorities, especially women, African
Americans and underserved individuals improve their farm management practices, given ones condition and resources. The mission of
the Center and the Small Farmers Outreach program is to assist all
small and limited resources farms effectively deal with risk management and food safety issues and provide them with informational sessions. The Center has also expanded its outreach efforts to meet the
needs of entrepreneurs and businessman. The center is located at Alabama A&M University in the Dawson Building. The center specializes
in following areas
Marketing and Business Plans
-Record keeping and Loan Application
-Identify alternative enterprises
-Personal Management
-Legal Issues
-Finances
-International Business and Procurement
-Accounting Issues
-Taxes
-Business Development
-Conducting seminars on Government programs and other issues
For more information about us give us a call at (256) 372-4970 and
1-866-858-4970.
Website: www.aamu.edu/smallfarmers