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Local Foods Marketing Dr. Tim Woods University of Kentucky

Economics. Local Foods Marketing Dr. Tim Woods University of Kentucky. Economics. Local Foods Marketing. Knowing the markets Product development Branding, differentiation, competition Taking advantage of support programs, agencies, and training. Marketing Channels for Local Food.

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Local Foods Marketing Dr. Tim Woods University of Kentucky

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  1. Economics Local Foods MarketingDr. Tim WoodsUniversity of Kentucky

  2. Economics Local Foods Marketing • Knowing the markets • Product development • Branding, differentiation, competition • Taking advantage of support programs, agencies, and training

  3. Marketing Channels for Local Food Direct Market Venues • Community Farm Markets • On-Farm Retail Markets • CSAs • Local Wineries

  4. Marketing Channels for Local Food Direct to Retailer and Wholesale Market Venues • Restaurants • Grocers • Auctions • Institutional buyers • Farm to School

  5. Number of U.S. farmers markets up dramatically since mid-1990s Economics • From 1,755 in 1994 to 8,144 by 2013 • More than 5,000 new farmers markets since 2000, an increase of 175% • 2,500+ vendors in KY U.S. Farmers Market Growth: 1994-2013 Source: Diamond, USDA-AMS 2011; USDA AMS

  6. Economics Kentucky Produce Marketing Channels: Farms Selling More Than 10% into One Channel (2003 and 2012) Source: Kentucky Produce Marketing and Planting Intentions Survey, 2004, 2012

  7. What are consumers thinking?

  8. Local food as an experience good • Distinctive value propositions are highly relational

  9. Why Consumers Value “Local” • Minimizing food miles/energy dependency • Land and environment • Perceived Safety and Quality • Support local ag and economy • Thilmany, Bond, Bond (2008) • Heritage • Quality/Health benefits • Environment and Economy • Citizenship and community • Woods & Williamson (2013) Social media a strong tool to convey these value propositions

  10. 3 C’s of Farm to School • Community • Engage the community • Cafeteria • Use the cafeteria to promote local foods and farms • Classroom • Implementing a Farm to School curriculum and learning experiences

  11. 3 C’s of Farm to School “We did a taste testing with heirloom tomatoes and the farmer actually came and was passing out the tomatoes, and we said this is the farmer…. The kids were just like ‘Oh wow, a real life farmer!’ It was just really exciting.” -Fayette County FSD

  12. Getting to know the markets • Directories • Farm to school (KDA) • Farm markets (KDA) • On-farm retail markets (KFB Roadside Markets) • CSAs (KDA) • Restaurants (KDA- Restaurant Reward Program) • Auctions (UK Crop Diversification Center) • Wholesalers and Processors (KDA, UK MarketReady, KCARD, UK Specialists) • Grocery Buyers (KDA, UK MarketReady)

  13. Getting to know the markets • Visit the markets, talk to buyers • Talk to peer producers selling either similar products or into similar markets • Evaluate competing products for (1) number, (2) price, (3) similarity

  14. Product Development • Value-added products • Packaging, logos, branding expectations from buyers

  15. University of Kentucky Food Systems Innovation Center • Provides technical services, marketing intelligence, business services and training components to aid in developing the food industry of Kentucky • Food Chemistry Testing • Nutrition Labeling • Analytical Services • Microbiological Testing • Sensory Evaluations • Brand New! • www.uky.edu/fsic/

  16. MarketReady Modules • Communication & Relationship Building • Packaging • Labeling • Pricing • Supply • Delivery • Storage • Invoicing • Insurance • Quality Assurance & Temperature Control • Certifications & Audits • Satisfaction Guarantee • Working Cooperatively • Marketing – An ongoing process • Local Products for Local Markets

  17. Branding, Differentiation, Competition • Building the “local” brand – consumer awareness • KY Proud programs • Membership – at cost POP materials, signage • POP Grant program • Restaurant Rewards • Farm Estate Branding

  18. Support Programs and Agencies for Local Food in Kentucky • MarketReady, Better Process Control School, FSIC • UK Crop Diversification Center • KDA Farm Market Program, KY State Health Dept • KY Farm Bureau Certified Roadside Market Program • Network of Certified Kitchens (KSU/UK/FSIC) • KY Center for Ag and Rural Development

  19. … Presenter: Dr. Tim A. Woods Extension Professor, University of Kentucky Agricultural Economics tim.woods@uky.edu, 859.257.7270 x.274 Questions?

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