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Emerging Farm Marketing Opportunities in Skagit County

Emerging Farm Marketing Opportunities in Skagit County. Best Western, Mt. Vernon November 8, 2004 Marcy Ostrom. WA Agriculture is Changing:. Increasing numbers of farmers and consumers seeking alternatives to mass markets

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Emerging Farm Marketing Opportunities in Skagit County

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  1. Emerging Farm Marketing Opportunities in Skagit County Best Western, Mt. Vernon November 8, 2004 Marcy Ostrom

  2. WA Agriculture is Changing: Increasing numbers of farmers and consumers seeking alternatives to mass markets Rapid diversification into higher value production, distribution, and marketing channels

  3. Negotiating New Market Relationships • Direct Marketing • Farm Stands/You-Pick • Farmers Markets • Community Supported Agriculture/Subscription • Institutions (schools), restaurants, retailers • Internet/mail order • Producer Processing and Marketing Cooperatives • Adding Value • Processing and packaging • Labeling—Skagit’s Own, Puget Sound Fresh, Heart of WA • Regional, organic, fair trade, eco-labels • Branding, creating authentic farm identity • Agri-tourism/educational farm experiences

  4. Assessing the Extent of Marketing Alternatives in WA: Farmer Survey • Sample drawn from list maintained by state (WASS) • Minimum of 10% of farms in each county • 3,718 surveys sent out in 2002 • 1,201 completed surveys • Adjusted return rate just under 50% • Relatively representative by farm size and type in comparison with Ag. Census • Funded by Farming and the Environment, W.K. Kellogg and USDA NRI

  5. Direct Marketing Becoming Common

  6. 73% of Skagit Farmers Say Direct Marketing is Effective

  7. Skagit Growers Very Interested in Trying New Marketing Strategies Skagit CountyState-Wide More Direct Marketing to Consumers 40% 25% Diversify Products Grown on Farm 31 24 Explore Greenhouse Production 12 6 Add On-Farm Packing/Processing 15 4 Join Producers’ Co-operative 10 5 Market Directly to Stores/Restaurants/ Cafeterias 15 7 Use Product Labeling (e.g. “green”) 16 6

  8. Common Themes of New Agricultural Enterprises • Linked to local communities and economies • Entrepreneurial--flexible production tailored to specific local or known markets • Diversified • Intensive, high-value crop production per acre, net more of gross • Knowledge/management intensive • Environmental Stewardship • Require strong consumer support

  9. The Role of Consumers in New Farming Approaches • WA Consumer Surveys Show Recognition of Civic and Environmental Value of Agriculture • Two telephone polls of around 900 WA residents, Farming and the Environment Group and WSU(2000, 2002) • Respondents saw profitable family owned farms and food enterprises as important components of the local economy • Appreciation of multi-functional nature of agriculture • Want healthy, safe, and secure food supply • Most see economic benefit to keeping farms in business • Many see environmental, wildlife, benefits • Many see aesthetic and cultural benefits • 7 in 10 said WA Farmers are responsible environmental stewards (Farming and Env. 2000) • Over 80% want to increase local purchasing (2002)

  10. Current frequency of Direct Purchasing from Farmers Twice a month or more 26% Never Once a month or less

  11. Interested in more direct purchases of: Vegetables 82% Fruits 81% Eggs 52% Dairy 44% Beef 36% Poultry 34%

  12. Relative Importance of Food Purchasing Criteria

  13. If locally grown foods were available, how much extra would you pay?

  14. Reasons for not Purchasing Food Directly from Farmers • Convenience a bigger factor than price • Want foods available where normally shop, eat • Grocery stores, discount stores, restaurants, cafeterias • Want farmers markets nearby in neighborhood • Want to shop at convenient times • Want easy parking • Not always aware of available options for buying local • A third say there are no markets/stands nearby (even though in many cases there are) • Most (83%) are unfamiliar with CSA • Unaware that current purchases are not local

  15. Consumers and Farmers Favor Labeling • 94% consumers believe food should be labeled to show origin • 94% consumers think having a WA label would help WA farmers • 77% farmers think that a WA label would help them

  16. Discussion Points • A significant amount of activity and interest in direct marketing from growers and consumers • New levels of acceptance, moving beyond a niche? • Growth possible given high consumer and farmer interest • Need more availability—local into existing commercial and retail channels • Health, quality, local/family farm are big selling points • Health increasing in importance, especially for children • Consumer education, branding, and labeling are key • Only partial solutions • Need distribution and processing infrastructure • Important sectors left out (meats, apples, grains) • locality and commodity specific • Many farmers don’t like marketing/time intensive • Will niches be saturated? • Farmers not operating in global vs. direct markets, but rather a strategic mix. • Diversification of markets is a top farmer priority

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