Marketing is key

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A young farmer recently asked me about marketing. His two basic questions were, “How do I go about supplying the markets?” and “What about selling locally?” I suggested he visit a market and get a feel for how things work. Local sales, I added, aren’t a bad option when starting out.

 

This has the benefit of lower marketing costs and lower risk (up to a point) and can be a useful contributor to the farm’s cash flow. The emphasis being on cash! I said he would also need to choose which crop or crops he plans to grow. This must be done after considering the conditions on his farm, as well as the advice garnered from market agents and others.

I also suggested he start modestly with just one or two crops and master them before adding others to the mix. Marketing a crop is a long-term process. The “quick buck” approach isn’t an option for somebody serious about farming. In addition, the long-term approach needs to be accompanied by a clear marketing plan, which includes the marketing channels you plan to use.

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And the key to good marketing is balance! By not putting all his eggs into one basket the young farmer will, over time, build a solid marketing strategy, while drawing on the respective benefits of the marketing channels he has chosen.

I suggested he opt for the fresh produce markets as his main outlet, because these remain the best option. He could balance this with some local sales and, perhaps, in a few years, he might look at supplying one of the main supermarket groups.

The underlying theme to his marketing would be quality, consistency and ensuring that he allocates the largest percentage of his crop to the markets.
Determining the respective percentages would be up to him, but not less than 50% of his produce must go to the markets.

One thing this young farmer will learn very quickly is that nothing is assured in farming or the marketing of crops. Because there are so many variables on the farm and on the market over which nobody has any control, the need for balanced marketing is so much greater. Once he understands this he will be on his way to success.

Contact Mike Cordes at [email protected]. Please state “Market floor” in the subject line of your email. •FW