Local food

Marketing Collaborations for Farmers

Marketing is “creating, communicating, delivering, and exchanging offerings that have value,” according to the definition adopted by the American Marketing Association. As is clear from the definition, marketing is broad! It encompasses concepts around product, price, place, and promotion.

At the 2023 Farm Science Review (FSR), CFAES Center for Cooperatives program director, Hannah Scott, shared collaborative approaches to marketing that may help fruit and vegetable farmers grow their businesses. From cooperative efforts to reach customers to group buys for marketing supplies, the key question for collaborative approaches is whether a group can do something better together than they can individually.

Colorful pattern of lettuce, tomatoes, eggplants, and carrots on tan background.

Collaborative Promotion

To help reach customers and promote their farms and products, farmers might consider taking advantage of collaborative programs like Ohio Proud, a program of the Ohio Department of Agriculture to promote Ohio grown, raised, or processed food and agriculture products. Other community-led efforts to promote local food, like the Pike County Local Foods Directory, led by Pike County OSU Extension, may be opportunities for farmers to reach new customers and raise awareness.

Interested in Collaborative Promotion Strategies? Here are some things to consider:

  • Are there existing programs your farm could engage simply and efficiently?
  • How can your farm share promotional items from these collaborative programs? Using social media or placing materials around your community?
  • If you help create new materials, who will “own” keeping them updated?

Controlling Costs through Joint Purchasing

Does your farm use marketing supplies that others also often use? Think of items like bags, boxes, cartons, crates, stickers, signage, and more. Sometimes purchasing supplies as a group may help farmers access bulk discounts while reducing the inventory they need to hold themselves. Group buys might also help control shipping costs and reduce administrative burdens.

Interested in Collaborative Purchasing? Here are some things to consider:

  • Will group purchasing save costs on goods and/or shipping?
  • Do the logistics work for the group?
  • Be aware of potential risks and plan for them, including potential risks around payments for goods, the quantity purchased, storage and timing considerations, and more.
  • Ensure that communications around the what, when, where, and how, for group purchases are clear and consistent.

Collaborative Marketing Approaches to Enhance Product Diversity

Sometimes offering a diverse array of products might help a business attract more customers. For example, farmer’s markets often work to recruit a diverse group of vendors so they can offer customers everything from fruits and veggies to meat and proteins, dairy, baked goods, and more. In some instances, business-to-business (B2B) sales, including approaches like multi-farm CSA’s, may help farmers or markets increase their product offerings or extend their marketing season.

Interested in Collaborative Approaches to Enhance Product Diversity? Here are some things to consider:

  • How can you manage for the quality and safety of products you do not produce?
  • Does product diversity actually help sales in the market channel you are in?
  • What strategies might you need to help manage risk and set clear expectations around terms of B2B sales?
  • Does the market channel where you sell products allow for B2B sales? For example, some farmer’s market rules may not allow for sales of items a vendor did not produce themselves.

An illustration of a laptop with retail store awning and paper airplane next to brick buildings to represent online business marketing.

Cooperation to Reach New Market Channels

Some market channels require higher volumes of product more consistently than others – think k-12 institutions or wholesale buyers – and these markets might be challenging for some farmers to enter. Producer-owned cooperatives that market products on behalf of their members may offer opportunities for farmers to pool products to reach higher volumes more consistently. Some farmer’s markets may be producer-led cooperatives (like the Chillicothe Farmers Market in Ross County, Ohio). Cooperatives may be a useful approach where pooling product or resources helps solve a challenge, but they can also be complex.

Interested in the Producer-Owned Cooperative Model? Here are some things to consider:

  • Who will be involved as members and what will be their role?
  • How will the group make decisions?
  • How can the group manage risk?
  • Will working together create the intended benefit? Can that benefit be clearly identified and communicated to members?

Access the slides for the presentation, “Marketing Collaborations to Improve your Farm’s Bottom Line” here!

 

To learn more about cooperative and collaborative approaches in agriculture, reach out to the CFAES Center for Cooperatives at Ohio State at go.osu.edu/cooperatives or 740-289-2071. The publication, “Cooperative Farming: Frameworks for Farming Together” published by Northeast SARE is also a great place to start learning about cooperative and collaborative approaches in agriculture.

Farm Science Review is a three-day, annual outdoor event hosted by Ohio State University featuring commercial exhibits, educational programs, and field demonstrations showcasing the future of agriculture. The presentation was part of 15 different learning sessions at the OSU Extension Fruits & Vegetables exhibit at FSR. The OSU Extension Fruit & Vegetable team posts educational resources and updates at https://u.osu.edu/vegnetnews/

Beef Co-op’s Marketing Efforts Offer Insights for Local Food Entrepreneurs

For every business, getting marketing right is key. For food entrepreneurs selling directly to consumers at farmer’s markets, farm stands, online, in grocery stores, and via subscriptions, telling their story through marketing is vital to reaching their target customer demographic to enhance sales. But how do food entrepreneurs — especially those selling locally produced products through local supply chains –know which marketing channels to use?

The farmer-owners of Buckeye Valley Beef Cooperative, a young co-op marketing locally raised beef in southwest Ohio, set out to answer that question. They wanted to know how they could maximize their marketing efforts to generate new customers and sales for their farmer-owners. In 2019, the co-op proposed and was awarded a project to the 2019 Sustainable Agriculture Research & Education (SARE) Farmer/Rancher grant program. Their project would help the co-op develop, implement, and then measure the effectiveness of four new advertising channels: Google ads, billboards, radio advertisements, and Facebook ads. The co-op placed their ads, some of which were created in consultation with marketing professionals at the companies they purchased advertising through, and then tracked whether their efforts translated into new customer orders. What they learned can offer insights to other local food producers, particularly those selling meat.

Readers can learn more about the project, the co-op’s experiences, and the results in a presentation by a founding member of the co-op available above as a part of The Ohio State University College of Food, Agricultural, and Environmental Sciences online Farm Science Review.

What Did the Co-op Learn?

  • Facebook ads and radio ads on the local public radio channel were the most effective new advertising channels the co-op tested. Facebooks ads resulted in an astounding 10900% return on the dollars invested in the channel. Also, co-op members were surprised to learn that radio ads resulted in an 85% return on their investment.
  • Some new advertising channels took a lot of time and energy to learn. The co-op relies on volunteer labor and they took a team approach to implementing the new advertising methods. Even so, learning the ins-and-outs of utilizing certain channels took a significant time investment.
  • Word of mouth is still the most effective marketing strategy for the co-op. Sales from customers who reported learning about the cooperative by word of mouth dwarfed sales generated from customers who reported finding out about the co-op through one of the new advertising channels. This reinforces the idea that food entrepreneurs should ensure they are paying close attention to customer experiences and creating ways for their customers to share their excitement about their products.

About Buckeye Valley Beef Cooperative

Buckeye Valley Beef Cooperative was formed in 2016 by southwest Ohio farmers who wanted to expand their markets for locally raised beef and to increase their farmer incomes. The co-op markets beef to retailers and directly to consumers. You can learn more about the cooperative via the video, Buckeye Valley Beef Cooperative: Our Story  The co-op’s farmer members were supported by the CFAES Center for Cooperatives in their start-up and the development of their SARE proposal.

Community-owned co-op grocery stores key in revitalizing food deserts

Community-owned Grocery in Detroit

Detroit People’s Food Co-op, opening later this year in a food desert, is an example of a community-driven project.

Food insecurity and lack of area grocery stores in low-income neighborhoods hold much blame for hunger in America. Local and state governments, along with national leaders have prioritized the elimination of “food deserts,” with large retailers promising to open or expand stores in underserved areas.  Some got past the planning stage or closed shortly after opening. The article “Why community-owned grocery stores like co-ops are the best recipe for revitalizing food deserts” looks at 71 supermarkets that had plans to open in a food desert since 2000, and explores why some groceries succeeded while others failed.

The supermarkets driven by government or commercial interests had a mixed track record, but nonprofits and those driven by community involvement tended to succeed.

Author Catherine Brinkley, Assistant Professor of Community and Regional Development at the University of California – Davis noted, “Importantly, 16 of the 18 community-driven cases were structured as cooperatives, which are rooted in their communities through customer ownership, democratic governance and shared social values.”

Policymakers and officials interested in improving wellness in food deserts should consider community ownership and involvement. If you are involved in efforts to bring a supermarket to an underserved community and want to consider cooperative business options, contact the OSU CFAES Center for Cooperatives by calling 740-289-2071 ext. 111.

Scaling-up to Sell to Schools

 

Farm fresh food benefits not only students but the farmers that grow it for students. Scaling-up to sell to schools presents challenges, but farmers have achieved success through cooperation, collaborative relationships with buyers and year-round purchasing programs.

Farmers benefit from Farm to School

Institutions are a dependable market that provides farmers with timely and reliable payments. Clarity of a cafeteria’s needs allows farmers to plan production and delivery in advance. Schools streamline procurement, delivery and invoicing processes so farmers can focus their energy on producing high-quality food to nourish students.

Selling to schools is good for the local economy. Schools purchased $790 million of local food in 2013-2014. 42,587 Schools across the United States participated in Farm to School activities according to the USDA Farm to School Census. ¹ Case studies of public schools in Minnesota and Georgia found $82 of every $100 spent stayed in the local economy. ²

Some schools incorporate agriculture and nutrition education into Farm to School programming. Farmers that are passionate about inspiring the next generation of healthy eaters may have an opportunity to partner with educators to teach youth about what it takes to get food from the farm to the cafeteria.

Challenges selling to schools

Schools purchase a large volume of product. Small operations often struggle to produce a volume sufficient for foodservice needs. Cooperative marketing is a solution. An agricultural cooperative can aggregate multiple farms products to achieve intuitional volumes. A co-op offers farmer-members other benefits such as group food safety certifications, shared distribution and reduced costs on supplies. The Preston Growers Cooperative formed in response to the West Virginia Farm to School initiative. Working together, farmers achieve institutional volumes, maintain quality and offer a wider selection of products to local schools.

Farmers receive lower prices from institutional sales than other direct marketing channels. School buyers have tight budget constraints when making food purchasing decisions. The average school lunch cost $2.90 to prepare, only $1.07 of the total cost is allocated to food. The remaining $1.83 goes to labor, preparation and indirect costs. ³ Marketing Michigan Products: A Step-by-Step Guide from Michigan Farm to School is a free online resource that helps farmers prepare bid documents, price their products and negotiate contract agreements.

The school cafeteria is vacant during much of peak fruit and vegetable season. Minimal processing, such as freezing fresh food for future use, can be a solution. Cafeteria staff may process the food in the school cafeteria or coordinate with a food hub or co-packer to process the food in an approved facility. The Ohio Department of Education’s Summer Food Service Program provides a consistent market for farmers by purchasing food when school is not in session. Meals are served to youth enrolled in summer education programs at local YMCAs, libraries and other partner organizations.

Success

Farmers that have successfully sold to schools suggest developing working relationships with school dieticians, buyers and food service staff. Farmers should clarify vendor requirements, volume, packaging, delivery, insurance, payment terms and necessary food safety certifications prior to making the first delivery. Regular communication throughout the school year is vital to success.

For more information on Farm to School in Ohio visit http://farmtoschool.osu.edu/.

To learn about the Ohio State University Dining Service’s goal to purchase 40% local and sustainable Food by 2025 visit https://dining.osu.edu/sustainability/local-and-sustainable-food/.

References

  1. “Farm to School Census.” 2015. U.S. Department of Agriculture Food Nutrition Service.
  2. Christensen, L., Jablonski, B., Stephens, L. & Joshi, A. “Economic Impacts of Farm to School: Case Studies and Assessment Tools.” Sept 2017. National Farm to School Network. Retrieved April 27, 2018 from http://www.farmtoschool.org/Resources/EconomicImpactReport.pdf.
  3. “School Lunch and Breakfast Cost Study-II.” 2006. U.S. Department of Agriculture Food Nutrition Service.

*Originally published in Farm and Dairy newspaper 5/4/2018

Casa Nueva: A New Flavor of Foodservice

Low salaries, high turnover and lack of employee engagement are prevalent in food service. Eight food entrepreneurs had a solution; they would create a restaurant that empowered employees through ownership. In 1985 they opened Casa Nueva, the first worker-owned cooperative restaurant in Ohio, in the heart of downtown Athens.

In 1987 Casa Nueva worked with the Appalachian Center for Economic Networks (ACEnet) to develop and market a product line of salsas and other value-added goods. The restaurant added a cantina in 1993, and a second kitchen in 2003.

Worker ownership in practice

Casa Nueva carries out daily operations with the help of worker-owners and non-owners (associates). 1/3 of staff are worker-owners, 2/3 are associates. Associates have an opportunity to apply for ownership after working 1000 hours in the restaurant, serving on special committees and earning positive performance evaluations. The co-op board of directors vote to approve or disapprove the associate’s application for ownership. All new owners contribute equity. The cost is offset by a raise that goes into effect when an associate becomes a member of the cooperative. Other benefits of membership include: voting rights, paid time-off, insurance and scheduling preference.

For over 30 years Casa has provided worker-owners with meaningful work, sustainable jobs and opportunities for advancement. Fresh ingredients, Mexican-inspired flavors, culture, music and art delight locals and students of Ohio University, the city’s main economic driver.

Founder Leslie Schaller shares Casa Nueva’s Story