1 / 23

Road to Riches; Marketing Organic Products

Road to Riches; Marketing Organic Products. Why should I consider growing Organic for Farmers Markets?. Organic market segment fastest growing 15 to 21% / year, rest ~ 3% Tiny > 3% market, EU ~ 35% market Demand exceeding supply, imports by $200 million. Organic vs Conventional.

crwys
Download Presentation

Road to Riches; Marketing Organic Products

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Road to Riches; Marketing Organic Products

  2. Why should I consider growing Organic for Farmers Markets? • Organic market segment fastest growing 15 to 21% / year, rest ~ 3% • Tiny > 3% market, EU ~ 35% market • Demand exceeding supply, imports by $200 million

  3. Organic vs Conventional • Organic food sales in U.S. grew to $16.7 billion in 2006 • Growth rate was 21% • Total food sales ~ $600 billion

  4. Organic Sales and Growth by Category • Organic fruits and vegetables $6.7 billion, 39% total • Growth rate was 24% in 2006 • Projected to reach $8 billion when 2007 figures reported

  5. What makes produce “organic” • USDA Certification regulations 2002 • Grown without synthetic pesticides or fertilizers, 36 mo wash out period. Animals - outside • Grown according to Organic Plan • Audited by 3rd party

  6. How we did the study • Developed 10 questions, 4 demographics • English and Spanish • 3 student interviewers • Table, University Banner, clip boards, souvenir cups • Offered to read as needed

  7. Study: 3 farmers markets NW Arkansas, summer 2007

  8. What did we Learn? • > 300 respondents • Most, > 60% had graduated from college, 10% professional or PhD • Compared to10% of AR population at large graduated from college

  9. What were the differences among consumers at the three markets ? • In addition to the volume of sales, Fayetteville had the highest % PhD’s and professional degrees • Eureka Springs the greatest % BS grads • Springdale had greatest % High School or GED’s

  10. Who shops at NW Arkansas Farmers Markets? • Older 41% > 56 years. Older • >89% were white, Hispanic 3+% Asian 3-% • 63% female • 60% BS degree or higher.

  11. Do Current Farmers Market Customers Buy ORGANIC? • 77% said at least once or 2x per month • 39% said they been buying it for 7 years or more • 77% buy organic fruits and vegetables. Poultry – 3% • 42% said they are buying organic at Farmers Markets. 20% re health food store

  12. Perceptions and Beliefs; Organic vs Conventional • 80% said they would buy more organic if priced similar to conventional • 70% said “organic” is different than “natural” • 72% said organic foods were “more safe” than conventional. 23% said “as safe”.

  13. Why Consumers Buy Organics • Free from chemicals 36.4% • Better Nutritional Quality 16.1% • Better Taste 12.8% • Environmentally friendly 10.1% • Other 3.3% • Fewer Harmful Bacteria 2.0%

  14. What do white, well educated women want in the produce they buy? • Support for local agriculture • Convenient/ atmosphere • Lowest concern for price • Support for organic • Brown, 2002, review markets1940 – 2000 • # 1) Quality of offerings, 87% rated good to excellent, 98.5% much better quality than retail • #2) Direct contact with grower/farmer

  15. What Concerns Consumers about Conventional Food? • A) Pesticides 45% • B) Negative Environmental Impact 9.8% • C) Genetic Modification (GMOs) 9.2% • Circled all answers 7.8% • D) Nutritional Value 7.5% • E) Harmful Bacteria 6.2% • F) Other 3.6%

  16. Shop at Farmers Markets because “I Believe most strongly in” • Support Local Farmers 42% • Fresher Produce 24% • Better Quality than Retail Stores 9.8% • Farmers Market Foods are Safer 4.2% • Support Fair Trade 1.3% • Other 1.3%

  17. Conclusions • Customers at NWA farmers markets are well educated, females with money • More than ¾ of these customers are frequent organic food buyers • The organic food they purchase (prefer) most is fresh fruits and vegetables • Less than ½ of those customers are purchasing a majority of their organics at farmers markets • The market for ORGAINC is there but is it worth it?

  18. OK. Not Certified Organic • Creative Genius Artisan re beef in NE Grass- fed Natural • What do customers want? (hot topics) Know the farmer – trust, keep money local, Anti – (Big ) Business Care of Environment NO to pesticides, synthetic fertilizers, hormones, antibiotics, YES to animal welfare, outdoors, fresh, natural

  19. Artisan • Artisan – a person manually skilled in making a particular product. Artisan farming is farming in harmony with livestock, land and nature.

  20. Natural – Grass-fed • Texas longhorn – tell the grass fed story, the way nature intended • Many grass-fed • Comments re no hormones, antibiotics • All Natural

  21. Marketing • Marketing – younger shoppers (Xers) – product must have a story – romanitize it. • Don’t have to agree. Just give them what they want and don’t argue. • You don’t have to grow – get someone else do it.

  22. Organic Workshop • May 13- 14. Mt Sequoyah Conference and Retreat Center • May 15-16. Winrock Rockefeller Institute, Morrillton • Will cover organic horticultural production. • Contact; Heather Friedrich; 479/575-2798 • heatherf@uark.edu

  23. Questions ?

More Related