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Marketing and Organic Certification. Marketing is a very important, but often overlooked aspect of establishing a successful farm. A market needs to be identified before the crop is put in the ground. Importance of Marketing.
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Marketing and Organic Certification Marketing is a very important, but often overlooked aspect of establishing a successful farm. A market needs to be identified before the crop is put in the ground.
Importance of Marketing • Products must be sold at a profit for the farmer to earn an income that will be sustainable. • Direct marketing fits small, diversified organic farms. • Organic certification opens access to markets with a price premiums. • Good records are necessary for • successful marketing.
Records • Field records • Crop planted in each bed, etc. • Amendments added to each bed • Location of the beds, rows • Sales records • Sales by type of market • Sales by crop • Harvest records • Quantity harvested of each crop by variety • Quantity culled
Market Inventory Record Example Market ________________ Date ______________
MarketResearch • Determine the potential price and volume of product that can be sold. • Secondary sources – information that is already published – population, demographics, regional information. • Primary sources – direct communications with people, such as farmers, produce managers, farmers market customers, chefs, friends and family.
Market Plan • Access present market situation- resources, products, markets available, personal weaknesses and strengths, current trends. • Set measurable objectives that are reasonable and specific. • Determine marketing strategies. • Make a budget. • Set up an action plan. • Evaluate
Benefits of direct marketing • Capture larger percentage of food dollar • Cash payments • Premium pricing • Elimination of middleman • More control
Barriers to success • Location- important factor for some markets • Special expertise-such as computer skills • Transportation- necessary for some markets • Physical resources • Regulatory constraints
Farmers’ Market • Low start up cost • Good for beginner because no commitment of crop • Retail prices • Small quantity acceptable
Community Supported Agriculture • Money received before season starts • Crop is sold before season starts • Relationship with customer more long lasting • Community shares the risk
On-Farm Market • Set up at farmer’s convenience. • Save time in travel. • No direct competition with other farmers. • Customers come to buy. • Build relationships with customers. • Opens opportunities for other activities
Internet Market • Increased visibility of farm. • More information on the products. • Ability to get message to large numbers of people. • Location is of little consequence. • Streamlined business transactions.
Restaurant Sales • Price is near retail. • Increased visibility of farm. • Outlet for specialty products. • Ability to work with chefs to develop new products. • Some chefs will take what is available.
Agri-tourism • Income from public’s recreational dollars. • Public’s desire for farm experience is steady. • Ends farmer’s isolation.
Farmers Marketing Cooperative • Marketing access due to consistent supply. • Transportation to final buyer shared. • Fair prices can be negotiated as a group. • Reduced risk due to shared ownership. • Use of brands can promote stability. • Co-ops do not pay taxes on their profits.
Wholesale Market • Ability to move large amounts of produce. • Contract for produce sometimes can be secured ahead of harvest. • Diversification in marketing strategies.
Certification • Organic products are regulated by the National Organic Program of the USDA. • Organic description and seal can only be used by those that are certified by the federal program. • Informs the customer of the growing conditions of the product.
Certification Standards-highlights • Whole farm plan • Records • Crop rotations • Only acceptable inputs • Buffers • Farmscaping • Free of chemicals for 3 years prior to certification
Basic Crop Requirements • Land must have distinct boundaries • Must maintain or improve the physical chemical and biological condition of the soil and minimize soil erosion • Must implement soil building crop rotations • Fertility management must not contaminate crops, soil or water with plant nutrients, pathogen organisms, heavy metals or prohibited substances
Basic Crop Requirements • Composted plant and animal materials are acceptable • Uncomposted plant materials are allowed. • New manure must be applied at least 120 days prior to harvest of crops for human consumption which may have contact with the soil, or at least 90 days for crops which do not touch the soil • Mined fertility inputs are allowed
Basic Crop Requirements • Burning as a means of disposal of crop residues is prohibited. • Use of sewage sludge is prohibited. • Must use organic seeds, if commercially available. • Must use untreated seeds, if organic seeds are not commercially available. • Must not use fungicide treated or genetically engineered seeds.
Certification Tips • A field must be chemical free for three years to be certified. • For farms earning less than $5000, an organic exempt certification is available. • Georgia State Dept. of Agriculture must be informed of organic certification. • Certification is good for one year.
Steps to certification • Select a certifying agency. (Compare at http://www.rodaleinstitute.org/new_farm) • Fill out the application sent by the agency, including records of inputs, field history, harvest, sales, rotations, fertility plans. • Inspection by agency inspector. • Inspector sends report to agency and they review the complete application and report. • Agency informs the farmer if she/he meets standards and issues certificate, or works with farmer to correct problem areas.
Certification alternatives • Certified Naturally Grown – a farmer organized and run certification system. • On-line application form. • Requirements are the same as the NOP. • Inspections are by fellow farmers. • Cost is minimal but requires that farmers inspect others farms. • Can not use the USDA organic seal.
Summary • Identify your market before you plant. • Do market research and prepare a plan. • Keep records. • Decide on whether to get organic certification. • Carry out your plan during growing season. • Evaluate records at end of season and identify areas to improve or change.