Improve Your Greenhouse Produce Marketing Skills

Greenhouse-grown crops — or protected culture crops as they’re commonly referred to in the industry — are a value-added commodity, meaning consumers are willing to pay a premium for them. It stands to reason then, that growers need to properly market their greenhouse crops to set them apart from field-grown crops. Where should you begin?

Thomas Ford, commercial horticulture educator at Penn State University Extension, offers some advice to growers interested in breaking into the greenhouse industry, or those already growing in protected environments who want to expand their customer base.

Tomatoes are the Number 1 greenhouse crop  in the U.S. and are a great place to start for  growers looking to break into the market.

Tomatoes are the Number 1 greenhouse crop in the U.S. and are a great place to start for growers looking to break into the market.

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Why The Greenhouse Buzz?
Ford says consumers perceive greenhouse produce to have a higher quality appearance than traditionally grown produce, which leads them to believe that the taste is a step up, as well.

“The average customer buys with his eyes, and not with his taste buds, so appearance basically seals the deal,” he says.

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Ford also mentions food safety concerns as one of the reasons that drive consumers to purchase greenhouse-grown vegetables.

“I think food safety always lingers in the back of the consumer’s mind,” he says. “You don’t usually have [greenhouse] companies talking about how their product is safer than a product that’s produced in the field, but every time there’s a [food safety scare] in the U.S., the tendency is that customers gravitate toward protected culture.”

Market Environmental Benefits
Ford says many consumers are reacting to food safety and environmental concerns by gravitating toward produce with less crop protectant residue. In many cases, greenhouse growers are already significantly reducing those inputs by using biological controls and other integrated pest management (IPM) techniques. He advises growers to mention their IPM practices when marketing their crops.

Some growers put up signs that say “We use Integrated Pest Management” or “Our tomatoes are pollinated by such-and-such type of bumblebee,” he says. “It just speaks green, and because it speaks green, it translates back into dollars for the grower.”

Know Where To Sell
Once you know what your customers want, you can choose from three primary marketing channels: restaurants, farmers markets, and grocery stores.

According to Ford, selling to restaurants is generally the most profitable, as it is the marketing niche with the highest return. He says to keep in mind, however, that you will have to deal with rejection from chefs.

“It requires [growers] to develop a  different skillset,” he explains. “[They must] be able to talk to the chef about how to use the produce and build that relationship.”

After restaurants, Ford says farmers markets are the next best channel, considering they give growers good exposure for their product and help them build relationships with customers.

Third on his list is retail, or grocery stores. Ford stresses the importance of labeling produce to be sold in grocery stores so consumers are aware they’re buying a greenhouse crop.

The most common type of label-ing at the retail level is a gum label or other type of demarcation directly on the produce.

Sell, Sell, Sell
In addition to selecting the proper marketing channel, Ford says it’s important to establish your brand, forging the connection from the produce back to the farm.

Social media can be a good way to do this, and Ford has seen several operations use it to their advantage.

“I know one CSA (Community Supported Agriculture) operation that uses social media to tell people what they’re planting in greenhouse structures, what’s being sold in the market at that time, and what farmers markets they’re in,” he says.

Pricing is also something to be aware of, but it fluctuates greatly depending on the grower, the market, and the size of the greenhouse operation.

“I have a grower who may get as low as 50¢ a pound for his greenhouse tomatoes, or as high as $5,” Ford explains. “When he’s marketing to chefs and white tablecloth restaurants, he’s often enjoying $5 a pound, even $5 a pound for green tomatoes on the vine. And yet, he was getting 50¢ a pound if he takes that to the local produce auction.”

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