Nurture Your Bottom Line

Tough times often call for tough measures. Too much has been reported in every news outlet about the state of the economy. OK, so things are a little rough. We’ve all dealt with difficult times and gotten through them. We’ll simply have to do it again

We may not have any control over the economy, but we do have control over how we respond to the various situations before us. Despite the negative news reports, I can’t help but be reminded of one thing that separates our industry from many others: People still have to eat. Consumers may choose to put off buying a car right now, but they sure aren’t going to put off going to the grocery store — myself included.

Concern over where dollars are being spent obviously will cause consumers to look for the least expensive options in their food choices. That being said, however, things are looking up for the produce industry. According to this year’s outlook from Rabobank Group, a global organization involved in food and agri-financing, demand for fruits and vegetables is expected to increase in the long term.

“The North American Food & Agribusiness Outlook” report notes that more consumers are now preparing meals at home, with a side effect being increased sales of produce. For the short term, however, growth will depend on the economy. If things “get worse before they get better,” consumers may opt to purchase less expensive alternatives, such as canned or frozen produce. The Outlook also discusses processed produce, an area that continues to enjoy a sizable share of total fruit and vegetable consumption in the U.S.

Convenience Concern

The report also says that convenience is still a top priority to consumers. Convenience, however, hasn’t superseded health concerns, as consumers look to increase their intake of healthy foods. The fresh cut segment of the industry has been able to shine because consumers reportedly perceive fresh cuts to
be one of the healthiest forms of produce.

While these factors will help increase sales of produce, competition from foreign countries is moving in on profits. According to the Outlook report, to be competitive, growers must focus on niche markets and market their products as “U.S. grown.”

Local Movement Growing

With that being said, most of us already are taking it a step further and honing in on the locally grown push. We know that vegetables that have been produced locally offer numerous benefits to the consumer and the community, not only saving on transportation costs, but offering consumers the freshest product possible.

In addition, we know that buying local foods helps the local economy, specifically supporting growers. Armed with this information, what can you do to promote your produce as well as the produce of growers in your area?

Last month I attended the Ohio Produce Growers and Marketers Association Congress and learned several marketing pointers. For example, to help promote your produce at your farm market or the local famers market, some industry experts suggested using an event, such as a festival, to draw attention to that product. In addition, the experts pointed out that it is important for growers and marketers to evaluate their operation and market frequently, determining what they like to do and what customers expect to buy from them.

It is also important to have an established marketing plan for the farmers market or your own farm market. If you sell your produce at a farmers market, get involved in the marketing plan. If you run a farm market or roadside stand, not only listen to your customers, observe which products they choose to determine the big sellers. Giving customers what they want can only feed the bottom line.