Making Marketing Work in Florida
August 17, 2011 In Florida, unlike California, the majority of organic farms are small, and marketing challenges are a significant obstacle to success and the ability to satisfy consumer demand. When food is produced and distributed locally, there is an abundance of the same crops available at the same time and transportation costs are lower, which often means a lower price for the customer. This, and many other reasons, may account for the growth in recent years of farmers markets, Community Supported Agriculture (CSA), and other direct marketing opportunities.
As consumer demand for locally produced organic food from smaller farms increases, wholesale, retail, and institutional buyers are increasingly interested in working with smaller-scale farms. From the farmer’s perspective, marketing to large buyers and grocery chains is difficult, according to recent surveys and focus groups conducted by Florida Organic Growers. Establishing relationships with large retailers, wholesale, and institutional buyers can be a challenge for some small producers who may lack an understanding of price, transaction costs, logistics, quality, appearance, food safety, consistency, volume, availability, and knowledge of business, markets, and communications.
In recent interviews with Florida retailers conducted by Florida Organic Growers, organic broccoli, cauliflower, celery, and potatoes ranked high on the list of desired crops, while retailers are often overwhelmed with organic zucchini, yellow squash, or green peppers. Diversifying and growing niche crops are an opportunity for Florida growers to develop relationships with wholesale, retail, and institutional buyers including restaurants that may cater to a variety of ethnic clientele.
Counting On CSAs
Farmers Markets
Farmers markets provide producers an opportunity to put a face and a story to their product, which is more important to consumers now as awareness of the dangers of pesticides increases. Producers at farmers markets also have the opportunity to receive feedback directly from customers, learning their thoughts on such factors as pricing and variety. Farmers markets also have the potential to provide a greater income to a producer by cutting out the middleman, allowing increased financial returns through direct selling, price control, and a regular cash flow. A study in Iowa found that a consumer would spend an average of $8.84 for a basket of food at a farmers market and $10.45 for basket of food at a supermarket, a savings of more than 15%. Organic produce was on average 38.8% cheaper at a farmers market than at the supermarket according to the Northeast Organic Farming Association of Vermont.
Marketing To The World
In 20009, Florida MarketMaker was started as part of a national partnership of land grant institutions and State Departments of Agriculture dedicated to developing a comprehensive, interactive database of food industry marketing and business data. For example, a producer wanting to sell bok choy to Chinese consumers can request a map showing the greatest concentration of Chinese households, then request a complete demographic profile of those locations. Florida MarketMaker is and will be most useful when utilized widely by Florida producers, distributors, wholesale, retail, and institutional buyers.