Ag Opportunities Volume 18, Number 2 February 2007 Growers Learn to Market Produce to Restaurants, Wholesalers During Great Plains Conference by Sara Agnew Senior Information Specialist Extension and Ag Information Bob Lober believes the biggest mistake a fruit and vegetable grower can make is to underprice his produce. The organic farmer from Moscow Mills told participants at the Great Plains Growers Conference & Trade Show in St. Joseph that the only way small producers can make a living from farming is to price their produce to make a profit. "Don’t give it away," said Lober, who sells homegrown vegetables directly to upscale restaurants. "Farmer-fresh produce is a rare commodity. You can always price it above wholesale and sometimes above retail." More than 300 farmers and specialists from Iowa, Kansas, Missouri, Nebraska and South Dakota attended the annual conference Jan. 12-13 at the Ramada Inn, said Tom Fowler, a University of Missouri Extension specialist based in St. Joseph. "Snow and ice over the weekend cut into attendance, causing fewer walk-ins than in years past," he added. Lober was among a number of speakers who talked about marketing locally grown fruits and vegetables. Other sessions addressed issues involving melons, sweet potatoes, organic vegetables, sweet corn, tomatoes and flowers. New this year was a tract on small fruit production that included presentations on strawberries, elderberries, blueberries, blackberries and raspberries. About 50 people listened as Lober shared his story of transformation from corporate management to farming. Today, Lober farms about 1 1/3 acres, growing exclusively for four upscale restaurants in the St. Charles area. He grows and delivers the produce himself. Lober said reaching the restaurant clientele didn’t happen overnight. It took six months of weekly phone calls to earn the business of one restaurant chef. Once he made the sale, Lober stayed in weekly contact with the chef, making sure he could meet the needs of the restaurant. "It requires a lot of perseverance," he said. He warned that producers, especially small growers, shouldn’t drop prices to gain clientele. New customers can be earned by selling the attributes of farm-fresh produce. "On a one-acre garden, I can’t afford to wholesale," Lober said. "My pricing sometimes is higher than retail because I can offer something restaurants can’t find anywhere else — farm-fresh, locally grown produce." On the other hand, farmer Rusty Lee told participants he can’t afford not to wholesale his farm-fresh produce. Lee, who grows about 45 acres of vegetables on his farm in Warren County, 70 miles west of St. Louis, has learned to take advantage of his location near Interstate 70. He said it pays to have produce picked up and trucked across the state because he grows more vegetables than he could economically distribute on his own. "I never leave the farm," Lee said. He maximizes profits by cutting transportation costs and growing more and diverse produce. Growing on a larger scale than Lober also makes it more economical for Lee to use machinery instead of manpower to harvest his crop. "I can cut labor costs by planting at least two acres" of each vegetable "so I can use machines," he said. Lee said he has been working with MU Extension specialists to study the idea of creating a cooperative that would help produce farmers get their crops to market. Farmers could bring produce to the cooperative to be graded and packaged for convenient pickup and distribution by wholesalers. Tricia Wagner, a community development/local foods specialist with MU Extension in Warren County, said a feasibility study was completed in December. It showed "an incredible demand for locally grown fruits and vegetables." She said the most likely location for a cooperative would be along I-70 in Warren or Montgomery counties. A growers meeting is being planned for mid-February to discuss the results of the study, she said. Lee said a cooperative would help farmers who want to make a living selling produce, but don’t have the time or equipment to sort, package and market their fruits and vegetables. "The wholesale vegetable industry is highly competitive," he said. For more information about the cooperative meeting, contact Tricia Wagner at 314-225-8348. ********************************************************************** 13 Strategies to Reduce Direct Marketing Risks Carefully evaluate your options before investing. 1. Grow, pack and deliver quality products. 2. Know your potential. Make realistic customer and sales projections. 3. Pick the right size market for the size of your operation. 4. Be intentional about your marketing. Have a written plan. 5. Dedicate yourself to being professional in meeting buyers’ needs. 6. Communicate with customers and exceed their expectations. 7. Be prepared to conform to market place standards. 8. Sell through several complementary marketing channels. 9. Track marketing costs by channel. Know costs and returns for each. 10. If sales aren't covering costs, change your strategy. 11. Don’t stick with unreliable buyers. 11. Carry adequate product and general liability insurance. (from Small Farm Quarterly, Jan 8, 2007) ********************************************************************** *** In Print/On-Line *** *Targeted Grazing: A Natural Approach to Vegetation Management and Landscape Enhancement, A handbook on grazing as a new ecological service* A new handbook that focuses on using sheep and goats to manage vegetation and enhance landscapes was recently completed in a collaborative effort by researchers, educators, and producers from across the United States. Targeted Grazing: A Natural Approach to Vegetation Management and Landscape Enhancement is available online in its entirety. The handbook covers topics such as using targeted grazing to control invasive species of weeds and using sheep and goats to create fire breaks. It also includes grazing prescriptions that can be used to target specific plant species and examples of how sheep and goats are being used to manage vegetation. http://www.cnr.uidaho.edu/rx-grazing/Handbook.htm *Farmers Market Management Series Volume 1: Starting a New Farmers Market* 100 pages, $15. This manual designed to guide users through the process of starting a farmers market, covers successful methods and innovative strategies. The combination of goals, resources, and organizational challenges is unique to each market. However, many markets share similar needs when they are getting off the ground. Strategies and approaches described in this book can be tailored to fit your individual market's needs. By using this manual as a companion to your start-up activities, you will be able to avoid many common pitfalls of the start-up process and lay a solid foundation for a successful and viable market. *Farmers Market Management Series Volume 2: Management Skills for Market Managers* 104 pages, $15. This volume is divided into three sections. The first introduces you to the roles and responsibilities of the manger. The second is dedicated to relationship building. The third section discusses specific skills involved in carrying out the roles and responsibilities of the manger, and in building and maintaining positive relationships with all those involved in the farmers market. Each chapter begins with a brief introduction and outlines the skills and abilities the chapter is designed to develop. *Farmers Market Management Series Volume 3: Growing Your Farmers Market* 76 pages, $15. This guide is organized to help managers and Board of Directors work through a shared process of strategic marketing. Each chapter deals with a component of strategic marketing. By working through the book chapter by chapter, farmers market management will learn to create and implement a strategic marketing plan. However, this book is not intended to be a one-time exercise. The effectiveness and success of mangers, vendors and farmers markets themselves, depends on continuous development and application of research, knowledge, and skill in researching market trends, establishing priorities, setting goals, and choosing, implementing, and evaluating strategies to improve your market. All three are available from: UC Regents, UC Small Farm Center, University of California, One Shields Ave, Davis, CA 95616, 530-752-8136, sfc@ucdavis.edu http://www.sfc.ucdavis.edu/docs/publications.asp *A Forest Landowner’s Guide to Internet Resources* An online listing of resources including publications, brochures and fact sheets relating to forest stewardship. Check it out (MO is considered part of the region listed on the site.) http://na.fs.fed.us/pubs/misc/flg/ *Directory of Flower and Herb Buyers* A listing of 37 companies that who want to purchase directly from growers and wildcrafters the more than 400 species of floral and herbal botanicals including roots, leaves, blossoms, nuts, seeds, fruit, barks and more. Available from Prairie Oak Publishing, 221 S Saunders St, Maryville MO 64468, 660-541-1040. ********************************************************************** *** IN THE NEWS *** * Report examines market for organic poultry and eggs*— USDA Economic Research Service issued a report December 27 titled Organic Poultry and Eggs Capture High Price Premiums and Growing Share of Specialty Markets. According to the report, organic poultry and egg markets in the United States are expanding rapidly. Statistics for the sector, especially the number of organic broilers, also signal expanding domestic supply. This report examines trends in markets, animal numbers, and prices for organic poultry and eggs. Price comparisons between organic and conventional show significant organic price premiums for both broilers and eggs. http://www.ers.usda.gov/Publications/LDP/2006/12Dec/LDPM15001/ The Organic Center released a report in October 2006 proposing a new method to quickly and cost-effectively track *changes in soil quality brought about by the transition to organic farming.* Alan Franzluebbers, Ph.D, and Richard Haney Ph.D, two leading soil scientists working for the Agricultural Research Service, the research arm of the USDA, wrote the Organic Center’s Critical Issue Report, Assessing Soil Quality in Organic Agriculture. http://www.organic-center.org/science.environment.php Dr. Phil Howard of Michigan State University has added *fresh research to his effort to graphically connect organic brand names with their ties to the top 25 food processors in North America.* He’s also collected data on the major independent organic companies and a chart of private label organic brands, including supermarket chains, specialty chains and distributors. To view the map go to http://www.cornucopia.org/graphics/OrganicTop25Nov06.pdf *Iowa State University researchers found little or no Salmonella problem on small hog farms in their state.* Farms surveyed had 20 to 150 sows, raised on open lots using management procedures with varying risks of contributing to Salmonella on the premises. The researchers found that practices such as maintaining small herd sizes, limiting the use of vaccines and refraining from using growth-promoting antibiotics did not translate into high prevalence of Salmonella. But those practices apparently don’t have as much impact on keeping Salmonella levels low as do other practices such as the use of meal feed and straw bedding, low stocking densities or rodent control. The lesson here is that avoidance of antibiotics by itself isn’t enough to keep Salmonella out. “It’s a real plus for organic and traditional farming,” explained D.L. (Hank) Harris, an ISU Food Safety Consortium researcher and animal science professor. *Expect a limited bison herd and high prices through 2009*, even though the U.S.-Canadian herd has grown to a half-million strong. Trouble is, drought in western parts of the Great Plains, the main region for bison, leads ranchers to sell heavily for slaughter. More heifers than young bulls were sold for meat in 2006, so it’ll take over two years to start increasing the parent herd. Meat output, more than three years. (Kiplinger Ag Newsletter, Vol 78 No 2) *What do choosy wild birds like to eat best?* Sunflower seeds, according to a recent study of wild birds’ taste preferences conducted by the Wild Bird Feeding Industry. It gave birds a wide variety of feed and found that black oil sunflowers and sunseed chips won out. Taste test results will help farmers sell more sunflowers for bird feed, though the research won’t be finished until next year. Sunseed sales to bird feed firms are already going strong, fetching a robust $14.50/cwt...approaching $15 on fall 2007 contracts. (Kiplinger Ag Newsletter, Vol 78 No 2) *The Conservation Reserve Enhancement Program (CREP) is a voluntary land retirement program that helps producers protect environmentally sensitive land, decrease erosion, restore wildlife habitat, and protect ground and surface water.* Enrollment in CREP is limited to specific watersheds in Missouri, but the program is available in all or part of 79 of Missouri’s 114 counties. Practices include field borders, filter strips, prairie restoration, and wetland development to name a few. All practices must be planted to a mix of native warm-season grasses and wildflowers. Mid-contract management is required on most grass practices. CREP offers extra incentives to encourage enrollment. Annual rental payments of over $100 per acre are possible and signup bonuses of $100 to $350 per acre depending on your soil type and the practice you choose. Contact your local FSA office to see if your land qualifies for the program. ********************************************************************** *** ON THE CALENDAR *** Feb 2 - Women in Agriculture and Agriculture Landowners Conference, Marshall, MO. Call 660-886-6908. Feb 2-3 - Sustainable Food System Conference, Kansas City, MO. Call 816-767-8873. Feb 3 - 1st Annual Grazing Conference, Hannibal, MO. Call 573-985-8611 x 3. Feb. 3 - MO Quail Unlimited State Meeting, Jefferson City, MO. Call 660-885-7057. Feb 3 - Prescribed Burn Workshop, Lamar, MO. Call 417-629-3423 Feb 3 - Prescribed Burn Workshop, Bates County. Call 417/667-8137 Feb 3-4 - MO Nut Growers Assn Evaluation & Show, Nevada, MO. Call 417-436-2351. Feb 3-5 - Midwest Wine & Grape Conference, Tan-Tar-A, MO. Call 1-800-392-WINE. Feb 5-7 - 2007 Mid-Continent Fish Culture Workshop, Overland Park, KS. http://kdwp.state.ks.us/news/fishing/2007_mid_continent_fish_culture_w orkshop Feb 7 - Putting Small Acreages to Work, Quincy, IL. Call 217-223-8380. Feb 8 - Risk Management Agency Programs and Sustainable Agriculture Funding Opportunities, Kansas City, MO. Call 573-884-3794. Feb 10 - Prescribed Burn Workshop, Carthage, MO. Call 417-629-3423 Feb 12-14 - Missouri Small Fruit & Vegetable Conference, Springfield, MO. Feb 15 - Eastern MO Vegetable Cooperative Meeting, Warrenton, MO. Call 314-225-8348 Feb 22 - Grape Production Short Course, Rocheport, MO. Call 573-882-6656 or Nettles-StrongA@missouri.edu Feb 22-23 - Upper Midwest Organic Farming Conference, LaCrosse, WI. Call 715-772-3153, cathy@mosesorganic.org Feb 23-24 - MO Woodland Owners Conference, Columbia, MO. Call 573-634-3252, http://moforest.org Feb 24 - Meat Goat Workshop, Fredericktown, MO. Call 573-224-3035. March 1 - 23rd Annual Spring Forage Conference, Mt. Vernon, MO. Call 417-466-2148. March 10 - Enhance Wildlife on Your Property, Farmington, MO. Call 573-290-5730. March 16-17 - MO State Beekeepers Assn Spring Meeting, Jefferson City, MO. Call 660-826-4917. March 31 - Options for Small Acreages, Lebanon, MO. Call 417-532-7126. March 31 - Quail Management Field Day, Mound City, MO. Call 660-442-3173. May 11-12 - Midwest Forest Industry Show, St Louis. Call 573-634-3252. July 29-31 - Missouri Young Farmers/Young Farm Wives Summer Tour, Perryville, MO. Call 573-751-8467. Aug 9-19 - MO State Fair, Sedalia, MO. * Green Hills Farm Project Winter Seminar * Direct from the pages of the Stockman Grass Farmer Magazine Sunday Feb 24, 2007 10:00 am to 3:00 pm Linneus, MO Chad Peterson Grazing and Marketing Innovator from Nebraska Chad has been featured in The Stockman Grass Farmer Magazine several times for his cutting edge grazing and marketing ideas. Topics to be covered: * Restoring soil organic matter with a grazing system * High density livestock grazing * Watering system ideas * Direct Marketing Meat * Custom Grazing Goats to control weeds * Custom Grazing Cows * Grazing Buffalo There will be an extensive question and answer session in the afternoon. Price is $20 per family; bring a covered dish for lunch. For more info: Doug Peterson at 660-824-4276, dptrsn@grm.net ***********************************************************************