Workshop focuses on how to market locally-grown food

Hort Americas attended the “MarketReady Training Program for Local Farmers, Ranchers and Food Producers” workshop in April in Fort Worth, Texas. The program was presented by Texas A&M AgriLife Extension agricultural economists Francisco Abello and Marco Palma. The MarketReady workshop discussed practices that small-scale growers and other food producers could effectively use to approach and market to restaurants, caterers, grocery stores, food distributors and chains. Topics covered included communications and relationships, packaging, labeling, pricing, supply, delivery, quality assurance, storage, invoicing, insurance and marketing.

The MarketReady training program was developed for the MarketMaker network
 of states to provide growers with the information and tools to engage the various
markets and develop supplier relationships.

The morning portion of the program focused on selling to restaurants and was presented by Abello. He discussed how producers and their customers can use the Texas MarketMaker website to promote and find food products. Texas MarketMaker is an all-in-one resource providing information on locally-grown Texas farm products, seafood, wineries, farmers markets and agritourism.

“This is a free tool to help connect farmers with buyers,” Palma said. “It also provides important marketing tools for farmers. We will be providing information on a wide range of produce, including, fruits and vegetables, livestock and dairy, seafood, etc.”

 

 

The MarketMaker National Network, which currently has 20 states using the website, is maintained by the University of Illinois. The MarketReady training program was developed for the MarketMaker network of states to provide growers with the information and tools to engage the various markets and develop supplier relationships.

The MarketMaker National Network currently has 20 states using the website.

Abello said the Internet enables producers to reach many more potential customers than traditional advertising. He urged producers who develop their own websites to maintain and update them so that they are interactive and current since customers have 24/7 access to businesses’ websites. He also suggested that producers promote themselves on Facebook.

Producers who want to sell to restaurants must be receptive to the chefs’ needs and to the feedback they have to offer. Abello said producers need to build an open line of communication and be accessible to chefs by phone and email.

Producers should also know what is happening with their customers’ businesses to show they are interested and know what they are doing. Abello said producers have to understand what their customers’ needs are before crops are planted.

Marketing fruits and vegetables

Ag economist Marco Palma discussed several aspects of marketing related to the production and marketing of produce. He said there are a number of negative and positive issues currently affecting the horticulture industry.

Negative aspects:

* Stronger competition from less expensive imports and the increased dependence of the United States on food imports.
* Increased concern by consumer over food safety.
* Increasing fuel/energy costs.
* Labor costs and availability.

Positive aspects:

* Increased demand for healthy foods, organic, environmental-friendly and local produce. Consumers have an increased interest in food origin.
* Trade opportunities for food exports.
* Positive health dimensions (functional foods that improve health).
* Dietary guidelines for Americans.
* Specialty Crop Research Initiative ($2.1 billion in Farm Bill to promote fruits and vegetables).

Grocery, wholesale and foodservice sales

Abello discussed selling to grocery stores, food distribution companies and large chain stores. These companies have been the primary customers of large farms that produce large volumes and can ship tractor trailer loads long distances.

Abello said the changes in market dynamics are making these outlets more available to smaller growers. The increasing interest by consumers to buy more locally-grown produce, consumer concern with where their food is coming from and its safety along with the increase in long distance shipping costs, are giving smaller producers an opportunity to look at wholesale marketing channels. He said communication and relationship building are critical to conducting business with wholesale customers. He said the business relationship with these customers is more professional and that negotiations are a part of the everyday process of doing business with this market segment.

For more: Marco Palma, mapalma@ag.tamu.edu.

Francisco Abello, a former doctoral student in the Department of Agricultural Economics at Texas A&M University, has returned to Argentina to farm and ranch.

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