Selling at BC’s Farmers' MarketsSelling at BC’s Farmers' MarketsA Resource for New Farmer VendorsA Resource for New Farmer Vendors

BCAFM ConferenceMarch 12, 2011Richmond, BC

With assistance from:

David J. Connell, University of Northern British ColumbiaChris Hergesheimer, Consultant

Why sell at a farmers’ market:Why sell at a farmers’ market:

The demand for farmer vendorsThe demand for farmer vendors

• Substantial, continual growth of markets

• 70 of 74 BC farmers’ markets are looking for more farmer vendors– Some niche markets– Some general producers– Some specific meats

The standard pitchThe standard pitch

The bottom line…Farmers’ markets offer producers a

consistent, low cost, low risk and viable method to market, display, and distribute BC farm products

directly to customers.

The bottom line…Farmers’ markets offer producers a

consistent, low cost, low risk and viable method to market, display, and distribute BC farm products

directly to customers.

Why sell at a farmers’ market:Why sell at a farmers’ market:

The standard pitchThe standard pitch

Financial

• Higher profit margins

• Greater control to get retail prices

• Different source of revenue

• Minimal start up costs

• Cash flow: instant cash on hand

Why sell at a farmers’ market:Why sell at a farmers’ market:

The standard pitchThe standard pitch

Marketing

• Cheap way to promote your products

• Targeted demographic: consumers looking for local, fresh products

• Go direct – cut out the ‘middle man’

• Instant customer feedback

Why sell at a farmers’ market:Why sell at a farmers’ market:

The standard pitchThe standard pitch

Geography

• Easy access to customers

• Alternative to farm gate sales

Why sell at a farmers’ market:Why sell at a farmers’ market:

The standard pitchThe standard pitch

Ideology• Social, economic, environmental, and

educational benefits to the community

What is the

CORE BUSINESS of farmers’ markets?

What is the

CORE BUSINESS of farmers’ markets?

Why sell at a farmers’ market:Why sell at a farmers’ market:

Making ‘the match’Making ‘the match’

Farmer Market Customers

Producer options

Customeroptions

HIGH LOW

LOW

HIGH

Match types

Urban

Suburban

Rural

City

Neighbourhood

Producer options

Customeroptions

HIGH LOW

LOW

HIGH

Match types

In what

INDUSTRY do farmers’ markets compete?

In what

INDUSTRY do farmers’ markets compete?

Volume

Price

LOW HIGH

HIGH

LOW

Food retail

Farmers markets

Shoppers WholesaleSave-On

WalMart

Convenience stores

Volume

Price

LOW HIGH

HIGH

LOW

Food retail

Farmers markets

Save-OnWalMart

Convenience stores

Social experience

Relationwith

farmer

LOW HIGH

PERSONAL

IMPERSONAL

Food retail

CSA

Shoppers WholesaleSave-On

WalMart

Corner store

Farmers markets

U-Pick

Farmgate

Farm Direct

Why should YOU

sell at THATfarmers’ market?

Why should YOU

sell at THATfarmers’ market?

What are your priorities as a farmer? What are your priorities as a farmer? As a farm business?As a farm business?

• Money• Marketing• Mobility• Morality (ideology)

Business case resources:Business case resources:‘Assess your match’‘Assess your match’

• Farmers’ markets

• Market customers

• All vendors

• By product sold– Vegetables

– Fruit

– Fruit & veg

– Meat

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Farmers Gardeners Bakers/cheese

Crafts FoodProcessing

Other

All types of market vendors

Urban

Suburban

Town

City

Neighbourhood

Producer options

Customeroptions

HIGH LOW

LOW

HIGH

Farmers’ markets

0

5

10

15

20

25

30

First timer Rarely (1x/yr) On occasion (2-

3x/yr)

Often

(1x/month)

Frequently (2-

3x/ month)

Regularly

(almost weekly)

Per

cen

t o

f re

spo

nd

ents

Market customers are loyal

Markets are #2 source for groceries

Larg

e G

roce

ry

Farm

ers M

arke

t

Specia

lty/e

thni

c

Small

Gro

cery

Health

Foo

d Sto

re

Ware

hous

e

Conve

nienc

e Sto

re

Direct

from

farm

1-2x/yr

1x/2-3mo

1x/mo

1x/2w ks

1x/w k>1x/w k

Never

Relation between food purchases and shopping at markets

Frequently Weekly Bi-weekly Occasionally Not Very Often RarelyNutritional content In season Nutritional content Nutritional content In season In seasonIn season Nutritional content In season Appearance of product Nutritional content Nutritional contentFood safety Grown/produced locallyGrown/produced in BC In season Appearance of product Appearance of productAnimal welfare Animal welfare Food safety Food safety Food safety Animal welfareAppearance of product Food safety Grown/produced locallyGrown/produced locallyAnimal welfare Food safetyGrown/produced in BC Grown/produced in BC Animal welfare Grown/produced in BC Grown/produced locallyFair tradeGrown/produced locallyAppearance of product Appearance of product Animal welfare Grown/produced in BC Grown/produced in BCNatural (not certified) Packaging (materials) Fair trade Grown/produced in CanadaGrown/produced someone knownGrown/produced locallyPackaging (materials) Fair trade Grown/produced in CanadaFair trade Natural (not certified) Natural (not certified)Fair trade Grown/produced in CanadaPackaging (materials) Low price Fair trade Low priceGrown/produced someone knownNatural (not certified) Grown/produced someone knownPackaging (materials) Grown/produced in CanadaGrown/produced in CanadaCertified organic Grown/produced someone knownNatural (not certified) Natural (not certified) Packaging (materials) Ease of preparationGrown/produced in CanadaCertified organic Certified organic Grown/produced someone knownLow price Grown/produced someone knownLow price Low price Low price Certified organic Certified organic Packaging (materials)Packaging (aesthetics) Ease of preparation Ease of preparation Ease of preparation Ease of preparation Certified organicBrand name Packaging (aesthetics)Packaging (aesthetics)Packaging (aesthetics)Brand name Packaging (aesthetics)Ease of preparation Brand name Brand name Brand name Packaging (aesthetics) Brand name

Gross annual farm revenues

Area cultivated (acres)

Area cultivated by annual revenues

Types of farms by primary product

Products sold

Percent of sales at farmers’ markets

Other marketing channels used

0%

10%

20%

30%

40%

50%

60%

70%

Wholesale Retail Restaurant Farm Gate CSA Live Animals

Gross revenues and number of farmers markets used

All resources are available on-lineAll resources are available on-line

BC Association of Farmers’ Markets:

http://www.bcfarmersmarket.org/ind/bizcase.htm

Acknowledgements Acknowledgements on behalf of BCAFMon behalf of BCAFM

• Investment Agriculture Foundation

• Donna Anaka, Ministry of Agriculture

• All farmers, vendors, and market managers who shared their knowledge and time