The Anti-Farmers’ Market Farmer Survival Guide

Cory Mosser Natural Born Tillers

• Business Planning

• Efficiency Improvement

• Project Management

• Farm Development

• Affordable Small Farm Coaching

Cory Mosser

www.naturalborntillers.com

912.257.9865

corymoss22@gmail.com

Why Markets Are Great

• Brand Identity

• Business Incubator

• Reliable Sales (depending on market)

• Community Connection

• Camaraderie and Trading!

Why Markets Are The Worst

• The Drive

• The Exhibit

• The Off Day

• The Hustle

• Competition

Consider Leaving If:

• Sales are down consistently over two years.

• You don’t consider yourself an anchor

• Larger farmers are co-opted from other markets.

• There are multiple new markets in your area.

Consider Staying If:

• You are a Market Anchor.

• Your Market is more than 5 years old.

• You can promote value-added products, events and other services.

• You have an awesome market manager.

• You are making money!

But Are You Making Money?Product $1,400

Sales $1,000Market Day Labor $200Harvest Day Labor $360

Market Fee $25Packaging $40

Waste $50Aftermarket Run $200

Net $535

Marketing Trends

• Food cost is going up, less food dollars available to families.

• Less people are preparing meals regularly at home.

• There is increased competition to capture the interest in local foods, from other small farmers to giant companies.

“Local” is confusing

Is this a Farmers Market?

Farm To Fable

The Sky Is The Limit

Peak Farmers Market?

Business Cycle• Exploration

• Involvement

• Consolidation (We are here)

• Stagnation

• Decline

• Rejuvenation

Alternatives To Farmers Markets

• What is right for your farm? Does it flow with existing operations?

• What is the opportunity cost for a new market?

• What are your defined goals? Does this help meet them?

• What are the margins?

EXAMPLE 1 Farmers Market Institutional Market

Selling Price $3.50 $1.50

Production Sales Cost $1.96 $0.83

Est. Profit $1.54 $0.67

Est. Markup 79% 81%

Pounds Sold 760 800

Total Profit $1170.00 $536.00

EXAMPLE 2 Farmers Market Institutional Market

Selling Price $3.00 $2.10

Production Sales Cost $1.96 $0.83

Est. Profit $1.04 $1.27

Est. Markup 53% 153%

Pounds Sold 760 800

Total Profit $790.00 $1016.00

CSA• Lowest Hanging

Fruit

• Fairly easy to establish

• Builds customer loyalty

• Intense Competition from within and without

• Administration time suck

• High turnover

–Johnny Appleseed

What does your customer want?

• Convenience • Connection • Options • Deals

Digital Markets

• Locally Grown

• Amazon Fresh

• Your own Website

• Produce Delivery Services

Traditional Wholesale• Easy to plan

• Production efficiency

• Allows Specialization

• Easy to control growth

• Giving up the marketing dollar

• Weak negotiating position

• Higher risk concentration

• Food safety regulation

Intermediate Wholesale

• Food Hubs

• Meal services

• Produce Delivery Services

Attempt to be as close to the consumer as you can.

Restaurant CSA

• Priced at $300/wk per share for 12 wks • Typically 5-6 cases of veggies • Sold 4 shares to Hyatt Alone • Total of 8 shares sold each 12 wk period • $57k in income from 3 vendors!

On Farm ExperienceTimpson Creek Farm

Clayton, GA

3 acres Certified Organic Blackberry and Blueberry PYO

Grade School and University Intensives

Retail• High visibility

• Other sales opportunities

• Rain or shine sales

• Grueling hours

• Extra labor

• Licenses and taxes

• Equipment Cost

Questions to Ask• Do You Have A Written Mission Statement?

• What is The 3, 5, and 10 year vision for your farm?

• Are there other marketing alternatives that are more in line with your goals?

• How crucial is the market to the community?

• Is your market better as a secondary outlet?

CORE VALUES

1. Incredible Quality 2. Rare Variety 3. Competitive Price 4. Friendly Staff 5. Sustainable Practices

3-YEAR PICTURE

Future Date: January 2021 Revenue: $95,000 Profit: $8,000 Measurables: Trays sold, referrals generated, varieties planted What does it look like? • 2 greenhouses producing throughout the year • Early transplants help growers start the

season on time • Over 50 varieties of vegetables available • Plants shipped online through the Southeast • Primary producer for small organic farms in

Georgia • Business has expanded to include organic

fertilizer and other inputs • 50% of potting mix produced on farm • Referral discount system reduces marketing

pressure • 4000 trays produced • Automated irrigation and seeding reduces

labor • 2 wholesale contracts negotiated • Independent breeding program established

CORE FOCUSPurpose/Cause/Passion: To help others grow great food.

Our Niche: Whether you grow 1 plant or 100 acres, Pineywoods has the best organic plants on the market.

10-YEAR TARGET

January, 2028: Record orders of transplants has necessitated the construction of a fourth greenhouse. Increased demand from home growers has led to a boost in larger pot sizes, increasing profitability.

Goals: -7500 trays produced -$385,000 in income -15% net profit -50% retail clients

MARKETING STRATEGY

Target Market/“The List”: Small organic farms, mid-size organic gardeners, regional wholesale outlets

Three Uniques: 1. We deliver on time 2. We plant the best adapted varieties in the south 3. Every plant is critical

Proven Process: Using formulated fertilization, soil biology and climate control, we are able to produce incredibly healthy transplants.

Guarantee: Every plant delivered will thrive.