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Potomac Vegetable Farms




Beginning Farm Marketing
Basic Facts
 Northern Virginia (DC area)
 2 Farms
 3 owners: Ellen, Hana, Hiu via S-Corp structure
 Ecoganic Methods
 $900,000 gross sales
Crops/Acreages
Vegetables of all types (except sweet corn!) (10 acres
 total)
Culinary Herbs (one half acre)
Cut Flowers (1/4 acre)
Vegetable Seedlings (24x96 greenhouse)
What we don’t grow
 No Sweet Corn
 No Tree fruit or berries
 No Fancy pants flowers
1. Fun (high quality of life is a Must)
2. Make a Living
3. No or Low Debt
4. We like people (workers, customers,
neighbors)
5. Keep investing in capital assets
6. Machines are cool
7. Organic Practices
Diversified Marketing

           Income Sources
                1%
                           CSA = 50%
          18%

                     50%   Farmers Markets =
                           31%
    31%
                           Stands = 18%


                           Wholesale = 1%
Where we don’t market
  PVF has gone from 100% wholesale to 1% in 45 years

 A very few Restaurants
 No Wholesale (other stands, stores)
 No real PYO
 No Agritainment (beyond simple tours in October)
beginning farm marketing
Farmer to Eaters
   Eaters/Feeders


          Retailer                Meal
                                  Maker/Seller

              Wholesaler            Wholesaler


                      Processor       Processor


                      Farmers
Farmer to Eaters - Key Observations…
  •No matter to whom you sell in the supply chain you are selling
  a basket of goods and services.
  •Different baskets exist for
  each different type entity in
                                       Processing Packaging
  the supply chain.

  •Each good and service
  becomes part of your                 A Vegetable Logistics
  business, and must be
  managed to keep cost below
  market price.

                                    Basket of goods and services
Farmer to Eaters
   Eaters/Feeders
  Key Strategic Decisions:
  To whom do we sell?
        Retailer              Meal
                              Maker/Seller
  What do we sell?
              Wholesaler        Wholesaler
    Subordinate Questions:
    What value statement is needed by
                  Processor      Processor
    each target customer group?
    Does it match Farmers
                  our value statement?
                    Farmers
What is YOUR Value Statement?
 Crops
    Heirloom, exotic, down-home,
 Methods
    Organic/ecoganic/pesticide-free/Biodynamic
    Free range, Cage free, non-GMO feed
 Ethics
    Cruelty free
    Worker respect
    Environmentally Friendly
    Family Friendly
 Timing/Season
What is YOUR Value Statement?
 Taste
 Freshness
 Reliability/consistency
 Packaging, post harvest practices
  (dirty, clean, clamshell, recyclable container)
 Intangibles:
   Reputation
   Stewardship
   Trustworthiness
PVF Value Statement:
 Local
 Ecoganic
 Fresh
 Tasty and nutritious
 Family farmed
 Happy, empowered workers
The Logic Flow
For a given customer or class of customers:
•Determine the Basket of Goods & Services.

•Define the value statement.

•How you will differentiate your business from competitors?

•Determine the price range possible

•Determine the cost of creating the Basket with the value parameters.

•Match cost to price and see if you can make money.

•If you can’t - then go back and do it all over again with
modifications.
•If you still can’t – then do grow it!
Why this isn’t easy?
 How to determine cost of production?
beginning farm marketing
beginning farm marketing
Farmers   CSA   U-Pick   Farm    Wholesale
                           Markets                  Stand
Reuseable plastic crates      R        X     O         R          R

Cardboard boxes               O        O     O         O          X

Twist ties, packaging,        X        O     NA        R          X

Customer shopping bags        X        O      X        X         NA

Farm signs                    X        X      X        X         NA
Building, tent, tables        X        X      X        X         NA
Cash register                 X       NA      X        X         NA
Pricing signs                 X       NA      X        X         NA
Market fees                   X       NA     NA        NA        NA
Brochures, flyers             O        R      R        O          O
Advertising                  NA        R      R        O         NA
Delivery                      X       NA     NA        NA         X
Washing, sorting equip        O        O     NA        O          R
CSA
                pros and cons
 Good early money           Stress of the Promise
 Weatherproof income        Pushes you to increase
 Builds customer loyalty     variety even if it’s not
 Buy from other growers
                              profitable
                             Administration
 Spreads economic
 impact of any one crop       headaches
                             Recipe/weird vegetable
                              handholding
Community Supported Agriculture
            CSA
Delivered in Waxed Boxes
Market Style
Farmers Market
                   Pros and Cons
 Fun to set up (for me!)    Bad weather = bad $
 Great customer rapport     Gone from farm – it’s a
 No promise, no              long day
 disappointment              Serious competition
beginning farm marketing
beginning farm marketing
beginning farm marketing
beginning farm marketing
beginning farm marketing
beginning farm marketing
Roadside Stand
                   Pros and Cons
 You are HOME!            Relentless hours
 Sell other farmers       Infrastructure cost:
  product                   refrigeration, furniture
 Total control            Zoning issues
 Build community
  support for farm
beginning farm marketing
beginning farm marketing
beginning farm marketing
beginning farm marketing
beginning farm marketing
How to Mix it all Together?
beginning farm marketing
Balancing the Vegetable/Work
    Flow over the Week

                      Tuesday                          Thursday                       Saturday
• Pick for CSA                  • Pick for Small                  • Pick for                     • Stand open
• Clear out      • CSA day        market           • Stand open     markets      • Farmers       • REST
  leftovers      • Stand open   • Stand open       • FARMWORK     • Stand open     markets
                                                                                 • Stand open
      Monday                        Wednesday                           Friday                         Sunday
Value #1 High Quality of Life
 9 month farm season
 no Sunday market for Ellen (once did 2!)
 8 (ish) hour work days
 Long lunch experiment
 Hire plenty of people and use experts
 Ecoganic/organic
 Machines help my back
 Very few animals make me happy
 Avoiding debt = stress avoidance
Value #4 We Like People
 Team Management of tri-woman owned farm
 Hire lots of help
 All retail sales
 On-farm tours, limited PYO
 Hire experts to do some of our work for us:
   Mechanic, tax prep, waste management, fences
   Lani grows eggs
   Zach and Heinz grow early and late veggie
beginning farm marketing
beginning farm marketing
Profit as % of Gross Sales
90
80
70
60
50
40
30
20
10
 0
     Wholesale U-Pick with   Farmers   Farm Stand    CSA
               Farm Stand    Market    (unstaffed)
beginning farm marketing

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beginning farm marketing

  • 2. Basic Facts  Northern Virginia (DC area)  2 Farms  3 owners: Ellen, Hana, Hiu via S-Corp structure  Ecoganic Methods  $900,000 gross sales
  • 3. Crops/Acreages Vegetables of all types (except sweet corn!) (10 acres total) Culinary Herbs (one half acre) Cut Flowers (1/4 acre) Vegetable Seedlings (24x96 greenhouse)
  • 4. What we don’t grow  No Sweet Corn  No Tree fruit or berries  No Fancy pants flowers
  • 5. 1. Fun (high quality of life is a Must) 2. Make a Living 3. No or Low Debt 4. We like people (workers, customers, neighbors) 5. Keep investing in capital assets 6. Machines are cool 7. Organic Practices
  • 6. Diversified Marketing Income Sources 1% CSA = 50% 18% 50% Farmers Markets = 31% 31% Stands = 18% Wholesale = 1%
  • 7. Where we don’t market PVF has gone from 100% wholesale to 1% in 45 years  A very few Restaurants  No Wholesale (other stands, stores)  No real PYO  No Agritainment (beyond simple tours in October)
  • 9. Farmer to Eaters Eaters/Feeders Retailer Meal Maker/Seller Wholesaler Wholesaler Processor Processor Farmers
  • 10. Farmer to Eaters - Key Observations… •No matter to whom you sell in the supply chain you are selling a basket of goods and services. •Different baskets exist for each different type entity in Processing Packaging the supply chain. •Each good and service becomes part of your A Vegetable Logistics business, and must be managed to keep cost below market price. Basket of goods and services
  • 11. Farmer to Eaters Eaters/Feeders Key Strategic Decisions: To whom do we sell? Retailer Meal Maker/Seller What do we sell? Wholesaler Wholesaler Subordinate Questions: What value statement is needed by Processor Processor each target customer group? Does it match Farmers our value statement? Farmers
  • 12. What is YOUR Value Statement?  Crops  Heirloom, exotic, down-home,  Methods  Organic/ecoganic/pesticide-free/Biodynamic  Free range, Cage free, non-GMO feed  Ethics  Cruelty free  Worker respect  Environmentally Friendly  Family Friendly  Timing/Season
  • 13. What is YOUR Value Statement?  Taste  Freshness  Reliability/consistency  Packaging, post harvest practices (dirty, clean, clamshell, recyclable container)  Intangibles:  Reputation  Stewardship  Trustworthiness
  • 14. PVF Value Statement:  Local  Ecoganic  Fresh  Tasty and nutritious  Family farmed  Happy, empowered workers
  • 15. The Logic Flow For a given customer or class of customers: •Determine the Basket of Goods & Services. •Define the value statement. •How you will differentiate your business from competitors? •Determine the price range possible •Determine the cost of creating the Basket with the value parameters. •Match cost to price and see if you can make money. •If you can’t - then go back and do it all over again with modifications. •If you still can’t – then do grow it!
  • 16. Why this isn’t easy?  How to determine cost of production?
  • 19. Farmers CSA U-Pick Farm Wholesale Markets Stand Reuseable plastic crates R X O R R Cardboard boxes O O O O X Twist ties, packaging, X O NA R X Customer shopping bags X O X X NA Farm signs X X X X NA Building, tent, tables X X X X NA Cash register X NA X X NA Pricing signs X NA X X NA Market fees X NA NA NA NA Brochures, flyers O R R O O Advertising NA R R O NA Delivery X NA NA NA X Washing, sorting equip O O NA O R
  • 20. CSA pros and cons  Good early money  Stress of the Promise  Weatherproof income  Pushes you to increase  Builds customer loyalty variety even if it’s not  Buy from other growers profitable  Administration  Spreads economic impact of any one crop headaches  Recipe/weird vegetable handholding
  • 24. Farmers Market Pros and Cons  Fun to set up (for me!)  Bad weather = bad $  Great customer rapport  Gone from farm – it’s a  No promise, no long day disappointment  Serious competition
  • 31. Roadside Stand Pros and Cons  You are HOME!  Relentless hours  Sell other farmers  Infrastructure cost: product refrigeration, furniture  Total control  Zoning issues  Build community support for farm
  • 37. How to Mix it all Together?
  • 39. Balancing the Vegetable/Work Flow over the Week Tuesday Thursday Saturday • Pick for CSA • Pick for Small • Pick for • Stand open • Clear out • CSA day market • Stand open markets • Farmers • REST leftovers • Stand open • Stand open • FARMWORK • Stand open markets • Stand open Monday Wednesday Friday Sunday
  • 40. Value #1 High Quality of Life  9 month farm season  no Sunday market for Ellen (once did 2!)  8 (ish) hour work days  Long lunch experiment  Hire plenty of people and use experts  Ecoganic/organic  Machines help my back  Very few animals make me happy  Avoiding debt = stress avoidance
  • 41. Value #4 We Like People  Team Management of tri-woman owned farm  Hire lots of help  All retail sales  On-farm tours, limited PYO  Hire experts to do some of our work for us:  Mechanic, tax prep, waste management, fences  Lani grows eggs  Zach and Heinz grow early and late veggie
  • 44. Profit as % of Gross Sales 90 80 70 60 50 40 30 20 10 0 Wholesale U-Pick with Farmers Farm Stand CSA Farm Stand Market (unstaffed)

Notas do Editor

  1. Check these numbers, what is wholesale number this year?