Articles : Successful Direct Marketing of Livestock

Successful Direct Marketing of Livestock

Understanding the Consumer
In the Fall of 2001, my thesis "A Key to Successful Marketing: Understanding What a Consumer Wants When Purchasing Animal Food Products Directly From the Farm" was completed. The purpose of the research project was to investigate the quality criteria requirements of consumers when purchasing animal food products and identify what attracts consumers to buy directly from the farm in a rural area in upstate New York.

Who were the consumers?
Data was collected from fifty-two consumers through a consumer survey consisting of questions pertaining to the beliefs and preferences of consumers purchasing animal food products directly from the farm at the various sites and via the mail. The majority of consumers were 40-54 years of age, mostly women who were the primary shopper for the household. Most consumers had high income of $85,000 and were well educated.

Where did they purchase products from?
The consumers were customers of farm stores, farmers' market, small local meat market, direct from the farmer, or Community Supported Agriculture (CSA) of meat, dairy products, and eggs. My research study found 24% of the consumers purchase products from a farm store, 18% from a farmers' market, 26% purchased from a small local meat market, and 32% purchased directly from the farm.

Forty-six percent of the consumers purchased from a site once a month and 43% purchased from a site once a week. Thirty-three percent of the consumers purchase up to 25% of their animal food products from the site while 27% purchase 76-100% of animal food products from the site.

What do consumers want?
Consumers were asked what was most important factor regarding the animal food products purchased from a farm. Forty percent of the consumers wanted no chemicals in the food. Freshness ranked second with 24%. Consumers wanted the animals raised on the farm not to have steroids by 30%, no antibiotics by 23%, and organic by 21% of consumers. Animals raised as free ranged or pasture fed appear to be less important to the consumer ranking 8% and 3% respectively.

The animal's living conditions rated highest by 40% of the consumers to be the most important regarding purchasing animal food products from the farm. One consumer wrote, "…I would like to think the animals are treated better," when asked why they purchase directly from the farm. Owner's personality and farming practices ranked second most important by 26% of the consumers.

Consumers also rated the owner's personality (26%) and farming practices (26%) very high with only 3% saying aesthetics of the farm was important regarding the farm. Consumers ranked the animals living conditions to be the most important and location not to be a concern for consumers. Consumers did say the owner's personality was very important by ranking high in the survey.

How do consumers want to purchase meat products?
Twenty-nine of the 69 consumers surveyed said they preferred to purchase meat products as individual cuts. Based on the research, the researcher imagines consumers are traditionally more comfortable purchasing meat by the piece. When purchasing by the animal, 13 consumers preferred the whole animal, 9 consumers preferred half an animal, and 8 consumers preferred a quarter of an animal. One consumer commented, "Buying large quantities is cheaper."

How did consumers hear about the farm?
Thirty-three responded to hearing about the farm by word-of-mouth, while 13 answered other, eight answered advertisements, and none answered the Internet. No consumers answered to hearing about the farm via the Internet probably because at the time of the research, none of the producers had a website.

Are consumers willing to pay more?
The research found that 96% of the consumers were willing to pay more for animal food products purchased from the farm than at the local grocery store. The research did not investigate how much more consumers would be willing to pay, nor did it find if consumers feel the prices are lower at the farm.

An Action Plan for Producers
For livestock producers to understand the consumer's quality criteria in food products and the motivating factors for direct farm purchases, many factors must be taken into consideration when developing, implementing, and maintaining a direct marketing program. As part of the strategy for developing a successful direct marketing program, livestock producers should consider implementing the following ideas as part of their direct marketing plans.

1. Use a variety of outlets, such as direct from the farm, farmers' market, and restaurants, to sell animal food products. Selling products directly from the farm is convenient but also take advantage of selling at farmers' markets. Going to the customer at a farmers' market will help producers when the farm is not conveniently located for the consumer and encourage returning customers to the producer. Investigate a menu of a local restaurant, talk with chefs, and offer samples of the animal food product. Restaurants need a reliable source of the animal food product to satisfy their customers. Using all or a combination of the outlets will provide a broader opportunity for the producer to sell a product.

2. A livestock producer should publicize the farm and animal food products through word of mouth, newsletters, New York State Ag and Market promotions, the Internet, and open houses. Word of mouth is the most important form advertisement for a producer. Newsletters keep customers informed of available products and upcoming events at the farm and order forms included in the newsletter provide a convenient way for customers to place an order. The New York State Department of Ag and Markets annually publishes the Farm Fresh Guide and is free of charge to the producer and consumer. A farm website can enable a farm to acquire long distant consumers though the Internet. A farm open house invites the public in to see the farm, it educates them on farm practices, and introduces them to their animal food product. Selective advertisement may be purposeful.

3. A producer must be knowledgeable and be able to communicate to the consumer. A producer needs to have a clear understanding of the animal, the farming practices, and processing methods used by the farm and must have a pleasant, friendly, and likeable personality. Consumers will buy from people they like.

4. Target the products to appeal to the female consumer. Women are the majority of today's food shoppers. Women are looking for products that are quick and easy to purchase and quick and easy to use. To provide quickness and convenience, a producer should be conveniently located, easily accessible, and products should be easily found.

5. A farm should offer hours convenient to the consumer with set days and hours consumers could come to the farm. Evening and weekend hours will be necessary. Farmers' markets have set days and times of operation.

6. Know the consumer household size. Adults with families buy animal food products by the whole animal which animal sizes will require adequate freezer space in the home. Adults with no children in the house are looking to buy individual cuts of animal products more frequently.

7. A producer can offer a variety of products, which may encourage larger purchases more frequently, especially if the product is being sold as individual cuts. A farm store is an example of an outlet offering many products.

8. Produce animal food products as healthy and natural as possible. Consumers look for animal food products that do not have unnecessary chemicals such as hormones and antibiotics. Discuss with the consumer the living conditions, feeding program, and health program of your livestock. Education and honest communication with the consumer about the lack of chemicals used in raising the livestock will satisfy the consumer, which could mean certified organic may not be necessary.

9. Always sell fresh products that look, smell, feel, and taste fresh. A consumer comes directly to the farmer with this in mind.

10. Never under sell the animal food product. An animal food product can be sold at the equal price of the grocery store or higher and most consumers will pay more for an excellent food product.

11. A producer must always ask consumers questions and listen to the recommendations on how to improve the food product. Find out what they are looking for in order to keep them happy and be a returning customer. A satisfied customer will continue returning and they will also recommend your product to others.

By taking into consideration the recommendations suggested in this action plan,
livestock producers producing animal food products will be in a better position for developing, implementing, and maintaining a direct marketing program.

Written Paula J. Schafer, Cornell Cooperative Extension Educator
December 2001

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