Exploring Direct and Niche Marketing. Lee Meyer and Tim Woods Ag Econ Extension Specialists . Quiz: What is Marketing?. All of the steps between production and consumption Cannot be eliminated, just moved to someone else. What is “direct marketing”?.
Lee Meyer and Tim Woods Ag Econ Extension Specialists
All of the steps between production and consumption
Cannot be eliminated, just moved to someone else
Prices higher than at wholesale markets
More control over price
Flexibility in product types
Opportunity to build customer loyalty
Capture personality value
Diversification (products, markets)
Specialized/ Nich Product
Examples: *corn *soybeans *cotton
Examples: *organic feed *beef - direct
Examples: *feeder cattle *IP grain
* Hort prod.
What makes a successful operation in each category?
Buyers and consumers want to have a relationship with producers. This provides them assurances that can not be easily quantified through grades and standards.
Differentiated products fit this model.
Adapted from the “Cluetrain Manifesto”
How the product is produced (impacts of production)
Interactive data base system for linking buyers and sellers of food products. MarketMakerKy currently has census/demographic data, a directory of all 16,000 Kentucky food related business, Kentucky Proud farmers, a list of all farmers markets, and more.
worksheets for entrepreneurs needing a systematic way of evaluating a new enterprise
can be downloaded at:
extensive crop marketing information
archives of farm market, auction prices
fact sheets on selling to restaurants, cooperatives, auctions, farm markets, CSA’s, and other channels.
specific crop marketing profiles
quarterly survey provides consumer market data targeting 1000 Ky.
updates, trends, market issues, product opportunities, and market research are provided through the survey
market feasibility projects
Helps implement USDA market programs
participate in project marketing and management (e.g. management “audits”)
Lamb and Goat
Beef: value of cuts $1,600 - $2,000
value of live steer: $1,020
Processing cost: $300 - $400/hd.
Yield: 60% dressing; 70% cuts
about 40% boneless cuts