Green Market Continues to Grow

The market for products marketed as eco-friendly, green, natural, organic, humane, or fair trade is thriving despite the recession, according to market research publisher Packaged Facts.

Based on data from Packaged Facts‘ surveys, one-fourth of U.S. adult shoppers frequently purchase certified organic food or beverage products and one-third are usually willing to pay more for organic foods.

“With the economy foremost in consumers’ minds, heightened price sensitivity in the midst of the current recession is inevitably having an effect on the market for ethical products,” says Don Montuori, publisher of Packaged Facts.

“However, our survey indicates that more shoppers understand the environmental, social, and economic implications of their choices. The result is a sizeable number of consumers who will purchase typically more expensive ethical products even in economically challenging times.”

The U.S. market for “ethical products” has annually grown in the high single- to low double-digits over the past five years. Packaged Facts forecasts the growth rate will persist despite the recession and the market will approach $62 billion in 2014, up from a projected $38 billion in 2009.

Selling Points

Bartering for A Better World

Some New Jersey farmers market vendors are contributing to “A Better World” by bartering produce in exchange for prepared meals at a new community cafe in Highland Park, according to a report in The Daily Targum at Rutgers University.

A partnership between Who Is My Neighbor? Inc. and Elijah’s Promise, A Better World Café aims to provide sustainable, healthy and affordable food options for those in and around the Highland Park community. The restaurant has a menu with set prices that patrons pay for meals, but cash is not the only option.

“Customers can volunteer an hour of time in exchange for a meal voucher, which can later be used in exchange for food, she said. Those who can neither pay nor volunteer may enjoy a complimentary meal option free of charge,” The Daily Targum reported.

Zone 7, an organization that acts as a middleman between local farmers and restaurants, helped organize tbe farmers’ market vendors’ trades of produce for meals.

A Better World Café opened less than two weeks ago at the First Reformed Church of Highland Park. Food is prepared at Elijah’s Promise Culinary School on Livingston Avenue and delivered to the church. A grand opening will be held soon.

Profiting from Seconds

Some of the longest lines at the Boulder Farmers’ Market this year have been for imperfect fruit, or “seconds,” according to a report in the Daily Camera.

“We have growers who sell seconds at the market,”market manager Cheryl told the newspaper. “People come to the market 45 minutes early and start lines, waiting for seconds because they see the value in a visually imperfect product that tastes the same.

“They bring books, and there are lines that are sometimes 25- or 30-people deep. It’s like concert tickets or something. People walk away saying, ‘They just sold out of seconds!’”

Morton’s Orchards, for example, sold its less than aesthetically perfect peaches for just $1 per pound.

Slotting

In the course of churning out new products, we came perilously close to putting ourselves out of business because We hadn’t taken into account a new phenomenon in the food business, a diabolical supermarket invention - slotting. If ever there was a dirty word in the food business, slotting is it.
Competition for shelf space had always been intense, and products were selected at the whim of the supermarket buyer. Some traditional emoluments were involved in getting a new product on the shelf, like giving one free bottle for every ten purchased or offering an introductory promotion - we would lower the price and pass the savings on to the consumer, who instead of buying one jar for $1.99 would buy two jars at $1.59; the extra sales generated by the promotion would make up for the price reduction.
But slotting involved actual cash payments of $28,000-$30,000 to each store for the privilege of displaying a new product, and there was no guarantee as to how long a store would keep it on the shelf. Thus, if you simultaneously introduced two new products in twelve different markets, you would have to pony up as much as $400,000.
Unlike some of the other immature ventures that foundered and sank under the bombardment of slotting, we flourished, and in a relatively short time we had a platoon of Newman’s Own pasta sauces attacking the shelf spaces.

Getting Repeat Buyers

While most retail marketing focuses on increasing visitor traffic and converting visitors into buyers, it is important to give equal attention to customer retention. Repeat buyers are the mainstay of many a small producer and critical cushion in an economic downturn.

Encourage visitors and customers in your Booth to register, join, preorder, or vote so that you have their name and contact information. This will allow you to alert them to special sales, new products, harvest dates or changes in your location.

The goal, of course, is to convert one-time customers into regular shoppers who will frequent your Booth often and allow you to personalize the shopping experience.

Here’s four effective marketing strategies for attracting repeat customers:

1. Newsletters. A successful newsletter should have interesting or useful content related to your products, such as recipes or topical news bits. Ask shoppers to subscribe at your Booth. Offer a discount or a chance at a prize when subscribing.

2. Preorders. With preorders, you have first chance at a second sale to the customer.

3. Subscriptions. Customers subscribe to or sign up for an ongoing round of purchases that the producer can act on without further permission. Community Supported Agriculture farms operate on this method.

4. Exclusive Offers, and Promotions. Offer customers an opportunity to get advance notice or special discounts when they join your “club.”

Social Networking for Farmers Market Vendors

With hundreds of millions of users worldwide, social networking sites like MySpace and Facebook present an opportunity for farmers market vendors to connect with new customers, both locally and around the globe.

Whether they grow tomatoes or craft birdhouses or raise emus or make soaps, vendors can profit from social marketing with an investment of time online, but very little cashflow.

To get started, vendors should visit the following sites and look for those that seem best suited to their products. Search the sites for products by name and see what kind of conversations and networking they currently offer.

Once accounts are opened, vendors should build profile pages with links to their Farmer’s Market Online Booths, websites, email addresses, blogs, or other online presences. Make it easy for people to make contact by including invitations to social networking pages with each email sent.

Add photos, logos and links that best promote the product.

Crosslink with as many petinent contacts as possible, whether they be customers or colleagues or friends or neighbors. As with a busy open air market, the larger the circle of online contacts the more opportunity there will b for conversations and sales.

Vendors should use their social networking pages to announce new products, events, sales, bonuses, giveaways, contests and more.

Changing eBay

Although it remains an omnipresent force in the world of online commerce, eBay is making changes as the number of buyers on the site is declining and many sellers are going out of business or finding other ways to market their goods.

David Port of Entrepreneur.com reports in PC World that eBay’s decision to allow big-box retailers broader access to its site could endanger small sellers and fosters a bias toward fixed-price sales.

“Rumors that eBay is positioning itself to eventually do away with auctions or auction categories are unfounded, assures (eBay’s senior manager of seller advocacy, Jim) Griffith, who says the company has “absolutely no intention” of doing so.”

Griffith told Port that he understood why some sellers fault eBay for introducing “unnecessary complexity” to the auction marketplace. “Our mission today is to make things simpler through streamlining and consolidation.”

Selling Points

Twitter With Your Customers

Twitter, the revolutionary micro-blogging site, offers an opportunity to connect with customers and survey their needs and interest in your products with real-time results.

Once you have set up a Twitter account and established a good number of followers (see the Farmers Market Online Twitter) you can post questions or link to online survey forms or free sample offers.

The key to successful “twittering” is to post updates frequently and respond to direct messages.

Meat Goat Opportunity

Significant economic opportunities await producers raising meat goats, according to University of Illinois Extension meat goat specialist Dick Cobb.

“Population projections predict an increase of 100 million people in this country by 2040. Much of this growth will be due to the increase of Hispanic and Islamic populations with much of it in Illinois centered on Chicago. Both of these groups enjoy goat meat.”

The University of Illinois, Western Illinois University, and Southern Illinois University are working with producers to develop a sustainable Illinois meat goat industry. The Illinois Meat Goat Producers Association is hosting a buck test in July, 2009, to identify bucks that can convert feed to meat protein efficiently.

The test station will be at WIU’s Agricultural Research facilities in Macomb. Bucks must be delivered to the test station on July 18, 2009. Following a six-day adjustment period, the 84-day confinement test begins. It concludes Oct. 16. Test candidates must be born between Feb. 20 and April 20, 2009.

The test will evaluate and compare test bucks in a common environment for average daily gain, feed efficiency, and other factors. For more information contact: WIU-bucktest@attglobal.net or call Paul Miller (217) 322-4687 or Jennifer Miller (217) 688-2043.

Source: University of Illinois College of Agricultural, Consumer and Environmental Sciences

COOL’s Effects Explained

A University of Nebraska-Lincoln Extension website explains the details of the Country of Origin Labeling law that went into effect in the U.S. on September 30, 2008.

The law requires labels identifying country of origin on certain foods, including meat, produce and nuts, when sold at particular retail establishments.

The website will help “anyone in the food system from farm to fork,” said Darrell Mark, UNL extension livestock marketing specialist.

The law will require livestock producers to document where their livestock was born, raised and processed. While the U.S. Department of Agriculture will not fully enforce terms of the law until April, “educational compliance” is being promoted now, Mark said.

The site includes a series of fact sheets, videos and other educational materials for livestock producers, meat processors, retailers, extension educators and consumers.

The site focuses primarily on meat but also contains some information about other commodities included under the law. Food included under the law include muscle and ground cuts of beef, pork and lamb, goat meat, chicken, ginseng, fish and shellfish, peanuts, fresh and frozen fruits and vegetables, pecans and macadamia nuts.

The labels placed on the products must state which country the product came from so consumers know whether they are buying products from the United States or other countries. Meat can be labeled “U.S. origin” only if it came from animals born, raised and processed in the United States.

The labels are required only at larger retail outlets, defined as those that invoice more than $230,000 of fresh and frozen fruits and vegetables.

COOL originally was contained in the 2002 farm bill but its implementation was delayed because of challenges in how to make it work,. Parts of the law were changed and modifications to the original COOL law were passed in the 2008 farm bill.