Date post: | 18-Dec-2015 |
Category: |
Documents |
Upload: | jasper-mitchell |
View: | 217 times |
Download: | 2 times |
Dr. Bryon WiegandUniversity of Missouri
Direct Meat Marketing
Elements of Market DiscoveryWhy do I want to participate in a non-
traditional marketing system?What can I produce?Am I an expert in these production
systems?Who would buy it?Where would I sell it?What can I charge?Will I make money?What is my contingency plan?
Why do I want to participate in a non-traditional marketing system?Incorporate hobby into earningsAdditional income stream for householdSmall-scale production systemParticipate in local or regional economyValue-added in current economic climate
What can I produce?Endless possibilitiesBound by local ordinanceLimited by expertise and facilities
BeefPorkLambGoatPoultryRabbitVenison
Am I an expert in these production systems?Animal husbandry
Niche does not mean inefficient!!Niche does not mean devoid of technology
and/or science!!Previous knowledge base
Draw on previous knowledge, but be prepared for new thinking and changes in production practices.
Access to production practice information and willingness for adoption.
Planning is key! Jumping into animal agriculture with both feet might be the riskiest venture ever if serious consideration is not made for the “SYSTEM” of making meat.
Who would buy it?Market studyCase study
Full Circle FarmThankful HarvestPlanned Lamb
Evaluate locallyAsk questionsDo not assume that your customer wants
what you want!
Where would I process the animals?Local meat processors are a good sourceMany are State or Federally Inspected and would
entertain a business agreementApproach them with a good planKnow your product
Ask them questions as to options for:Slaughter capacityCooler space (especially important for aging of beef)All fees (slaughter, aging, cutting, packaging, storage)
The more streamlined you can make the system, the easier it is for the processor
www.missourimeatprocessors.com
Where would I sell it?Farmer’s MarketsDirect/off farmGrocery storesRestaurantWeb marketing
Farmer’s MarketsMost require an annual membershipCan lead to more direct marketing
opportunities/build customer baseRegulated by local health authorities
Selling meat at Farmer’s MarketsRequire meat to be inspected either by state
or federal inspectionMost health ordinances require meat to be
sold frozen and require a chest freezer to be provided by the producer. Check with your local health department for their regulations.
Requires a well defined pricing that is highly visible.
Most shoppers move quickly through the market and need quick and concise information without the “total sales pitch”.
Columbia Farmer’s MarketHours
Monday 4-6Wednesday 4-6 Saturday 8-12
Locationbehind the Activity & Recreation Center
(ARC), on the corner of Clinkscales & Ash streets.
Successful Vendors• Show-me farms• “Born Tender Beef”• “Omega Beef”• No hormones, implants, antibiotics• Pasture raised chickens
• Susie’s Grass Fed Meats• “100% grass fed locally raised
animals, not fed antibiotics or implanted with hormones.
• Animals are sustainably raised on small family farms.”
• Missouri Legacy Beef
Direct/Off farm MarketingProducers located near large metropolitan
areas have a greater potential for direct marketing because of their proximity to a large number of consumers.
Requires more “education”, but likely appeals to more customers with “niche language”.
Might have the greatest margin capabilities.More expensive
TravelFeesTime
Grocery StoresSmall independent retailers with more
upscale meat departments are probably your best opportunity
Realize however that even some independent grocers buy from wholesale warehouse businesses and some products may be “spoken for” in these purchasing agreements.
Large grocery chains give management some discretion for local purchases.GerbesHy-Vee
RestaurantsSince individual restaurants do
not use large quantities of meat, access to a large number of restaurants and a mixture of different restaurant types is necessary for a producer to successfully target this market.Patchwork Farms features the
Patchwork pork chop at Murray’s in Columbia, MO
Missouri Legacy Beef is featured at Hoss’s Market in Columbia, MO
Internet MarketingOne of the barriers to this kind of “remote
marketing” is that packaging and shipping costs can as much as double the end price to the consumer.
Websites can be useful in helping local buyers to locate producers in their area.
Strict rules exist regarding interstate commerce and sales tax collection. Federal Inspection required for interstate
trade of most meat products. (Stayed tuned next week for Dr. Clarke)
Ethnic/Religious MarketsThe ethnic market is a niche often
forgotten for meat products.Goat is preferred by Hispanics,
Caribbeans, and MuslimsJewish prefer cuts from the front-end of
the animal which can be difficult to market to typical American consumer (Kosher)
Facilities for on-farm ritual slaughter may be desired by some ethnic groups (Kosher or Halal)
Marketing ideasSeparate yourself from other producers or
products that can be found at a grocery storeBe certain the claims are accurate and backed
by fact and not feelingSell your product rather than demean the
competitionMost directly marketed products have a unique
claim - find your nicheOrganicLocalNaturalGrass-fedAntibiotic FreeSynthetic Hormone FreeFree-Range
What can I charge?Know your cost of production, promotion,
and distribution. Make sure you charge more than your break-
even price.Be aware of what other direct marketers
are chargingAttend farmer’s markets in your area to see
what other producers are charging for the same type of product
Economic assessment
Whole Carcass salesIf selling a whole or half carcass, processing
doesn’t necessarily need to be done at a USDA inspected facilityIf the animal is sold LIVE to the consumer, custom
exempt processors can be used. (Rules and Regulations for this in Part II of this series).
By using this sales method, customers can specify certain cuts, wrapping, and curing preferences.Whole Animal Buying Guide
Make sure customers understand how much yield they could expect from a certain live animalBeef CutoutPork CutoutGoat Cutout
Will I make money?Be honest when balancing the books
Your labor is an expenseTreat it like a business
Small business ventures usually see “light” in three years.
Depending on the level of capital investment, some turn a profit in their first full year of existence.
Be patientDon’t be afraid to cut costs
Web site designPrinted advertisingRadio advertising
What is my contingency plan?Hopefully the business will be successful
and you find room for growth, but what if………….?
Be certain to have an outWhere do you sell animals?Where do you sell equipment?Can the business be sold in it’s entirety?Having a plan to dissolve, liquidate, or sell
a small business will save a lot of pain in the end.