Marketing

Certified organic production can bring unique health, sustainability and connection benefits for consumers and therefore potential for premium and relationship-based channels. At the same time, small volumes of production and the need for segregation from conventional products can make transportation and logistics a challenge. Farmers making the transition to certified organic production need to ask themselves:

• “Will becoming certified organic open up new marketing options?”
• “Will my existing channel offer an organic premium?”
• “Do I have the logistic links to get my product to my new customers?”

Assessing your present and potential assets for marketing your organic product requires the same attention as the natural assets. Your farm’s established marketing channels and relationships may or may not be appropriate or available for certified organic products.

Are there wholesale buyers near you? Or farmers’ markets? Or restaurants that might be interested in organic products? Is your location suitable for a farm stand?

The associated health, environmental and community benefits, rising consumer demand and potential premium means that organic production lends itself to new and innovative marketing methods such as Community Supported Agriculture.

A key consideration when looking at your marketing assets is the customer base. Are there enough consumers around to have a CSA or do other direct marketing? The market size, income level and demographics can all be factors. Your market may not be overtly interested in organics right now, but what are their interests and demands? Are there organizations and resources in that you can work with to illustrate the benefits of certified organic food?

Low population density and numbers, distance from markets and low volumes of product make marketing organic food in the Maritimes complicated. Shipping efficiency decreases and costs increase when you are moving small quantities (less than a load) and refrigerated transportation options may not be available. How can you distribute your product? Partnerships and creativity are often required to address logistical challenges. For example, perhaps a neighbouring farmer sells at a farmers’ market and is looking for more product for the table. Maybe there are trucks delivering product to somewhere nearby and leaving empty – and you could arrange inexpensive transport. Perhaps you can share a refrigerated van with other area farmers.

Access to processing facilities can be a critical component in your businesses success and risk management. Are there processing facilities available that fit your goals and your business plan?

• Does your plan see selling to processors as the primary source of income or is that just part of your strategy for culls and cosmetically damaged products?
• Does the processor have the necessary inspection levels (e.g. federal or provincial certification) for you to market the product?
• Do you have the requirements to sell to that processor (e.g. HACCP)?
• Is the processor presently buying at prices based on commodity prices or are they interested in a Value Chain relationship with suppliers?
• How stable and secure is the processor?

Processing facilities can include customers (canneries, health supplements, dairy cooperatives and bakeries) and services (abattoirs, shared use commercial kitchens, co-packers and rental equipment like freeze dryers).

The facility’s compatibility, ability and interest in processing to certified organic standards are key. Sometimes processors can deal with organic product right after all of the equipment is cleaned – this avoids having to do a special cleaning/purging before each organic run. Are there unused facilities around that can be converted to meet your needs? The volume of your production will be a key factor in the arrangement being mutually beneficial.

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