Verify customer demand

Produce what the market wants, not what you like, want or can grow. Sell it for a fair profit. It is a simple philosophy, but observing it will greatly reduce the risks associated with transition and farming in general. 

Before committing to your transition it is critical to identify potential buyers for your product and whether they are willing/able to pay the price you require.   Market research can involve:

• looking at big picture consumer trends like health, sustainability and convenience.
• gathering data on demographics, disposable income and population change
• talking to existing or potential customers, meeting with area chefs, conducting taste tests, or analysis for criteria sought by processors
• understanding how your customers will use your product, what are their stresses and challenges, where else are they buying their food and why
• collaborating with other producers as some opportunities, such as supplying large retail clients are “too big” for one small producer alone
• researching, reading trade or food magazines, travelling to other markets and attending conferences

Market research can also identify what values associated with your organic farm (products, reduced inputs, health, small farm viability, food miles, knowing the farmer, etc…) will be most important to your potential customers.   That information will be invaluable in making feasibility decisions and developing your marketing material.

The Agricultural Marketing Resource Center contains excellent resources on conducting marketing research, you need to understand the process.  Conducting Marketing Research, available tools, developing surveys and questionnaires and conducting focus groups are some of the topics covered. 

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