Despite being an arid land, agriculture is one of the most significant industries in the country, contributing to the country’s economy. 50% of the country’s land is used for farming practices which produce primary food items like milk, meat, fruits, vegetables, and nuts.
Did you know that “agriculture and its closely related sectors earn $155 billion-a-year for a 12% share of GDP? Farmers and grazers own 135,997 farms, covering 61% of Australia’s landmass”.
Since the global demand for food is on the rise, the onus is on the farmers and agribusinesses to produce a good amount of produce to feed a large population. To do so, they need to be equipped and well-versed with modern technology and smart farming methods which would help not only maximise efficiency and production but also maintain a sustainable and profitable agribusiness. That said, it should be noted that digitising the farm and implementing modern technology will not be sufficient in ensuring production and stability in long-run. As a farmer, you need to strategise and implement updated marketing gimmicks to your existing marketing strategies to maximise your profits and drive success.
In this blog, we have discussed farm-direct marketing and how it is beneficial to farmers.
Let us begin!
What is Farm Direct Marketing?
Should you plan on earning higher per-unit returns for your products, then the farm-direct market is your answer. Direct marketing farmers have the opportunity to earn better returns by supplying high-quality, local products that customers require. With farm-direct marketing, you can have better control over your business in terms of what to produce and where to sell, how to sell your products and even the overall size of your business. But for that, you need to learn new marketing skills or hire an expert.
Direct marketing, also known as direct-to-consumer, involves selling and marketing your products directly to the target customers without involving any mediators. Under this system, the farmers enjoy complete control over the entire business including where and how to sell their products, the pricing, profits, etc.
What are the Benefits of Farm Direct Marketing?
- Direct-marketing farmers regardless of the size of their establishment can participate. Therefore, farm-direct marketing is extremely beneficial to small farmers as they can produce and sell small quantities of farm products.
- Under this type of marketing, the farmers have more control over the price of the products, making them earn more profits.
- Since the payment is immediate, the farmers do not have to worry about the financial aspect.
- Most importantly, farmers can communicate with the customers directly and can therefore receive instant feedback on their products and services, referring which, they can improve their business, and enhancing the farm profitability. Also, they can establish a strong customer bond and brand loyalty by interacting with the customers directly.
Different Farm Direct Marketing Channels
- Roadside Markets: With this option, farmers can either stay on or near the farm, minimising the transportation cost. These markets are less time-consuming and involve minimal infrastructure needs if set up as an ‘honour system’. But, a large roadside outlet would require investing in infrastructure, directional sign boards, marketing, and staffing. Also, location is a major factor while establishing such outlets.
- Farmers Markets: These markets ensure that your product reaches a high volume of consumers who pay a high price and put you in direct competition with your competitors. However, farm markets are a great means to establish customer loyalty, get direct feedback, and promote farm business. Such markets require enormous customer interaction and proper transportation and storage. At the same time, it involves the ability to accept multiple forms of payment.
- Self-pick: Picking your own is a new option and requires less labour on the farmer’s end. But, this marketing gimmick requires more emphasis on public relations, controlling the crowd to prevent theft and crop damage, and staff on picking days. Farmers need to be prepared for hazards such as crop damage or injury on the farm.
- Community Supported Agriculture Programs: Here, the customers sign up and pay for their share of produce before the growing season. This provides the farmers with the capital and guarantees an outlet for your products. Farmers can also establish customer loyalty and a sense of community.
- Direct Retailers, Restaurants, Hotels and More: This type of marketing is perfect for niche crops and speciality varieties. Since farmers can get a year-round outlet through restaurants/hotels, this channel ensures the potential for contract growth and can be great for PR.
Farm-direct marketing is similar to ‘niche marketing. Farm direct market for agriculture is a promising initiative for farmers to form a society and sell their products directly to the customers without any involvement from the middlemen.
KG2, Australia’s largest independent farmer database, allows farmers to build their marketing and sales pipeline. We offer numerous services to promote farm direct marketing such as nurturing existing leads and customers, building awareness and production, product/service performance benchmarking, reducing customer attrition, and a lot more.
For more information regarding farm-direct marketing, browse through the official KG2 website or contact us!