1. making a direct connection to consumers;
2. determining the consumer wants or needs; and
3. offering products that meet those needs.

• High prices, because you are selling at retail not wholesale prices.
• More net income, because you retain the portion normally absorbed by intermediaries, such as wholesalers.
• More stable and dependable sales, if your direct farm marketing outlet has a steady flow of customers.
• Increased marketing opportunities, because you can still sell our products in the traditional wholesale markets.
• Marketing higher value products, such as meat and processed foods.

• Personal satisfaction and fulfillment. Every farmer knows how satisfying it is to produce a good crop, but direct farm marketers experience a special feeling as they directly supply fresh, wholesome food. They get to share the food with the people who appreciate its value and who let them know how much they appreciate their efforts.
• Building relationships with customers.
• Working at home with your family.
• Maintaining autonomy or independence.
• Creating “community” around the farm. Many direct farm marketing operations involve more than just one person working in the field. Instead, the family may be involved as well as outside workers.
• Running a personal business enterprise.

• Community Supported Agriculture (CSA): a form of subscription marketing where consumers buy a share of production and receive deliveries of the product.
• Direct farm marketing: selling food and farm products directly to consumers without using an intermediary. This may include direct sales to grocery stores, restaurants, door-to-door and freezer sales, and Internet marketing.
• Farmers markets: local open-air markets held regularly during the growing season where producers sell directly to consumers.

• Selling more products produced by others than raised by you.
• Not carrying sufficient liability insurance.
• Failing to comply with labor rules when hiring employees.
• Conducting a “commercial” business in an area not zoned for such use.
• Allowing unsafe conditions to exist on your property.
• Selling processed foods that have been produced at an unlicensed facility
• Failing to observe farmers market rules designed to protect the safety or quality of food.
• Not complying with record keeping and paperwork rules for tax or labor laws.

• First, don’t under-price your product. Attributes such as “sustainably produced” are perceived to be superior products to consumers because they may be more environmentally friendly, humanely produced, or are produced on family farms. Patronizing local farmers ensures that the local economy is stimulated. Salatin suggests that producers set a rewarding and satisfying gross margin and then stick to it. This will allow the producer to build a customer base with clients who appreciate the product for what it is, not for what it costs.
• Second, don’t try to satisfy all customers’ needs. Take into account the time and extra effort that may be needed to accommodate their requests. (Salatin, Joel. “Sales Can Fail,” The Stockman Grass Farmer; June, 1994, p. 31.)
• Finally, keep accounts receivable low. Operate on a cash and carry basis as much as possible.

• The producer has to tell the consumers why the products are different from meat that can be bought in the grocery stores.
• Product quality: When the producer maintains control of the animals and raises them, it should be easier not to compromise the quality of the meat.
• Customer loyalty: When the consumer knows the producer personally, the relationships built between them, both emotional and physical, are not easily broken. Good sellers know and use their customers’ names. Loyalty helps bring in repeat customers. The greater the loyalty and satisfaction, the higher the likelihood of repeat business, even though the product may be available at the grocery store at a cheaper price.
• The producer has to remember that the first rule of business is that the consumer is always right, but in some cases a sale might actually cause a negative gross margin. If the consumer is not a good patron, the producer should consider not marketing to him or her.

• Appropriate Technology Transfer for Rural Areas or ATTRA
  Phone: (800) 346-9140
  www.attra.org
• Direct Marketing Resource Notebook
  Nebraska Sustainable Ag Society, PO Box 736, Hartington, NE 68739
  Phone: (402) 254-2289
  Cost: $20
• Legal Guide for Direct Farm Marketing
  Neil Hamilton, Drake University Law School, Agricultural Law Center, 2507 University
  Avenue, Des Moines, IA 50311-4505
  Phone: (515) 271-2947
  Cost: $20
• North American Farmers Direct Marketing Association (NAFSMA)
  Phone: (888) 884-9270
  www.nafdma.com
  Membership fee for one year is $75.
• Farmer Direct Marketing Action Plan
  Errol Bragg, USDA Agricultural Marketing Service (AMS)
  Phone: (202) 720-8317
  www.ams.usda.gov/directmarketing/frmplan.htm

• Subscription or farmer-driven. The farmer organizes the CSA and makes most of the management decisions. The shareholder or subscriber is not very involved in the farm. This kind of CSA is quickly becoming the most common.
• Shareholder or consumer-driven. Consumers organize the CSA and hire the farmer to grow what they want. The consumers make most of the decisions. This model is often used in the Northeast.
• Farmer cooperative. This is a farmer-driven CSA in which two or more farms pool their resources to supply customers.
• Farmer-consumer cooperative. The farmer and consumer co-own land and other resources and work together to produce food.

• Organizing farmers to be part of a CSA. Additionally, you may have several farmers who are willing to grow produce and perhaps have other species such as poultry, eggs, lamb, etc., to provide consumers diversity throughout the year.
• Finding consumers who are willing to be part of a CSA.
• Constant and varied supply of produce and products.
• Seasonal aspects of CSAs are difficult to overcome. They can’t compete with yearround availability in grocery stores.
• Need to ensure that the meat products sold have appropriate approvals.
• If marketing is done prior to planting and harvesting, this helps to lower risk for producers than many other marketing options.
• Lower risk, since participants share cost with others.
• Ease of facilitation if the group lives close together.
• Risk shared with consumer CSA members.
• May be difficult to organize with other farmers.
• May be difficult to convince consumers they should participate. May be less choice for consumers than is available at supermarket, which have a wide array of products.
• Variables that decrease the likelihood of someone joining a CSA are people with children under 12 years of age and people with teen-agers.

• Connecting farmers directly with consumers.
• “Food with a Face” themes.
• Marketing to groups with social consciences, such as churches, environmental groups and civic groups.
• Lower cost per share.
• Marketing to individuals who want organically-grown food and who are socially conscious.
• Marketing to individuals who are well educated. Education level was found to be a very significant predictor of membership status, with members generally having a higher level of education.

• Appropriate Technology Transfer for Rural Areas (ATTRA) Appropriate Technology Transfer for Rural Areas, PO Box 3657, Fayetteville, AR 72702 Phone: (800) 346-9140 www.attra.org
• Bio-Dynamic Farming and Gardening Association
  Bio-Dynamic Farming and Gardening Association, PO Box 550, Kimberton, PA 19442
  Phone: (800) 516-7797
• Community Supported Agriculture of North America
  c/o Indian Line Farm, Box 57, Jugend Road, Great Barrington, MA 01230
  www.unmass.edu/umext/csa
• Community Supported Agriculture . . . Making the Connection
  California Cooperative Extension, Placier County, 11477 East Avenue, Auburn, CA
  95603
  200 pages
• Iowa Community Supported Agriculture: Resource Guide for Producers and Organizers
  Iowa State University Extensions Sustainable Ag Program, 2104 Agronomy, ISU,
  Ames, IA 50011
  Phone: (515) 294-1923
  80 pages
• Iowa Network of Community Supported Agriculture (INCA)
  Jan Libby, 1465-120th St., Kanawha, IA 50447
  Phone: (515) 495-6367
  libland@frontiernet.net
• Legal Guide for Direct Farm Marketing
  Neil Hamilton, Drake University Law School, Agricultural Law Center, 2507 University
  Avenue, Des Moines, IA 50311-4505
  Phone: (515) 271-2947
  Cost: $20
• List serve: CSA-L@prairienet.org
  www.priarienet.org

Door-to-Door Sales
Some meat marketers have been successful with establishing a clientele and selling meat directly to the consumer. The product is usually frozen to ensure longer life.

Marketers often establish the sales through individuals whom they know or customers they have generated through farmers markets, direct mail or phone promotions.

In direct sales to consumers, consider the following:

• Most states require salespersons to have a state-issued license or permit to sell products door-to-door.
• Make sure the product has been carried in a refrigerated vehicle. Bacteria multiply rapidly at about 40 degrees.
• The Federal Trade Commission (FTC) Cooling-Off rule gives the customer three days to cancel purchases made in your home or at a site that is not the permanent place of business or local address of the seller. The cooling-off rule does not cover sales of $25 or under. Under the rule, the salesperson must orally inform a customer of his/ her rights at the time of sale and provide two copies of a cancellation form and a copy of the contract or receipt. The contract or receipt should be dated, show the name and address of the seller and explain the consumer’s right to cancel.

The following is a further resource on direct sales:

• Appropriate Technology Transfer for Rural Areas www.attra.org

Farmers Markets
The USDA estimates there are more than 2,700 farmers markets in the U.S., with more than 20,000 farmers selling through the markets. Farmers markets are typically simple in organization and very straightforward in operation.

According to Neil Hamilton, in The Legal Guide for Direct Farm Marketing, there are some general features in how farmers markets operate. They include:

• There will be a set of regulations, developed by whoever is sponsoring the market, which vendors must agree to follow.
• Vendors will be required to sign an agreement concerning their participation in the market, which includes that they agree to follow the rules.
• Vendors pay a market fee on a daily or season basis.
• There is a market manager, who is responsible for running the market and enforcing the rules.

One of the important issues that can arise in the operation of a farmers market is liability in case of injury or accidents to shoppers or vendors. Many markets purchase their own insurance policies to cover some of the potential events. Some markets also require vendors to purchase policies specifically for their market activities, which list the market as an insured party. The most common way this issue is addressed is for the market agreement to require vendors to provide some proof of liability insurance. (The Legal Guide for Direct Farm Marketing, page 51.)

Producers need to emphasize that they are local farmers and their products are locally grown and raised, because customers like the idea of supporting local small-scale agriculture. For pasture-raised products, it’s important to have photos displayed showing the clean, green aspect of pasture produced products. The customer should be able to easily understand all advertising materials.

Vegetables are the main items at farmers markets, so producers with meats have a marketing advantage.

The following are further resources on farmers markets:

• ATTRA ATTRA’s Farmers’ Market publication
  www.attra.org
• Agricultural Diversification Bureau
  Iowa Department of Agriculture and Land Stewardship, Barbara Lovitt
  Phone: (515) 281-5402

Freezer Sales
For many livestock producers, freezer meat sales have been the most successful when selling live. Freezer sales usually force the producer to become a broker for the slaughtering and processing at a government-approved facility. Before starting to market, the producer needs to form a good working relationship with the locker or government-approved facility.

Several points to consider include:

• The largest portion of your business may come from value-added products, like sausages and other processed meats.
• In pricing, be sure to include the cost of handling and delivery to the facility.
• Make sure the buyer understands there will be loss of weight during slaughtering.
• Require a deposit before taking an animal to slaughter.

(From Klober, Kelly; “Approaches to marketing – notes from a direct sales survivor,” Small Farms Today; October-November 1998; p. 48-51.)

The following is a further resource on freezer sales:

• Appropriate Technology Transfer for Rural Areas www.attra.org

Mail Order
Many have found mail order to be an effective way to merchandise meat products. However, all meat that crosses state lines must have been harvested and processed at federally inspected plants. The USDA provides the following food safety suggestions.

• Pack it safely. Perishable foods will stay safe at a frozen temperature longest if frozen solid first. After frozen, pack your food gift with a cold source, such as a frozen gel pack or purchased dry ice.
• Use a sturdy box. Use heavy foam or corrugated cardboard. Fill up any empty space with crushed paper or foam popcorn. Air space in the box will cause the food and cold source to thaw faster.
• Clearly label your box “Perishable – Keep Refrigerated.”

The following web site contains further resources on mail order:

• www.fsis.usda.gov/OA/pubs/mailorder.htm

Restaurant and Institutional Sales
When combined with other direct sales methods, selling directly to restaurants often works well. The “rules” of direct selling that apply to restaurants are much the same as those for other direct channels.

Jim Goodman and Brian Boehm, both from Wisconsin, have successfully sold products to restaurants. They offer the following pointers and questions for consideration:

• Know what type of products you will sell.
• Do you have enough volume at a competitive price?
• Are you featuring a premium product, such as sustainable, organic or product with other unique attributes?
• Will selling to restaurants fit into your marketing plans? Generally, restaurants want only the best cuts. It will be harder to move lesser cuts fast enough to supply the restaurants’ needs. It may also not leave enough high-end cuts, such as steaks and chops, for your other customers.
• What is your sales volume?
• Is the restaurant’s menu flexible enough to take other products? This could be a place to move volume depending on the type of restaurant (i.e., burgers or white tablecloth).
• Must all the meat be delivered fresh, or will the restaurant take frozen product? This will impact how many deliveries you must make.

In establishing a market with restaurants, Boehm and Goodman say you have to displace someone who is already selling. Furthermore, many restaurants buy all their food products from one source, such as Sysco or Marriott, and do not want multiple suppliers calling on them. Have patience. It can take up to seven years to establish good relationships. Ways to establish clients include:

• door-to-door calling on restaurants;
• referrals from other chefs;
• linking with chef organizations and attending their meetings and trade shows; and
• knowing what types of foods restaurants serve and seeing if you can be a supplier for them.

Communications with the owners, chefs and staff are imperative to have a positive supplier/buyer relationship. Boehm and Goodman recommend that you ask the restaurant when it is a good time to take orders and deliveries. Establish your communications so the following procedural issues are addressed:

• Does the restaurant call you, or do you call someone there?
• Is there a regular delivery schedule or is it on an as available/demand?
• Determine how problems and complaints can be resolved.
• Misunderstandings will occur; resolve them quickly.
• How are payments made? What is your credit policy?
• Go to staff dinners.
• Invite the staff to your farm.
• Insist on feedback, good and bad.

Boehm and Goodman say these problems may occur when selling to restaurants:

• The restaurant business is very fluid. Success rate is rather low.
• Staff changes often.
• Menus change with customer demand, the season, the chefs and the availability of other items; thus demand for your product will change.
• Eventually, some of your product will be below the usual high standards. How will you deal with it? How will the restaurant deal with it?
• Can your processor follow your instructions?
• Can you keep all your customers happy?

The following resources assisted with this section and may be of further help to you:

• Boehm, Brian
• Brian, Boehm, Oregon, WI (608) 835-0264.
• Goodman, Jim
  Jim Goodman, Northwood Farms, Wonemoc, WI; (608) 489-2291.
  r.j.goodman@mwt.net