Source: SCOTCH HILL FARM submitted to NRP
IDENTIFYING MARKETING STRATEGIES FOR A FARMSTEAD COOPERATIVE TO INCREASE GOAT MILK SOAP AND SKIN CARE PRODUCT SALES TO TARGETED MARKETS
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
SMALL BUSINESS GRANT
Reporting Frequency
Annual
Accession No.
0206474
Grant No.
2006-33610-16817
Cumulative Award Amt.
$79,802.00
Proposal No.
2006-00499
Multistate No.
(N/A)
Project Start Date
May 1, 2006
Project End Date
Jun 30, 2008
Grant Year
2006
Program Code
[8.9]- (N/A)
Recipient Organization
SCOTCH HILL FARM
910 SCOTCH HILL RD
BRODHEAD,WI 53520
Performing Department
(N/A)
Non Technical Summary
U.S. agricultural producers increasing subsidize raw product or commmodity production with off-farm jobs(90 percent of producers surveyed in Wisconsin) or federal subsidies, and marketing challenges are formidable for individual producers who attempt to add value to production and increase margins alone. Isolated efforts also require specialization and mass production to meet demand, defeating integrated, diversified goals of sustainability. Project producers are adding value to goat milk, coping with competition through a guild and marketing cooperative and blocking farmstead milk soap and natural skin care item production to meet demand in 4 targeted sales areas. Expanded membership in the tri-state, electronic-based web catalog and sales development, quality control and centralized packaging and shipping will help participating farmers maintain whole farm and integrated practices and cut need for off-farm employment.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60438203010100%
Knowledge Area
604 - Marketing and Distribution Practices;

Subject Of Investigation
3820 - Goats, meat, and mohair;

Field Of Science
3010 - Economics;
Goals / Objectives
Scotch Hill Farm and 8 other Illinois and Wisconsin dairy goat and vegetable crop producers, who have been making milk soap and other skin care products in a new guild, will in this project identify and test detailed marketing strategies for at least 4 targeted markets in an integrated campaign to develop and increase volume sales for farmstead members of a new marketing cooperative. The cooperative will access, test market, evaluate and document sales and income potential for its family farm producers in these natural product and benefit sale venues. The marketing campaign will develop a theme, logo, attractive labeling and packaging, interactive web site, print and promotional material, e-catalog and newsletter, public events, trade show displays and direct market mailings. Barriers to each market entry will be identified and strategies developed to overcome them. This project will research all marketing costs of the coordinated campaign, including establishment and operation of a centralized receiving, packaging, quality control and shipping area for farmstead handcrafted, milled goat milk soap and natural ingredient products.
Project Methods
Through Phase III commercialization, this project will build regional identity and consumer demand for guild goat milk soap and natural ingredient skin care products sufficient to sustain 45 Iowa, Illinois and Wisconsin producers. Cooperative members will learn value-added production practices that ensure high quality and uniformity, and patterns for constructing versatile production facilities that can be licensed to process food (picked vegetables, jams, baked goods, etc.) as well as make milk soap. This will increase family farmer margins, help them diversify incomes, reduce off-farm employment, increase low-cost opportunities for young adults to enter farming and contribute to food security.

Progress 05/01/06 to 04/30/07

Outputs
OUTPUTS: Private industry, university and Extension staff associated with our USDA SBIR projects in our first year had trouble assisting us because of other work and professional commitments, travel and (in one instance) reassignment to other duties away from cooperative development. Also, our group of 8 farms affiliating with the project became bogged down in organizational details of a business cooperative. We asked for and received a no-cost extension from USDA SBIR with a new termination date of June 30, 2008. During the first year of the Phase I project, we were able to attend several regional trade shows, research trade show details and dates within our market areas, and to begin working on a web site and an electronic shopping cart for the Clean Harvest Guild and cooperative of farmstead goat milk soap-makers. We also continued to identify sources of certified organic ingredients for farmstead skin care products, and continued to coach existing and new members of the guild in premium quality, milled milk soap. We developed a press release on the guild's marketing efforts, inviting downstate Illinois and eastern Iowa dairy goat producers to join a tri-state cooperative. We sent this to more than 40 publications and agencies in the two states. We also gave workshops at the National Dairy Goat Association annual conference and solicited wider involvement in goat milk soap and natural ingredient skin care product production on-farm. PARTICIPANTS: Our project continued to teach 8 dairy goat produces (7 in Wisconsin and 1 in Illinois) to make high quality millk soap with a European-style milling process known for moisturizing, long-lasting characteristics. We received strong support from Wisconsin Department of Agriculture, Trade and Consumer Protection's Agriculture Development and Diversification program, which began a new state Dairy Goat Initiative to help develop the industry and promote its products. We served on a steering committee of producers, cheesemakers, trade association officers and state staff in this initiative. We tabled information at field days and conferences, attended planning meetings and round-tables, and took part in development of a new goat production curriculum (with contributions particularly on value-added production, diversification and organic practices) for the state's technical colleges. We also gave several workshops at the National Dairy Goat Association annual conference held in Milwaukee and hosted training sessions and workshops on our farm for adults and local teens. Wisconsin DATCP's Jeanne Meier led formation of the state's new Diary Goat Inititiative. She also facilitated loan of a UW-Madison agronomy student and DATCP employee (Claire Mikolayunas) to our USDA SBIR project on a temporary basis to document progress of our farmstead collaborators and progress of our cooperative effort. DATCP and Wisconsin Dairy Business Innovation Research staff member Carl Rainey also helped our project, consulting us on unit pricing, marketing, and producer pool development as an alternative to cooperative business formation. He also referred us to a professional graphics arts specialist from private industry. Anne Reynolds from the UW Center for Cooperatives helped advise us in cooperative business development and producer pool development as an alternative. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Findings during our first year laid the groundwork for identifying more "hands-on" resources in developing professional marketing materials and in locating and consulting with individuals who had useful working knowledge and experience, as well as the time, to contribute to our project. These individuals were better able to assist us in completing our Phase I marketing grant goals and objectives during the subsequent no-cost extension.

Publications

  • Stevens, Andrew; January 2007 "Valuing Labor and Improving Efficiency on an Integrated Farm" American Small Farm.
  • Heinen, Tom; November 2007 "Markets assisting farmers: Faith groups' events focus on local products" Milwaukee Journal Sentinel.