Source: RAINBOW ORGANIC FARMS, CO. submitted to
A MARKETING MODEL FOR SMALL FAMILY FARMS SELLING NICHE PRODUCTS TO SUPERMARKETS
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0206540
Grant No.
2006-33610-16818
Cumulative Award Amt.
(N/A)
Proposal No.
2006-00610
Multistate No.
(N/A)
Project Start Date
May 1, 2006
Project End Date
Dec 31, 2007
Grant Year
2006
Program Code
[8.12]- (N/A)
Recipient Organization
RAINBOW ORGANIC FARMS, CO.
1976 55th STREET
BRONSON,KS 66716
Performing Department
(N/A)
Non Technical Summary
There is currently limited access to supermarkets for small family farms to sell their locally grown and raised farm fresh foods. The learning curve for small-scale family farms to meet the requirements of retail supermarket chains is long and demanding. However, there is an increasing number of small family farms seeking to fill this growing consumer demand for foods from local and regional small family farms. This project will utilize the Good Natured Family Farms Alliance and supermarket partnership to develop a `proof of concept' model. The Good Natured Family Farms model will include a comprehensive economic and operational sustainability analysis, complete product standards and product portfolio, and a plan that identifies and demonstrates marketing strategies, operational management, and supermarket logistics. This project will formally organize the Good Natured Family Farms family-farm-to-retail-supermarket model into a system that can be used by small family farm groups and supermarkets to develop similar programs. The Good Natured Family Farm value-based model will provide a real-life scenario to conduct a comprehensive economic analysis to determine small-farm profitability in selling to a retail supermarket chain.
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
60460303010100%
Knowledge Area
604 - Marketing and Distribution Practices;

Subject Of Investigation
6030 - The farm as an enterprise;

Field Of Science
3010 - Economics;
Goals / Objectives
The goal of this project is to develop a value chain partnership business model for family-farms-to-retail-supermarkets. The objective is to develop a Good Natured Family Farms proof of concept model, which will include 1) a comprehensive economic examination and operational sustainability analysis, 2) a complete small family farm product standards and systems portfolio required for supermarket entry, 3) a plan that identifies and demonstrates marketing strategies, operational management, and supermarket logistics. The result will be a whole system including economic analysis, product information, and market strategies to connect small family-farms-to-retail-supermarkets. This whole system will identify infrastructure, information, and operational strategies that successfully link family-farms-to-retail-supermarkets.
Project Methods
This research will utilize the existing Good Natured Family Farms Alliance and their value chain partnership with a supermarket chain and apply the economic and marketing principles to develop a family-farm-to-retail-supermarket model. The first methodology is to validate the economic success of Good Natured Family Farms from the family farm through processing and finally to supermarket sales. A comprehensive economic and operational sustainability analysis for Good Natured Family Farms Alliance will be preformed. The analysis will include an economic analysis of each individual family farm and an overall operational infrastructure of the Good Natured Family Farm Alliance to determine sustainability and opportunity for growth. The second methodology is to systemize all of the technical information Good Natured Family Farms has compiled in order to sell local family farm products to a supermarket chain. The technical information includes the development of a complete Good Natured Family Farms Alliance product standards and system portfolio required for supermarket entry. The technical information consist of product labeling, UPC codes, food safety regulations, quality control, identification and traceability programs, product pricing, invoicing, production and distribution infrastructure, contracts, product liability, etc. The third methodology is to develop a plan that identifies and demonstrates marketing strategies, operational management, and supermarket logistics for small family farm products. The plan includes building brand identity, data base mining, supermarket shelf space, establishing a value chain partnership network, product sales and discounts, advertisement, merchandising, promotions, displays, etc. This approach will identify the processes and procedures for marketing and merchandising a shopping cart or basket of local family farm foods in a cost efficient method.

Progress 05/01/06 to 12/31/07

Outputs
OUTPUTS: Diana Endicott presented works from A Marketing Model for Small Family Farms Selling Niche Products to Supermarkets at the following conferences, workshops, or tours. Nebraska Local Foods Network conference 7/9/2009 at the university of Nebraska, Lincoln. Virginia Women in Agriculture Conference on Fresh Ideas for Virginia Agriculture from Farm to Fork 5/20/2009,Plecker Workforce Center, Blue Ridge, Community College, Weyers Cave, Virginia. Growing Opportunities - Realizing the Benefits from the Local Food Economy, 3/25/2009, Harbourview, Dartmouth, N.S. Nova Scotia Department of Agriculture. Southwest Marketing Network 7th annual conference, Expanding Markets for Southwest Small-Scale, Alternative, and Minority Producers, 4/6/2009, Durango, Colorado. See-Kan RC&D, Marketing Agri-tourism: Promoting the Rural Experience 3/5/2009, Claythorne Lodge, Columbus, KS. 2009 White House Farmer nominee 10th place of 111 nominees. Agriculture 2.0 The First Sustainable Agriculture Investment Conference, New Seed Advisors, 9/17/2009, New York City. Diana was featured in the movie Fresh The Movie, New thinking about what we're eating, film by ana Sofia joanes. Great Plains Vegetable Growers Conference, 1/10/2008 Ramada Inn, St. Joe, Missouri. New American Farm Conference-Advancing the Frontier of Sustainable Agriculture, National SARE Conference - 20th Anniversary Event, 3/25/2008, in Kansas City. Kansas Agriculture Rural Leadership, Adapting to Change Seminar, 12/10/2008, Pittsburg, Kansas. Wallace Center National Good Food Network, Advisory Council and Regional Lead Team, 8/14/2008. Kellogg Foundation 2007 Food and Society Conference, keynote speaker, Grand Travese Resort, 4/24/2007. Cornell Strategic Marketing Conference, The Northeast Competitive Advantage: Increasing Producer Access to Markets, 11/5/2007, Henry A Wallace Center, Hyde Park, NY. Minnesota Organic Conference, 1/19/2007, St. Cloud, Minnesota, Keynote address Direct Marketing in the Supermarket. Virginia Agriculture Summit, Rural Prosperity through Agriculture: Agritourism & Value-Added Marketing 12/11/2007, Southwest Virginia Higher Education Center in Abingdon. PARTICIPANTS: Diana Endicott, Rainbow Organic Farms, responsibility Project Director Bob and Gloria Cunningham, Cunningham Photography and Marketing Inc.responsibility assist in developing marketing manual. Drew Taylor, responsibility IT Dr. Michael Boland, Kansas State University, Department of Agriculture Economics, responsibility economic analysis TARGET AUDIENCES: The target audience is small to mid size family farms and small scale processors who want to scale-up and enter more conventional market formats. This project was presented at numerous workshops and conferences across the country, with audiences specific to women in agriculture and ethnic miniorities. For a list of outreach including workshops and conference presentations see Final report (output). PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
The successful outcome of this Phase I project will lead to commercialization in several areas; a) continued growth in the Good Natured Family Farms line of products in the supermarkets, b) replication of the family- farm- to-retail- supermarket value chain partnership model for reproduction proof of concept, c) development of a licensing or franchising type system. As the GNFF value chain becomes more mature, the farmers, processors, distributors, and retailers will no longer compete as individual entities, they will compete as a strategic value chain and compete with other developing value chains in the marketplace. The revitalization of these small family farms will restore the land stewardship and community social capital they provide. Today there is a consumer demand for local family farm fresh food that has superior taste, health, and nutritional qualities, and the integrity and identity of where the food came from and how it was processed. No one family farm can meet this growing consumer demand but joining together and forming an alliance will allow them the opportunity to get there food in the supermarket where the consumer makes 95% of their food purchases. Additionally, huge high volume super-center food stores are squeezing independent supermarkets. The power of that this collaborative business partnership will maximize the value for both partners, the small family farms and the supermarket, and for the consumer and the local community. This family- farm- to-retail- supermarket proof of concept model will support and reinforce developing sustainable agriculture systems that protect natural resources and the environment and create safe and nutritious food supply. Most importantly, this Phase I proposal assists in providing economic opportunity and quality of life, especially for people in rural areas.

Publications

  • http://www.goodnatured.net/marketing/Marketing%20Manual.pdf (2009)


Progress 05/01/06 to 05/01/07

Outputs
Objective 1. A comprehensive economic analysis for the five major Good Natured Family Farms product line including all-natural beef, free-range chicken, pastured pork, glass bottle milk, and farmhouse cheese is completed. The economic and operational sustainability analysis for Good Natured Family Farms Alliance is being updated due to major revisions recently made in distribution and invoicing logistics. Objective 2. A comprehensive overall Good Natured Quality System Creditability and Integrity Assurance (CIA) Program) that includes product standards and specifications, identification and traceability, memorandum of understanding, and environmental and social responsibility is completed. This overall GNFF CIA program will be used as the basis to continue to develop a quality system specific to each of the Good Natured Family Farms products. Objective 3. The Good Natured Family Farms marketing strategies, operational management methods, and supermarket logistics from the small family farm to the supermarket is being accomplished through the creation of a video with a corresponding manual. Beef and Honey are the two products chosen to demonstrate how to take a product from the farm to the supermarket shelf. The beef represents a variable weight highly perishable product while the honey characterizes a set weight shelf stable product. The taping of the video is completed. However, the editing and formatting is still a work in progress. One predominate area identified by several reviewers is dissemination of the research results. To address the dissemination concern, the GNFF farm to market DVD video will provide a low cost method of reproduction and distribution to small family farm groups who may not have access to high speed internet but could view the DVD at the local library or community center. The corresponding GNFF farm to market manual will allow for dissemination to farmers who do not have access to electronic means. The rapid growth of the Good Natured Family Farms program brings constant change in economics, infrastructure, and logistics. Therefore, the project is taking more time than initially projected.

Impacts
The Good Natured Family Farms Alliance is noted as one of the leaders in local food cooperative production and marketing. The summer of 2006 Ukrop's supermarkets visited the GNFF Alliance and Balls Food Stores to consider replication of a similar program in their grocery store chain. The principal investigator spoke with a share-group of six independent supermarkets located throughout the United States about the Good Natured Family Farms Alliance partnership with Balls Food Stores. Good Natured Family Farms Alliance was selected as one of the three proof of concept for the National Association of Family Farms. The Kellogg Food and Society Initiative selected the Good Natured Family Farms Alliance as a case study. The principal investigator has presented at the Growing the Growers conference in Kansas City to an audience of 250 farmers and educators and at the Agriculture Future of America 2006 conference in Kansas City with 150 future agriculture leaders attending. The principal investigator will present at the Minnesota Organic Conference in January 2007 with attendance of 300 farmers and educators expected to attend and at the 2007 Kentucky Small Farms Conference with an attendance of 300 farmers and educators expected to attend.

Publications

  • No publications reported this period