Direct marketing & the economy


Looks like we’ll soon have another kind of baby around here! Those pigs sure like their mud. They do manage to keep their port-a-hut relatively clean, at least. This weekend’s projects include moving the mama’s to drier ground, if any can be found.

We’re all hearing about the state of the economy these days. Around here that leads to discussions on what this will mean for our business, direct-marketing our beef, pork & chicken. Will the rising gas, energy and food prices mean that our customers will have to cut back on how much they buy from us? Or are people becoming more aware of the issues surrounding industrially-produced food and making local sustainably-raised food a priority in their budgets?

The jury’s still out here. On the one hand we’ve had more sales here at the farm this winter than last winter, and the local store that carries our meat has bought more than last year. Despite the fact that we had to raise prices significantly because of rising feed costs, we’ve had more chicken and on-the-hoof beef & pork pre-orders than last year and received them earlier in the year. Farmers market starts in just over a month and I’m hopeful that it’s going to go even better for us this year. We got our name and reputation out there last year and can build on that, plus we’ll be at two markets this year instead of one.

On the other hand we’ve had more cancellations of pre-orders than we’ve experienced before (though the vast majority of them were about timing and not for financial reasons.) At the moment we’re fretting about the hogs a bit. Out of the litter of 8 pigs we butchered last month we had 3-1/2 unsold. We butchered those into cuts to sell at farmers market this summer. Out of this month’s litter of 7, we only have 3 sold. We’re not really sure if we can move those other 4 at Farmers Market, in addition to the 3-1/2.

[Edited to add…that was wild! At the very moment I typed that, someone called and ordered a whole hog! So make that 3 left to sell…]

But I was encouraged by an article in this past Sunday’s Des Moines Register, High cost for food lets czars envision a new era. The presidents of Whole Foods and Stonyfield Farms spoke to students at Drake and Iowa State last week “about the success of green businesses and where the movement is headed.”

“The higher food prices climb, the more recalls there are, the more people learn about problems associated with coventional food from industrialized farms, the better it is for natural and organic food producers, they said.”

So what do you think? If you’re a farmer, have you experienced any changes in your sales lately? If so, how have they changed, and to what do you attribute the change? If you’re a consumer, are your food budget and the type of items you buy changing? If so, why?

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15 Responses to Direct marketing & the economy

  1. Twinville says:

    Sounds like business at your farm is staying pretty steady, except with the pre-orders. Maybe it will all come out even in the end?Since I’ve started selling our eggs, I’ve noticed lots of people interested, but then a couple will back out at the last minute. One person even told me she found a cheaper source for fresh eggs from her neighbor, who apparently only charged $2.00 a dozen.I don’t know how a farmer can make money off their farm fresh eggs by charging so little, when the cost of feed, water, electricity, not to mention time is so expensive.Maybe for some local hobby type farms, it’s not really about being self sufficient, but rather for the novelty of having chickens.They obviously havent’ done their homework in the cost of growing chickens and eggs, though.Personally, we’re not looking to make a locad of money, just to at least break even, so our hens are paying their own way in feed costs. The average price for non-organic, factory eggs are about $1.50 a dozen in our area. For organic, cage free, store-bought eggs, about $2.50-$3.00 a dozen (not local, so not as fresh).The average price for local organic, fresh, cage-free eggs seems to be $2.50-$3.00 a dozen.I tried to tell this particular lady not to base her purchases on cost alone, but quality AND the respect and fairness to the farmer.I never heard back from her, but later saw a message on our local Freecycle group, looking for locally grown, organic food…..

  2. Sea2Shore says:

    We have had alot more people stopping by the farm I volunteer at and asking for eggs and meat. I have also noticed that there are alot more people looking into growing there own food these days. People in the lower money bracket just cannot afford the prices. It’s like the food cost goes up, but the wages stay down or they loose there jobs. Its definately tough times for alot of people these days. I hope you get rid of all your hogs:) Regina

  3. We haven’t noticed a decline in beef sales yet – but we only sell 3-4 a year and have a fairly steady base of customers. Hopefully your pigs will all sell – I do think people are looking for better quality in their food these days, which is good.Kris

  4. farm mom says:

    As a consumer in the market for a whole hog, I wish we were closer! We’d be steady customers!! 🙂 I’m not going to lie and say things aren’t tough, but we’re very committed to feeding our family according to our beliefs. We’ll pay the higher prices, and cut costs elsewhere. I sincerely hope you’re able to keep your farm going in the direction you want it to.

  5. Jen says:

    As a consumer, I can’t wait for our farmer’s market to open in May. We don’t have a large freezer so we’re limited in storage, but we buy all our meat from organic local producers. It’s somewhat more expensive, but I love knowing it’s safe for my kids.

  6. frugalmom says:

    Consumer here…we changed our food budget several years ago when we began to change over to all local and organic foods. When we did that we for sure saw a huge increase in our food budget. Eating this way(at least in this geographical area) is more expensive. But, like Farm mom stated, we are dedicated to these choices and know how much better they are and just make sacrifices in other places. I love knowing where my food is coming from and knowing that I am cooking my family healthy food.

  7. Haymaker says:

    From the consumer perspective, our Fox Valley Homestead, Gardening, and Genuine Food is gaining members as interest grows in gardening and good food. Several of us are radically expanding garden beds or even starting from scratch with help/advice from the support group.I think it was an astute observation that higher food prices are getting people to review their entire food preferences – procurement, etc. As industrial food prices climb, I would suspect that the spread narrows between the grey industrial meats and vs your good stuff. If folks can buy industrial meat at the grocery store for the same price as your authentic meats, you will win each time. Below is the letter from the Illinois Corn Growers Assoc. begging them to plant more corn:April 2, 2008: Your association needs your help. We need you to consider planting more corn this season. Based on the recent USDA Planting Intentions report, the market needs more corn than currently planned. As a farmer, I know input costs are higher for corn than soybeans, and I know that with all the corn last year, it is easier to plant soybeans into stalk ground and slip back into that soybean after corn rotation. The problem is our markets need more corn. Livestock continues to need more corn, exports continue to need more corn and even the ethanol industry is continuing to grow, albeit more slowly. Unless we, as farmers, can collectively grow more corn, we will never silence our critics who claim we are causing everything from increasing food prices to the deforestation of the Amazon and creation of more Global Warming. What is more, we will choke off demand as we finally are breaking free of the shackles of Government Farm Programs. So as we wait to get into the fields this spring, please seriously consider shifting one more field back to corn. Thank you for your consideration.

  8. Steven says:

    I’ve got a young family with 1 little baby girl so we’re just getting into the groove as far as having a budget and grocery “traditions” go. We’ve managed to start getting raw milk, farm fresh eggs, and some grassfed beef and local pork by cutting the amount we eat by a little, and also by cutting costs on the food that we have to buy at the grocery store using http://www.grocerygame.com . The site alerts you to what is on sale and what you have coupons for each week. This way we only pay half price or less at the store and can afford more stuff at our friends farm store.

  9. Steven says:

    sorry, that sounded like spam for grocerygame IT”S NOT. Really I just can’t believe I don’t know more people doing it. Believe it or not, you really get a rush when you go up to the checkout and get 41$ back on a 60$ purchase! It’s amazing how often organic and/or whole wheat pasta is on sale around here. Then add on a coupon and we end up with a shelf full of food that we couldn’t afford otherwise.

  10. Patti says:

    What new kind of babies????

  11. Peter comly says:

    I am worried about what the poor economy and rising prices of everything could do to our farms customer base, but so far we seem to be on track as far as our order forms and deposits coming in. If anything I would say that the average order for returning customers is bigger than last years was. I think we have an upswing in new customers as well.On the sour side, I just had three tons of chicken feed delivered this morning and it was $380 per ton (custom made but not organic) Last year we were paying about $280/ton. We raised our prices this year, but I am afraid maybe not enough to cover the increase in our costs.

  12. twinville – we have people around here selling eggs for 75 cents a dozen. When I was selling them I got $2. Regina – thanks, I hope so too! Kris – so far, the people I’ve talked to are of the same sentiment as the commenters here. People are concerned about industrially farmed food and looking for alternatives.Ang – thanks for sharing what your family does. I wish you lived closer, too! I’d trade pork for mushrooms :)jen & frugalmom – thanks, hopefully there are people like you shopping our farmers market this year!haymaker – thanks for sharing that letter. Very interesting!steven – I think the Grocery Game is great! I’ve been doing this (known in our family as “Rockin’ the Walgreens”), and the money I save on stuff there helps balance out the increase in the grocery budget.patti – pigs, silly! That sow in the picture is bagging up and will farrow soon :)Peter – I hear ya! Just when you think feed prices won’t possibly go any higher, up they go. I don’t know if we’ve raised our prices enough, either.

  13. Twinville says:

    Wow! You must be kidding…only 3 quarters for 12 free-range organic eggs?That’s only 6 cents per egg!.36 cents for 6 eggs!!!Haven’t those farmers heard of inflation, or are they still living in the depression era??Do they even feed their chickens, or just let them eat grass and bugs?The farmers who are selling at that price must not be looking to make a profit or even break even. Or maybe they just raise large flocks (in the hundreds) of chickens so they end up with too much surplus?Either way, those huge mass producing farmers, who basically give away their produce, sure do hurt us small hobby-type farms.

  14. Patti says:

    Pig babies around your place aren’t new…A baby baby would be 😀

  15. Christy says:

    I’m a consumer right now and we’ve had to change our budget but that is so we can buy more food from the local farmers. The more I learn about industrial food and the higher food prices go, the more important it becomes to me to support the local farms. I could pay less for food but have decided to cut things elsewhere.

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