Direct Farm Retail Marketing Types

U-Pick: The U-pick operation involves customers harvesting their own produce from the field or orchard. This alternative eliminates most labor expenses associated with harvesting, packaging, and marking prices. Although not as popular in recent times, it is generally conducive to situations when labor is in short supply and the consumer has indicated a willingness to pick. This type of marketing alternative is product-specific. Berries and certain tree fruits are generally most conducive to U-Pick. For planning purposes assume that 1 in 100 potential customers is willing to pick his/her own produce.

Tailgate Markets: A tailgate market provides much greater flexibility than does the U-pick operation. The name tailgate comes from produce being sold from the back of a truck or wagon, thus avoiding a large capital expenditure associated with erecting a permanent facility. Because tailgate operations are portable, they can be moved to desirable locations, generally scheduled throughout the season from May to October for seasonal markets. Tailgate markets are often used by farmers who feel they have the time to sell tier produce themselves and earn more than if they sold their produce wholesale. Tailgate marking requires high customer traffic to be effective. Tailgate markets are limited to smaller sales volumes than permanent markets.

Farm Stand: The farm stand is slightly more permanent than a tailgate market and requires more management and labor input. Like the tailgate market, prude must be harvested, carefully assembled, sorted, and packaged. Although location is generally based upon the location of a farm, incorporating a farm stand as a seals method is not advisable unless the farm is on a highly traveled road. Farm stands are typically seasonal and housed in an inexpensive structure.

Roadside Market: the roadside market is generally more elaborate than the farm stand. The building structure is permanent, requiring a large capital outlay. The operation of a roadside market requires the offering of a wide array and variety of items. For example, many roadside markets establish several key profit centers, depending upon the customer's wants and needs. It is common to find in-store bakeries, deli sections, gift sections, produce, condiments, and bedding plants. The roadside market operator has the option of deciding to operate seasonally or year-round. Various departments in the roadside market have the option of selling items that are purchased wholesale for resale.

Farm market retailers embarking on a roadside market business must be clear on their objectives. The commitment to own and operate the market becomes a full-time endeavor. Heating, air conditioning, lighting, display, product handling and cooling systems that go into the structure of a market require financing and thorough management considerations. Year-round markets offering a wide variety of items demand more managerial know-how and input, and increased labor for assembling, sorting, grading, packaging, and pricing the items.

Promoting the market through advertising and special events requires large investments of time and money. Since roadside markets must incorporate more of the marketing functions, roadside market operators have increased risks and a chance to earn increased profits.

Farmer's Markets: the farmers' market can be described as a collection of farm stands at one location. The grower rents stand space along with other marketers. Each stand is operated independently; the collection of stands offers customers variety and convenience.

The farmer's market has several advantages. First, the grower has flexibility and is shielded from risk by renting space rather than erecting a facility. In years when yields are reduced the grower can elect to forego space rental. Customers are likely to be drawn by variety and convenience, thereby greatly reducing advertising costs. Farmer's markets place sellers in direct competition, so prices and quality must be equal to or better than that of competing stands.

In terms of disadvantages, the farm market generally limits a vendor to a specific item. Space is generally limited.

Mail Order: Food shopping by mail.

Community Supported Agriculture (CSA): This type of direct marketing enterprise entails limited participation by the customer (physically and financially) in the farming operation. Examples are rent-a-tree and subscription clubs.

Entertainment Farming: This type includes all the activities and events associated with drawing customers to the retail farm market. Examples are hayrides, craft shows, petting zoos, scarecrow making, and Halloween exhibits (haunted houses, "boo" barns).

Having read about and investigated each marketing alternative or type, select the one best suited to your situation (Worksheet 6).