New Trends Seminar, Shelby, MT March 23, 2016 Direct and Alternative Marketing: Trends and Strategies for Accessing New Markets New Trends Seminar, Shelby, MT March 23, 2016

Annie Heuscher Program Director annie@MissoulaCFAC. org www Annie Heuscher Program Director annie@MissoulaCFAC.org www.MissoulaCFAC.org

www.FarmLinkMontana.org

Direct and Alternative Marketing

Direct and Alternative Marketing Non-commodity

Direct and Alternative Marketing Non-commodity Direct-to-consumer

Direct and Alternative Marketing Non-commodity Direct-to-consumer Wholesale

Direct and Alternative Marketing Non-commodity Direct-to-consumer Wholesale Alternative commodity market

Direct and Alternative Marketing Non-commodity Direct-to-consumer Wholesale Alternative commodity market Value-added market

Organics Nationally Power of the Market $39 Billion in Consumer Sales $5.5 Billion in U.S. Farm Income 50% Through Grocery Stores 51% of families buying more than last year ExpoWest 2016: 77,000 attendees

Organic Grains & Pulses Power of the Market Organic Grains & Pulses Ardent Mills doubling organic acres General Mills doubling organic acres Companies starting to go overseas for grain supply Market is expected to double/triple in next 5 years International Year of the Pulse

Organic in Montana Power of the Market 1st in the nation for dry peas 1st in the nation for lentils 1st in the nation for wheat 2nd in the nation for flaxseed 8th in the nation for dry beans and oats

Local Food in Montana Power of the Market Top ten in the nation 60+ farmers markets 6th in nation for direct sales per capita $9.4 million direct-to-consumer Sales increased 50% between 2007-2012

Other Market Trends Power of the Market Non-GMO: $11 billion in annual sales Non-GMO: Over 27,000 products Gluten-free: $973 million in annual sales Gluten-free: Grown 30%+ each year

How Do You Access Those Markets? Customers Competition Channels

Customers

Customers

Customers

Customers

Customers

Customers

Market Research Proximity Friends and Family Buyers Similar businesses Product testing Trade shows Surveys

Competition Price Product Access Service Experience

Channels to the Consumer Alternative Commodity Market

Channels to the Consumer Organic Commodity Market Lentils: 55-70 cwt ($500-800/ac) Chickpeas: 72 cwt ($1,000/ac) Winter Wheat: $12/bushel Spring Wheat: $15/bushel ($17-18 last year) Peas: $13/bushel

Channels to the Consumer Wholesale

Channels to the Consumer Direct-to-Consumer Farmers Market

Channels to the Consumer Direct-to-Consumer Community Supported Agriculture

Channels to the Consumer Direct-to-Consumer Community Supported Agriculture $6.50/lb ($400/bushel)

Channels to the Consumer Direct-to-Consumer Mail Order and Internet Sales Chickpeas & Lentils: $2.99/lb ($299 cwt) Hard Red Spring Wheat: $2.39/lb ($143/bushel)

Channels to the Consumer Other Markets Grocery Stores

Channels to the Consumer Other Markets Schools & Institutions

Channels to the Consumer Other Markets Restaurants & Caterers

Steps to Access These Markets Planning for On-Farm Success Consider Cooperatives Find the Right Scale Be Buyer-Focused

Other Resources Made in Montana/Grown in Montana Montana Department of Agriculture Montana Organic Association Farm Link Montana

Annie Heuscher Program Director annie@MissoulaCFAC. org www Annie Heuscher Program Director annie@MissoulaCFAC.org www.MissoulaCFAC.org