+ Local Foods Marketing Dr. Tim Woods University of Kentucky Economics

+ Local Foods Marketing 1. Knowing the markets 2. Product development 3. Branding, differentiation, competition 4. Taking advantage of support programs, agencies, and training Economics

+ Marketing Channels for Local Food Community Farm Markets On-Farm Retail Markets CSAs Local Wineries Direct Market Venues

+ Marketing Channels for Local Food Restaurants Grocers Auctions Institutional buyers Farm to School Direct to Retailer and Wholesale Market Venues

Number of U.S. farmers markets up dramatically since mid-1990s From 1,755 in 1994 to 8,144 by 2013 More than 5,000 new farmers markets since 2000, an increase of 175% 2,500+ vendors in KY U.S. Farmers Market Growth: Source: Diamond, USDA-AMS 2011; USDA AMS Economics

Kentucky Produce Marketing Channels: Farms Selling More Than 10% into One Channel (2003 and 2012) ---Markets Farmers markets 52% 41% On-farm markets 50% 41% Cooperative/Assoc 15% 3% Non co-op wholesale 17% 14% Direct to restaurant 12% 7% Auction 9% 17% CSA Direct to retail grocery Farm-to-school 3% 21% 3% 16% 1% Source: Kentucky Produce Marketing and Planting Intentions Survey, 2004, 2012 Economics

+ What are consumers thinking?

+ Local food as an experience good Distinctive value propositions are highly relational

+ Why Consumers Value Local Minimizing food miles/energy dependency Land and environment Perceived Safety and Quality Support local ag and economy Thilmany, Bond, Bond (2008) Heritage Quality/Health benefits Environment and Economy Citizenship and community Woods & Williamson (2013) Social media a strong tool to convey these value propositions

3 Cs of Farm to School Community – Engage the community Cafeteria – Use the cafeteria to promote local foods and farms Classroom – Implementing a Farm to School curriculum and learning experiences

3 Cs of Farm to School We did a taste testing with heirloom tomatoes and the farmer actually came and was passing out the tomatoes, and we said this is the farmer…. The kids were just like Oh wow, a real life farmer! It was just really exciting. -Fayette County FSD

+ Getting to know the markets Directories Farm to school (KDA) Farm markets (KDA) On-farm retail markets (KFB Roadside Markets) CSAs (KDA) Restaurants (KDA- Restaurant Reward Program) Auctions (UK Crop Diversification Center) Wholesalers and Processors (KDA, UK MarketReady, KCARD, UK Specialists) Grocery Buyers (KDA, UK MarketReady)

+ Getting to know the markets Visit the markets, talk to buyers Talk to peer producers selling either similar products or into similar markets Evaluate competing products for (1) number, (2) price, (3) similarity

+ Product Development Value-added products Packaging, logos, branding expectations from buyers

+ University of Kentucky Food Systems Innovation Center Provides technical services, marketing intelligence, business services and training components to aid in developing the food industry of Kentucky Food Chemistry Testing Nutrition Labeling Analytical Services Microbiological Testing Sensory Evaluations Brand New!

+ MarketReady Modules Communication & Relationship Building Communication & Relationship Building Packaging Labeling Pricing Supply Delivery Storage Invoicing Insurance Quality Assurance & Temperature Control Certifications & Audits Satisfaction Guarantee Working Cooperatively Marketing – An ongoing process Local Products for Local Markets

+ Branding, Differentiation, Competition Building the local brand – consumer awareness KY Proud programs Membership – at cost POP materials, signage POP Grant program Restaurant Rewards Farm Estate Branding

+ Support Programs and Agencies for Local Food in Kentucky MarketReady, Better Process Control School, FSIC UK Crop Diversification Center KDA Farm Market Program, KY State Health Dept KY Farm Bureau Certified Roadside Market Program Network of Certified Kitchens (KSU/UK/FSIC) KY Center for Ag and Rural Development

+ … Presenter: Dr. Tim A. Woods Extension Professor, University of Kentucky Agricultural Economics x.274 Questions?