Alberta Agriculture has created several fact sheets on farm direct
marketing costs.
The Direct Marketing Profits series covers farm direct marketed beef,
poultry and dairy products, said Karen Goad, an industry development
officer with Alberta Agriculture in Grande Prairie.
Producers and marketers from each sector generated information on
investment, production, marketing requirements, costs and revenues
associated with developing a viable direct market protein enterprise.
The fact sheets include projected profitability of direct market meat
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and dairy operations, expected processing and marketing costs, labour
requirements, and other key economic, production and marketing factors.
Processing and marketing costs, while big issues to meat producers who
market direct to the consumer, are only part of the picture.
A checklist is also being developed to help new agri-preneurs decide
whether marketing meat products directly to the consumer is a good idea
for them. It will help producers look at their products, on-farm
production practices, and processing, marketing and business management
strategies.
The fact sheets are available free from Alberta Agriculture’s
publications office by phoning 800-292-5697.
Kerry Engel, who works with the farm direct marketing initiative of
Alberta Agriculture’s ag entrepreneurship unit, said trends are
developing that should interest ag entrepreneurs:
- Today’s consumers are older, resulting in smaller portion sizes and
an interest in health and wellness.
- The average household size is shrinking.
- The population is becoming more urban and distant from the farm
experience.
- People are rushed and eat out more.
- The annual 2001 household spending on food service in Alberta was
$1,836, which is $300 more than the Canadian average.
“Today’s consumer is concerned about pesticide use, food safety,
antibiotics, human treatment of animals and GMOs,” Engel said.
“They want to know where their food comes from, how food is grown, and
they want to meet the people that prepared their food. Events like the
Sept. 11 terrorist attack in New York, the Walkerton water
contamination and Europe’s foot-and-mouth disease outbreak in 2001 have
perpetuated consumers’
concerns.”
These changing consumer sentiments are supporting the growth of farm
direct marketed products and agri-tourism.
Consumers want family-friendly
activities in which everyone can
participate.
They want to support local, trusted businesses that show integrity and
honesty.
They are concerned about balancing work and life.
Dual income families are interested in eating regional cuisine, food
that is picked and prepared at its freshest and food that is produced
locally.
Consumers are willing to pay more for food they believe to be fresh,
nutritious and wholesome.
Engel said these trends represent opportunities for ag entrepreneurs,
such as farm-direct marketing, agri-tourism and entertainment farming.
More farms are opening their doors to the public and connecting
directly with the consumer.
