Selling at Farmers Markets: Benefits and Price Trends Ariana Torres, PhD Assistant Professor Marketing Specialist torres@purdue.edu
Farmers markets continue to grow in number 8,708 markets in the US (USDA-AMS) 400% increase since 1994 191 markets in Indiana 19 summer 6 winter Markets differ widely in size and produce Highlight the Hoosier economy and gastronomy
Specialty crops in US 44,974 growers 14 million of acres In Indiana,95 operations 6,5 acres Production Fruits and vegetables Horticulture Floriculture Nursery Dried fruits Who sells at the farmers market? 1. Grow 0 crops on average. Smaller 1. 86% growers reported annual sales <$50,000. 1/ made <$10,000. 1/ have off-farm income 4. Spend 46 h/week on farm
Farmers markets are a centerpiece of local food systems Economic opportunities Larger share of consumers dollar Improved cash flow Business incubator Outlet to expand sales Sell added-value products Delegate marketing to market managers Obtain immediate feedback Varieties Products Join networks Build relationships Roadside stands Restaurants Institutions Food hubs Cooperatives CSAs
Tell the real story behind your produce Who are you What do you stand for Where are you from What are your standards What are your challenges How consumers purchases impact your community/family
USE SOCIAL MEDIA TO GENERATE SALES
1 1. Cover photo. Profile photo. Tabs 4. Page interactions 5. Call-to-action buttons 6. Community 4 5 7. About 6 7
Price is one the most important drivers of farm profitability and long-term sustainability If you are selling wholesale Buyer may dictate the price You can assess prices by downloading USDA Market News website for wholesale and retail prices If you are selling directly to consumers Internal characteristics (produce quality, farm s image, yield, varieties) External characteristics (competitors, consumers preferences, seasonality) Lack of pricing information
Highlight attributes Labeling of credence Bundling Odd pricing Odd pricing
Our project Started in January 017 Bloomington Winter Farmers Market Added 8 markets in the summer Bloomington Community Center Plymouth Culver Lafayette West Lafayette Kokomo Corydon Warrick County (Boonville)
www.purdue.ag/hortbusiness
Week Summary of Prices
Augula (bag) 4.5 4.5 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 Price ($/bag).5.5.5.5.5.5.5.5.5.5.5.5 7-MAR -APR 10-APR 17-APR 4-APR 1-MAY 8-MAY 15-MAY -MAY 9-MAY 5-JUN 1-JUN 19-JUN 6-JUN -JUL 10-JUL 17-JUL 4-JUL 1-JUL 7-AUG 14-AUG 1-AUG 8-AUG 4-SEP 11-SEP 18-SEP 5-SEP -OCT 9-OCT 16-OCT -OCT 0-OCT 6-NOV 1-NOV Highest Lowest
Cantaloupe (each) 6 5 5 5 5 5 5 5 Price ($/each).5.5.5.5 1 1 1 1.5 1.5 4 4.5 1 6-JUN 8-JUN 0-JUN -JUL 4-JUL 6-JUL 8-JUL 10-JUL 1-JUL 14-JUL 16-JUL 18-JUL 0-JUL -JUL 4-JUL 6-JUL 8-JUL 0-JUL 1-AUG -AUG 5-AUG 7-AUG 9-AUG 11-AUG 1-AUG 15-AUG 17-AUG 19-AUG 1-AUG -AUG 5-AUG 7-AUG 9-AUG 1-AUG -SEP 4-SEP 6-SEP 8-SEP 10-SEP 1-SEP 14-SEP 16-SEP 18-SEP 0-SEP -SEP 4-SEP Highest Lowest
Carrots (bunch) 5 4.5 4.5 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 Price ($/bunch).5.5.5.5.5.5.5 1.5 1 7-MAR -APR 10-APR 17-APR 4-APR 1-MAY 8-MAY 15-MAY -MAY 9-MAY 5-JUN 1-JUN 19-JUN 6-JUN -JUL 10-JUL 17-JUL 4-JUL 1-JUL 7-AUG 14-AUG 1-AUG 8-AUG 4-SEP 11-SEP 18-SEP 5-SEP -OCT 9-OCT 16-OCT -OCT 0-OCT 6-NOV 1-NOV Highest Lowest
Cucumber, slicing (each) Price ($/each) 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1 1 1 1 1 1 1 1 1 1 1 0.75 0.75 0.75 0.75 0.75 0.75 0.5 0. 0. 0.5 0. 0. 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 -APR 10-APR 17-APR 4-APR 1-MAY 8-MAY 15-MAY -MAY 9-MAY 5-JUN 1-JUN 19-JUN 6-JUN -JUL 10-JUL 17-JUL 4-JUL 1-JUL 7-AUG 14-AUG 1-AUG 8-AUG 4-SEP 11-SEP 18-SEP 5-SEP -OCT 9-OCT 16-OCT -OCT 0-OCT 6-NOV Highest Lowest
Kale (bunch & bag) 5 4.5 4.5 4.5 Price ($/bag-bunch) 4.5 4 4.5 4 4 4 4.5 4 4 4 4 4 4 4 4 4 4 4 4 4 1.5 1 1 1 1 1 1 1 0.75 1 7-MAR -APR 10-APR 17-APR 4-APR 1-MAY 8-MAY 15-MAY -MAY 9-MAY 5-JUN 1-JUN 19-JUN 6-JUN -JUL 10-JUL 17-JUL 4-JUL 1-JUL 7-AUG 14-AUG 1-AUG 8-AUG 4-SEP 11-SEP 18-SEP 5-SEP -OCT 9-OCT 16-OCT -OCT 0-OCT 6-NOV 1-NOV Highest Lowest
Lettuce (bag) 4.95 4.5 4.5 4.5 4.5 Price ($/bag) 4 4 4.5 4.5.5.5 4 1.95.75.5 4 4.5 4 4 4 4 4 4 4 4 4 4 4.5.5.5 1 1 1 1 1 7-MAR -APR 10-APR 17-APR 4-APR 1-MAY 8-MAY 15-MAY -MAY 9-MAY 5-JUN 1-JUN 19-JUN 6-JUN -JUL 10-JUL 17-JUL 4-JUL 1-JUL 7-AUG 14-AUG 1-AUG 8-AUG 4-SEP 11-SEP 18-SEP 5-SEP -OCT 9-OCT 16-OCT -OCT 0-OCT 6-NOV 1-NOV Highest Lowest
Peppers (each) Price ($/each) 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1 1 1 1 1 1 0.75 0.75 0.75 0.75 0.75 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Highest Lowest
Tomatoes, slicing (lb) 5 5 5 5 5 5 5 5 5 4.95 4.95.99.99 4.99.99 4 4.5 4.5 4.5 4.5.95.95 4.95 4.5.95 4.95.95 Price ($/lb).5.99.99.49.49.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.59 1 1 1 1 1 1 1 -APR 10-APR 17-APR 4-APR 1-MAY 8-MAY 15-MAY -MAY 9-MAY 5-JUN 1-JUN 19-JUN 6-JUN -JUL 10-JUL 17-JUL 4-JUL 1-JUL 7-AUG 14-AUG 1-AUG 8-AUG 4-SEP 11-SEP 18-SEP 5-SEP -OCT 9-OCT 16-OCT -OCT 0-OCT 6-NOV 1-NOV Highest Lowest
Urban vs Rural Price ($/lb) 6.0 5.0 4.0.0.0 1.0 0.0 Tomatoes, slicing (lb) -Apr 10-Apr 17-Apr 4-Apr 1-May 8-May 15-May -May 9-May 5-Jun 1-Jun 19-Jun 6-Jun -Jul 10-Jul 17-Jul 4-Jul 1-Jul 7-Aug 14-Aug 1-Aug 8-Aug 4-Sep 11-Sep 18-Sep 5-Sep -Oct 9-Oct 16-Oct -Oct Urban Highest Urban Lowest Rural Highest Rural Lowest
Urban vs Rural Price ($/dozen) 8.0 7.0 6.0 5.0 4.0.0.0 Sweet Corn (dozen) Urban Highest Urban Lowest Rural Highest Rural Lowest
Using price reports to make informed decisions Farmers can compare produce prices across markets (urban versus rural), units (selling by bag versus by pound), and seasons (selling in winter versus in summer). This information can help farmers assess the potential of increasing or decreasing prices depending on their cost structure, market access, location, and time of the year. Farmers have more information to understand competition in farmers markets by looking at the price ranges of specific crops. Farmers can determine the market window of their crops. Market window is the period of time when produce and prices are available for a specific market. For example, data from our price reports show that asparagus availability in Bloomington started on mid-april ($5 per pound) until mid-june ($.50 per pound).
Using price reports to make informed decisions Farmers can assess the economic feasibility of season extension technologies and new crops by considering when products reach the market (market window) and at what price. For example, farmers can determine if investing in high tunnels to extend the production season or new crop varieties is profitable given previous year s prices. Farmers can evaluate the return on investing in valued-added strategies by assessing if cut-washed-bagged produce has received price premiums when compared to produce sold by pound.
Using price reports to make informed decisions Beginning and current farmers can use our price reports and integrate information with enterprise budgets to estimate potential farm profitability. Growers can assess if market prices are enough to cover production and administrative costs while providing enough money to make a living. Farmers can select market channels for their products. A farmer may decide that selling in a rural market closer to her/his farm may generate enough revenue to meet their profitability goals and give them more time with their families compared to selling in more distant urban markets. Similarly, farmers may find that selling to a neighboring farmers market can bring as much revenue or more than selling to a wholesaler or retailer.
Thank you for your attention