Thursday 28 February 2008

From the Farmers Mouth - Farmers Views on Diversification

In light of the startling statistic that 19% of farm profits come from diversification compared with under 5% from farming excluding subsidies, it seems a good idea to take a regular look at what farmers themselves are saying about their diversification activities. The farming press is a good source of news and views. The last twelve weeks alone have seen farmer diversification stories covering beef, lamb, free range geese and turkeys, cheese, milk (including green top unpasteurised and flavoured), cheese, spelt flour, vegetables, Xmas trees, real ales, farm shops, milk rounds, a conference and venue centre, and a four star hotel and restaurant. Most farmers focus on one or at most two related products, like beef and lamb, or turkey and duck. Those trying to manage alot of ventures speak of hard work and long hours.

Ways of selling vary almost as much as what is sold. Farmers markets are used by almost all produce sellers, followed by local and farm shops. Three farmers have flourishing milk rounds, bucking what is usually seen as a shrinking sector. One farmer is selling to schools, one to a supermarket, two use mail order, and one has an online shop.

The range of activities may be wide, but the thoughts about what makes a diversification successful are common to many.
Top of the list is knowing what the customer wants and giving it to them. William Craig of Gote Farm Sussex, with a milk round selling green top milk says "People are concerned about food miles, where their food comes from, and health". Lynne Lindley, farming free range turkeys and geese with husband Tim, says "People want to buy a quality bird which they know has been reared to the highest possible welfare standards". Duncan Jeary of Hawthorn Farm near Holt, selling Angus Beef direct says much the same: " The customers want to know where their meat comes from. Price is less of an issue.Most are happy to pay a little more for local produce". Another farmer with a milk round, Rhys Lougher, says " We are producing what local people want - fresh natural milk that is fresher, tastes better, and has not travelled long distances.In return they are pleased to support their local farm, and regularly comment on how much better the milk tastes." Robert Garner of Godwick Hall Farm says "We are not just a turkey producer we are a service provider.The more I help customers, the more I will sell."
Iain Roberts, from Solfach Farm near Aberdaron who has opened a four star hotel says "We are aiming to attract visitor types right across the board, but in order to do that you have to offer high class facilities".

Another common thread is that most farmers have gone for the premium end of the market, and at minimum sell above supermarket prices.

Having a brand name and good design is seen as important. Richard Tomlinson from Gracemire Farm near Preston, selling lamb at farmers markets, says "Branding is a key factor in success. A brand name is needed right away." Robert Garner talks about "Promoting the Godwick brand".

When it comes to publicising the products and finding customers, one of the most popular ways is through farmers markets because there are high numbers of people passing by, and leaflets can be given out explaining the benefits of the products or any special offers. Some of the farmers have used leaflets left in local shops to publicise their venture. Word of mouth is also very important. The power of the celebrity chef is mentioned by Ben Rigby of Maldon in Essex who says "Celebrity chefs picked up on game, and began promoting it. We've seen a dramatic rise in trade".

As for "watch outs" when diversifying, the best advice probably comes from Laurence and Eira Harris from Ffosyficer Farm near Abercych. They bought a milk round, but there was alot of local competition who just dropped their prices and drove them out. The lesson is that whatever the diversification, it has to be different and better than existing competition.

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