Agritourism
As more and more people seek agricultural related experiences, small producers have the opportunity to cater for this demand.
Agritourism is considered any activity or event held on a farm for the entertainment or education of visitors.
This can include farm stands, pick-your-own enterprises, farm stays, tours, weddings, on-farm classes, festivals and more.
Pick-your-own enterprises
Pick-your-own enterprises invite customers to your farm to harvest a quantity of your product for themselves.
Pick-your-own operations can reduce the labour costs of harvesting your produce, while providing an opportunity for customers to visit a working farm and select the product they want to take home. Product is usually sold in $/kg.
This type of set-up requires low capital investment needing only containers, scales, a checkout stand, promotional signs and parking.
Be sure to check with your local government authority (LGA) on any regulations.
The enterprise will require liability insurance and a good supervisor to help customers identify which produce is ready to be picked and prevent them from damaging the crop.
You will also need to work evening and weekend hours as this is when most clients will visit your farm.
It is best to have produce that is easy to identify when ripe (e.g. strawberries or blueberries).
For labour intensive produce, pick-your-own operations are valuable as they eliminate the post-harvest costs of washing, sorting, packaging, storage and transportation.
Limited demand for the product, seasonal conditions and the weather during harvest can influence the success of your pick-your-own enterprise.
A wet or cloudy day during your peak picking period can be enough to stop customers coming, yet a beautiful sunny day may result in a high number of customers, presenting logistical challenges that are best considered in advance.
Roadside stalls
Roadside stalls vary from seasonal, transportable stalls to year-round rural attractions.
They rely on passing trade to sell their product. Location is crucial.
High traffic areas are essential, however, first check with your LGA regarding the area’s zoning and regulations.
To set up a roadside stall you will need a building or stand, parking, containers or packaging and coolers for product that needs to remain refrigerated.
Other costs will include:
- transportation to the site (unless located on your property)
- sales labour
- advertising
- storage.
Owners of roadside stalls will also be liable for accidents that occur on the site, so liability insurance is a must.
Roadside stalls, as with any food business, must register with their LGA and comply with the Australia New Zealand Food Standards Code and the Food Act 2008.
It is essential that food is kept clean, at the appropriate temperature and there is minimal handling of food by the public.
Online sales
The internet is increasingly used for not only advertising businesses but for making sales.
While the internet can potentially increase your sales to customers outside your area, you will require a website that is well developed and maintained.
Customer engagement via social media is commonly used to support your online profile and awareness.
You will also need to consider payment methods, packaging and shipping options.
There are a range of website platforms available and a range of payment gateways to assist you to transact with your customers so that they may purchase your products online.
The best website is of limited value however if potential customers are unaware of it.
Direct sales to restaurants
Direct sales to restaurants can be a great strategy for unique products that are hard for chefs to find.
With the current trend towards local food, restaurants are also trying to source more of their produce from within the area.
Talk to chefs and find out what they prefer, when planning your marketing strategy.
Some may be looking for semi-prepared food (washed, sliced, etc.) while others might be looking for produce they can’t source easily from their usual markets.
The limited quantities required by restaurants may not justify the frequent deliveries required to supply fresh, top quality produce.
Having a number of restaurants in the same area or additional market channels may help offset the time and cost of delivery.
Delivery service
A delivery service has the potential to achieve a premium price for your product.
Try to target high end buyers – exotic restaurants, upscale grocery stores or high socio-economic urban areas.
Strategically, it may be beneficial to have another market or offer the product at reduced costs so that your production that is unsuitable for the delivery service market has a path to customers.
Be mindful of delivery volumes and consider the time it will take to deliver your products and the vehicle cost involved.
A delivery service requires you to:
- develop relationships with your buyers
- provide a year round service
- keep delivery costs reasonable.
It is essential to conduct research on your market and potential buyers before you make the decision to deliver.
Direct selling of products can be a great marketing strategy for small producers, however it is vital that before you embark on any one of these strategies, you research your target market to ensure the best approach for your business.