Farmers markets see soaring growth
By Patrick Meagher
OTTAWA — Five years ago, Chris Hall says his sales at farmers markets were virtually "zero." Today his apple products are in five farmers markets accounting for 30 per cent of his overall revenue. The rest of his business revenue is split between on-farm sales and contracts with retailers. He’s riding a wave of consumer interest in buying locally grown food from the guy who produced it and he’s loving it. "People want to look the guy in the eye who made the product," he said.
The full-time Brockville farmer and owner of Hall’s Apple Market just opened his first kiosk at an indoor farmers’ market, the Ottawa Urban Market, which opened last month, in the city’s east end strip mall on Innes Road, sandwiched between a Costco warehouse and Rona building supplies.
There’s a surge of farmers’ markets across the country. In Ottawa alone, the increase is astounding. There were only two farmers markets for years and almost all sellers were retailers. Now there are six. Four new markets opened in the past two years and this year the retailer–controlled Byward Market – where U.S. President Barak Obama bought some baked goods last month – is seeking out real farmers to sell produce there. Hall said he’s thinking about it.
Hall sells at all four new Ottawa locations, noting he quit the Brockville market five years ago. "We earn more in one good day at the Lansdowne market than in the entire season in Brockville," he said.
John and Cora Beking, near Kemptville, also sell eggs at the three new Ottawa farmers markets and say they dropped some retail clients to concentrate on direct sales, which has its obvious advantage. "We get retail price, not wholesale," said John Beking.
Farmers’ market surveys are only now beginning to reveal what was once a secret. There’s money to be made. A Canada-wide study of 508 farmers markets last year found that a consumer spends on average $32 per visit. After it’s first year in business two years ago, Ottawa’s Lansdowne Park market revealed that vendor-producers were grossing on average $1,000 per day. Little wonder, there are now more than 500 farmers markets across Canada, up from 400 five years ago.
Hall says, however, when it comes to marketing, farmers have work to do. "Farmers are their own worst enemies because we want to be nice. I’d give everything away."
The biggest pricing issues at a farmers market is that farmers can set price too low, he said. He recalls five farmers selling sweet corn at a market. They couldn’t agree on price. One farmer set a price of $6 per dozen. The others set a price of $5 per dozen The guy selling at the higher price sold less corn but still went home with more money.
You have to be willing to accept change and be creative, he said. He recalled when Pick-your-owns were all the rage. "Then people said it was too much work. So, you have to adapt. The whole thing we learned was value-added. You can sparkle the apple cider with carbonated water and that takes a $5 sale to $15."
He and his wife, Christine, even hired on-farm sales consultant Bob Cobbledick to boost sales. He took one look at their 2,500 sq. ft. on-farm store, just east of Brockville, and asked: Why aren’t you selling baked goods? They opened a bakery that now accounts for 30 per cent of their farm gate sales. They’ve opened their own online store at www.hallsapplemarket.com. Hall even called Majic 100, an Ottawa radio station offering a slice of apple pie to President Obama for his first visit to Canada. The host invited Hall on the show. "It’s so good I’m going to give it to my girlfriend," said show host Kevin Nelson. "I was on for three minutes," said Hall, with a broad smile. "I can’t buy that kind of air time."