HOME
How to Advertise
How to Subscribe
About Us
Classifieds
Contact Us
Coming Events
Archives
Farm Facts

Copyright © 2001 Eastern Ontario Farmers Forum Inc. All Rights Reserved

How to direct-market your beef

Takes 2 years to build clientele, Scott says

By James Pascual

CARP — More and more beef farmers are launching web sites, erecting signs at the farm gate and heading to the nearest farmers’ market in a new wave of direct marketing of beef.

Hopes of bridging the money gap through consumer sales, created by a closed U.S. border to live Canadian cattle, have become, for some, a surprisingly good side-line while for others it’s an adventure in frustration.

Renfrew County cow-calf operator Bob Dobson has sold 20 of his 200 cows through direct-market sales after the U.S. border closed. Sales were slow after setting up a web site but picked up this summer when he set up a kiosk at the Carp Farmers Market. "You can’t market a large number of beef with direct marketing," said Dobson, adding that most customers ask if his beef is free of hormones and antibiotics.

It helps to have a unique angle. Some farmers have found a peculiar niche, marketing so-called illegal and uninspected beef through the Lanark Landowners Association, which has attracted hundreds of buyers who have lined up for hours at four different locations to buy cut and wrapped beef at $1.99 a pound.

John Scott, of Heartland Farms near Pakenham, has been direct-marketing his beef for seven years. He knows the marketing problems and watched farmers jump into direct marketing since the U.S. border closed May 20, 2003.

"It has turned out to be a good idea for us but it takes over half the energy of the family in marketing," Scott said. "That’s a huge investment for most people. That’s a frustration with most cattlemen."

The biggest mistake of the new direct marketers is that they start with prices that are too low, he said. "You can easily undercut yourself. They are not counting all their costs. The labour, cancellations, bounced cheques and other various costs that occur."

Last year, Scott was the only farmer selling beef at the Carp farmers’ market, west of urban Ottawa. This year there are four kiosks selling beef.

And while he grew his business by 10 per cent every year, this year sales hit a plateau, suggesting that the market is already swelling with suppliers.

"Most farmers are trying to do a little direct marketing on the side" but they should not think of it as a quick fix, Scott said. "It does take about two years to build up a clientele."

You have to think of this as starting an entirely new business, he said. "Think of it in terms of a separate business that will feed into your main business and then you won’t be disappointed. This attitude could keep a lot of young farmers on the farm."

Scott buys no advertising, although he says classified ads have helped some direct marketers. Instead, he opted for a website, sends e-mail updates of sales and mails out an annual newsletter. His stand at the farmers’ market provides the human contact and valuable word of mouth referrals.

"A lot of the work is in keeping the mailing list up-to-date," he said. "But having a mailing list helps a lot."

Although competition has stiffened he believes the cottage industry of direct marketing has tremendous growth potential. "There is a huge amount of meat being consumed in eastern Ontario and we’re just scratching the surface."

The Heartland Farms marketing angle includes offering natural grass-fed beef.