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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, "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. |
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