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An Analysis of Vegetable Farms' Direct Marketing Activities in New York State

Author

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  • Uva, Wen-fei L.
Abstract
Farm retail marketing or farmer-to-consumer direct marketing is an important outlet for many New York vegetable products. Marketing direct to consumers takes special skills and abilities on the part of marketers, and also requires a favorable location with respect to land resources and local markets. Since many farmers and direct market managers lack the resources and experience to compete with supermarkets, it is important for direct marketing operators to differentiate themselves from the mass marketers. The goal of this study was to analyze the effectiveness of direct marketing activities and marketing strategies used by New York vegetable farms. A survey designed to collect information on farm retail marketing practices from New York vegetable farms was conducted during the winter of 2000-20001. Results were analyzed based on business profiles of New York vegetable farms with direct marketing activities, marketing channels used, retail seasonality, product mix, importance of different direct marketing activities, effectiveness of different marketing and business management tools, and future plans for various marketing activities. The surveyed vegetable farms had average total farm sales of $274,311 and average retail sales of $123,612. Direct marketing to consumers was an important source of farm income for a majority of the surveyed New York vegetable farms with retail marketing activities. Sixty-nine percent of the respondents received more than half of their farm gross income from direct sales to consumers. However, vegetable farms with direct marketing activities generally did not rely on retail alone. Farms with higher gross sales utilized more marketing channels and depended more heavily on wholesale. May through October is the most important sales season for farmer-to-consumer direct marketing activities. The surveyed farms retailed more than just the items they produced. Purchased items for resale were an important avenue to expand product line and increase the volume of products available for retail. Three most commonly used direct marketing methods were roadside markets, farmers’ markets and pick-your-own. Among all the direct marketing components, fresh farm products – including fresh vegetables, fruits, and meat products - were rated as most important to the operation by most surveyed farms (83 percent). Ice cream stand had the second highest rating but was only rated by 3 percent of the surveyed farms. Ornamental plants and holiday crops were rated number three by 43 percent and 54 percent of farms, respectively. The most commonly used promotion tools were “word-of-mouth” and “newspapers”, and “labor related challenges” and “competition in the markets” were the two major concerns among survey respondents.

Suggested Citation

  • Uva, Wen-fei L., 2002. "An Analysis of Vegetable Farms' Direct Marketing Activities in New York State," Research Bulletins 122632, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudarb:122632
    DOI: 10.22004/ag.econ.122632
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    References listed on IDEAS

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    1. How, Brian R., 1980. "Developing Direct Marketing Programs For Both Farmers And Consumers," 1980 Annual Meeting, July 27-30, Urbana-Champaign, Illinois 279229, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. How, Brian R., 1980. "Developing Direct Marketing Programs For Both Farmers And Consumers," 1980 Annual Meeting, July 27-30, Urbana-Champaign, Illinois 278999, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Agriculture Marketing Service & Bills, Nelson & Roth, Monika & Maestro-Scherer, Jane, 2000. "Direct Marketing Today: Challenges and Opportunities," Analysis 317875, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.
    4. Nayga, Rodolfo M., Jr. & Fabian, Morris S. & Thatch, Daymon W. & Wanzala, Maria N., 1995. "Farmer-To-Consumer Direct Marketing: Sales And Advertising Aspects Of New Jersey Operations," Journal of Food Distribution Research, Food Distribution Research Society, vol. 26(1), pages 1-15, February.
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    Cited by:

    1. Uematsu, Hiroki & Mishra, Ashok K., 2011. "Use of Direct Marketing Strategies by Farmers and Their Impact on Farm Business Income," Agricultural and Resource Economics Review, Cambridge University Press, vol. 40(1), pages 1-19, April.
    2. Visser, Jurriaan & Trienekens, Jacques & van Beek, Paul, 2013. "Opportunities for Local for Local Food Production: A case in the Dutch Fruit and Vegetables," 2013 International European Forum, February 18-22, 2013, Innsbruck-Igls, Austria 164758, International European Forum on System Dynamics and Innovation in Food Networks.
    3. Gedikoglu, Haluk & Parcell, Joe L., 2014. "Variation of Consumer Preferences Between Domestic and Imported Food: The Case of Artisan Cheese," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), pages 1-21, July.
    4. Martinez, Stephen W. & Hand, Michael S. & Da Pra, Michelle & Pollack, Susan L. & Ralston, Katherine L. & Smith, Travis A. & Vogel, Stephen J. & Clark, Shellye & Lohr, Luanne & Low, Sarah A. & Newman, , 2010. "Local Food Systems: Concepts, Impacts, and Issues," Economic Research Report 96635, United States Department of Agriculture, Economic Research Service.
      • Martinez, Steve & Hand, Michael & Da Pra, Michelle & Pollack, Susan & Ralston, Katherine & Smith, Travis & Vogel, Stephen & Clarke, Shellye & Lohr, Luanne & Low, Sarah & Newman, Constance, 2010. "Local food systems: concepts, impacts, and issues," MPRA Paper 24313, University Library of Munich, Germany.
    5. Park, Timothy A. & Mishra, Ashok K. & Wozniak, Shawn J., 2011. "Farm Operator Benefits from Direct Marketing Strategies: How Does Local Food Impact Farm Financial Performance?," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103756, Agricultural and Applied Economics Association.
    6. Visser, Jurriaan & Trienekens, Jacques & van Beek, Paul, 2013. "Opportunities for Local for Local Food Production A Case in the Dutch Fruit and Vegetables," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 4(1), pages 1-15, July.
    7. Velandia, Margarita & Clark, Christopher D. & Lambert, Dayton M. & Davis, James A. & Jensen, Kimberly & Wszelaki, Annette & Wilcox, Michael D., 2014. "Factors Affecting Producer Participation in State-sponsored Marketing Programs: The Case of Fruit and Vegetable Growers in Tennessee," Agricultural and Resource Economics Review, Cambridge University Press, vol. 43(2), pages 249-265, August.
    8. Bartolini, Fabio & Brunori, Gianluca & Galli, Francesca, 2016. "Understanding motivations and determinants of direct sale strategy. The case of Tuscany Region," 149th Seminar, October 27-28, 2016, Rennes, France 244896, European Association of Agricultural Economists.
    9. Wille, Stefan Clemens & Barklage, Britta & Spiller, Achim & von Meyer-Höfer, Marie, 2018. "Challenging factors of farmer-to-consumer direct marketing: An empirical analysis of German livestock owners," DARE Discussion Papers 1807, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    10. Spiller, Achim & Zuhlsdorf, Anke & Mellin, Matthias, 2007. "Farmer-to-Consumer Direct Marketing: The Role of Customer Satisfaction Measurement for Service Innovations," 2007 1st Forum, February 15-17, 2007, Innsbruck, Austria 6607, International European Forum on System Dynamics and Innovation in Food Networks.
    11. Velandia, Margarita M. & Davis, James A. & Lambert, Dayton M. & Clark, Christopher D. & Wilcox, Michael D., Jr & Wszelaki, Annette & Jensen, Kimberly L., 2012. "Factors Affecting Producer Awareness of State Programs Promoting Locally Grown Foods: The Case of Fruit and Vegetable Growers in Tennessee," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), pages 1-15.

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    Crop Production/Industries; Marketing;

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