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Unit 2: Marketing Opportunities and Strategies for Sustainable Farm/Ranch Businesses

Intermediary Marketing.

Intermediary marketing is often called “business-to-business marketing” for the good reason that one business (farm or ranch) sells to another business (intermediary) rather than to a final customer or end-user. Wholesalers, retailers, institutions and restaurants are all examples of intermediary buyers.

• Retail Marketing

• Move
• Close
Retail Marketing:

With the increasing interest in local and regional food systems, many farmers are developing retail relationships with local supermarkets and food coops. The advantages of selling into retail markets is that the retailers often provide some storage, logistical support and advertising. The disadvantages? They often require a consumer-ready product and take a larger share of the profit than wholesalers.

• Wholesale Marketing

• Move
• Close
Wholesale Marketing:

Wholesalers and processors are intermediaries that typically take possession of products (unlike brokers or handlers of conventional bulk grains) and arrange sales with retailers. Many farmers have begun using traditional wholesalers or developing their own wholesale networks to break into retail markets. The advantage of selling to wholesalers is that they often handle the processing, packing and distribution of the products in preparation for the retail market. The disadvantage, as many farmers have discovered, is that in return for these services, wholesalers take a substantial cut of potential profits. Moreover, the wholesale market is large and can be difficult for small farmers to access because of the volumes required.

• Restaurants and Food Service Marketing