Direct Marketing for Farmers and Ranchers

Summary

This video tells the story of a 140-year-old ranch that has evolved from commodity production to value-added products like beef, lamb, wool, grains, and hay. Facing market pressures, the ranchers diversified by processing their wool into yarn, creating a unique brand with heritage and quality at its core. They overcame challenges with common sense, strategic marketing, and a SARE grant, building strong relationships with yarn shops and emphasizing the story behind their products.

Takeaways

• 🌾 The ranch has a long history of producing various agricultural products such as cattle, sheep, grains, and hay for nearly 140 years.
• 🐏 They have transitioned from selling commodities to focusing on value-added products like beef, lamb, wool, and hay.
• 🛒 The shift to value-added products was motivated by challenges in commodity markets, including market loss and poor prices.
• 🧶 The ranch initially focused on wool, as they faced the disappearance of the raw wool market, necessitating a move to a saleable form.
• 🚿 Processing was identified as a critical first step, with the need to find ways to wash and improve the raw wool to create a finished product.
• 🌐 Leveraging the internet and industry associations helped the ranch find processing partners and market their products.
• 🏷 The ranch created a unique marketing package that highlighted their heritage, using a local artist to recreate a historic logo for branding.
• 📸 Photography and professional packaging were identified as key to presenting their products in the retail market, leading to the application for a SARE grant.
• 🏆 The SARE grant was instrumental in overcoming the costs associated with product development and positioning the ranch in the retail marketplace.
• 🔗 Building relationships with yarn shops was crucial, as these shops became interested in the ranch's story and the origin of the fiber they sell.
• 💪 Overcoming obstacles in marketing is seen as an opportunity to demonstrate resilience, perseverance, and the strong character of those in agriculture.

Q & A

What is the primary focus of the ranch mentioned in the script?

The primary focus of the ranch is to produce a variety of agricultural products including cattle, sheep, grains, and hay, with an emphasis on value-added processes to create products like beef, lamb, wool, yarns, textiles, and apparels.

How long has the ranch been in operation?

The ranch has been in operation for almost 140 years.

What changes have occurred in the ranch's approach to selling cattle and sheep?

The ranch has shifted from selling cattle and sheep as commodities to a value-added process, raising lamb for the table and producing fiber for yarns, textiles, and apparels.

Why did the ranch decide to change its marketing strategy?

The ranch decided to change its marketing strategy due to pressures in commodity markets, including market consolidation, loss of markets, and poor prices.

What was the initial focus when the ranch started to add value to its products?

The initial focus was on the wool, as the market for raw wool had completely disappeared, and the ranch needed to find a way to make it saleable.

How did the ranch approach finding a market for its processed wool?

The ranch used the internet, search capabilities, and phone calls to industry associations to find processing partners and potential markets for its wool.

What were the challenges faced by the ranch in marketing its products?

The ranch faced challenges such as lack of knowledge in retail, marketing, branding, packaging, and selling, as well as the fear that no one would want their products.

How did the ranch use its heritage in its marketing strategy?

The ranch used its heritage as a key element in its marketing strategy, incorporating the original founder's logo and the story of the ranch into its branding and packaging.

What role did the SARE grant play in the ranch's product development?

The SARE grant helped the ranch overcome the costs of product development, allowing them to create professional-looking packaging and marketing pieces, which were crucial for positioning their products in the retail marketplace.

How did the ranch build relationships with yarn shops?

The ranch built relationships with yarn shops by starting with historic and heritage outlets, then gaining confidence through national catalog retailers, and finally by inviting shop owners to visit the ranch to understand the origin and processing of the fiber.

What is the significance of the sheep bells in the ranch's packaging?

The sheep bells in the packaging symbolize the ranch's heritage and create an auditory association with the product, reminding customers of the peaceful sound of sheep bells on the ranch.