Posts Tagged ‘profit’

Dear Consumers; For American Farmers, Profit = Quality.

By Heather Koehler, February 25, 2010

According to a research study conducted by the National Corn Growers Association (NCGA) in 2009, 42 percent of Americans say they believe farmers care more about profits than quality. Although this percentage represents less than half of Americans, this number is still astonishingly high and almost half. 42 percent!

Recently, the ag industry has reminded consumers that farmers are businessmen who farm because they love it, but also farm to support their families. Farms are businesses that need to make a profit if they are to continue to stay in operation. And because Americans need food, America needs farmers to stay in business.shopping cart

Although this profitability message is important, it’s missing an important secondary message, as is proof by the NCGA study: To be profitable, farmers and ranchers need to produce quality.

This principle has been in practice for several decades. Grain growers receive dockages for elevated mycotoxin levels and foreign material. In fact, if the grain quality (of corn, soybeans, wheat, anything used in food or feed production) is too poor, whole loads of product can become unmarketable.

Same goes for produce. Poor-quality produce is never picked for purchase, whether at a farm market or supermarket. And also for meat. Higher quality meat becomes steaks and roasts, which pays premiums over meat used for hamburger.

So to all my fellow agvocates, remember to spread this message. Farmers DO care about quality because it means profit.

Where do you see consumers mis-judging food quality?

With deep roots on her family farm and a passion for creating a positive community of agriculture, Heather is making connections and executing sound PR strategy for AdFarm clients every day. She can be reached directly at Heather.Koehler@adfarmonline.com or @hlkoehler


http://www.agrimarketingdigital.com/?iid=31401 pages 32-33

Six farming issues in Peru – do they sound familiar?

By Art Froehlich, January 26, 2010

I’m sitting here in the district of Pachacamac Peru in the region of Manchay Alto. It is late in the evening and I am just collecting my thoughts on a great day spent with 60 small land holder vegetable producers. No matter where I travel in the world and no matter the crop, country or size of farm the issues are surprisingly similar. These farmers average 3 HA in size, growing peppers, cauliflower, broccoli, potatoes, strawberries and corn. In most cases, they’re  producing 2-3 crops per year! So what are the issues that they’re facing today?

1. Declining margins,  eroding profits and rising input costs. These farmers use the latest plant protection, seeds & fertility programs — Bayer Crop Science hats are everywhere! And they’re all still working hard to find the right balance for their business.

2. Improving marketing skills to grow the right product for the market at the right time.

3. Gaining access to capital. Today in  Peru, interest rates on operating lines of credit are at 20%. Bank financing is difficult to get so trade finance, in many cases, is the only option.

4. Adding value to products. Process products into new value added products to differentiate them in the market and create longer-term security.

5. Getting closer to the consumer — becoming part of a shorter supply chain.

And what makes farming in South America  just like many other places?

6. Water. Or should I say the lack of it.

Between urban pressure for more and more water coupled recently with a highly unusual climate, the pressure is on not to thrive but survive. These farmers can now only receive adequate irrigation water allocations for 5 months of the year. Sounds similar to the water issues in Alberta, California & a myriad of other places around the globe.

The question is – can technology solve this issue?

Art Froehlich is a global Agri-business consultant and strategist. He can be reached at Art.Froehlich@adfarmonline.com