Marketing and Processing in Market Gardening

Settling in agriculture Short supply chains Diversification Product valorization Direct sales Soil regeneration

Sales are an intrinsic facet of the market gardener's profession. Very different from the production activity, it is nevertheless essential for the success of the farm. It is considered upstream of the project and is updated throughout your career.

Established on small areas, market gardeners in the MSV network generally favor short supply chains which give them the advantage of controlling the selling price and strengthening their integration into the territory. However, marketing channels, even within the category of short supply chains, are multiple and the choice depends primarily on personal considerations, depending on the demand in their territory, the desire to spend more or less time there, and their personality (commercial flair or not).

Study all possibilities and the elements that ensure the success of each sales channel. We refer you here to the comparative table of different sales methods, produced by the Chamber of Agriculture :

Direct sales

Source : Settling in organic market gardening : the keys to success, Chamber of Agriculture, 2019
Sales	Advantages	Constraints	Conditions for success
On-farm sales	Price setting Contact with consumers Showcase for the farm No travel Direct feedback from customers on the production	Setting up a sales area adapted to consumers Significant presence time	Quality products harvested at maturity Very wide range Specific and adapted time slots Farm location and accessibility Commercial sense Communication
Open-air market	Price setting Getting known in a territory Direct feedback from customers on the production	Seasonality Time-consuming Handling Subject to weather conditions and the will of the market organizer (at least at the beginning) Competition with other producers and resellers	Quality products harvested at maturity Very wide range Customer loyalty Enjoy selling Study prices well Have an attractive stand Choose the market well and be well placed Market dynamism (day of the week, number and nature of other sellers)
Roadside	Exploit local traffic flow during holiday periods Handle temporary production surplus	Sales forecasting difficult Dependence on weather hazards Authorization required for public domain	Location on a busy road Important with easy access Installation on a parking lot respecting road regulations
CSA (Community Supported Agriculture)	Cash advance Contact with consumers Optimization of logistics costs Direct feedback from customers on the production	Preparation time (when baskets are made on the farm) Diversity of vegetables requiring a wide range all year round	Rigorous planning Satisfy and retain consumers
Collective producers' store	Diversity of product range Sharing selling time with other members Contact with consumers	Margin taken by the store (between 15 and 30%) Initial investment Life and management of a collective Amount of investments	Very good group organization and shared objectives Planning and distribution of the range Premises well located geographically Regular supply
Pick-your-own	Contact with consumers No harvesting and preparation time	Significant presence time Seasonality Wider inter-row spacing than normally practiced	Farm accessibility Compliance with public reception standards

Sales with intermediaries


Sales	Advantages	Constraints	Conditions for success	Points of vigilance
Specialized stores	Large volumes	Delivery schedules Sizing	Regular supply in quantity and quality Sometimes price negotiation	Good relations with the department and store manager
Supermarkets (GMS)	Promote products to a less sensitized clientele Restricted range	Delivery schedules Interregional competition Packaging Sizing	Regular supply in quantity and quality	Selling price linked to vegetable market prices
Restaurants	Good economic valorization	Small volumes Irregularity High delivery frequency	Reactivity	Risk of non-payment
Out-of-home catering (RHD)	Complementarity with other sales systems Often planned volumes Restricted range	Delivery schedules Limited potential during holiday periods (for school canteens)	Facilitated by the presence of a producers' organization that can serve as an interface (calls for tenders, logistics…)	Logistical organization
Wholesalers / cooperatives / industry	Little marketing time	Selling prices linked to vegetable market prices Packaging No valorization of off-grade products Delivery	Ability to supply large volumes	Prospecting and ongoing commercial relationship
MIN (producers' market)	Limits deliveries by concentrating sales in one place	Not necessarily a specifically organic market	Very early hours	Be present regularly

Asking the right questions

To better understand and optimize the commercial strategy, here are some questions to ask yourself. First concerning the economic part of your project, study precisely the supply/demand ratio by trying to gather as much information as possible :

About the target consumers : number of people per household, key purchasing criteria, preferred purchase times and places, average frequency of vegetable purchases per household, average price spent per week,...
The effects of supply on these consumers : loss leaders, best sellers, number of people present, quantity of vegetables sold per sales channel,...

Depending on your turnover objectives, you can already have a vision of where it will be necessary to act and how.

The second key factor concerns time management, to be studied carefully so that sales do not become a burden : it involves studying the distribution of time within this position itself and not neglecting any moment. Thus, time spent setting up at the market or on the farm, time spent on the road, time spent preparing orders (outside harvesting) and pure selling time will be counted.

The diversity of marketing channels is favored by some market gardeners who accept its time-consuming nature for the security it guarantees. Linked to the time factor but also because it is necessary to realize one's strengths and field of possibilities, it is necessary to keep in mind the required workforce and the available workforce to successfully carry out sales. Likewise, your production capacity is decisive : do not open a new channel if you cannot meet the corresponding demand.

Setting and displaying your price

The selling price depends both on the cost price of the product and on the market prices. Local GRABs can provide price lists to give an idea of the prices practiced. Field observation can also be very effective to know the very localized market prices. However, remain flexible : prices can be a little above average to justify no soil work, the use of old varieties, ... but can also go down for wholesale prices or damaged vegetables. It is difficult to increase a price, so do not start too low. The psychological price, i.e. what consumers are willing to pay for a given product, also plays a big role. For each product sold, regulations require displaying the VAT-inclusive selling price (per unit of weight or measure, on a sign, label or poster), the species name, the origin, the category or size, the variety name.

Communication

An integral part of any sales strategy, communication is very important for the success of your activity. It allows both to recruit and retain customers. In view of the rise of the consumer-actor and their ever-increasing demands in terms of transparency and return to naturalness, the farm, carrying eco-responsible and social values, has every interest in playing on this advantage to make itself known. Explain your approach and your specific practices (agroecology, living soil market gardening, permaculture,...).

A satisfied customer at their first purchase is likely to become a regular while contributing to the good reputation of the farm. Also, observe the quality of the offer and the customer experience by putting yourself in the place of the potential customer :

How to know, find and park at the farm? Is there a signposted route? Where to find sales times and places, is the stand visible and accessible? If sales take place on the farm, is there parking?
Does the stand make you want to buy? Is it bright? Spacious? In what containers are the vegetables presented on the stand and on what furniture? Are the vegetables presented washed? Sorted? How are they arranged? Are common vegetables easily accessible? Are all prices clearly indicated?
Do the farm's name and logo appear on the stand? Are there posters presenting the farm?

Communication can take other forms, especially when it is part of a desire to retain customers and a real exchange with the local community, with farm events (visits, workshops, education...) or outside.

Processing

Why?

Processing your products can be based on a personal desire, on a demand from customers or on an economic strategy, since processing has many advantages :

Limit losses (unsellable vegetables : size, overripe, defects, leftovers). Processing a product gives it value again and fights against waste.
Expand your range.
Offer a loss leader product that can generate enthusiasm for other vegetables.
Compensate for lack of supply in winter, bring originality to the stall or basket.

However, pay attention to the cost price of this new activity which, in addition to being time-consuming and requiring workforce, requires significant material investment.

How?

Several solutions are available to farms wishing to process their products. Given the significant investments, it is possible to organize in groups to invest in collective workshops, or to outsource the activity by delegating it to another farm, a specialized company or even a structure such as an ESAT (Establishment and Service of Assistance through Work). However, if you really want to engage alone in this project, study the specific details related to setting up a processing laboratory. Subsidies sometimes exist at the regional level; it is advisable to contact your Chamber of Agriculture for help with this project.

During the construction of your project, do not forget the types of processing without sterilization in jars, which require less investment and can be implemented gradually to test before fully committing. Example : drying, lacto-fermentation, pickles, preserves, syrups, …

To know which processing is best suited to the product, consult this article:

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What processing is possible on the farm depending on the production?

What legislation?

Processing concerns “any action resulting in a significant modification of the initial product, including by heating, smoking, salting, maturation, drying, marinating, extraction, extrusion, or a combination of these processes” (Regulations (EC) No 178/2002 chapter 1, 852/2004 article 2, and 853/2004 Annex I).

The sanitary regulation governing it for small businesses is important. Here is how it appears on the website of the Ministry of Agriculture and Food :

The basic texts of the “hygiene package” apply in all cases :

Regulation (EC) No 178/2002, which defines in particular obligations regarding responsibility, traceability and product withdrawal-recall procedures in case of non-compliance;
Regulation (EC) No 852/2004, which sets general rules on food hygiene for all foodstuffs, including plant-based ones.

Regulation (EC) No 852/2004 first requires operators to be registered with the competent authorities. Any activity must be declared by its manager to the Departmental Directorate of Social Cohesion and Consumer Protection (DDPP or DDCSPP) of the department of establishment, or, in overseas departments, to the Directorate of Food, Agriculture and Forestry (DAAF). The declaration can be made directly online on the site MesDémarches.

Premises, equipment and materials must be designed to avoid any risk of contamination of foodstuffs. Means, particularly refrigeration, must allow perfect preservation of perishable products. The operator must implement “good hygiene practices” (cleaning-disinfection, pest control, training, self-checks, staff health, cold chain…), and must establish and apply procedures allowing them to guarantee the hygienic quality of products (hazard analysis, risk analysis and control of critical points based on procedures relying on HACCP principles). For this, they can be assisted by good hygiene practice guides of the concerned sector, when they exist.

Approval is not necessary if the producer delivers directly to the final consumer but mandatory

if an intermediary is involved (collective or institutional restaurant, food artisan, retailer). However, in this case, approval is only required for processing animal-origin products. Regulation No 853/2004 and the approval obligation thus do not apply to plant-origin products nor to foodstuffs containing both plant-origin and processed animal-origin products (provided these animal products have been obtained and handled in accordance with the requirements of Regulation (EC) No 853/2004).

Thus, in a market gardening system where approval is not necessary, it is especially important to focus on the hygiene of your premises and processed products (sterilization,...) as well as on labeling : it is necessary to mention the best before date (BBD) (date de durabilité minimale = former DLUO), the net weight, the lot number and the title, as well as the sugar content for certain products such as jams. The BBD appears on all grocery products, canned goods, beverages and frozen products. When the packaging of a product includes a manufacturing date (day, month, year), the mention “Best consumed within ... after the date shown...” can replace the BBD.

Testimony from MSV Normandy network members : Edouard Stalin and Louise Deffontaines, Mare des Rufaux farm (27)

The processing laboratory was completed at the end of August 2020, for an investment of €12,000 in fittings in an already existing building. Here is an almost exhaustive list of the works to make the place operational :

Wall covering, electricity, lighting, floor and wall tiling.
Furniture purchase : 5-burner stove with 2 ovens, stainless steel table, 2 stainless steel cabinets, double stainless steel sink, hand wash basin.

A large part of the work was done by themselves to reduce costs and some furniture was bought second-hand. The laboratory is mainly used for making jams, jellies and syrups, which do not require sterilization. The market gardeners note the difficulty of freeing up time to fully use this investment.