As a farmer re-sale network we work very closely will all the farmers in our network. We work hard to keep each farmer informed of our progress at the market, what customers have to say and how well their produce is selling. Yes, we are a bit out of the norm and a lot of people are confused about what we are really about.
Washington state has a vibrant and booming agricultural community. These farmers are working hard to provide high quality and healthy food for the consumers. There are several ways for farm products to get to the consumer.
- The farmer sells the good on the commodities market – ie, sales yards, conglomerates, contract processors etc.
- The farmer sells direct to the consumer – ie, farmer’s market, Internet, CSA etc.
- The farmer sells to a wholesale business - ie, restaurant, grocery store, distributor or broker
- The farmer joins a co-op or a non-profit broker/distributor
Let’s explore these:
Commodities market: Here the farmer will most likely sell all the produce he grows. The price is usually relatively low and the farmer in not in control of the selling price nor does he always know the price before he takes his good to the sale yard. Transportation cost and logistics is almost always carried by the farmer. It is not in the farmer’s best interest to put a lot of time or money into his product – it often will not raise the value of his goods. Number 1 problem – not enough money for the farmer
Direct to customer: Here the farmer takes a big risk. He will have to make lots of little sales to sell out of all his produce. The price is usually relatively high and the farmer is in control of the selling price so can adjust to the demands of the market. The farmer is required to transport the goods to the market or consumer – often at great expense and time. It is in the farmer’s best interest to invest time and money into his product since he will often see a return on his investment. Number 1 problem – time and expense getting to the market
Wholesaler: Here the farmer has a lower risk than direct to consumer – he will make several big contracts rather than many small sales. The farmer can negotiate an agreeable wholesale market value – though it is often considerably less than the price he would get selling direct to the consumer. Transportation is typically covered by the wholesaler or the cost is shared between the wholesaler and the farmer. The farmer saves time and expense in not having to deliver his good or carry the overhead of large trucks. Market adjustments are slow as the communication lines between farmer and consumer are unreliable. Farmer is less likely to invest extra time and effort into his product unless the investment is somehow made evident by the wholesaler. Number 1 problem – lack of communication between the farmer and the consumer
Co-operatives: In a large co-op the farmer will likely be able to sell all of his produce but will have little say in regards to the running of the co-op. In a small co-op the farmer may not sell all of his produce but will have a greater say in regards to the running of the co-op. Often the price is determined by the co-op with a mutual agreement from the farmer members. Transportation is covered by the co-op, though often member farmers share the cost equally. The farmer saves time in sharing the transportation and marketing. Market adjustments are laborious and require member agreement. Communication lines depend on the individual co-ops and how they are set up. Number 1 problem – laborious decision making and market adjustments – growth is difficult.
How to deal with all this and find the best route for farmers to sell their goods in today’s economy and still be able to make a sustainable living for their families. Often farmers are among the hungriest people, many are on food stamps and other social programs. If we want Washington to maintain it’s farming community there has to be some changes is the way we look at this problem. Combine the best of all the marketing options and attempt to eliminate the worst problems. We need to step back from our traditional way of looking at farms and re-invent ourselves if we are to survive.
The Chef’s Collaborative Regional Food Infrastructure Project in the Summer of 2008 did a great job of analyzing to problem and looking for some meaningful solutions.
Okanogan Harvest was created to address some of these issues. We want to help farmers be more profitable and increase the viability of farming as a sustainable business. Towards that goal we have created the concept of a farmer re-sale network. Due to the elaborate agriculture regulatory system it was more feasible for Okanogan Harvest to function as a Wholesale/Distributor business model. All of the farmers we spoke to were quite adverse to the co-op model. We really like the idea of a true cooperative, however we know that in the business world it is often impossible for a large number of people to all agree on the same things. As a co-op we would be limited in the number of farms we could work with and how we could work with them. As a new and dynamic business we chose not to travel that road.
As a re-sale network we are more flexible and able to make quick adjustments and changes without the need of a meeting or a board decision. All the farmers in our network agree to the founding principles of Okanogan Harvest: to get high quality and healthy farm products to the customer at a reasonable and sustainable price. Towards this end, the main goal of Okanogan Harvest is to achieve a point of saturation for each farmer. Find that magic number, that would allow the farmer to make a living without striping the land and satisfy a certain group of customers. Once that has been achieved for a particular farmer, then we are no longer sell their products. We simply become their delivery service.
Until that day comes – come support our farmer network and visit us at the Kirkland Wednesday Market
coming to Renton in June
