Farm gate marketing or farmgate sales describes a

direct marketing Direct marketing is a form of communicating an offer, where organizations communicate directly to a pre-selected customer and supply a method for a direct response. Among practitioners, it is also known as ''direct response marketing''. B ...

method whereby farmers sell agricultural produce—mostly food—directly to the

consumer A consumer is a person or a group who intends to order, or uses purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. T ...

, to restaurants and caterers, and to independent retailers. Farm gate sales are a common type of marketing found throughout traditional small farming sectors worldwide and, in some countries, account for the vast amount of sales as far as foodstuffs and livestock are concerned.

Characteristics

As the name implies, farm gate sales is a marketing strategy undertaken by the producer near the location where the product is produced. Consumers come to the production unit or farm to buy produce and, in some cases, pick the produce themselves. Examples include the sale of vegetables from a producer's garden, the sale of eggs from an egg production unit, the direct sale of livestock from a ranch, and pick-your-own berries, fruits, and flowers operations. In general, there is no limit to the type of items that can be marketed in this manner, as long as there are willing buyers and local ordinances permit such sales. Sometimes, a very limited number of intermediaries are situated between the farmer and the consumer (see also

short food supply chains A broad range of food production-distribution-consumption configurations can be characterised as short food supply chain (SFSCs), such as farmers' markets, farm shops, collective farmers' shops, community-supported agriculture and solidarity purch ...

). Generally,

wholesale Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services. In ...

rs and

retail Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and t ...

ers are bypassed, and revenue received from the sales contributes immediately to a farm's income. In terms of social goals, farmgate sales help to build a direct relationship between the farming community and consumers, as well as fostering respect for food and awareness of how it is produced by consumers. It can also contribute to budget savings by consumers (see also potato movement). In environmental terms, farmgate sales shorten transport distances and are expected to reduce

food waste Food loss and waste is food that is not eaten. The causes of food waste or loss are numerous and occur throughout the food system, during production, processing, distribution, retail and food service sales, and consumption. Overall, about o ...

Sales methods

Farmgate sales are most common in the form of either retail outlets in a

farm shop A farm shop, or "farm stand" in the United States, is a type of retail outlet which usually sells produce directly from a farm. Some farm shops also resell related goods such as locally produced groceries, foods, drinks and delicatessen products. ...

, roadside farm stands, or at stands run by farmers at

farmers' market A farmers' market (or farmers market according to the AP stylebook, also farmer's market in the Cambridge Dictionary) is a physical retail marketplace intended to sell foods directly by farmers to consumers. Farmers' markets may be indoors or o ...

s or food fairs. However, other distribution channels are also used, such as

door-to-door Door-to-door is a canvassing technique that is generally used for sales, marketing, advertising, evangelism or campaigning, in which the person or persons walk from the door of one house to the door of another, trying to sell or advertise a p ...

sales and distance selling–so-called "box schemes"—where farmers take orders by telephone, mail order, or via the internet. Also practised are "

pick-your-own A You-Pick ("U-Pick") or Pick-Your-Own (PYO) farm operation is a type of farm gate direct marketing (farm-to-table) strategy where the emphasis is on customers doing the harvesting themselves. A PYO farm might be preferred by people who like to se ...

" schemes, where farmers invite consumers to pick their own fruit and vegetables.

Challenges

A main challenge for farmgate sales lies in ensuring compliance with food laws (e.g., hygiene rules and labelling requirements), as well as

consumer law Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent business ...

(information requirements and, at times, the consumer's right to withdraw from a contract of sale). This complex regulatory environment can be difficult to handle for farmers not trained in these areas.

Regulations

Under the heading of "Product of my farm", the

European Commission The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body o ...

has started to take an interest in promoting farmgate sales and is contemplating a policy that would encourage farmers to engage in direct marketing schemes for their produce. In parts of North America, such as in the Canadian province of

British Columbia British Columbia (commonly abbreviated as BC) is the westernmost province of Canada, situated between the Pacific Ocean and the Rocky Mountains. It has a diverse geography, with rugged landscapes that include rocky coastlines, sandy beaches, ...

, regulators began to take an interest in farmgate sales and creating rules to facilitate direct sales from farms in 2009.

References

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External links