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Subject: Market Farming

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  • From: "Rick Williams" <mrfarm AT frontiernet.net>
  • To: "Market Farming" <market-farming AT franklin.oit.unc.edu>
  • Subject: Despair from competition
  • Date: Sun, 1 Sep 2002 15:56:43 -0500


Willy McKemie wrote:
> The problem, of course, is that our competitors produce food cheaper
> than we can. I don't mean other local farmers; I mean the mechanized
> and off-shore (low cost labor) competitors. "Organic" growers have
> done a terrific job of creating a premium price and potentially
> profitable niche; unfortunately that niche has grown to such a size
> that it is attractive to both the US mechanized and the off-shore
> producers.

As it always has been and will continue to be. The early adopters of
something new can often receive much higher returns due to the law of supply
and demand. But eventually, others get involved and you have increasing
competition since they too would like those margins.

> What is the answer?
> ->I<- don't have one. Other than selling the farm. If only I had
> enough sense to do it sooner rather than later. But, I don't.

There seems to be a lot of gloom and doom here. Many seem to be desperately
trying to find someone to blame for their situation (evil corporations and
now even other competitors).

If you understand how basic economics works, you will be able to make the
decisions that WILL benefit you for the long haul and allow you to have a
satisfying life. Rather than this defeatist attitude that seems to be here.

Or is it just that the number of posters with these negative thoughts are
the main posters and the rest of the folks are just doing their daily
activities and are having too much fun to post:)

When you are involved in commodity production you either play by the rules
or are forced to leave the business. If you have a niche, you may be able to
do things in your own way ... for a while. But eventually, if it becomes
mainstream, will also become a commodity with the attendent commodity
pricing. That is how our standard of living is raised.

On our farm we typically have a bit under 100 head of livestock. Many people
think that this is a large number until I point out to them that if you are
in the commodity business with that few in number, you can barely even break
even, much less make any income. With a niche market, we can do a little
better, but it still is not easy because you are trading production time for
increased marketing.

Sincerely,

Rick Williams
Misty Ridge Farm
Dairy heifers and dairy beef graziers
Viroqua, WI

www.mistyridgefarm.com


"There are more things in heaven and earth, Horatio, Than are dreamt of in
your philosophy."

Hamlet (I, v, 166-167)





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