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market-farming - Re: [Market-farming] Pricing produce

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  • From: Matt Cheselka <cheselka AT freestateproject.org>
  • To: Market Farming <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] Pricing produce
  • Date: Mon, 15 Mar 2004 21:24:53 -0600 (CST)

On Mon, 15 Mar 2004, Willie McKemie wrote:

> A grower can not allow customers to dictate prices that are below the
> cost of production. No matter the competition. If you are worried
> that competition is dictating too low prices, you may have the wrong
> product. The point I was attempting to make in the snipped section of
> my reply is that many new growers may not have a good estimate of their
> cost of production.

Of course! Anyone would *at least* want to cover production costs and I'd
think that (for the most part) customers undertand that very well, and are
willing to spend whatever's needed to keep their suppliers (us) happy as
well as *their* customers.

> This is a long term iterative process. Each season I adjust my
> product mix based on demand and perceived profitability. I will grow
> more of an item that seemed to be both profitable and in short supply
> the previous season. I will abandon or grow less of a product that was
> difficult to sell at a perceived profit. I imagine all long term
> growers do the same. Small scale farming is a continuing search for
> the profitable niches.

Hmmm. Your last sentence is an interesting one. When I was asking around
to different grocers what kinds of veggies they'd want from me, a lot of
them said, "just the basic stuff -- tomatoes, lettuce, onions, peppers,
etc." When I mentioned a few of the "specialty" or "niche" veggies I was
growing, they'd say, "Huh? What's that? No, our customers don't want any."
Now I know that this is most likely lack of education on the specialty
veggie, but it shocked me when they seemed more interested in "the basic
stuff" and didn't care much for the unique stuff. I'm hoping to "profit"
by being a steady, reliable stream. Maybe there's a difference in demand
when you compare wholesale and retail?

Thanks for your obviously well-experienced insight, Willie.

Matt Cheselka
Cosmic Lettuce





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