Marketing Practices and Verified Sustainability
11/6/2009
The following information is bonus material from Top Producer. It corresponds with the article “Shepherds of the Soil” by Greg Vincent. You can find the article on page 32 in the November 2009 issue.
Partnership Marketing
The Shepherd’s Grain brand has solidified by working with their customers to establish a fair price for both parties. Recent swings in the market have provided some uneasy times for the group, like when Hard Red Winter Wheat reached $15/bu. It’s also created easier times when the price plummeted last year to the $6/bu. range.
“When prices got that high, we knew right away who was committed to this system and they’re better off for it now,” says Fred Fleming, a Reardan, Wash., farmer and founder of the group. “We let our customers know our cost of production and we take out the government payments from that. They’ve already paid their share of that money. Then we work out a price they’ll pay and it’s good for six months, but it usually lasts for a year.”
Verified Sustainability
The sustainability message promoted by Shepherd’s Grain centers around a strict no-till philosophy, says Fleming. As part of the Food Alliance, they must undergo environmental stewardship verification that ensures they followed a prescribed set of standards that includes wildlife management practices, integrated pest management, work towards reduced pesticide use, and soil and water conservation standards.
Matt Buck, assistant executive director with the Food Alliance, says farms are certified each year on a three year process. There is initially a third-party on-site inspection of the farm and they certify the whole farm or ranch, along with one or more crop certifications. The Food Alliance acts as an administrator only by setting the standards. They do not provide the inspections, but they do have a list of certified inspectors. Technical assistance is also not a part of their program.
The entire operation must be certified, meaning the farmer cannot select individual fields for certification. After the initial inspection, the farms must complete surveys and questionnaires the following two years to maintain their certification.
“There is the possibility for surprise inspections,” he says. “We certainly do that if we received a complaint that somebody isn’t following the proper procedures.”
The Food Alliance certifies organizations throughout the food chain, from farms to processors and distributors all the way up to food manufacturers, says Matt Buck, the organization’s assistant executive director. He believes groups like Shepherd’s Grain are getting in on the ground floor of the way food will be purchased by consumers in the future and the idea is taking off. The group that was started as a joint project between Washington State University, Oregon State University and the Washington State Department of Agriculture has 6.4 million acres in 25 states certified with the Food Alliance seal of approval.
“Consumers are looking for the experience with their purchases today. The buying behavior lags behind a little bit, but consumer research shows that if they can get assurances of high quality products at reasonable prices, they prefer those products.”
Buck realizes that many farmers may balk at that approach because it is a new way of approaching the market. However, he believes farmers like Fleming are going about it the right way.
“It’s either going to be a top down approach or a bottom up approach. Many retailers and consumers are starting to demand it, that’s top down. Shepherd’s Grain is going about it from a bottom up approach.”