Direct marketing is a popular marketing practice among smaller producers in the United States. We conducted detailed case studies of three organic farming operations of different sizes and compared their marketing costs and profitability in alternative marketing channels. We classified marketing-related activities into three categories: packing and storage, transportation, and selling and administration. By measuring the costs for labor, purchased goods and services, and capital assets associated with these marketing activities, we determined that there are significant variations in marketing costs across marketing channels. For each of our three case-study farms, marketing costs per dollar of revenue were lowest in the wholesale channel and highest in the farmers' market channel. Significant labor costs for the selling activity and transportation expenses offset the higher prices and minimal packaging costs associated with farmers' markets. Profitability can also be significantly affected by marketing factors, such as packing and grading standards, and product that is used for sampling and consumer premiums. Our research demonstrates that the higher prices that producers earn from direct marketing rather than wholesaling are not pure profit; the price premiums are compensation for the costs they incur when direct marketing their produce. Direct marketing channels, such as farmers' markets and Community Supported Agriculture (CSAs), can enable smaller farmers to build financially viable operations, by gaining access to markets, growing their farming operations and reducing their marketing risk. However, to achieve this success, farmers must manage their marketing costs as well as their production costs.

Consumers are increasingly interested in the "values" associated with the food they eat and are often willing to pay more for food for which there is a "story" that links farm to fork. The "values" associated with these foods may be that they are locally produced, by small or mid-scale farms, or use production practices that enhance the environment. Wholesale channels that provide marketing options for small and mid-scale producers and support these values are referred to as "values-based supply chains" (VBSCs). Goals of VBSCs are to: (1) provide greater economic stability for producers and others along the supply chain; and (2) provide high quality, regional food to consumers. After a brief overview of VBSCs, we then describe three cases-a specialty food manufacturer, a natural food cooperative and a regional "food hub"-representing different entry points along the food supply chain. We analyze them regarding the common benefits of VBSCs: transparency, fair prices to farmers and ease of purchasing from small and mid-scale producers. We conclude with common themes that emerge for VBSCs of the future and what it will take to strengthen them within regional food systems.

. Using a supply chain analysis to assess the sustainability of farm-to-institution programs. Journal of Agriculture, Food Systems, and Community Development, 1(4) AbstractInterest in local and sustainable food among colleges and universities has risen considerably in the last decade. This study focuses on how to foster farm-to-institution programs by exploring barriers, opportunities, and potential solutions from different perspectives in the supply chain. We use a values-based supply chain approach to see what unique insights can be offered to people developing and maintaining these programs. Three research methods -a national survey of college students, a survey of institutional food service buyers in California, and in-depth interviews of people in the California distribution system, including farmers, distributors, and food service buyers -are used to collect data and perspectives from throughout the supply chain. Using the concepts from supply chain literature of product flows, financial flows, and information flows, we highlight key insights for various participants in the supply chain. Strengthening information flows and building relationships that allow all parties to build trust over time emerged as one of the most important elements in the success of these valuesbased supply chains. Educational institutions and the media can support these chains by becoming the vehicles for ongoing exchange of information among supply chain partners and the public.

According to the United States Census, California is the most urban state in the nation. Although there are many outstanding examples of urban farms in California, in general, urban agriculture (UA) has been slower to gain momentum here than in some other states with large urban populations. Over the past several years, urban agriculture's popularity in California has begun to escalate, with strong emerging interest in San Francisco, San Jose, Oakland, San Diego, Los Angeles and other metropolitan communities. One challenge for urban farmers and municipal decision makers engaged with UA in California has been limited availability of relevant information and technical assistance. A new project team at the University of California Cooperative Extension, part of the Division of Agriculture and Natural Resources (UC ANR) is working to develop web-based educational resources that will be grounded in a needs assessment that is currently underway. The needs assessment includes a literature review, an internal survey of UC ANR personnel, and community clientele interviews. This paper will report on preliminary findings and analyses of the needs assessment, particularly how UC ANR personnel are engaged with UA, and what tools they think would best serve urban farmers. We suggest implications for those involved with UA, such as personnel of land-grant universities, local governments and non-profits seeking to address the needs of urban farmers in an environment of constrained resources.

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Values-based supply chains (VBSCs) have emerged as a structure to enhance the viability of mid-scale farms while preserving jobs and rural economies. They involve partnerships between producers, processors, distributors, retailers, and food service operators who share environmental, economic, and/or social values. We developed case studies and interviewed key informants to analyze the impacts of access to capital, regulations, infrastructure, and business acumen on the success of VBSCs. Communicating the benefits of VBSCs’ products to customers, as well as to the VBSC partners, was instrumental to the success of the VBSCs in our case studies. However, our key informants emphasized that additional communications are needed to develop markets for VBSCs’ products. Scale-appropriate infrastructure is also required, but funders are not convinced that these investments are secure. Successful VBSCs operate with economies of scale to broaden demand for their products while also generating fair returns to producers and other supply chain partners.

As small- and medium-sized farms struggle to remain viable in a competitive global economy, the expanding specialty food industry provides a potential marketing opportunity. These farms raise many of the farm products that can become the key ingredients in value-added foods. Little research exists about processed specialty foods made from locally/regionally sourced ingredients produced by small- and medium-sized farms. This study investigates the benefits, barriers and challenges for small- and medium-sized farmers who want to sell products to specialty food manufacturers (SFMs). This paper analyzes 240 survey responses from dairy, meat, fruit/vegetable/nuts and grain specialty manufacturers and 60 in-depth interviews of these manufacturers and farmers in California, Minnesota, Wisconsin, Washington and Oregon. We found that almost half of the manufacturers surveyed source primary ingredients directly from farms or from their own farm. More than half of the farms that supply these key ingredients are small or medium-sized, indicating that many farms in this category are already successfully supplying SFMs with key ingredients. The key benefits manufacturers receive from working with these farms included quality assurance, trust, and traceability. Key obstacles to such farmer/manufacturer transactions are: cost, inability to meet volume requirements, unreliable supply and lack of year-round supply. The nature of relationships between manufacturers and farmers emerged as a theme that influences the success of small- and medium-sized farms as ingredient suppliers. Whether they were large or small, most manufacturers purchased their key ingredients from multiple suppliers in order to reduce their risk. Overall, we find evidence that the specialty food industry is an emerging market channel for small- and medium-sized farms. We also find that to be successful suppliers of SFMs, farmers need to have processes in place to ensure the quality of their products; provide the specific attributes the manufacturer requires for its ingredients and be willing to communicate frequently with the manufacturer.