When it comes to agricultural marketing, structure is key. While you may be putting out social posts, engaging with industry events, and promoting new products, if your marketing strategy doesn’t have a structure (or doesn’t exist), you may be throwing resources into the void. A well-structured marketing strategy can help you optimise your resources and manage your output effectively. It can reduce losses from inefficient processing, storage, and transportation, increasing your marketable surplus and helping you expand your market. 

Structuring your agricultural marketing efforts effectively can stimulate growth, help you plan production according to market needs through price signals, add value to your products, and encourage farmers to adopt new scientific and technical knowledge through market clearance assurance. Whether you choose to partner with an agency or implement a strategy yourself, there are a few key things you will want to keep in mind. 

So what is agricultural marketing?

Agricultural marketing involves the process of planning, producing, pricing, promoting, and distributing your products to meet consumer demand. It’s a crucial aspect of the business process to ensure fair prices, reduce post-harvest losses, and enhance income stability. Marketing doesn’t just help grow awareness of your business but can play an important role in connecting rural producers with urban markets. 
 

The 7 stages of agricultural marketing

The 7 stages of agricultural marketing break down agricultural marketing strategy development into key phases. By systematically addressing each of these stages, agricultural businesses can create a more effective and profitable marketing strategy. This structured approach helps farmers navigate the complexities of modern agricultural markets, from production planning to final sales and customer feedback.

Production planning and analysis

The production planning and analysis phase is arguably the most important step for producers. It allows farmers to align their output with market demands, and make informed decisions about what to grow, and when. 

Market research allows farmers to analyse consumer trends and preferences. This can then inform how they use agricultural marketing tools like crop planning software to optimise land use and crop rotation, which then are informed by data analytics to predict market conditions and potential yields. Combining these three aspects can allow you to better match your production to market needs, and guide your communications, leading to increased profits and reduced waste. 

Harvesting and processing

Once your crops are ready, the processing stage comes into play with preparing them for market. Sorting and grading your product based on quality and size, and implementing quality assurance programs to ensure they meet industry standards are the first steps. Once this has been performed, you can look at certification processes for obtaining labels like “organic” or “non-GMO”, promoting your sustainability efforts, and designing attractive, functional packaging. 

Another, newer process that can help businesses reduce waste is partnering with organisations that take produce that may not quite meet aesthetic or size requirements, and selling them at a reduced cost such as Farmer's Pick. This process not only adds value to your raw agricultural products but can significantly impact your marketability, particularly when it comes to the “organic” labels. 
 

Storage and preservation

All farmers would know that proper storage is crucial for ensuring the maintenance of product quality and managing your supply. Whether this includes cold storage, post-harvest technologies like controlled atmosphere storage, or inventory management systems that track stock levels and product freshness, effective storage allows for longer shelf life, potentially allowing farmers to capitalise on better market prices. 

Transportation and distribution

The transportation and distribution stage is one of the most crucial stages of the process. This means implementing logistics management software to optimise routes and delivery schedules, coordinating supply chain solutions between producers, distributors, and retailers, and building rapport and partnerships with distributors to expand market reach for your business and ensure your product meets your customers in the best possible condition. 

Pricing and market entry strategy

This is where your agricultural marketing strategy starts to take tangible shape. Determining the right price and target market is imperative for ensuring the highest possible success. This involves undergoing extensive market price analysis, competitor product and pricing research, and yield forecasting. It requires identifying your target market through a deep understanding of their wants, needs, and values. For example, if you’ve made the significant effort to ensure your crops meet organic standards, you want to be able to highlight that label and promote it to those who are most likely to buy it. Strategising how you will price and enter the market can make sure you get the most profit from your product. 
 

Promotion and branding

Creating a strong brand identity can help to differentiate your products in what is an especially crowded market. This involves looking at branding and design, developing unique logos and packaging; developing a social media strategy to engage directly with customers; looking into digital advertising to read broader audiences online; and participating in trade shows to network and showcase products to industry buyers. 

The more effective your promotion efforts, the stronger your chances of building brand loyalty, and the more likely you are to benefit by commanding premium prices. 
 

Sales and customer feedback

The final stage involves the actual sale and gathering consumer insights to inform future market planning and strategies. This involves assessing online platforms for direct sales to customers or retailers, managing customer relationships and sales data through CRM software and implementing retention strategies such as email marketing, and collecting feedback through customer surveys to ensure you are continually improving your product. 

This stage is crucial. The sales process generates revenue, yes, but it does not stop at payment. Retention and loyalty strategies can provide valuable information for future efforts, and build brand loyalty for sustained growth. 
 

Types of agricultural marketing

There are many approaches when it comes to agricultural marketing. Depending on your target audience, scale of operations, and product type, the way you approach your marketing will change. 

Direct marketing

Direct marketing involves selling products directly to consumers, eliminating the middleman. This means farmers can retain a larger profit share, and build direct relationships with customers. This is particularly effective for small to medium-scale farmers, and those producing specialty or high-value crops. 

This could include setting up a stall at a farmers market, looking into Community Supported Agriculture (CSA) programs, building a farm stand or on-farm store, and pick-your-own operations. 

Wholesale agricultural marketing

Wholesale agricultural marketing involves the sale of large quantities of produce to intermediaries such as distributors, processors, or retailers. Wholesale marketing is often used by larger-scale farmers or those producing commodity crops. This would include selling to supermarket chains, supplying to food processors, or working with distributors who then sell to various third-party outlets. 
 

Online marketing

With the growth of digital technologies, online marketing has become increasingly important in agriculture. It can encompass both direct-to-consumer and wholesale approaches. This could mean setting up an e-commerce platform for selling your products online, performing strategic social media marketing to build brand awareness, and engaging with online marketplaces that connect farmers with buyers. 

Cooperative marketing

In this model, farmers join together to market their products collectively. This approach can provide small-scale farmers with greater market access and bargaining power. Cooperative agricultural marketing activities might include jointly owned processing facilities, shared branding and marketing efforts, and collective negotiations with larger buyers. 

More Examples of Agricultural Marketing Activities

1. Farmers' markets: Local events where farmers sell directly to consumers, often weekly or seasonally.
2. B2B sales to grocery chains: Establishing contracts with supermarkets to supply fresh produce regularly.
3. Online listings: Creating product listings on e-commerce platforms or dedicated agricultural marketplaces.
4. Export partnerships: Collaborating with international buyers to sell products in foreign markets.
5. Agritourism: Offering farm tours, workshops, or accommodation to attract visitors and sell products on-site.
6. Contract farming: Entering into agreements with processors or retailers to supply specific quantities and qualities of produce.
7. Value-added product marketing: Creating and marketing processed products (e.g., jams, cheeses) from raw farm produce.
8. Participation in agricultural trade shows: Showcasing products to potential buyers at industry events.
9. Community Supported Agriculture (CSA): Selling subscriptions for regular deliveries of farm produce to consumers.
10. Branded packaging and labelling: Developing distinctive packaging to stand out on store shelves.

Each of these agricultural marketing types and activities can be tailored to suit the specific needs, resources, and goals of different agricultural businesses. Your choice of marketing approach will often depend on factors such as farm size, product type, target market, as well as personal preferences and skills.

The importance of choosing the right marketing channel

Choosing the appropriate marketing channel is crucial for a number of reasons. 

1. Impact on revenue: Direct-to-consumer channels often yield higher profits per unit, while wholesale channels may offer lower prices but higher volume sales.
2. Market reach: Different channels access different consumer segments. Online platforms can reach tech-savvy urban consumers, while farmers' markets cater to local, health-conscious buyers.
3. Product characteristics: Perishable goods may require shorter, more direct channels, while non-perishable items can use longer distribution chains.
4. Farm size and production volume: Larger farms may benefit more from wholesale channels, while smaller farms might find direct marketing more profitable.
5. Marketing costs: Each channel has associated costs (e.g., transportation, packaging, online platform fees) that must be considered against potential returns.
6. Market information: Different channels provide varying levels of market information, which can be crucial for production planning.
7. Value addition: Some channels allow for more value addition (e.g., processing, packaging), potentially increasing profits.
8. Risk management: Diversifying across multiple channels can help manage market risks.

Your choice of marketing channel should align with your available resources, product type, target market, and overall business strategy. An effective agricultural marketing strategy often involves a mix of channels to maximise reach and profitability.

For example, a small organic vegetable farmer might sell mainly through farmers' markets and a CSA program, supplemented by an online store for wider reach. Where a large-scale grain producer might focus on wholesale markets and export partnerships, with a small portion sold directly to local feed mills.

By carefully selecting and optimising your marketing channels, you can improve your market performance, increase income, and build long-term sustainable growth for your agricultural businesses.

Looking to develop a marketing strategy to grow your agricultural business? You’re in the right place. Let’s work together.