2024 has been an interesting year so far for farmers and farm shops. Perhaps the most significant event was the October budget, to which the industry reacted with considerable sadness and anger.
Farmers and farmers markets face many challenges this year, but there are also opportunities worth seizing. Let’s take stock of some of these issues and see how to overcome them. First, let’s look at the opportunities.
Chance
Growing consumer demand
Despite the recent surge in inflation and pressure on the cost of living, demand for certain food items continues to grow. Consumers increasingly want to know exactly where their food comes from and what’s in it. Farm shops can provide this level of traceability.
Product diversification
Farm shops sell more than just locally grown food. They can also offer different types of services, products and experiences. You can host demonstrations, workshops or farm tours. By diversifying, you will be less vulnerable to sudden market shocks.
Online and omni-channel sales
Farm shops don’t have to be limited to brick and mortar buildings. By building an online presence, you may be able to sell through many different channels. This will increase your sales and make your overall operations more efficient.
community involvement
The best farms are more than just places to grow food. It should also establish links with local communities and other local producers. An informal network of farmers can help you stock your store with more produce.
Sustainability and ethical practices
Farm shops are also uniquely positioned to meet the demand for eco-friendly products as they can significantly limit food miles. Modern consumers want to eat in a way that doesn’t harm the planet; farms can be part of the solution.
challenge
Rising costs
Agriculture is an unpredictable industry. Fluctuations in input costs can put an extreme strain on your profits. You can get creative around these costs; for example, you could run your store in shipping containers rather than in fixed buildings.
competition
Competition in the food retail industry is fierce. Supermarkets may offer similar products at lower prices and with greater convenience. Therefore, the farm store must speak for itself with quality.
labor shortage
Without the right people, your farm shop won’t be able to thrive. But in rural areas, you may not have a large pool of candidates to choose from. Therefore, providing the right onboarding and training program is crucial.
seasonal fluctuations
Your farm store will be constantly changing throughout the year as both demand and supply change with the seasons. This will keep things interesting and challenging.
Regulations and Compliance
Finally, farm shops have a long list of regulations to deal with. These often relate to food safety, environmental and labor standards. These will increase costs.
What to focus on
By 2024, winning strategies for farm shops will tend to include several different elements.
It should make the customer’s experience critical. For those who take this tour, they will want to know that they are getting something unique.
The products you offer need to be specialized and of high enough quality so that locals prefer them to the cheaper stuff in the supermarket.
You need to market your products through digital and traditional channels. Word of mouth can also be a powerful tool for attracting customers.
Your costs should also be an area of focus. Optimize where possible because at certain times of the year, your profits may be slim.
Finally, you should lean toward sustainability. Modern consumers are looking for businesses that reflect their values, and these businesses tend to be green. You can attract these customers by running your business in a visibly sustainable way.
