In the great scheme of things, the success, or failure, of farmers and ranchers lies in the profit, or loss, of their commodities when those commodities enter the marketplace.
In general, it’s commonplace for everyone to consider any movement of commodities into commercial channels as MARKETING. And, that’s not wrong.
However, there is a way to market commodities that is superior to simply selling the “stuff.” That superior way is termed MERCHANDISING. Consider it marketing on Red Bull energy drink.
So, let’s try to differentiate between marketing and merchandising for a hard red winter wheat farmer. I consider marketing as “general” and merchandising as “specific.”
Marketing to me means, “I’ll be satisfied marketing my wheat at the average price.” Merchandising to me means, “I’m going to make the effort to point out to multiple potential buyers the specifics of why my wheat deserves a higher price.”
So, what are the “specifics” that could improve the value of my wheat to multiple buyers. For kernel quality, the list is long, but includes variety, test weight, moisture content, protein content, cleanliness from foreign matter, ash content, falling number, straight grade flour yield,
I can also list flour quality factors if I get a laboratory analysis of my wheat. Flour factors are color, gluten index, sedimentation volume, water absorption, mix time, loaf volume and crumb score.
But there are other secondary factors such as storage facilities, access and types of to transport available, location to export facilities, and local export basis.
The same comparison of marketing to merchandising applies to the cattle industry, too. Let’s look at feeder steers as an example. Marketing feeders can be as simple as hauling them to a marketplace and accepting the general price.
But, in recent years, feeder producers have been active in merchandising their steers with a list of specific value-adders such as breed, early weaning, pre-conditioning, creep feeding, vaccinations, listing sire and cow genetic traits. The Certified Angus Beef program is an excellent example of merchandising cattle.
To me, the way to maximize the “merchandising” of commodities is to maximize the exposure of all the quality factors to as many local, regional, national and global potential buyers as possible — and, then, provide a convenient way for all the buyers to COMPETE to finalize the purchase.
To me, an internet merchandising auction is the answer. Strangely, not since the advent of the internet in the 1990s has a multi-commodity internet commodity auction website succeeded. Makes me wonder if it will ever happen.
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Okay, off my high-horse now and into stories about successful merchandising efforts.
A rural farm youth who lived along a well-traveled roadway, asked his parents if he could set up a lemonade stand to make some spending money. Of course, they gave him their enthusiastic support.
That evening he lad came into the house with $160 in cash. His folks were flabbergasted. “How in the world did you make so much money with your lemonade stand,” his mother asked.
“Well, I priced my ice-cold lemonade for $1.10 cents a glass. I knew no one would have the exact change,” the kid explained. “So, when they took their lemonade and handed me two dollars or five dollars, I smiled real big and said, ‘Thanks for the generous tip. I really appreciate it. It’s going into my college savings account at the bank.'”
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Another young rural entrepreneur had a different merchandising strategy. He wuz selling farm fresh sweetcorn ears from his produce stand. He took advantage of the psychology of math.
He had a big roadside stand that proclaimed, “Fresh Picked Sweetcorn — 25-cents each or 3 for $1.
Nearly everyone went for the $1 “bargain.”
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I think we folks who garden for a hobby or as a necessity fail to appreciate the constant advancements of vegetable, fruit, and vineyard varieties. Every season a multitude of new and improved varieties come on the market.
My most recent example is the new pea variety “First 13.” I’d bet the name comes from the fact that for the first time a variety produced 13 peas in a pod. My First 13s produced prolifically with a majority of pods having 10-11 peas in them. I never found 13 when I shelled them, but they were the best peas I ever produced — and they are delicious.
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I finally finished building, filling, and planting all my new raised garden beds. It wuz a relief, because now I can concentrate of weeding, watering, and harvesting — which is the whole point of gardening.
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I had a little situation with my two-year-old great-grandson this week. He visited our place and wanted to “drive” my tractor. So I plunked him down in the seat, took out the keys, and let him play drive to his heart’s content.
Well, but then when I tried to start the tractor the next day, the battery wuz stone-cold dead. Yep, he’d flipped a switch and ran down the battery, But, after an overnight charging, the tractor wuz back to normal.
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Words of wisdom for the week, “Be sure your brain is engaged before you start your mouth.”
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I need to heed those wise words myself — often.
Have a good ‘un.
