Section3 4

Marketing Plan ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
Discuss:
1. Marketing Goals and Objectives

What you plan to do with the marketing effort? What are sales forecast targets?
This section should
2. Overall Marketing Strategy
convice the reader that A key element to discuss is the market niche the company will have. Discuss how
you know how and where customers will be identified and sold; pricing strategy – pricing policy versus
competition policy; service and warranty policies; how you will capture customers
to sell your product. from competitors; credit terms. Include goals and timetables.
3. Sales Methods
Discuss advertising and promotion policy; sales force management; sales staffing –
manufacturing representatives or company sales force; sales area; distribution and
sales methods – factory direct, dealers or wholesalers; how the sales methods will
ensure projected sales levels are attained.
4. Test Marketing Completed or Planned

Provide results of completed test marketing or outline the plan to conduct test
marketing.
5. Marketing Budget
Show the budget with dollars allocated for advertising, travel, sales balances and
commissions, promotional materials, trade shows, samples.
6. Key Assumptions
SECTION 3 Marketing Plan - 248

○ ○ ○ ○ ○ ○ ○ ○ Sample Marketing Plan
Market Strategy
Initially, Cattle Producers Marketing Coop will focus on farmers markets to
establish its name in the greater central Iowa area while creating early cash
flow. As the plan progresses over the next five years, added emphasis will be
placed on sales to select grocery stores and distributors, including restaurants.
Although greater gross margins are possible through direct sales, grocery and
distributors.
The market analysis shows a broad range of prospective clients, covering a

wide range of consumers who are generally interested in quality food products.
The largest of these groups is that of mainstream America, which is projected to
grow at 12 percent per year.
1 Market Goals and Objectives

At the beginning of this year, White Tablecloth Restaurant in Big City signed a
one-year agreement to take no less than $2,500 of Cattle Producers Marketing
Coop meat products per month.
$ 2500.00 x 12 = $30,000
Marketing Coop has doubled the number of farmers markets it will be attending
and estimates at least an 85 percent increase in sales over last year.
$37500.00 x 185% = $69,375
Total Restaurant and Farmers Markets: $99,375
The coop is also visiting with All Foods Markets regarding the possibility of
moving over $100,000 in product annually through their market in Big City.
Total Sales to Farmers Markets and Restaurant in Year 1
$30,000 $99,375 Total
$20,000
$10,000
$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
January February March April May June

$2,750 $3,000 $4,000 $4,125 $7,500 $15,000
July August September October November December

$19,000 $22,500 $12,000 $4,500 $2,500 $2,500
Marketing Plan - 249 SECTION 3

Total Year 1 Sales If All Foods Markets Places Large Order
$40,000 $199,375 Total
$30,000
$20,000
$10,000
$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2 Overall Marketing Strategy

The company’s strategy is based on being the best at providing what the
consumer feels is best for them. “Our Only Choice Is What Is Best for You and
Your Family” is the motto of the cooperative – a message owners feel sells the
venture to its customers and its member/owners alike. A goal is to capitalize on
consumer needs, wants and fears.
The company also is building a seamless marketing process that takes the
flagship beef products from the pen to the platter, while being guided along
multiple inroads of direct and representative marketing routes. The planned
advertising slant will be towards making the business and its members good
neighbors to their customers, regardless of who they are.
Marketing Strategies
• Farmers markets to build one-on-one relationships and name recognition in
the greater Midlands trade area. These markets also utilize sweat equity
and create cash flow.
• Representative sales, such as restaurant and grocery, to build tonnage.
• Live cattle commodity pass-through contracts to liquidate producer overrun
and off-grade.
• Livestock.
• Specialty foods and crafts division to supplement owner/member incomes.
• Willingness to take any seat at the table as long as it is profitable.
Pricing Strategy
The company’s fresh meat products must arrive at the market wearing a label
that reflects savings when compared to actual value. Once consumer
allegiance is established, there may be some room to move prices upward
relative to the competition. Pricing will be such that Marketing Coop products
initially reach the consumers’ hands somewhere in the mid to upper portion of
the top one-third of the range for similar products.
Dealers and distributors will be encouraged by a pricing system that allows

them a margin somewhere in the 33 percent range.
Handcrafted items and specially prepared foods will be priced at whatever the
local market will appropriately handle.
Promotion Strategy
The promotional goal is to maintain a level of visibility in order to constantly
keep moving increasing volumes of product into an expanding trade territory.
First, Marketing Coop will concentrate on the core of the greater Midlands area,
then move outward in the most opportune directions as they arise.
Although present contacts in the grocery and restaurant business are primarily
local, the company will use those relationships to gain referrals to more distant
markets.
Marketing Programs
Marketing efforts will focus on getting very close to the consumer and
identifying those issues most important to them, and then providing an answer
via tailored food products or handcrafted items.
The packaging for this year’s farmers markets activities will include a new
company logo, a picture of the farm families who own the cooperative and
seasonal gardening tips. Also, there will be instructions on how to use the
biodegradable bags made from recycled products to mulch gardens and
flowerbeds to slow weed growth.
Two of our members have established themselves as weekly regulars on local

radio shows. The weekly syndicated radio program “What’s New to Eat”
responded to our letter of suggestion and invited Bernice Aguila to record a
feature each week on how to prepare various ethnic dishes that contain
Marketing Coop meat cuts. Plus, Andrew Michaels is going to be a panel
member on the “Buy Local First” radio program in Big City.
We have signed on as a half-time sponsor for Cy Country College football.
Although the schedule is not finalized, the Mobile Cooking and Catering
committee is lining up a full season of weekend sampling demonstrations and
special events appearances. At least one of the plans underway is to host a
“High School Tailgate Night” at every school in the Midlands region and donate
the proceeds to area public day care centers.
The company is also continuing the practice of weekly press releases to all
greater Midland newspapers regarding issues that speak to the advantages of
purchasing certain products – ultra-fresh, locally grown foods, produced and
processed by local labor using minimum artificial inputs.
Finally, Cattle Producers Marketing Coop has purchased 350,000 printed napkins
to be made available to Midland area sports booster clubs, church groups,
service clubs, businesses or any other interests that may be hosting a picnic,
employee gathering or public dinner.

Future Products and Services
The company is exploring the addition of other processed items to offer via the
convenience store market.
The coop also has studied and quantified how ready access to a commercial
kitchen might add to product lines and perhaps even create a source of
employment for some of the cooperative member/owners and their families.
Pies and baked goods displaying eco-labels and health aspects appear to be
promising. Also, the heat-and-serve complete meal market appears to hold
some promise. There is the possibility of some contract food preparation done
on a scaled basis in a commercial kitchen.
Factory and special events catering, improved live cattle marketing agreements,
other meat products, narrow niche ethnic preferences and member/owner
services are all subjects that are either under study or on the hot list for
consideration.
3 Sales Methods
Cattle Producers Marketing Coop sells its products to an ever-growing
consumer group. Originally geared toward the local farmers market purchasers,
the market has grown to include a much larger geographical area, in addition to
a broadening specialty response.
The company is selling ultra-high quality and specially tailored attributes in a

market segment filled with competition for the middle-of-the-road buyer. The
company’s approach is to take its product image to higher market ground and
make the most of the image of family farmers doing their honest best to make a
living in a fair and ethical manner. The focus has enabled the company to
discover voids in the market, then add product as needed to fill those voids.
Marketing Coop has worked hard to research specialty food providers,
emulating their practices and positioning the company to operate in a similar
fashion.
Last year, the company conducted sidewalk surveys at five of the farmers
markets attended by the group. Although selling under the name of Golden
Meadow Products at the time, it was clear that consumers identified the group
with high quality and excellent value. Changing the name to Cattle Producers
Marketing Coop is expected to allow the newly formed value added cooperative
to draw those consumer opinions to an even wider assortment of food products
and handcrafted items.
The restaurant trade has been explored and Marketing Coop is now identified
as a brand name on the menu of White Tablecloth Restaurant in Big City, IA. The
establishment of approved commercial kitchen space will open up new
opportunities for partially prepared food items, some with special marinades.
Marketing Coop tells all buyers of its product that they are not just customers;
rather, it relates to them that they are very special and the company wants to
feed them just like a member of the family.

The coop has an owner/member speaker bureau that is providing programs for
area service clubs and special events; and it has been training for on-site
cooking demonstrations and working with the Head Chef at the White
Tablecloth Restaurant to develop new recipes. The company also has assured
potential grocery retailers that it will be available to greet customers and
provide weekend parking lot lunch activities to help them draw customers.
To set itself apart, the company puts its “face” with the food and stresses
authenticity and concern for the consumer. This past summer, all buyers at the
Big City Farmers Market received free compact discs that held pictures of each
of the member farm families and short narratives about how they depend on the
production of a quality product for a livelihood.
Eight years ago, it was a loosely assembled group wishing to sell beef. Today,
Marketing Coop represents a formally organized marketing organization that is
offering consumers the part of Americana most desired. The company is selling
quality, taste, security, value and environmental safety. It is selling the Cattle
Producers Marketing Coop brand.
Experience so far has been that once the coop establishes relationships with its
customers, it can often move prices to a premium over other suppliers. Once the
consumer is honestly assured that the company offers the best, they will select
its products with greater enthusiasm and less price sensitivity.
The keys to viability are to establish a fluid market that will pay a fair price for
goods produced on the farms of the company’s member/owners. In order to do
so, the focus over the next five years will be on the creation of three different
levels of marketing options:
• consumer direct,
• distributor/restaurant, and
• grocery.
Each of those categories can presently be divided this way.
Consumer Direct Distributor/Restaurant Grocery

Farmers markets White Tablecloth All Foods Market, Inc.
Counter sales at locker Restaurant
Catering
There is yet another sales category that might best be described as a service
for the member/owners of Marketing Coop. That is commodity grade live cattle
markets.
Marketing assistance will be a break-even consulting service for the owner/

members.

Sales Forecast
It is presently forecast for the group’s sales to grow by 266 percent over the
next 12 months due to: 1) a doubling of the number of farmers markets to be
attended, and 2) the written commitment by White Tablecloth Restaurant to take
no less than $30,000 in product this next year.
The All Foods Grocery account is showing promise. Marketing Coop is following
up on several details with the top level management and hopes to get a
confirmation for delivery dates in the very near future. Samples of Marketing
Coop products were provided to the executive officers during the last visit with
favorable reaction.
Not included in these sales figures is any incidental income that Marketing
Coop may receive from services provided to the owner/members, such as Live
Cattle Marketing Consultation fees.
Instead of actually being a market for large volumes of live cattle, Marketing
Coop will first be a “seeker” of markets for live cattle. Centralized management
and quality control may foster opportunities to pool production and secure
equitable delivery contracts with major packers.
Sales Programs
The owners/members of Marketing Coop have each completed the following
matrix as a way of identifying how their sweat equity might best be applied to an
overall marketing effort.
Categories and Skills Experience? Comments

Yes No
Business
Accounting
Hiring/firing
Purchasing
Marketing
Cold call sales
Telephone sales
Production management
Processing
Safety
Supply chain management
Quality
Supervision
Cash flow management
Account management
When quantified and totaled, the results indicated adequate available talent for
a scaled up farmers market effort and any in-store cooking demonstrations or
“friendly” consumer contacts at barbecue events or outdoor catering efforts.
Cold call sales and telephone sales are areas that may need to be outsourced if
the group wishes to concentrate on one-on-one sales and door-to-door, route-
style deliveries.
Direct sales to the consumer provide the greatest gross returns to Marketing
Coop. However, direct sales rely on a large amount of sweat equity and account
for virtually all expenditures of volunteer time and effort.
The General Manager, along with one or two available Board Members, will
make all sales calls on commercial buyers.
A commissioned sales incentive program is under consideration for meat

brokers and others who have inquired about adding Marketing Coop meat and
specialty products to their sales brochures and gift catalogs.
Strategic Alliances
There are opportunities for building strategic alliances with several other
suppliers of unique handcrafted items and organic, or minimum input, food
products. Some of these include:
• Eastern Colonies Crafter’s Guild
• Famous Organic Food Marketing Coop
• Home on the Free Range Meats
• Big City Community Supported Ag Ranch
• We Want One-of-a-Kind Buyers Club
• Everybody’s Favorite Everything Exchange
Approached properly, these interests may be willing to enter into a mutually

beneficial agreement in which they would add non-competing Marketing Coop
items to their product lines and allow the cooperative to do likewise with their
goods.

Milestones
The following table lists important milestones with time periods for actual or
expected dates of completion. The milestone schedule indicates that Cattle
Producers Marketing Coop, a value added cooperative, has come about as a
result of deliberate and thoughtful planning, organization and research.
Summer 1998 Winter 1998 Spring 1999 Summer 1999

Idea Organize Research Feasibility
Brainstorm Cooperative Possibilities Practicalities
Considered Selected Inventoried Quantified what
concepts with business capabilities and efforts are most
help of facilitator. structure for the available markets likely to generate
group. Elected with help of ISU cash first.
Board of and other service
Directors. providers.
Fall 1999 Winter 1999 Spring 2000 Summer 2000

Capital Marketing Capital Production
Equity Realities Borrow Manufacture
Defined needed Hired part-time Complete Create and
member cash sales consultant business plan market products
and sweat equity and made first and apply for under brand
investment. sales calls to financial name.
measure real assistance.
market demand.
Financial Plan - Marketing

We have forecast a relatively rapid growth for Cattle Producers Marketing
Coop. Although it may seem ambitious based on historical sales of the assorted
participants in Golden Meadow Products, the rate of early growth estimates are
bolstered by the expanded product lines and a doubling of farmers market sales
efforts.
Past Performance
January February March April May June
$12,000 $12,000 $12,500 $12,750 $16,350 $23,500
July August September October November December

$26,275 $30,000 $20,000 $11,000 $11,000 $12,000
We are also encouraged by letters received from All Foods Grocery and White
Tablecloth Restaurant (copies enclosed), although each provides incentives to
continue with an aggressive sales effort.
We are also encouraged about the possibilities now being presented in the
convenience foods and specialty baked items.
And finally, the owner/members of Cattle Producers Marketing Coop have
agreed to put up 50 percent equity in the form of initial cash investment. The
owner/members are entering into this venture as a well-informed group that
understands that their cash and near-term sweat equity may well be the keys to
the long-term success of this venture.
Sales Literature
The coop currently is working on a line of brochures and sales materials to
assist in marketing and efforts toward prospective new wholesale and retail
accounts. Newly designed labels indicate the direction of the company.
Possible advantages of developing a Web site are being explored, but questions
remain about how best to draw consumers to it.
4 Test Marketing
The last three years of sales have been test marketing and development sales.
The company learned about its customers, who they are and what they want.
5 Marketing Budget
Advertising .................................................................................................................. $0.00
Travel ........................................................................................................................ $250.00
Supplies ................................................................................................................... $100.00
Business Cards (Misc. Expense) .......................................................................... $50.00
6 Key Assumptions
One assumption made by the company is that consumer demand for natural
beef product will continue in the future. Another assumption is that large
competitors will not enter the natural beef market for at least three to five years
since the market is yet to be fully defined. Yet another assumption is that
consumers will continue to appreciate Marketing Coop’s attempt to provide a
“face” with its food and to provide detailed quality information about how the
cattle were raised.

Marketing Plan
Taking the Mystery Out of Marketing
Marketing describes everything your business does as it readies its goods and services
for the marketplace. In this manual, you are developing marketing research plans and
actual strategic plans for marketing as part of your business plan.
But marketing plans also can be larger, more specific plans (or maps) of their own. That
doesn’t mean they are difficult to understand. Rather, drawing up a marketing plan to
accompany your business plan should take some of the mystery out of what happens as
you progress in your business.
Agricultural groups need to become successful marketers if their value added

agricultural businesses are going to be successful. If a group does not feel it has the
marketing expertise necessary, it should consider aligning itself with those who do
through marketing partnerships with individuals and groups.
People generally buy from a business because that business gives them what they want
in the most convenient and cost-effective way. They also may buy from a business out of Your research should
loyalties that have built up over a span of time – they’ve formed an actual or a mental
relationship. Such businesses have successfully used marketing tools and planning. center on your
They have spotted new trends and created products and services that customers want.
product, customer,
They put products on the market with the right message, in the right place, at the right
time. They have turned well-researched market opportunities into businesses. competition and
The market research you carry out, as discussed in earlier, allows you to make informed, production potential.
intelligent marketing decisions. Your research should center on your product, customer,
competition and production potential.
Put in simple terms, marketing is the means of exchanging goods and bringing them,
literally, to the marketplace. Before the 1950s, comparatively little importance was
placed on the actual selling of goods. It was thought that high quality goods would sell
themselves. In the mid 1950s, with falling consumer demand and supply levels bouncing
back from World War II shortages, businesses found they needed to update their
approaches to both product and sales.
A “market” is composed of actual or potential buyers of a product or service and the

sellers who offer goods to meet buyers’ needs. Businesses can target mass markets
composed of many people with broadly similar needs. Or, they can target niche markets,
composed of fewer customers with specific, very similar needs.
Primarily, this manual focuses on development of niche markets. To become involved in a

mass market would require displacing an already firmly established company. That
would take extremely deep pockets. Established companies have become such because
of years of investment and buying, merging and taking over competitors. Opportunities
do seem to exist and actually to be growing for ag based groups to align themselves with
established companies and to provide a market segmentation for them, or be suppliers of
the products through a supply network.
Economic conditions, the quantity and quality of competitors, consumer trends,

government regulations, trade barriers and agreements, and cultural and demographic
shifts impact markets. How well you understand your customer and your market
conditions will determine how effectively you are able to navigate your business around
obstacles and take advantage of new opportunities.

What ever happened to the business that believed the world needed a better mousetrap
simply because it could build one? The company pumped time, money and energy into
creating a great mousetrap. In the end, its efforts failed. Customers didn’t buy the better
mousetrap. Why? Because the old style also caught mice, and it cost a lot less. In short,
the world really didn’t need a better mousetrap! Businesses that set their goals without
first looking to their customers’ needs often end up paying a price.
Along the same lines, businesses that focus solely on improving productivity and
designing new products around new technology suffer from a product orientation. They
sell what they produce rather that make what they can sell to satisfy a customer need.
Similar results happen when businesses focus on internal operations at the expense of
getting out and knowing their customers.
Most successful businesses have a strong customer orientation and design most of their
marketing strategies around the needs of their customers. These activities include
carefully researching and segmenting individual customer markets.
Successful marketing is not a single activity you do. It is a collection of strategies and
tactics at varied levels and targeting varied end-results.
Credit
Adapted from NxLeveL
Manual, “Marketing Research
and Analysis,” by U.S. West
Foundation.
Marketing Plan
A Marketing Primer
A basic understanding of the scope of marketing – and the questions raised therein –
can help any new enterprise immensely. You may be well versed in the terminology and
concepts of marketing as they relate to agricultural production. What applies under that
umbrella will still be important to many of you. But the scope of your marketing
considerations enlarges when you become part of the processor or other start-up
business framework.
So what is this “thing” they call marketing?

• It is something different to every person.
• It is studying.
• It is analyzing.
• It is making decisions about how to reach your goals.
Your strategic business plan and your marketing plan go hand-in-hand. You probably
cannot successfully carry out either effort without the other. Right in your business plan, Be consistent,
you will deal with the basic outline of how you will market your goods.
frequent and on
But a more expanded marketing plan can provide that necessary information as well as
take you on to the levels of how you carry out your strategies and who is going to target with your
perform certain tasks. To establish a full fledged marketing plan, keep a couple of
things in mind: messages – all
1) You have to be noticed – you can’t get lost in other people’s “bigger picture.”
the messages you
2) Good marketing and image creation evolve.
send out.
According to the experts, the average customer/consumer is exposed to no fewer than
1,500 different images each day; 50 percent of those are forgotten in less than 24 hours.
After two weeks, only 5 percent of those images are remembered. Remember that over
that two-week period, each day brings in another 1,500 images, some of which reinforce
the previous day’s images, some of which are new.
It’s easy to get the feeling you are on a racetrack and all the other cars are accelerating
and passing you by – repeatedly.
Actually, you stand as good a chance as anyone of being the remembered (and acted
upon) image if you are smart about it. A key element in marketing is:
Be consistent, frequent and on target with your messages – all the messages you
send out.
As mentioned earlier, you will need a marketing plan. It is a working document – one that
changes as your business plan changes. This plan is one of building on what you know
about yourself, defining steps to reach goals and turning one success into a group of
them.
Unbreakable Rules
There are two common-sense, cardinal rules to continually keep in mind. We have
addressed these in earlier chapters of this manual. They continue to apply.
Rule 1: Know your customer(s).

Rule 2: Know your competition.
Marketing is not just about sales, although making good sales at the right time and prices
is always a factor. Instead, marketing is everything you do in terms of addressing your
customers and in relation to your competition. These activities probably will lead to
improved sales as an outcome.
In your previous working endeavors, you and others have been focused on one or two of
the components in what marketing gurus frequently call the “Four Ps of Marketing.” they
are pricing, product, place and promotion.
Roll these together and then add something we will address later – image or positioning.
None of the factors can be considered in isolation from the other. And all are considered
in relation to the two basic rules of knowing customer(s) and knowing competition.
Sound complicated? It can be, but it doesn’t have to be. Your best approach is to have as
much information as possible about clients, potential clients, competitors and, of course,
your own product and business capacity.
This means doing “research,” as was addressed in an earlier chapter. In the Market
Research chapter, types of research information, methods and expected outcomes were
discussed.
There are a couple of cautions to keep in mind. You do not want to limit those you query
to those who are a built-in market for your product or supporters of your ideas.
Supportive attitudes and answers can make you feel good, really good, for a very short
period of time. Depending on your product and sales goals, you need to know what a
chunk of “the rest of the world” thinks. All that feel-good information can cause you to
build a marketing and business plan that will not take you to the success you want.
Political Factors
Potential
customers
Information about
customers
Known customers
Information about Your Company’s
potential Marketing and
customers
Image Efforts
Community
Information about
competitors
Operatives
(lenders,
associations)
Economic Factors
You also need to know the climate in which both you and your customers are operating.
You may be able to do this simply with a meeting among you and your partners,
associates, etc. Or, you may wish to consider surveying or questioning others for this
information. This is called “environmental scanning.” While it may not seem relevant at
the time of beginning your operation, you do not wish to be caught by surprise by events
that occur over which you do not have control. You need to know where you are sitting in
the larger scheme of things.

You should know about the current political climate as it relates to your product. What
factors in the economy (regionally, nationally or world-wide) could affect your situation
or your customers’ buying ability? What trends related to your product area exist?
You may be able to do all of the information gathering yourself or with your own staff or
partners. Probably, it will be money well invested to hire some assistance in this area.
You have a big job simply in using the findings of research to make your product,
production and sales decisions.
Setting Yourself Apart

What makes you so special? We’ve all heard that question put to someone rhetorically.
In terms of marketing your business, it is a question to take very seriously. The idea that
successful marketing is about the customer/client and not about you or your product is
valid. However, this is also a basic truth – your product and your service to the customer
must be clearly and succinctly defined in all that you do. Otherwise, there is no reason to
do business with you.
You already are gathering all the information you can out in the marketplace about
customers and potential customers and their preferences, habits, knowledge, etc. You
are gathering information about your competitors. What do they do right? What do they
do better than you do? How do they deal with customers? What is their image? Why are
they ahead/behind you in your field? You have checked out the environment in which
you are operating your business and, more importantly, in which your targeted
customers are making decisions.
Now, what do you do with all the information you have gathered? You go back to the
drawing board, much as you did in devising your product. You need to know where you
sit in the midst of all of this customer, competition and environment information.
Worksheets to help you get started are included in Exhibit 3A at the end of this chapter.
Image
Is this important? You bet it is.
There are volumes written in fancy, ad-agency driven jargon about what you “must” do
in terms of creating an image for your company. The not-so-good news is some of it is
helpful and you should always be learning new techniques to put a spotlight on your
company and products. The really good news is that it all boils down to an old adage:
“Put your best foot forward.” How that is done is up to you, your business peers and the
budget you can or wish to devote to image marketing.
So, what is this thing called “image?” Quite simply, it is the way others (clients,
employees, community units, competitors, etc.) perceive your company and products.
And, it is the action you take to bring that about.
Establishing an image, at the very least, needs to be part of your marketing plan. The
image you leave with customers visually or by any contact conveys reliability. It conveys
your savvy as a company and your respect for a customer. Your image conveys
knowledge – you have done your homework.

While establishing an image can often mean gaining a visual identification, such as with
a logo, it is not limited to that. Image is a part of everything you do – all written materials,
your ways of dealing with customers and other business people, what is noticed about
you (in person or in product) at every interaction.
Go back to the idea that what your customer thinks about you is everything. Maybe you
are dealing with packaging issues. For that you need a logo, an “appearance.” That
visible image should be a part of everything that is viewed by customers (and
A well-defined image competitors). It’s a reminder that these people (you) are the ones with the best product,
the friendliest service, the quickest delivery, etc.
also becomes
Image must make sense. It must be consistent – in visual approach as well as in the way
important in dealing you handle customers. Image must be believable and accurate. What short phrase
with the community(s) describes your interactions with customers or your product? You may want to develop a
tag line and use it everywhere.
in which you work or
A well-defined image also becomes important in dealing with the community(s) in which
do business, with you work or do business, with governmental agencies, lenders, and on down the line.
governmental You are defining yourself with your “presence” and also what you think of your
customers.
agencies, lenders, and
on down the line. You Tools that Help
Paid advertising is one of the first things we think about when we think of marketing and
are defining yourself image issues. It is costly and, if done well to the right audiences, can be effective. But
with your “presence” there are other tools that many businesses use that cost less and keep their name and
image out where it needs to be.
and also what you think
All written materials should reflect your company image. That probably means
of your customers. developing or having developed a logo and some preprinted stationery. Brochures are
good introduction pieces and can serve well as a substitute for your presence when you
want to reach more people than you can possibly visit.
Written Materials
The following set of guidelines may help you if you decide that written materials –
promotional fliers, a brochure, Web site information, etc. – can help you further your
product marketing efforts.
• Step back. If you are the one responsible for the product’s success, you are
probably too close to be the one to have final say in its promotion. It needs some
logic applied, not your heartfelt (though possibly accurate) assessment. Let another
professional or even a business associate help you out.
• Emphasize what you have learned about customer needs and wants in what you
write. You may think a brochure or written piece is about you, but it is really about
your customer.
• You don’t have to be cute – but use words that grab interest. Make your key words
stand out visually.
• Stress the customers’ return on investment – what do they gain?
• Use language that comes from your customers or whatever group you are
addressing, not the jargon of your own niche business.

• Stress authority. This is another way your research pays off. Someone else may be
able to give you a testimonial or words of wisdom that fit the message you want to
spread.
• If possible, use statistics. Was there something recently in a trade magazine or
newspaper?
• Always get a second opinion and always have someone else proofread for you. Any
written piece that is done “in-house” by you or associates should be tested on
potential customers or recipients. If you use an agency to do the piece, then make
sure that activity is included in what you are getting.
• Remember when we talked about all the messages that people receive everyday.
This is your chance to be one of them. Pretend you have only five seconds in
someone’s vision, then a decision will be made as to whether or not to read further.
Press Releases
Too many smaller enterprises believe that getting media notice is a matter of the media
somehow magically knowing there is a story there and then seeking it out. Information
about your business, your new products, your new hirings, etc., is probably not going to
get passed on as a news “tip” by someone else. But you can – and should – be your own
press agent, especially in terms of dealing with smaller market media such as smaller
community weekly newspapers.
You can send a press release representing your company by simply putting a bold
“PRESS RELEASE” at the top of the empty portion of your letterhead stationery. What you
write should address these factors: What has happened. Who was involved (include
addresses). What it means (perhaps a quote from the company owner). What happens
next (if a new product, when available and where).
As an entrepreneur, you should know the value of being recognized in the press or by
any media. It helps to be noticed (free advertising), but it also helps to establish your
company or product credibility. These are some points to remember:
• You use press releases only when you have something that deserves to be noticed.
This is not the forum for most opinions or issues stands – at least not associated
with marketing your company.
• Focus on what makes your news “newsworthy.”
• Something “different” is generally more interesting, therefore more interesting to
media. Are you hiring new people during an economic downswing? Are you
introducing another new product line? Have you expanded into a non-local market?
• If a photo applies, supply it.
• Be available once you have sent out a media release. You will have blown an
opportunity now – and maybe next time as well – if you aren’t around to answer
questions or take advantage of something the media may wish to expand on.
• Don’t feel defeated if your first media release doesn’t create interest. Continue to
send releases. If nothing else, your local media will know you exist. Who can predict
when that might turn to your advantage?
• Proofread everything that goes out. NO MISTAKES!

Exhibit 3B has a sample form that will work for many items of “news” about your product
or company. You will want to add paragraphs to flush out the story angle for the media. If
they want more, they will contact you. Your media contacts list does not have to be
lengthy or detailed. They do need to be accurate and give contact information if the
media wish to pursue it further.
Trade Shows
Trade shows may be one of the best means available to get word out about your new
venture. You will find them taking place in your region, at the state level and nationally.
Finding the right trade shows to benefit your business and spending the resources to
make yourself noticed when at the show will help you gain the best return on your
investment.
You should check out the possibilities of exhibiting through grocery, agricultural, food
processing and specific meat associations. Instead of going just to observe and learn,
you now must gear up to attend as one of the businesses “hosting” the show.
Some basic questions should tell you which shows are worth your effort. Talk to the
group putting on the trade show.
• What is the breakdown of the show’s attendance: General interest, purchasers of
products, middle traders or vendors, academics, restaurateurs?
• What amount and type of pre-publicity is sent out and to whom?
• What goes into the informational packets that are available to other vendors,
sponsors or attendees?
• What are other displays of similar products like?
There are many questions to ask about setup, timing, expectations of you and your staff,
logistics, etc. Answers will help determine if the project is “do-able.” Right now,
however, you are interested in getting the most bang for your buck. Remember, too, that
going to only one trade show each year or season is not the best use of your resources.
It is expensive to buy exhibit space, pay staff and prepare a display that is effective. If
you are going to get into this arena, look for at least two outlets over a year’s time.
Your goals in making this effort can be quite simple and highly successful:
• Gain exposure.
• Build interest.
• Gain a list of potential customers.
• Make valuable contacts in your product business arena.
In order to have these things happen, however, you – and your exhibit – have to be
noticed and competitive. That means planning ahead and preparing a booth that attracts
visitors. Most businesses need some graphic design and construction assistance with
this. The associations sponsoring the shows will detail the amount of space that is
available for what cost. You will need to construct a display that will fit within the allotted
space at each show (or be adaptable to fit).
Several companies produce ready-made, easily folded up and transportable display units.
Most are for tabletops, which can help you save costs on the display itself as well as give
you additional table area for demonstration, product literature, samples, etc.
You will need either large, blown up photos or some type of graphically attractive word

use to bring in interested passers-by. Of course, part of your package will be identification
of your company. That could be a super-large logo on one of the display panels.
What would attract potential customers to your display? Your research should help you
out here. Just as that research brought you to certain conclusions about how to discuss
your product and company, it also will lead you to those words that will entice lookers.
Consider what benefits the customer wants and can find in your product, then splash it
big on your signage. What are your differences from other products or companies? (Go
back to doing worksheets if you need to do so.)
Then spend some time finding out what the other booths (especially those with similar
What would
product lines) will be like at the show. While you want to be different and stand out, you
need to be on a par with them – or stretch beyond them in terms of presentation, attract potential
attraction characteristics, size, and use of technological bells and whistles. Yes, it is
costly; but it is better to spend a little more than to get no return on investment for what
customers to your
you are spending. display? Your
A few other items to put on your list of things to do: research should
1) Have printed materials available for passers-by to take with them. These should not
just repeat what is in your display signage. help you out here.
2) If your budget can stand it, this is the place where trinkets and gadgets can do you
some good. Let those that stop by your booth leave with a reminder.
3) If you do not like the trinkets way of thinking, consider this: Make available a more
substantial gift item (or several) and put a big bowl or box on your display table. Ask
for individual’s business cards or let them fill out a card-size slip of paper. Then do a
drawing for the item(s) at the event’s end. You will have to make it a prize that has
some worth to those attending. But you will have gained a ready-made list of
contacts.
4) This is a good time to consider milking the media. As well as finding out what media
coverage is being handled by the sponsoring agency, determine if you have any
“news” from your own company. If so, send out a relevant press release a week
ahead of the trade show adding that you will be among those present at the trade
show event. Perhaps a follow-up call to the media will create the impetus for a one-
on-one meeting with a reporter, ag experts, columnist, etc.
A Web Site
Very few new facets in our lives and businesses have had the energy, following and
potential of the Internet and, in particular, marketing and selling through a Web site.
Some businesses (of all sizes) swear by it as a marketing tool. Others, quite simply, don’t
feel it has added much to the bottom line. In very recent years, costs associated with
creating and servicing a Web site have decreased, at least in the sense that you can get
fancier display for your investment.
But keep in mind that marketing activity and investment must have purpose. A Web site
may boost your image as a company but some companies still find it has little impact on
business.

When is Web site development something to consider using in your marketing
strategies? Ask yourself some questions similar to those you must ask to develop your
overall marketing strategy.
• What percentage of my customers and potential customers use computers, the
Internet and Internet selling/buying mechanisms (E-commerce)?
• Do I/we wish to use the Web as an avenue of sales, information or both in reaching
customers?
• Where are my customers located? What geographic areas do I want to add to my
customer circles?
• What is the competition doing? Will a Web site alter perceptions about your
company compared to perceptions about other companies doing similar things?
If you wish to conduct sales activity through your Web site, there are other things to
consider as well. You will have to have in operation a means by which to receive
payment (credit card, purchase order, etc.), since no cash or checks can change hands.
People use E-commerce to speed up the process of making purchases. Are you able to
deliver? Is staff available to process orders in a timely way? Are you up to speed on
requirements for shipping in response to Web-based purchases.
If your customer base is local, a Web site may be of less value to you. Your time may be
spent more productively in dealing with these customers through printed messages,
local advertising and one-on-one associations. If you are trying to increase sales to a
broader area regionally or nationally – and you have sales and shipping details worked
out – a Web site may be of more value to you. If you are looking at International sales, it
is perhaps a strategy that is necessary.
In some cases, your product sales increases will depend on a learning curve among
potential buyers. For example, perhaps your meat product is one that is becoming known
for health value or for its value in an eating trend of another type. A Web site may be a
way to increase knowledge (again consider the geographic factors) among the public.
Web browsing has become a favored, fun activity for many, especially the young (who
are the longer-term customers). You can put information about benefits, ways of using a
product, trend growth, etc., on your Web site that will in a broad way emphasize why
buying your product is a good thing to do. Throughout much of agricultural production,
increasing public awareness and knowledge is considered critical to future business.
Where a Web site is linked is as important as using lively graphics on it. If you decide to
proceed with developing a site, consider how a customer will come across the site if the
exact site address is not known. These “hyperlinks” are critical for expanding image and
sales, but don’t mean as much to existing customers. You will have already let them know
exactly where to go to find you on the Web.
A Written Plan
You need to find the time to write down a plan that expands upon the marketing section
of your business plan. As you build the plan, you will continue to do these things:
• Look at where you are now and ask why.
• Plan to maintain those positions, then expand them to fit your newer goals.
• Define the stumbling blocks that exist between your company and the type or
volume of business you want.

The simplest marketing plan follows a format something like this: List overall goals,
probably at least three or four; under each goal, list strategies that can help you achieve
that goal; under each strategy, list a few actions that will be taken to finish out the
strategy. Also, you will want to list a person(s) who will be responsible for an action or
strategy.
Marketing Plan Goals

Person Completion
Goal
Responsible Date
GOAL 1:
Strategy:
Action:
Action:
Strategy:
Action:
Action:
GOAL 2:
Strategy:
Action:
Action:
and so on...
Most plans for new companies can safely list one-year goals. You may wish to set up a
two-year set of achievable goals. Strategies and actions are given deadlines within the
larger timeframe. If you can live up to the promise of continually revisiting the marketing
plan to be sure it is on target or to rework it, you might consider doing a six-month plan
as well as a two- or even five-year plan. It is a document that will be revisited and
revised regularly.
Sample marketing plan worksheets that can get you started are available in Exhibit 3C.
Additional Resources to Explore

Peppers, Don, and Rogers, Martha, The One to One Future: Building Relationships One
Customer at a Time; New York: Doubleday; 1993.
Rapp, Stan, and Collins, Tom, MaxiMarketing; New York: McGraw-Hill; 1987.
Ries, Al, and Trout, Jack, Bottom-Up Marketing; New York: McGraw-Hill; 1989.
Vavra, Terry G; Aftermarketing: How to Keep Customers for Life through Relationships
Marketing; New York: Irwin Professional Publishing; 1992.

Exhibit 3-A
Marketing Worksheet
About Your Company
What good things can I say about my company and its products?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What makes my company/products better than others?

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What is unique or different about my company/products?

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What criticisms have I heard about my company and/or its products?

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

Exhibit 3-A
Marketing Worksheet
About Your Clients
Describe your current clients.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Describe other clients you would like to have.

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What differences exist between the above two descriptions?

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What do current clients say about you? (If you don’t know, find out.)
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What do you want them to say about you and your company?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

Exhibit 3-A
Marketing Worksheet
About Your Competition
Who are your competitors?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Rank how you stack up against them in terms of clients you want.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What do customers say about your competitors? (Find out!)

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
How do your competitors market themselves? What works for them?

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

Exhibit 3-B
Marketing Worksheet
Press Releases
(your company letterhead or stationery)
Press Release
For release ______________________________________________________________

(date)
For further information, contact: ______________________________________________

(name) (phone) (fax)
__________________________ has announced ________________________________

(City, State) (Your company name) (what event, product, change, creation)
The _______________________ will involve ___________________________________

(action) (number of people, companies, etc.)
________________________________ noted that ______________________________

(Name of company spokesperson and title) (comment about the action)
_______________________________________________________________________
(List any pertinent information, such as national or community statistics, recent quotes,
a quote from a local politician, etc.)

Exhibit 3-C
(Two)-Year Marketing Plan Effective
Overall Goal/Mission Statement:
Who Is Responsible? Time Frame Done
GOAL 1:
Strategy A:
Task:
Task:
Task:
Task:
Strategy B:
Task:
Task:
Task:
Task:
Strategy C:
Task:
Task:
Task:
GOAL 2:
Strategy A:
Task:
Task:
Task:
Strategy B:
Task:
Task:
Task:
Strategy C:
Task:
Task:
Task:
GOAL 3:
Strategy A:
Task:
Task:
Task:
Strategy B:
Task:
Task:
Task:
Strategy C:
Task:
Task:
Task:
Marketing Plan
How Much Should You Spend?
Setting up the marketing portion of your budget is no easy task. It comes somewhat
under the shadow of “darned if you do and darned if you don’t.”
You will hear people say (often as a complaint) that they spend nearly one-third of their
budgeting for marketing. Then you will turn around and hear a comment from another
businessperson that he or she “got the lion’s share of the year’s business off of a $500
Notes
leaflet.”
This tells you that instinct and common sense both are involved in the process of
setting a marketing budget. But here are some more definitive guidelines.
• If you are starting up as a company, a sizeable chunk of your budget over the first
two to three years will go to marketing, especially with electronic modes added to
(not replacing) the print vehicles you need to use.
• If you add trade show presence into the budget, you can expect to spend hefty
bucks to have a presence that meets, perhaps exceeds the impact of your
competitors.
• Direct advertising will boost the dollars you spend. Print, radio and television ads
must be professionally done, and those cost goodly sums.
• As a start-up, plan to spend 20 to 30 percent of your budget that first year or two on
activities related to marketing. It should pay off.
• If you are simply carrying on with already established (and paid for) marketing
activities, 7 to 10 percent would be more realistic.
• You also need to plan to seize opportunities when they arise. That means shifting –
sometimes increasing – planned expenditures for marketing activities.
• If your “marketing” category includes personnel (in sales or, for larger endeavors,
for a marketing specialist), those figures are in addition to the activity-based budget.
After a few years, they can actually, with some economies of time and scale, figure
into that marketing percentage of budget.
Your marketing efforts – for the most part – pay for themselves. Sure, there are some
things you simply must do to establish your company’s image, your brand, etc., especially
at start-up. The point of marketing is to increase business – in other words, it must be
effective. It might be to your advantage to look at marketing expenditures beyond the
bare necessities of establishing an image in the following way.
If I spend X dollars to do this activity, how much new business do I need to turn to cover
the costs of doing the activity? Can I reasonably expect to turn that amount of business?
Can I reasonably expect to turn more than that? How much more?
New business in addition to what would be needed to pay the costs of the activity is an
increase in your bottom line.

Marketing Plan
Internet Marketing
The Internet is quickly becoming a booming market option. Many companies use
Internet marketing as a significant market channel. Consider these Internet facts.
• Each generation has a new advertising technology . . . radio age to TV age to
Internet age.
• 500 million people have Internet access.
• Almost 50 percent of the U.S. household are on line.
• 98 percent of all large companies have Internet access.
Internet on-line sales are growing. Christmas sales for 1999 were up 1000 percent from
1998 on some sites. There are 32 publicly traded Web sites, such as America On Line
(AOL) or Yahoo. Total sales for the 32 sites were $4 billion, but only five sites accounted
for 75 percent of the total sales. The most successful sites were Amazon.com,
Priceline.com, Egghead.com, Value America and Ebay.
Several companies (such as Arthur Andersen’s Enterprise Group, National Small
Business United, Zdnet, Boston Consulting Group and the Yankee Group) have done
studies focused on small firms of 100 employees or less. Selected findings from the
various surveys include: Internet sales are
• The percentage of small businesses with access to the Internet doubled from 21.5 only a fraction of
percent in 1996 to 41.2 percent in 1998.
• Small businesses that utilized the Internet had higher revenues when compared with total consumer
those that did not; $3.79 million versus $2.72 million.
spending; $1.3 billion
• Internet sales account for less than 1 percent of total retail sales in the U. S.
economy. to $4 billion out
• On-line retail marketing is growing at a 200 percent annual growth rate. Traffic on-
of $2.5 trillion in
line has been doubling every 100 days; but only 5 percent of customers who visit the
Web site become customers. consumer spending
The most common use of the Internet by small companies was for e-commerce. In a in 1997.
study of 1010 small firms by IBM and the U.S. Chamber of Commerce, 30 percent were
found to have used the Internet for promotion/advertising, 37 percent for on-line ordering
and 29 percent for receiving orders.
Internet sales are only a fraction of total consumer spending; $1.3 billion to $4 billion out
of $2.5 trillion in consumer spending in 1997. Access Media International estimated that
small business gained $3.5 billion in consumer sales in 1997 and predicts that number will
reach $25 billion in 2000. Some analysts predict that by 2000, one-third of all business-to-
business transactions, the largest component of e-commerce, will be conducted over
the Internet. Those revenues are predicted to grow to $327 billion in 2002, with business-
to-consumer sales topping $17 billion in 2001.
The Yankee Group has identified three phases that small- to medium-sized companies
go through over time in their Internet development. Three phases are:
1. Brochure-ware sites: Companies use the Internet primarily to advertise products.
The firms gather customer prospect information and provide customer feedback and
information requests.
2. Pre-commerce sites: Firms use the Internet to create immediate orders off the
Internet. However, on-line transactions are not part of these sites.
3. Simple commerce sites: In this advanced stage of e-commerce, businesses accept
orders and payments over the Internet. The sites are primitive compared to bigger
company sites with little in security features.

Forrester Research, Inc., has divided the on-line retail market into three categories
based on type of goods purchased.
1. Convenience items: Low cost items such as books, music, apparel and flowers.
Consumer items are expected to generate $32 billion worth of sales by 2003. Product
selection and ease of shipping will keep customers ordering.
2. Replenishment goods: This group will account for a projected $19 billion in sales by
2003. Items included are high frequency purchases like groceries, personal care,
prescription refills and specialty foods. With the exception of specialty foods and
refills, consumers will be slow to adopt this purchasing due to distribution issues.
3. Research purchases: These are information driven purchases, such as travel
arrangements, computers and automobiles. Airline tickets are the most often
purchased item, accounting for almost two-thirds of the $56 billion spent in this
category.
Research has shown consumers start with ordering of convenience items and that it
takes a year before moving to the next category of items.
Advantages and Disadvantages

As highlighted in various studies, advantages and disadvantages of Internet use by
companies are:
Advantages
1. Allows small companies to compete with other companies both locally and
nationally.
2. Creates the possibility and opportunity for more diverse people to start a business.
3. Offers convenient way of doing business transactions, with no restrictions on hours
of operation.
4. Offers an inexpensive way for small firms to compete with larger companies by their
products available worldwide.
5. Small companies that use the Internet have higher revenues; on average $3.79
million compared to $2.72 million overall.
Disadvantages
1. Managing upgrades.
2. Assuring Web site security.
3. Avoiding being a victim of fraudulent activities on-line.
4. Costs required to maintain a site.
5. Finding qualified consultants.
6. Finding and retaining qualified employees.
7. No market for old computers.
Food Companies
Few food companies to-date have been successful with only using the Internet as their
marketing avenue. Producers considering marketing over the Internet should consider
some of the following:
• Businesses which succeed most often on the Internet are those that are unique,
commonly used and affordable.
• When marketing livestock on the Internet you must be slaughtering and processing
from a federally inspected plant, unless you only sell to clients in your state.
• Unique businesses succeed on-line only if people can find them.
• Promote your Web site by submitting it to several search engines repetitively and

linking with other high-traffic, related Web sites.
• Link (with permission) to many applicable Web sites, but be cautious about having
too many links that quickly redirect consumers away from your site.
• Don’t link to your competitors, but check out your competitors’ Web sites.
• Hiring a professional Web site designer is often a good idea. Before doing this,
check references and on-line work samples. Do-it-yourself design programs can be
limiting and may create Web sites that look like many others.
• Promote your Web site off-line by sending out cards and putting your Web address
on every promotion piece.
• Find a reliable service.
• For information, look up http://www.extension.umn.edu/mainstreet or contact Rae
Montgomery at (612) 624-2773, rmontgomery@extension.umn.edu. Washington State
University also has a Web site, which offers resources for farmers wanting to
market their products. Their Web site provides information on the pros and cons of
Internet marketing, tips for success, links to other farmers’ sites, resource lists for
more information and a glossary of Internet terms. The site location is
www.agecon.wsu.edu.
A short glossary for new Internet users:
• Browse: a program through which you view the Internet (i.e., Netscape or Internet
Explorer).
• HTML-Hyper Text Markup Language: the language used to create Web sites.
• ISP-Internet Service Provider: Provides dial-up access between your computer and
the Internet.
• Link or Hotlink: a word or graphic you can “click on” to be taken to a new Web page.
• Search engine: a Web site whereby you can locate Web sites for any particular
topic by entering keywords. (Example: www.yahoo.com)
• Server: the unit that houses your Web site.
• Submission: registering your Web site with a search engine.
If you are ready to go on-line you will need:
• A computer with a modem. The modem needs to be fast enough to handle the
Internet or e-mail and to perform desktop publishing. ($600 and up)
• Consider a second phone line to avoid busy signals while you are on-line promoting or
researching your Web site. The cost for this second line will vary according to your
local system; usually $15-$20 per month, although it may be higher in rural areas.
• Consider a toll free number – a risk-free way for potential customers to inquire. ($5/
month, 10 cents/minute)
• A user-friendly e-mail program (such as Microsoft Outlook) to manage client
contact. (free - $5)
• An Internet Service Provider (ISP) to provide dial-up service to the Internet. ($12.95 -
$22.95 per month) If you use a commercial national service, make sure you have a
local access number assigned to the company in your area and you will not be billed
for long-distance calls each time you dial up. By looking at AOL: CNET Builder.com,
you will find sites which will host your page for free. One such site is Yahoo !
GeoCities. This site provides Web page design hosts. The other hosts are mostly fee-
based sites, although four other Web hosts were listed who will host your site for
free. Examples of fee based sites are OLM, charging $19.95 per month and Web
hosting.com for $24.95 per month.

If you choose to hire a designer, here is what he/she will need to create an effective
Web site.
• Photographs representing your products and/or services.
• Any printed material such as business cards, brochures and catalogs are helpful for
formatting and content.
• A storyboard that gives an idea how many pages and what each page should be
about, as well as what you like and dislike.
Recommended Book
Sam’s Teach Yourself HTML in 24 Hours.
For Further Information

AOL: CNET Builder.com
www.smartbiz.com/sbs/dobiz.htm - Find the site titled Internet Business Smarts on this
site. Many sites are listed which are resources for a wide variety of information for
marketing on the Internet.
Resources
Hobbs, Jennifer, Internet
Eclipse;
jennifer@webchoce.net.
Quinn, Tom, Promoting Your
Business Using the Internet;
Iowa State University
Extension, Ames, Iowa 50011.
E-Commerce: Small Business
Venture On-line; Office of
Advocacy, U. S. Small
Business Administration; July,
1999.
Marketing Plan
Direct Marketing Options
Direct marketing involves selling products directly to the consumer in order to allow
the producer the possibility of receiving a better price. This usually involves three
critical steps:
1. making a direct connection to consumers;
2. determining the consumer wants or needs; and
3. offering products that meet those needs.
Direct marketing often takes many forms and usually includes a combination of
techniques, such as selling to farmers markets, door-to-door sales, Internet marketing,
direct sale to restaurants or institutions, and so on. Direct marketing often
Producers often consider direct marketing channels because there can be many takes many forms and
advantages. Neil Hamilton of Drake University in his book, The Legal Guide for Direct
Farm Marketing, cites monetary benefits of direct marketing, including: usually includes a
• High prices, because you are selling at retail not wholesale prices. combination of
• More net income, because you retain the portion normally absorbed by
intermediaries, such as wholesalers. techniques, such as
• More stable and dependable sales, if your direct farm marketing outlet has a steady selling to farmers
flow of customers.
• Increased marketing opportunities, because you can still sell our products in the markets, door-to-door
traditional wholesale markets.
sales, Internet
• Marketing higher value products, such as meat and processed foods.
marketing, direct sale
He also cites many personal or non-monetary benefits to direct farm marketing, which
include: to restaurants or
• Personal satisfaction and fulfillment. Every farmer knows how satisfying it is to institutions, and so on.
produce a good crop, but direct farm marketers experience a special feeling as they
directly supply fresh, wholesome food. They get to share the food with the people who
appreciate its value and who let them know how much they appreciate their efforts.
• Building relationships with customers.
• Working at home with your family.
• Maintaining autonomy or independence.
• Creating “community” around the farm. Many direct farm marketing operations
involve more than just one person working in the field. Instead, the family may be
involved as well as outside workers.
• Running a personal business enterprise.
There are a number of terms used in direct farm marketing. The following are the
common definitions:
• Community Supported Agriculture (CSA): a form of subscription marketing where
consumers buy a share of production and receive deliveries of the product.
• Direct farm marketing: selling food and farm products directly to consumers without
using an intermediary. This may include direct sales to grocery stores, restaurants,
door-to-door and freezer sales, and Internet marketing.
• Farmers markets: local open-air markets held regularly during the growing season
where producers sell directly to consumers.
Hamilton cautions, “The decision to become involved in direct farm marketing should
include identifying the risks (or costs) which might be associated. The risks or costs
associated with direct farm marketing will probably be of two types – those that are
directly quantifiable and those that may be more difficult to measure. (Page 16-17.)

In his book, Hamilton notes eight things that could get you into legal trouble if violated.
• Selling more products produced by others than raised by you.
• Not carrying sufficient liability insurance.
• Failing to comply with labor rules when hiring employees.
• Conducting a “commercial” business in an area not zoned for such use.
• Allowing unsafe conditions to exist on your property.
• Selling processed foods that have been produced at an unlicensed facility
• Failing to observe farmers market rules designed to protect the safety or quality of
food.
• Not complying with record keeping and paperwork rules for tax or labor laws.
Joel Salatin, a Virginia pastured beef and poultry producer and author of several books,
suggests several things to think about when deciding on the pricing of your products.
• First, don’t under-price your product. Attributes such as “sustainably produced” are
perceived to be superior products to consumers because they may be more
environmentally friendly, humanely produced, or are produced on family farms.
Patronizing local farmers ensures that the local economy is stimulated. Salatin
suggests that producers set a rewarding and satisfying gross margin and then stick
to it. This will allow the producer to build a customer base with clients who
appreciate the product for what it is, not for what it costs.
• Second, don’t try to satisfy all customers’ needs. Take into account the time and
extra effort that may be needed to accommodate their requests. (Salatin, Joel.
“Sales Can Fail,” The Stockman Grass Farmer; June, 1994, p. 31.)
• Finally, keep accounts receivable low. Operate on a cash and carry basis as much
as possible.
Direct marketing has a unique characteristic that depends on building relationships
with the customers. In fact, the term “relationship marketing” has been used to
describe the best methods of direct marketing for family farms. Salatin suggests these
marketing tenets:
• The producer has to tell the consumers why the products are different from meat
that can be bought in the grocery stores.
• Product quality: When the producer maintains control of the animals and raises
them, it should be easier not to compromise the quality of the meat.
• Customer loyalty: When the consumer knows the producer personally, the
relationships built between them, both emotional and physical, are not easily broken.
Good sellers know and use their customers’ names. Loyalty helps bring in repeat
customers. The greater the loyalty and satisfaction, the higher the likelihood of
repeat business, even though the product may be available at the grocery store at a
cheaper price.
• The producer has to remember that the first rule of business is that the consumer is
always right, but in some cases a sale might actually cause a negative gross margin.
If the consumer is not a good patron, the producer should consider not marketing to
him or her.

Following are further resources on direct marketing:
• Appropriate Technology Transfer for Rural Areas or ATTRA
Phone: (800) 346-9140
www.attra.org
• Direct Marketing Resource Notebook
Nebraska Sustainable Ag Society, PO Box 736, Hartington, NE 68739
Phone: (402) 254-2289
Cost: $20
• Legal Guide for Direct Farm Marketing
Neil Hamilton, Drake University Law School, Agricultural Law Center, 2507 University
Avenue, Des Moines, IA 50311-4505
Phone: (515) 271-2947
Cost: $20
• North American Farmers Direct Marketing Association (NAFSMA)
Phone: (888) 884-9270
www.nafdma.com
Membership fee for one year is $75.
• Farmer Direct Marketing Action Plan
Errol Bragg, USDA Agricultural Marketing Service (AMS)
Phone: (202) 720-8317
www.ams.usda.gov/directmarketing/frmplan.htm
Community Supported Agriculture

Community Supported Agriculture or CSA is quickly becoming a direct marketing
alternative. In a CSA system, the farmer grows food for a group of shareholders or
subscribers, who pledge to buy a portion of the farm’s crop that season. This
arrangement gives growers up-front cash to finance their operation and higher prices
since the middleman has been eliminated. Most CSAs are organized with produce, but
some are adding meat products. There are more than 600 organized CSAs in the U.S. and
15 in Iowa.
There are four types of CSAs:
• Subscription or farmer-driven. The farmer organizes the CSA and makes most of the
management decisions. The shareholder or subscriber is not very involved in the
farm. This kind of CSA is quickly becoming the most common.
• Shareholder or consumer-driven. Consumers organize the CSA and hire the farmer
to grow what they want. The consumers make most of the decisions. This model is
often used in the Northeast.
• Farmer cooperative. This is a farmer-driven CSA in which two or more farms pool
their resources to supply customers.
• Farmer-consumer cooperative. The farmer and consumer co-own land and other
resources and work together to produce food.
Most CSAs have between 35 and 200 members. A typical offering would be 5-10 pounds
of produce per week, or enough for 2 or 3 people. One detailed three-year study showed
that CSA shareowners would have paid 37 percent more at their supermarket for
conventionally grown food.

Some of the barriers to entry and other considerations in a CSA are:
• Organizing farmers to be part of a CSA. Additionally, you may have several farmers
who are willing to grow produce and perhaps have other species such as poultry,
eggs, lamb, etc., to provide consumers diversity throughout the year.
• Finding consumers who are willing to be part of a CSA.
• Constant and varied supply of produce and products.
• Seasonal aspects of CSAs are difficult to overcome. They can’t compete with year-
round availability in grocery stores.
• Need to ensure that the meat products sold have appropriate approvals.
• If marketing is done prior to planting and harvesting, this helps to lower risk for
producers than many other marketing options.
• Lower risk, since participants share cost with others.
• Ease of facilitation if the group lives close together.
• Risk shared with consumer CSA members.
• May be difficult to organize with other farmers.
• May be difficult to convince consumers they should participate. May be less choice
for consumers than is available at supermarket, which have a wide array of products.
• Variables that decrease the likelihood of someone joining a CSA are people with
children under 12 years of age and people with teen-agers.
The following marketing themes and trends have been found helpful for groups wishing
to promote their CSAs:
• Connecting farmers directly with consumers.
• “Food with a Face” themes.
• Marketing to groups with social consciences, such as churches, environmental
groups and civic groups.
• Lower cost per share.
• Marketing to individuals who want organically-grown food and who are socially
conscious.
• Marketing to individuals who are well educated. Education level was found to be a
very significant predictor of membership status, with members generally having a
higher level of education.
Following are further resources on CSAs:

• Appropriate Technology Transfer for Rural Areas (ATTRA)
Appropriate Technology Transfer for Rural Areas, PO Box 3657, Fayetteville, AR
72702
Phone: (800) 346-9140
www.attra.org
• Bio-Dynamic Farming and Gardening Association
Bio-Dynamic Farming and Gardening Association, PO Box 550, Kimberton, PA 19442
Phone: (800) 516-7797
• Community Supported Agriculture of North America
c/o Indian Line Farm, Box 57, Jugend Road, Great Barrington, MA 01230
www.unmass.edu/umext/csa
• Community Supported Agriculture . . . Making the Connection
California Cooperative Extension, Placier County, 11477 East Avenue, Auburn, CA
95603
200 pages
• Iowa Community Supported Agriculture: Resource Guide for Producers and
Organizers
Iowa State University Extensions Sustainable Ag Program, 2104 Agronomy, ISU,
Ames, IA 50011
Phone: (515) 294-1923
80 pages
• Iowa Network of Community Supported Agriculture (INCA)
Jan Libby, 1465-120th St., Kanawha, IA 50447
Phone: (515) 495-6367
libland@frontiernet.net
• Legal Guide for Direct Farm Marketing
Neil Hamilton, Drake University Law School, Agricultural Law Center, 2507 University
Avenue, Des Moines, IA 50311-4505
Phone: (515) 271-2947 The USDA
Cost: $20
• List serve: CSA-L@prairienet.org estimates there are
www.priarienet.org more than 2,700
Door-to-Door Sales farmers markets in

Some meat marketers have been successful with establishing a clientele and selling the U.S., with more
meat directly to the consumer. The product is usually frozen to ensure longer life.
than 20,000 farmers
Marketers often establish the sales through individuals whom they know or customers
they have generated through farmers markets, direct mail or phone promotions. selling through
In direct sales to consumers, consider the following: the markets.

• Most states require salespersons to have a state-issued license or permit to sell
products door-to-door.
• Make sure the product has been carried in a refrigerated vehicle. Bacteria multiply
rapidly at about 40 degrees.
• The Federal Trade Commission (FTC) Cooling-Off rule gives the customer three days
to cancel purchases made in your home or at a site that is not the permanent place
of business or local address of the seller. The cooling-off rule does not cover sales
of $25 or under. Under the rule, the salesperson must orally inform a customer of his/
her rights at the time of sale and provide two copies of a cancellation form and a
copy of the contract or receipt. The contract or receipt should be dated, show the
name and address of the seller and explain the consumer’s right to cancel.
The following is a further resource on direct sales:

• Appropriate Technology Transfer for Rural Areas
www.attra.org
Farmers Markets
The USDA estimates there are more than 2,700 farmers markets in the U.S., with more
than 20,000 farmers selling through the markets. Farmers markets are typically simple in
organization and very straightforward in operation.
According to Neil Hamilton, in The Legal Guide for Direct Farm Marketing, there are
some general features in how farmers markets operate. They include:

• There will be a set of regulations, developed by whoever is sponsoring the market,
which vendors must agree to follow.
• Vendors will be required to sign an agreement concerning their participation in the
market, which includes that they agree to follow the rules.
• Vendors pay a market fee on a daily or season basis.
• There is a market manager, who is responsible for running the market and enforcing
the rules.
One of the important issues that can arise in the operation of a farmers market is liability
in case of injury or accidents to shoppers or vendors. Many markets purchase their own
insurance policies to cover some of the potential events. Some markets also require
vendors to purchase policies specifically for their market activities, which list the market
as an insured party. The most common way this issue is addressed is for the market
agreement to require vendors to provide some proof of liability insurance. (The Legal
Guide for Direct Farm Marketing, page 51.)
Producers need to emphasize that they are local farmers and their products are locally
grown and raised, because customers like the idea of supporting local small-scale
agriculture. For pasture-raised products, it’s important to have photos displayed showing
the clean, green aspect of pasture produced products. The customer should be able to
easily understand all advertising materials
Vegetables are the main items at farmers markets, so producers with meats have a
marketing advantage.
The following are further resources on farmers markets:
• ATTRA
ATTRA’s Farmers’ Market publication
www.attra.org
• Agricultural Diversification Bureau
Iowa Department of Agriculture and Land Stewardship, Barbara Lovitt
Phone: (515) 281-5402
Freezer Sales
For many livestock producers, freezer meat sales have been the most successful when
selling live. Freezer sales usually force the producer to become a broker for the
slaughtering and processing at a government-approved facility. Before starting to
market, the producer needs to form a good working relationship with the locker or
government-approved facility.
Several points to consider include:
• The largest portion of your business may come from value-added products, like
sausages and other processed meats.
• In pricing, be sure to include the cost of handling and delivery to the facility.
• Make sure the buyer understands there will be loss of weight during slaughtering.
• Require a deposit before taking an animal to slaughter.
(From Klober, Kelly; “Approaches to marketing – notes from a direct sales survivor,”
Small Farms Today; October-November 1998; p. 48-51.)

The following is a further resource on freezer sales:
• Appropriate Technology Transfer for Rural Areas
www.attra.org
Mail Order
Many have found mail order to be an effective way to merchandise meat products.
However, all meat that crosses state lines must have been harvested and processed at
federally inspected plants. The USDA provides the following food safety suggestions.
• Pack it safely. Perishable foods will stay safe at a frozen temperature longest if
frozen solid first. After frozen, pack your food gift with a cold source, such as a
frozen gel pack or purchased dry ice.
• Use a sturdy box. Use heavy foam or corrugated cardboard. Fill up any empty space
with crushed paper or foam popcorn. Air space in the box will cause the food and
cold source to thaw faster.
• Clearly label your box “Perishable – Keep Refrigerated.”
The following web site contains further resources on mail order:
• www.fsis.usda.gov/OA/pubs/mailorder.htm
Restaurant and Institutional Sales

When combined with other direct sales methods, selling directly to restaurants often
works well. The “rules” of direct selling that apply to restaurants are much the same as
those for other direct channels.
Jim Goodman and Brian Boehm, both from Wisconsin, have successfully sold products
to restaurants. They offer the following pointers and questions for consideration:
• Know what type of products you will sell.
• Do you have enough volume at a competitive price?
• Are you featuring a premium product, such as sustainable, organic or product with
other unique attributes?
• Will selling to restaurants fit into your marketing plans? Generally, restaurants want
only the best cuts. It will be harder to move lesser cuts fast enough to supply the
restaurants’ needs. It may also not leave enough high-end cuts, such as steaks and
chops, for your other customers.
• What is your sales volume?
• Is the restaurant’s menu flexible enough to take other products? This could be a
place to move volume depending on the type of restaurant (i.e., burgers or white
tablecloth).
• Must all the meat be delivered fresh, or will the restaurant take frozen product? This
will impact how many deliveries you must make.
In establishing a market with restaurants, Boehm and Goodman say you have to
displace someone who is already selling. Furthermore, many restaurants buy all their
food products from one source, such as Sysco or Marriott, and do not want multiple
suppliers calling on them. Have patience. It can take up to seven years to establish
good relationships. Ways to establish clients include:
• door-to-door calling on restaurants;
• referrals from other chefs;
• linking with chef organizations and attending their meetings and trade shows; and
• knowing what types of foods restaurants serve and seeing if you can be a supplier
for them.

Communications with the owners, chefs and staff are imperative to have a positive
supplier/buyer relationship. Boehm and Goodman recommend that you ask the
restaurant when it is a good time to take orders and deliveries. Establish your
communications so the following procedural issues are addressed:
• Does the restaurant call you, or do you call someone there?
• Is there a regular delivery schedule or is it on an as available/demand?
• Determine how problems and complaints can be resolved.
• Misunderstandings will occur; resolve them quickly.
• How are payments made? What is your credit policy?
• Go to staff dinners.
• Invite the staff to your farm.
• Insist on feedback, good and bad.
Boehm and Goodman say these problems may occur when selling to restaurants:
• The restaurant business is very fluid. Success rate is rather low.
• Staff changes often.
• Menus change with customer demand, the season, the chefs and the availability of
other items; thus demand for your product will change.
• Eventually, some of your product will be below the usual high standards. How will
you deal with it? How will the restaurant deal with it?
• Can your processor follow your instructions?
• Can you keep all your customers happy?
The following resources assisted with this section and may be of further help to you:
• Boehm, Brian
Brian, Boehm, Oregon, WI (608) 835-0264.
• Goodman, Jim
Jim Goodman, Northwood Farms, Wonemoc, WI; (608) 489-2291.
r.j.goodman@mwt.net

Marketing Plan
Catering, Events and Festivals
Any catering business will require someone with excellent cooking and management
skills to run the operation. Most cities will not let anyone start a catering business from a Going Mobile
home kitchen without modifications to meet codes. Many cities require an institutional with Meals:
kitchen be established in a separate area, such as a garage or basement, with a
separate entrance. Health permits will need to be obtained from local, county and/or
Mobile industrial
state health departments. Most locales consider a catering operation a restaurant for catering is a business
health code purposes. that serves industry,
construction sites,
Whatever the type of catering operation started, it will require:
• a consistent high quality meat product, movie sets, street
• labor to prepare and deliver meals, corners, special events
• skill and expertise to manage and run a food preparation kitchen, and many other places
• a sales effort to find the accounts, and that do not have
• someone to do the ongoing marketing . kitchens on site.
Financial Information The mobile catering

Start-up investment: You can spend from a few thousand dollars to modify an existing business is a $5 billion
kitchen to meet codes up to $75,000 to build a professional kitchen. A low cost alternative dollar a year business.
is to rent a kitchen, such as from a church. However, if you do so, you will need to
ensure that the kitchen has been inspected. YES Catering, located in
Time until breakeven: Breakeven can be achieved in less than one year depending on the Indiana, is an example
fixed investment. of what is possible in
this business.
Annual revenues: A few thousand dollars to a few million with pretax profits in the 40
percent of gross revenue range. YES was started by a
One caterer estimated she kept up to two-thirds of the total revenue from a catering job husband and wife in
after paying expenses. Catering has the reputation for the best profit potential in the food 1991, based on the
and beverage industry. Catering allows for a start-up matched to your pocketbook. woman’s three years of
Kitchen facilities and items such as china, linens and other staples can be rented. It is experience working with
estimated that 70 percent of the business activity is related to business activities of another caterer. The first
marketing, cooking, transporting food, serving, clean-up and arranging for help, while
day the business opened
only 30 percent of the effort is food related. These percentages are the opposite of
with 13 accounts; in 18
restaurants.
months a second route
Three Client Groups was added; eight years
There are primarily three avenues for catering. later the company has
eight routes.
Social Catering
Targets weddings, anniversaries, parties and other special events revolving around YES now serves 160
celebrations. These are sometimes the more challenging events to cater since many businesses five to seven
people for social events will not have used a caterer before. Much time is spent breakfast items daily
educating the customer about possibilities for food, pricing and arrangements. For this along with 18 lunch
type of catering, the business will want to network with bridal shops, halls rented for
options. The owner
events, churches, bakeries and other contact points for special events.
maintains quality control
Corporate Catering and customer contact
This includes the mobile industrial catering business. Corporate catering takes in every day by operating a
catering truck.
corporate lunches in the boardroom, breakfast meetings, box lunches, food delivered for
noon breaks and other special occasions such as the annual summer family corporate
picnic or winter holiday party. This type of catering is conducted in a more business like
manner, usually with one or two people in the business. Price, service and quality are the
main issues and most businesses are experienced in this area, know what they want,
and are working from a budget.
Community Affairs
These include special events hosted by city or county governments, nonprofit
organizations or other groups. Often the group will need a caterer to provide food and
assist with other aspects of the event. These public events are a good way to generate
publicity about your business.
Soliciting Business
A good way to start is to talk with the business receptionist who handles the catering.
The plant managers or top person’s secretary might also be a starting point. Different
departments may need to be targeted. Human Resources workers handle such things as
safety award and employee luncheons; the President’s or General Manager’s office
handles special events and sales and marketing events for sales staff or customers.
Software is available to help with all aspects of a catering business. One such software
is CostGuard for Windows published by AtYourService Software, Inc., Bronxville, NY.
Web site is www.costguard.com. This software has food, menu, inventory control,
recipe costing and sales analysis assistance. An excellent Web site for a wide variety of
information and assistance about catering is www.webfoodpros.com. This site contains
several chat rooms related to various aspects of catering.
Resources
Kahn, Sharon, and The Philip
Lief Group, “Catering Events
and Festivals,” 101 Best
Businesses to Start; pp. 173-
189; Main Street Books;
Doubleday; New York, NY.
1998.
Vivaldo, Denise, How to Start

a Home Based Catering
Business, 3rd Edition; The
Globe Pequot Press; Guilford,
CN; 2000.
http://webfoodpros.com
http://angelfire.com/in/
yeschartz
Marketing Plan
Catalog and Mail Order Business
U.S. mail order sales in 1998 were $357.3 billion. That represents a 12 percent increase
from one year earlier. Even when adjusted for the inflation rate, the growth was 10
percent. Consumer mail order sales were at $185 billion, and accounted for 52 percent of
the total; business-to-business sales were at $104 billion, accounting for 29 percent; and
charitable sales were at $68.2 billion or 19 percent. Consumer mail order sales were
divided between product sales at $109 billion and services sales at $76.1 billion. Per
capita consumer mail order sales were $685 over a population of 270 million. (Source:
National Mail Order Association.)
Mail order is a lucrative endeavor for entrepreneurs. It offers a high potential with
relatively low start-up capital requirements, according to Business Concepts’ Start Your
Own Mail Order Business. The publication rates mail order as a medium risk business
with solid profit potential.
Start-up costs depend on how much time and money you want to commit, how fast you
want to grow and what your product requires.
American consumers are conditioned to shopping by catalog and now receive catalogs
for most essential items. Mail order opportunities arrive regularly at virtually every
household with credit card statements, as advertising supplements in the daily
newspaper, in mass mailings and even with utility bills. Catalogs offer a way for anyone
with a viable product or service in demand by consumers to compete successfully with
bigger companies.
Some experts say that catalog presentation of products is simply mail order at its best.
There are some considerations before rushing out to print up that catalog, however.
Deciding what product to sell is the most critical decision in mail order marketing. When
deciding on an item to sell try to develop one or find one that will appeal to all ages. Look
for items that work for men, women and children and search for goods that are low cost
and frequently reordered.
How to Get Started

Assemble a team of people who have:
• persistence
• imagination
• honesty
• knowledge
Learn from other catalog operations:
• study catalogs
• visit other operations if possible
• study advertisements for items in magazines, catalogs and newspapers
• learn what your competitors are doing
Selecting product is critical. The ideal mail order product:
• offers a large profit margin
• appeals to broad segment of the population
• is lightweight and does not break or spoil

A recommendation is to pick a product that will sell for three to four times what you pay
for it. Price the product to attract customers. Use two-for-one deals, or one product for
full-price and the second for half-price. Again, look at what your competitors are using
for pricing strategy.
Testing helps to lessen the guesswork for finding a winning combination. For simple test
marketing, spend a small amount on an advertisement or mailing and check the results.
As you discover the combinations of variables that yield growing response, you will
begin to get the feel for the right formula to reach your targeted market.
Advertising is critical to success. You may use print ads, photographed display ads or
both. An ad should get attention through a good headline. Use proven headline words
such as “amazing,” “bargain,” “revolutionary” and “sensational.” Actually, in the food
business, you will look for stand-out words that meet the needs you’ve identified in your
customers. These might include “most flavor,” “quick” or “in seconds” (when dealing
with preparation aspects), “healthful” or “pure.” For a list of such words, check the
book, by William A. Cohen, Building a Mail Order Business, 2nd edition (New York: John
Wiley & Sons, Inc., 1985).
Develop interest and sell the benefits — sell the smell and sizzle of the meat. Here are
some tricks to keep in mind.
• Show the benefits and advantages of the product.
• Build and maintain credibility.
• Use testimonials or references if available.
• Deliver a call to action, that is, ask for the sale.
• Provide incentive for the customer to order immediately.
• Include a toll free number to call.
• Use a post office box to maintain privacy. (Response to a business address is
actually better than response to a post office box - but if the business address is
your home you should consider possible privacy and security issues.)
• Accept the use of a major credit card .
Shipping Frozen Foods

Whether shipping items sold from a catalog or from items ordered over the Internet, the
USDA does have guidelines for storage and shipping of frozen food items that should be
followed.
Many people selling meat products through direct sales have found mail order to be an
effective way to merchandise meat products. However, all meat that crosses state lines
must have been harvested and processed at federally inspected plants. The USDA
provides these food safety suggestions:
• Pack it safely. Perishable foods will stay safe at a frozen temperature longest if
frozen solid first. After frozen, pack your food gift with a cold source, such as a
frozen gel pack or purchased dry ice.
• Use a sturdy box. Use heavy foam or corrugated cardboard. Fill up any empty space
with crushed paper or foam popcorn. Air space in the box will cause the food and
cold source to thaw faster.
• Clearly label your box “Perishable: Keep Refrigerated.”
• Ship frozen items packed so that they arrive with ice crystals still visible.
• The food should ideally be shipped overnight.

• Tell the recipient of a promised delivery date or alert the customer if the item has
been shipped so someone is there to receive it.
• Do not send to a business address unless you are sure a refrigerator is available for
immediate storage of the product.
• Do not send packages at the end of the week when they may sit in a post office over
the weekend. Try for early in the week shipments.
Notes
The Federal Trade Commission has a Thirty-Day Delivery Rule. This rule states a firm has
30 days to ship an order once it is received. If you can not ship within 30 days or by your
stated shipping time, you must notify the customer of the new ship date before the
original date passes. In the notification to the buyer you must include a stamped, self-
addressed envelope for the customer to use to cancel the order.
The following web site contains further resources on mail order:
• www.fsis.usda.gov/OA/pubs/mailorder.htm
An Example of Opportunity
Schwan’s is a Minnesota-based company that started in 1952 with a farmer, Marvin Schwan,
who was not satisfied with the market he was receiving for his milk products. Since then,
Schwan has grown his business to now include delivery in the 48 continental states plus
Canada and Mexico. Mark Gaddis is head of purchasing for pork and beef items. While this
is more than a catalog mail order operation, Schwan’s does have a catalog they leave with
customers who can use it for ordering when they miss the route truck.
A Conversation with Schwan’s…

In early March 2000, a member of the team authoring this manual spoke with Julia
Handeland, assistant to Mark Gaddis, at Schwan’s Marshall, MN, headquarters. While
the conversation was directed at another project, the outcome may apply to businesses
like yours and is printed here. The specific question asked was:
What is the process for selling products to Schwan’s?

The answer was:
1. Send a letter of introduction and product brochure to Mark Gaddis. (Do not send
samples unless requested.)
2. The brochure will be reviewed by the buyers.
3. A meeting will be scheduled or a request for samples will be made – if there is an
interest.
Other things learned during the conversation:

• The product needs to be unique for it to have a chance of acceptance.
• USDA and HACCP certifications are absolute requirements.
• Everything handled by Schwan’s is packaged under their name.
• Route trucks return to customers every two weeks - portions should be of a size that
promotes an order by the time the truck returns.
• Precooked is fine; but not a requirement and not always an advantage.
• All packaging is done at supplier’s plants per Schwan’s specs.
• Schwan’s picks up its own products from the suppliers.
• Families are the target market.
Gaddis’ phone number is (507) 537-8688. The general number is (888) 724-9267.

Gift Giving
In addition to the catalog sales, the gift giving business offers significant opportunity to
market high end products. Experts say the best approach for these types of markets is to:
• Pick profitable small- to medium-sized companies in the area.
• Schedule a meeting with the plant manager, owner or human resource director.
• Explain that you are able to supply a high quality gift item for them to give to
employees or valued clients.
• Show how and why the company will benefit by giving your product.
• Explain that you ship all your product next day delivery – then be able to do it.
Other Opportunities to Explore

Omaha Steaks
The company was started more than 80 years ago as Table Supply Meat Company: a
Meat Wholesaler in Omaha. In 1952, the company began the mail order business. The
company changed its name to Omaha Steaks International in 1966. In 1975, Omaha
Steaks built an inbound call center, giving customers a quick and toll free way to order.
In 1991, the company went on-line at http://www.omahasteaks.com. New enterprises
might wish to visit some of the Omaha Steak stores to become familiar with products,
displays and methods.
• Omaha Steaks
Phone: (402) 331-1010; fax (402) 593-4230
Stock Yards
Stock Yards is a small Chicago-based company. Most of the products it carries are
beefsteaks. Contact: Nicole at (800) 621-3607.
For Additional Information

Check the National Mail Order Association homepage at http://www.nmoa.org/ for all
kinds of great tips about mail order.
References
“Mail Order Marketing”
http://www.smartbiz.com
“Starting A Mail Order

Business,” Business
Concepts, 1994.
http://www.sba.gov
http://fsis.usda.gov

Marketing Plan
Working with Retailers
The so-called farm to retail spread is often a sore point for producers. Their belief is that
the retailer is taking too big a cut for his action. In today’s market place the consumer is
king, and the final interface with that consumer is the retailer for at least half the meat
consumed in this country.
It is important to note several often forgotten points about the retail market.
To break into the retail market, a slotting fee is paid in order to gain access to shelf
space. Then there are requirements for dollar volume that goes through that space in a
certain time. These fees are charged because the retailer is trying to realize a specific
percent margin on the gross dollar throughput.
One of the key
To successfully enter this market, you will deal first with top management. If it is a chain
operation, you may deal at a regional level and then also with specific stores. Ultimately, considerations for doing
you will make the sale at several points because you will need full buy-in at the store business with a retailer is
level as well as within the appropriate division management of the store.
meeting his/her gross
One of the key considerations for doing business with a retailer is meeting his/her gross
margin goals. This can be a problem when you are supplying a value added product such margin goals. This can be
as pre-cooked or case-ready meat items. You may find your product over-priced if the a problem when you are
retailer applies his 25 percent markup to already value added product.
supplying a value added
product such as pre-
cooked or case-ready
meat items.

Marketing Plan
How to Approach Buyers
Many buyers spoken with in this and other recent studies by the manual authors were
willing to purchase directly from producers – if producers are able to deliver a product
preferred by their customers. Several of them had the following suggestions.
1. Familiarize yourself with the market. Talk with other producers who are already
operating in your general market. Get a sense of the products demanded by that
market, potential level of interest and typical prices offered. Know your costs of
processing and transportation.
2. Select an appropriate market for your capabilities. Try first to establish yourself
with a buyer and a specific market that you are 100 percent certain you can supply
and satisfy. When your product is known and you are assured you can meet the
quality and volume needs, you can approach other buyers and larger volume
accounts.
3. Prepare written materials. If targeting restaurants or stores, keep in mind that most
buyers like to see two sets of materials.
• First, they like to see in writing what products you have to offer and at what
prices. This sheet should also summarize the claims and characteristics of your
meat in an easy to read and attractive manner. These include the production
characteristics that distinguish your products from others.
• The second type of written materials that most buyers like to have is a brochure
that will help them sell your product to their customers. This type of point-of-
sale material should positively outline the characteristics of your meat for
customers – who may need some explanation of the advantage of your product
over others.
4. Initiate contact with a telephone call. Most buyers would like to receive a call in
which you clearly state your intentions. Rehearse. By the time the buyer picks up
your call, he or she may already have another one waiting. Professional
salespeople often have a 50-, 100- and 200-word explanation of their products ready
to be delivered. Never just “drop in” on a buyer. Setting up an appointment will
assure you have his or her time and attention.
5. Clarify the details of the business relationships. If a buyer expresses interest in
buying from you, be sure to clarify the terms of the sale. Review the exact item(s),
volumes, price, delivery date and conditions and any other requirements.
6. Deliver what you promise. Promise only what you are sure you can deliver and then
follow through. If at any time you cannot meet the terms of your agreement with the
buyer, notify him or her as early as possible and be prepared to help the buyer meet
commitments.
7. Be persistent without being a pest. It will be pure luck if you nail a big sale on your
first try. Learn from each attempt. Never grow angry or stop asking questions about
what you can do to help your buyer meet his/her needs. Don’t just drop a product on
the buyer’s desk – deliver an answer.
Basic Steps to Set Yourself Up for a Sale

• Call. Give your name: “This is Lynn Doe from Anytown.” Ask: “Could I please speak
to your meat buyer.”
• Let them know you are calling with the intent to provide a great product.
• Ask when might be a good time for you to come and talk about your product. (Some
buyers may ask you to send written material to review before setting up an
appointment.)

• Ask if you can send information ahead of time. Or, in case of a negative response
regarding a meeting, ask: “Can I send product brochures and some information
about our quality?”
• Ask if the buyer wants you to bring samples. (Any particular cuts?)
• Find out if there are new products you can show them.
• Whatever the outcome, say, “Thank you!”
Thank them if they say, “Yes.”
Thank them if they say, “No.”
Once you have your foot in the door, keep it open for the next time.

Marketing Plan
Federal Procurement
The federal government is a marketing possibility for any small business. For most of the
federal purchasing agencies, this is an opportunity based on e-commerce. Like all other
marketing opportunities, to be successful in selling to the federal government, the
business must price the product competitively and be prepared to package and ship
according to very specific requirements.
A study of federal procurement sites, which was carried out by Federal Procurement Marketing to the
from Small Firms, ranks 2,235 federal procurement centers on their levels of procurement federal government
from small businesses during fiscal year 1998. The review looked at contracts over
$25,000. is a series of
In FY 1998, the government spent $181.7 billion for goods and services in prime contracts well-defined tasks.
over $25,000. Small business received just 18.3 percent of the total awarded or $33.2 Some are done
billion. The study revealed the centers spending the most on contracts did the least
amount of spending with small contractors. Nineteen percent of the centers, 419, did no one time and some
contracting or less than 5 percent of their contracting with small business. Procurement are done on a
was concentrated in engineering and management services, general construction and
real estate services. Next, but a much smaller amount, were health services, business repeat basis.
services, electronic equipment and transportation equipment. Janitorial and commissary
services, once procured almost exclusively from small business, are no longer the
domain of small business.
What does this mean for you?
Marketing to the federal government is a series of well-defined tasks. Some are done
one time and some are done on a repeat basis. Although well defined, the start-up
business probably should not consider government contracting until the basics of
business have been well established. The basics include definition of products, product
sizes, pricing, bookkeeping, shipping and delivery, and marketing. These factors all
should be outcomes of your business planning process and development of a written
plan. Some contracts have a selection criterion to meet called “past performance.” With
no business history, a start-up business will have trouble meeting this criterion.
How to Get Started

It is recommended that producers visit the State of Iowa procurement office for
assistance in getting started on the federal procurement system. The contact is:
• Iowa Procurement Outreach Center (CIRAS)
Iowa Procurement Outreach Center (IPOC), Bruce Coney, Program Manager
Phone: (800) 458-4465
Coney’s staff can work with your group on an individual basis, and they sponsor sessions
about how to get started with government contracting. The Iowa procurement unit
sponsors monthly contracting networking breakfasts in Des Moines and Iowa City and is
also considering expanding these events into Council Bluffs. The breakfasts provide
networking opportunities with other companies.
Central Contracting Registration (CCR)

After contacting the Iowa center, a business needs to begin the registration process on
the Internet. To be a successful government contractor requires Internet capability. The
first site to visit is the Central Contract Registration (CCR) site. The CCR is the primary

database for information about trading partners who would like to do business with the
Department of Defense. The database contains trading partner information relevant to
procurement and financial business transactions. CCR provides worldwide visibility to
government buyers and finance officers for the purpose of streamlining contract awards
and payments. Registration at this site also allows trading partners to avoid registration
with multiple procurement offices.
To get started with CCR registration, you must have a Data Universal Numbering System
(DUNS) number. The number can be obtained by calling Dunn and Bradstreet at (800)
333-0505. The process to request a number is free of charge and takes about 10 minutes.
Registration with CCR is important because the entire federal procurement system is
moving to the use of the system. This means that being listed in the CCR directory will
give you electronic visibility to government buyers you have not yet met. Signing up here
will allow you to do business with anyone in the federal government.
The web site address to get started is: http://www.ccr2000.com
Another web site is: http://dodbusopps.com/html/getstarted.html
This site provides helpful information on getting started with opportunities in selling to
the military. It suggests reading a book, Selling to the Military Handbook, as a starting
point and offers information about the book.
The Small Business Administration (SBA) has two programs to assist with government
procurement opportunities. PRO-NET is a program of the SBA that is an electronic
gateway of small business procurement information. It is an Internet data base with
information on more than 170,000 women and minority owned businesses. Government
agencies as well as prime and subcontractors can use the database to identify potential
suppliers. The system also serves as an electronic gateway to the Commerce Business
Daily, agency homepages and other procurement opportunities.
Another SBA program is SUB-NET. Prime contractors use this system to post
subcontracting opportunities. Small businesses can review this Web site to identify
opportunities in their area of expertise. Government agencies, colleges, universities,
state and local governments also use the Web site for listing procurement needs.
The Web site address: http://www.pronet.sba.gov
The Bureau of Prisons also buys food products, both perishable and non-perishable.
Each prison is responsible for buying its own products as are six regional offices and
various training centers. The regional contracting office nearest Iowa is:
• North Central Regional Contracting Office
Tony D. Hiscocks, Regional Chief, Gateway Complex Tower II, 8th Floor, 400 State
Avenue, Kansas City, KA 66101-2492
Phone: (913) 551-1067.
http://www.bop.gov
The Department of Justice has an Office of Small and Disadvantaged Business Utilization.
This office has the responsibility to give contracts to small, small women owned and small
disadvantaged businesses. Justice buys over $2 billion in goods each year.

The Web address is: http://www.usdoj.gov/jmd/osdbu/
The U. S. Department of Agriculture (USDA), Agriculture Marketing Service (AMS)

purchases meat products for the National School Lunch program and other Federal
Assistance programs. A visit to that Web site will provide a catalog to view information
on how to sell products to the USDA and purchase reports.
The Web address: http://www.ams.usda.gov/cp/index.htm
Other Web sites that provide information for government contracting are:
Electronic Posting System: http://www.eps.gov
This site is a link to procurement opportunities.
Defense Supply Center Philadelphia: www.dscp.dla.mil

This center purchases food service items.
Key Factors to Success in Government

Contracting
1. Work with the procurement technical assistance centers to get started. Network. Go
to any government procurement seminars offered and meet the federal purchasing
agents present.
2. You must utilize the Internet for government contracting.
3. Research the Internet. Order any solicitation for products and review it to see if you
should respond.
4. Respond to any solicitation for a bid from a government office. Do not fail to respond.
When you do respond, expect not to receive an award, especially when you are just
starting out.
5. Be persistent. One Iowa woman-owned business worked for seven years to win a
contract bid. Once she did and supplied the product in a satisfactory manner, she
continued to receive awards. She now supplies product to PXs all over the world.
6. Have your basics of business, pricing, product, delivery and production well
established before attempting government bids. A new start-up may be much less
successful receiving an award until it has had at least one year in business. One
reason for this is bid solicitations may call for past performance information.

Marketing Plan
Halal and Kosher
The terms “halal” and “kosher” refer to foods that are specially processed and prepared
according to the customs and beliefs of members of the Muslim and Jewish faiths
respectively. Each of the terms is applied to meats, fruits, vegetables and other food
items. Kosher (kashur in Hebrew) means “fit or proper for use” according to Jewish law.
Halal is a comprehensive Islamic term that means “lawful” regarding matters of food,
drink and daily life. For the beef merchandiser, halal and kosher foods may translate into
lucrative niche markets.
Before being declared as kosher or halal, foods must pass inspection by an agency or
individuals authorized by the hierarchy of the faith related to that label. (Although the
label requirements are similar and often confused in the marketplace, discriminating
buyers may demand that kosher and halal be treated as separate entities by the
processor.) Certification under either of the special food labels typically includes an
inspection of the production facility, review of sanitation, ingredients and labels, and
training of company personnel in understanding and meeting specific label
requirements. Livestock must be inspected and prepared by a qualified specialist to
ensure rigorous standards have been met. There are also special processes that must be
followed regarding how the animal is slaughtered and processed.
Where in demand, kosher and halal packaged foods tend to carry a 10-25 percent
premium over non-certified counterparts. In addition to attracting buyers because of
their religious faith, some consumers are drawn to eat halal and kosher foods simply
because the label designations carry the connotation of quality and wholesomeness. In
the most active markets, kosher and halal meats can be priced even higher, with
premiums rising to more than double the cost of other meats.
Although estimates of the total number of Muslims in the world vary greatly, it is
generally agreed that the figure is somewhere around 12.3 billion persons, or between 19
and 22 percent of the world’s population. Some estimates peg the Muslim population in
the United States as high as 5 million persons.
The states with the 10 largest Muslim communities in the U.S. are, respectively:
California, New York, Illinois, New Jersey, Indiana, Michigan, Virginia, Texas, Ohio and
Maryland. There are an estimated 3.3 million Muslims in these states.
According to a 1998 survey by the World Jewish Congress, there are 13.5 million Jews
throughout the world. As stated by the report from the World Jewish Congress: “Of
these, the largest community is 5.6 million Jews living in the United States. The second
largest group is 4.9 million Jews living in Israel. The third largest Jewish community is
600,000 Jews living in France.”
The states with the 10 largest Jewish communities in the U.S. are, respectively: New
York, California, Florida, New Jersey, Pennsylvania, Massachusetts, Illinois, Maryland,
Ohio and Texas. An estimated 5 million persons of Jewish faith live in these states.
Information regarding kosher and halal products and their markets can be found through
the following sources.

Halal
• Islamic Food and Nutrition Council
IFANCA, 5901 N. Cicero, Suite 309, Chicago, IL 60646
Phone: (773) 283-3708
Fax: (773) 283-3973
www.ifanca.org/halal.htm
E-mail: comments@ifanca.org
Kosher
• Union of Orthodox Jewish Congregations of America
OU, 11 Broadway, New York, NY 10004
Kosher hotline: (212) 613-8241
www.ou.org/
E-mail: kosher@ou.org
Resources
USADATA.com, Consultant and Market Research Reports
http://www.usadata.com/market_research/sml_00/sml_771.htm
http://www.ou.org/
http://www.ifanca.org/halal.htm
http://www.islam101.com/history/population2_usa.html
http://www.us-israel.org/jsource/US-Israel/usjewpop.html

Marketing Plan
Breed and Branded Marketing
There is nothing new about using breed advantages or special brands to establish a
unique market identity. As with most marketing concepts, these initiatives represent tried
and true methodology spiced up with a few new twists to serve the needs of the
participants in the modern day beef marketplace. For the producer, sifting through the
wide variety of coordinated production and marketing system relationships that have
resulted from the upsurge in the use of breed and branded marketing techniques can be
a bit like searching for a needle in a haystack.
Breed and/or branded marketing serve to reinforce the message that the consumer
demands are the priority. The focus is on a strategic list of specifications targeting an
end product that meets special needs or desires of the processor or consumer – or both.
There are three primary goals of breed and branded marketing:
• produce an animal that brings a greater rate of return on investment;
• provide the processor with a consistent product that flows through the operation;
and
• provide the consumer with a convenient, healthy, taste-satisfying and consistent
eating experience that promotes repeat purchases.
Harlan Ritchie of Michigan State University offers these questions to ponder when
considering alliances or breed programs:
• What can I gain from the system?
• What parts of my business are weak that a coordinated system could help?
• Can I get information from the system? This would include everything from overall
management to herd health to feeding and carcass data. What kind of information
does the system provide and will it help me in my enterprise?
• Can I access new technology in the system? If new technology comes along, does
the system have it or can I get it?
• Can I get financing in the system?
• Can I intensify my management and focus just on the parts of my business in which
I’m good?
• What are the costs of joining the system, both direct and indirect? What are the
fees for joining and participating?
• What kind of market target do my cattle fit?
Breed Marketing
Each of the cattle breed associations involved in marketing works to establish its own
unique consumer oriented claim to fame. “Lean,” “tender” or “lean and tender” seem to
be the most frequent eating-satisfaction claims. Breed specifications at the packer end
point frequently include grade consistency, narrowed weight parameters, progeny
guarantees and source verification.
Branded Marketing
Branded marketing might be seen as either separate from breed marketing or related to
it. “All-natural,” “natural” or “naturally fed” are claims that are frequently associated
with branded marketing efforts. The relationship with breed marketing sometimes comes
into play when claims about the special traits of a particular breed of cattle are
dynamically coupled with claims that the livestock have been raised without hormones
or antibiotics in an effort to gain still greater consumer favor.

Another branch of branded marketing includes beef marketed through closed
cooperatives and other forms of alliances and limited partnerships. Meat case products
labeled as “certified premium” or “farmers choice” might be considered examples of
this type of branded product. Here again, breed designation may or may not be part of
the claim.
New Niches
In a world that responds favorably to choice, going against the old commodity model may
be a very smart idea. In addition, it keeps you out from under the steamroller backlash of
the dominant industry players because you are not just replacing business they had, you
are possibly creating new customers for beef or bringing lost customers back.
This strategy is especially strong with local restaurants in the middle to upper clientele
range, where they frequently give meat items center-of-the-plate status based on the
cache of breed, brand and method of production.
Futuristic?
Strategic alliances represent strides toward a true value-based marketing system.
Producer and processor participation with breed and branded marketing groups will
surely impact the beef market in the future. The nature of this impact is difficult to
determine but it seems clear that more and more cattle are being placed into the
marketing system via these alliances.
The following represents a cross section of the types of producer alliances now
available.
• Precision Beef Alliance
Precision Beef Alliance, 53020 Hitchcock Ave., Lewis, IA 51544
Phone: (712) 769-2640; (712) 769-2641
FAX: (712) 769-2610
E-mail: x1hall@exnet.iastate.edu; hdevorepetty@hotmail.com
www.precisionbeef.com/
• U.S. Premium Beef
U.S. Premium Beef, 10100 NW Executive Hills Blvd., Suite 105, Kansas City, MO 64153
Phone: (816) 891-2300, (316) 767-7041
FAX: (816) 891-2310
www.uspremiumbeef.com/
• Coleman Natural Products, Inc.
Coleman Natural Products, Inc., 5140 Race Court, Denver, CO 80216
Phone: (800) 442-8666
www.colemannatural.com/
• Laura’s Lean Beef Company
Laura’s Lean Beef Company, 2285 Executive Drive, Suite 200, Lexington, KY 40505
Fax: (606) 299-6822
E-mail: customers@llbcorp.com
www.laurasleanbeef.com

Following is a listing of beef breed associations, some of which offer marketing
programs.
• American Angus Association
American Angus Association, 3201 Fredrick Blvd., St. Joseph, MO 64506
Phone: (816) 233-3101
FAX: (816) 233-9703
• American Beefalo Association
American Beefalo Association, Box 656, Somerset, KY 42501
Phone: (606) 678-5438; (800) BEEFALO
• American Belgian Blue Association
American Belgian Blue Association, P.O. Box 307, Sulfur Springs, TX 75482-0307
Phone: (903) 885-2275
FAX: (903) 885-2464
• American Blonde d’Aquitaine Association
American Blonde d’Aquitaine Association, P.O. Box 12341, Kansas City, MO 64116
Phone: (816) 421-1305
FAX: (816) 421-1991
• American Brahman Breeders Association
American Brahman Breeders Association, 1313 La Concha Lane
Houston, TX 77054
Phone: (713) 795-4444
• American Chianina Association
American Chianina Association, P.O. Box 890, Platte City, MO 64079
Phone: (816) 431-2808
• American Dexter Cattle Association
American Dexter Cattle Association, Route 1, Box 378, Concordia, MO 64020
Phone: (816) 463-7704
FAX: (816) 463-7704
• American Galloway Breeders Association
American Galloway Breeders Association, 310 West Spruce, Missoula, MT 59802
Phone: (406) 728-5719
FAX: (406) 721-6300
• American Gelbvieh Association
American Gelbvieh Association, 10900 Dover St., Westminster, CO 80021
Phone: (303) 465-BEEF
FAX: (303) 465-2339
www.gelbvieh.org/~aga
E-mail: aga@www.gelbvieh.org
• American Hereford Association
American Hereford Association, P.O. Box 014059, Kansas City, MO 64101
Phone: (816) 842-3757
FAX: (816) 842-6931
• American Highland Cattle Association
American Highland Cattle Association, Livestock Exchange Building, Suite 200, 4701
Marion St., Denver, CO 80216
Phone: (303) 292-9102
FAX: (303) 292-9171

• American-International Charolais Association
American-International Charolais Association, P.O. Box 20247, Kansas City, MO
64195
Phone: (816) 464-5977
FAX: (816) 464-5759
• American Maine-Anjou Association
American Maine-Anjou Association, 760 Livestock Exchange Building, Kansas City,
MO 64102
Phone: (816) 474-9555
FAX: (816) 474-9556
• AmericanMurray Grey Association
AmericanMurray Grey Association, P.O. Box 34590, North Kansas City, MO 64116
Phone: (816) 421-1994
FAX: (816) 421-1991
• American Pinzgauer Association
American Pinzgauer Association, 21555 St. Rt.698, Jenera, OH 45841
Phone: (419) 326-8711
• American Red Brangus Association
American Red Brangus Association, 3995 E. Highway 290, Dripping Springs, TX 78620
Phone: (512) 858-7285
• American Romagnola Association
American Romagnola Association, 2000 Flagstone Rd., Reno, NV 89510
Phone: (775) 475-2333
FAX: (775) 475-2697
• American Salers Association
American Salers Association, 7383 S. Alton Way, Suite 103,Englewood, CO 80112
Phone: (303) 770-9292
Fax: (303) 770-9302
• American Simmental Association
American Simmental Association, 1 Simmental Way, Bozeman, MT 59715
Phone: (406) 587-4531
FAX: (406) 587-9301
• American Shorthorn Association
American Shorthorn Association, 8288 Hascall St., Omaha, NE 68124
Phone: (402) 393-7200
FAX: (402) 393-7203
• American Tarentaise Association
American Tarentaise Association, P.O. Box 34705, North Kansas City, MO 64116
Phone: (816) 421-1993
FAX: (816) 421-1991
• American Wagyu Association
American Wagyu Association. P.O. Box 4071, Bryan, TX 77805
Phone: (409) 260-0300
FAX: (409) 846-4945
• Ankole Watusi International Registry
Ankole Watusi International Registry, 22484 W. 239 St., Spring Hill, KS 66083-9306
Phone: (913) 592-4050
WATUSI@AOL.COM

• Barzona Breeders Association of America
Barzona Breeders Association of America, P.O. Box 631, Prescott, AZ 86302
Phone: (602) 445-5150
• Beefmaster Breeders United
Beefmaster Breeders United, 6800 Park Ten Blvd., Suite 290 West, San Antonio, TX
78213
Phone: (210) 732-3132
• Belgian Blue Association of America
Belgian Blue Association of America, P.O. Box 6111, Sarasota, FL 34278-6111
Phone: (813) 388-2258; (800) 533-2374
FAX: (813) 388-1790
• Braunvieh Association of America
Braunvieh Association of America, P.O. Box 1454, Topeka, KS 66601
Phone: (913) 234-9595
• British White Cattle Association of America
British White Cattle Association of America, P.O. Box 281, Bells, TX 75414-0281
Phone: (903) 965-7718
• Foundation Beefmaster Association
Foundation Beefmaster Association, 100 Livestock Exchange Building, 4701 Marion
St., Denver, CO 80216
Phone: (303) 294-0847
• International Beefalo Foundation
International Beefalo Foundation, P.O. Box 486, Murfreesboro, TN 37133-0486
Phone: (615) 893-1005
• International Brangus Breeders Association
International Brangus Breeders Association, P.O. Box 696020, San Antonio, TX 78269-
6020
Phone: (512) 696-8231
FAX: (512) 696-8718
• International Red Brangus Breeders Association
International Red Brangus Breeders Association, P.O. Box 690771, San Antonio, TX
78269-0771
Phone: (210) 696-8506
• International Zebu Breeders Association
International Zebu Breeders Association, P.O. Box 1402, Edinburg, TX 78540
Phone: (210) 318-3991
• Mid America RX3 Cattle Co.
Mid America RX3 Cattle Co., HC 75, Box 158, Sturgis, SD 57785
Phone: (605)347-3319; (800) 215-0763
FAX: (605)347-2207
• Piedmontese Association of the United States
Piedmontese Association of the United States, 108 Livestock Exchange Building,
4701 Marion St., Denver, CO 80216
Phone: (303) 295-7287
• North American Corriente Association
North American Corriente Association, 9101 E. Kenyon Ave., #3000, Denver, CO 80237
Phone: (303) 770-0144

• North American Limousin Foundation
North American Limousin Foundation, 7383 S. Alton Way, Suite 100, Englewood, Co
80112
Phone: (303) 220-1693
FAX: (303) 220-1884
• North America Normande Association
North America Normande Association, 11538 Spudville Rd., Hibbing, MN 55746
Phone: (218) 262-1933
• North American South Devon Association
North American South Devon Association, 7383 South Alton Way, Englewood, CO
80112
Phone: (303) 770-3130
• Red Angus Association of America
Red Angus Association of America, 4201 I-35 North, Denton, TX 76207-3415
Phone: (940) 387-3502
FAX: (940) 383-4036
www.redangus1.org
E-mail: info@redangus1.org
• Santa Gertrudis Breeders International
Santa Gertrudis Breeders International, Box 1257, Kingsville, TX 78363
Phone: (361) 592-9357
www.sgbi.org/~sgbi
• Texas Longhorn Breeders Association of America
Texas Longhorn Breeders Association of America, 2315 North Main St., Suite 401,
Fort Worth, TX 76106
Phone: (817) 625-6241
• United Braford Breeders
United Braford Breeders, 422 East Main, Suite 218, Nacogdoches, TX 75961
Phone: (409) 569-8200
FAX: (409) 569-9556
• White Park Cattle Association of America
White Park Cattle Association of America, 419 North Water St., Madrid, IA 50156
Phone: (515) 795-2013
P.O. Box 523, Rochester, IN 46975
Phone/FAX: (219) 223-5418
• World Watusi Association
World Watusi Association, P. O. Box 14, Crawford, NE 69339
Phone: (308) 665-3919
Resource
http://ops.agsci.colostate.edu/~scomstoc/breeds/assoc.html

Marketing Plan
Foreign Markets
A complete search for ways to forge connections between producers and consumers
requires the consideration of foreign as well as domestic markets. Aside from being
farther away from the U.S. point-of-production or processing, foreign consumers make
beef purchasing decisions with the same things in mind as U.S. consumers.
The major drivers of beef demand by consumers worldwide are:

• safety of the product
• quality and taste
• health benefits and nutritional factors
• ease of preparation and convenience
The Foreign Agricultural Service (FAS) division of the United Stated Department of
Agriculture (USDA) emphasizes that the best way to achieve export success is to
formulate an export strategy based on solid information and sound assessments.
Some companies begin export activities haphazardly without carefully screening target
markets or options for market entry. While these companies may have a measure of
success, they most likely have overlooked better export opportunities. If early export
efforts are unsuccessful because of poor planning, a company may be misled into
abandoning exporting altogether. The FAS Web site at http://www.fas.usda.gov/agexport/
exporter.html is designed to guide U.S. food and fiber companies, new to exporting,
through the information gathering and assessment process that is needed to develop a
successful export plan.
In 1999, the top five export markets for beef accounted for almost 93 percent of total
exports. Japan was the largest U.S. export market for beef, accounting for 52 percent,
followed by Mexico with 17 percent, South Korea with about 12 percent, Canada with 10
percent, and Taiwan with 2 percent. The top five U.S. export markets for hides and skins
accounted for about 80 percent of the total in 1999. Korea was the largest U.S. export
market, accounting for about 31 percent of the total, followed by Taiwan with 17 percent,
Mexico with 16 percent, China with 9 percent, and Japan with 8 percent. (Source: U.S.
Dept. of Commerce, US. Industry & Trade Outlook 2000.)
While a large share of the export business is clearly handled by the major U.S. packers,
the diversity and size of the global marketplace also provides a great opportunity for
niche market opportunities. A review of a partial list of the packer-members of the U.S.
Meat Export Federation provides some idea of who is participating in the global beef
marketplace, where they are located and the variety of world demands and destinations.
U.S. Meat Export Federation Exporting Packer

Profiles
• Advance Food Company
Advance Food Company, 201 S. Raleigh Road, Enid, OK 73701
Phone: (580) 237-6656
This establishment is Russian approved .
• Agri-West International, Inc.
Agri-West International, Inc., 511 West Rhapsody, San Antonio, TX 78216
Phone: (210) 525-1101
This trading company exports beef, pork and lamb to Mexico, Japan, Korea, Taiwan,
the Philippines, Grand Cayman and Aruba.

• AK-SAR-BEN
AK-SAR-BEN, 3101 S. 24th , Omaha, NE 68108
Phone: (402) 341-8720
This plant is halal certified.
• Alload, Inc.
Alload, Inc., 6280 Manchester Blvd., #215, Buena Park, CA 90621
Phone: (714) 521-2000, ext. 10
Alload, Inc., is a 2-year-old trading company specializing in frozen, grain-fed choice
and select short ribs, chuck rolls, fore and hind shanks, and pork bellies. It currently
exports to South Korea and hopes to expand its business in this particular market.
• Green Bay Dressed Beef
Green Bay Dressed Beef , 544 Acme St., Green Bay, WI 54308
Phone: (414) 436-6484
This establishment is EU approved for tongue, heart, kidney, liver and stomach only.
• Bell Export Food Groups
Bell Export Food Groups, Pier 19 N, 325 N. Columbus Blvd., Philadelphia, PA 19106
Phone: (215) 829-9090
It currently represents six meat companies on the East Coast and exports to the EU,
Russia, Japan, Hong Kong, Singapore, Korea, the Caribbean and the Middle East.
• The Bruss Company
The Bruss Company, 3548 N. Kostner, Chicago, IL 60641
Phone: (773) 282-2900
This establishment is EU approved for muscle meats.
• Crescent Food Sales, Inc.
Crescent Food Sales, Inc., 400 Port Carteret Dr., Cateret, NJ 07008
Phone: (732) 541-0200
Crescent Foods is trader of beef, pork, veal and lamb. Its major export markets are
Germany, Denmark, Egypt, Korea, the Philippines, Caribbean, Taiwan, Singapore,
South Africa, Hong Kong, Bulgaria and Poland.
• Custom Meats Corporation
Custom Meats Corporation, 1802 Levee St., Dallas, TX 75207
Phone: (214) 747-9606
EU-approved plant produces specialty beef and pork cuts manufactured, packaged
and labeled according to customer specifications. Custom Meats is active in the
European market.
• Dallas Crown, Inc.
Dallas Crown, Inc., 2000 W. Fair, Kaufman, TX 75142
Phone: (214) 932-3436
This establishment is EU approved for muscle meat.
• Day-Lee Foods, Inc.
Day-Lee Foods, Inc., 13055 E. Molette St., Santa Fe Springs, CA 90670
Phone: 562-802-6835
A purveying and trading company, Day-Lee Foods exports beef, pork, chicken and
variety meats to Japan, Korea, Taiwan, Singapore and Hong Kong.

• Eastern Food Exporters
Eastern Food Exporters, 100 W. John Robert Thomas Dr., P.O. Box 1299, Exton, PA
19341
Phone: (610) 594-5000
Eastern Food Exporters is exporting beef and pork to Canada, Mexico, Russia, Hong
Kong, Caribbean and Eastern Europe.
• E. Boyd & Associates, Inc.
E. Boyd & Associates, Inc., P.O. Box 99189, Raleigh, NC 27624-9189
Phone: (919) 846-8000
Currently, E. Boyd & Associates, Inc., is exporting to Australia, Europe, and East and
Southeast Asia.
• Ellison Meat Company
Ellison Meat Company, 1401 Sioux Dr., Pipestone, MN 56164
Phone: (507) 825-5486
The company specializes in frozen, portion-controlled beef and pork products.
This plant served as a model facility in implementing USDA’s HACCP program. Ellison
exports to Japan, Mexico, Thailand and Korea.
• Emborg Foods USA, Inc.
Emborg Foods USA, Inc., 110 Crabapple Road, Suite 103, Roswell, GA 30075-3090
Phone: (770) 643-1213
The Emborg Group is involved in the retail, foodservice and commodity sectors of
the food business supplying meat, dairy, seafood and vegetable products to
international markets. It operates offices in Aalborg, Denmark; Hamburg, Germany;
Moscow, Russia; Dubai, UAE; and Kobe, Japan.
• Emerald International Trade, Ltd.
Emerald International Trade, Ltd., 1218 3rd Ave., Suite 1620, Seattle, WA 98101
Phone: (206) 628-3750
The company specializes in chilled beef and pork and frozen processed meats along
with a variety of other food products. Emerald International currently exports to
Japan, Taiwan, Hong Kong, China, Russia and Korea.
• ESS-Food USA, Inc.
ESS-Food USA, Inc., 4601 Sheridan St., Suite 420, Hollywood, FL 33021
Phone: (954) 981-1770
ESS-Food USA, Inc., is an importing and exporting trading company handling frozen
pork and beef cuts and by-products. Its current export markets are South America,
Europe, Russia and the Caribbean.
• Excel Corporation
Excel Corporation, 151 North Main St., P.O. Box 2519, Wichita, KS 67201-2519
Phone: (316) 291-2500
• Farmland Foods, Inc.
Farmland Foods, Inc., 10150 North Executive Hills Blvd., Kansas City, MO 64153
Phone: (816) 891-1200
• Freedman Food Service, Inc.
Freedman Food Service, Inc., P.O. Box 1449, Houston, TX 77251-1449
Phone: (713) 229-8000
Freedman Food is a full line distributor of meat products and a purveyor of portion
food products. Mexico is its primary export market.

• Frontier Foods International
Frontier Foods International, 100 Packer Ave., Philadelphia, PA 19148
Phone: (215) 334-9284
Frontier Foods International is a trader dealing in beef products. This establishment
is halal certified.
• Global Marketing Associates
6445 Powers Ferry Rd., Suite 220, Atlanta, GA 30339
Phone: (770) 859-0911
Global Marketing Associates is an international trading company dealing primarily in
frozen beef and pork. It exports to Eastern Europe, Russia, Hong Kong and China.
• Granpac Foods, Inc.
Granpac Foods, Inc., 7124 North Marine Dr., Portland, OR 97203
Phone: (503) 286-6548
Granpac Foods, Inc., produces value added meat products, particularly oriental food
type products for the Japanese market.
• Hanwha International Corp.
Hanwha International Corp., 2559 Route 130, Cranbury, NJ 08512
Phone: (609) 655-2500, ext. 713
Hanwha purchases U.S.-manufactured goods for the Korean market, including beef
and pork products. It hopes to expand into other Asian markets.
• Harris Ranch Beef Co.
16277 S. McCall Ave., P.O. Box 220, Selma, CA 93662
Phone: (209) 896-3081
This establishment is halal certified.
• H & H Meat Products Co., Inc.
H & H Meat Products Co., Inc., P.O. Box 358, Mercedes, TX 78570
Phone: (956) 565-6363
Product lines include processed beef products, beef and pork chorizo, portion
control products and fully cooked charbroiled and breaded products. H&H exports
to Mexico and Korea. This plant is kosher certified.
• H. Shenson International
H. Shenson International, 6029 N. 16th St., Omaha, NE 68110
Phone: (402) 455-6225
Shenson first exported beef to Japan in 1968. It specializes in portion control, slice
ready and sliced red meat cuts for export to the food service industry, with beef as
its primary product. This establishment is halal certified and is approved for export
to Malaysia. HSI is also a Certified Angus Beef Processor.
• IBP, Inc.
IBP, Inc., 800 Stevens Port Dr., Suite 813, Dakota Dunes, SD 57049
Phone: (605) 235-2061
• International Trading Co. (Corporate Headquarters)
International Trading Co. (Corporate Headquarters), 3100 Canal St., Houston, TX
77003-1698
Phone: (713) 224-5901; (800) 284-3242
International Trading Co., Ltd. (ITC), is a certified ISO 9001 facility. ITC exports
processed pork and beef items and canned pork products to Japan, Canada,
Mexico, Jamaica, Argentina, Saudi Arabia, Jordan, Kuwait, Bahamas and South
Korea. This establishment is halal certified.

• J.F. O’Neill Packing Co.
J.F. O’Neill Packing Co., 3120 G St., Omaha, NE 68107
Phone: (503) 699-8926
This establishment is halal certified and EU approved for muscle meat.
• Kraft Foods International
Oscar Mayer/Louis Rich Exports
Kraft Foods International, Oscar Mayer/Louis Rich Exports, 800 West Chester Ave.
(Ra-6S), Rye Brook, NY 10573
Phone: (914) 335-7780
Oscar Mayer Exports produces processed beef and pork products for world
markets.
• L & L Packing Company
527 West 41st St., Chicago, IL 60609
Phone: (773) 285-5400; (800) 628-6328
This establishment is halal certified.
• Lamex Foods, Inc.
Lamex Foods, Inc., 3300 Edinborough Way, Suite 710, Edina, MN 55435
Phone: (612) 844-0585
Lamex Foods, Inc., is a trading company dealing in frozen beef and pork products. It
exports to Asia, Latin America and Europe.
• Lay’s Fine Foods
Lay’s Fine Foods, 400 East Jackson Ave., Knoxville, TN 37901
Phone: (423) 546-2511
Lay’s exports to Mexico and Russia.
• Lee Enterprises, Inc.
Lee Enterprises, Inc., 6000 E. Evans Ave., Suite 3-337, Denver, CO 80222
Phone: (303) 759-9468
Lee Enterprises is a trading company concentrating on Japan, Korea and China. All
beef and pork muscle meats and variety meats are traded.
• Local & Western of Texas, Inc.
Local & Western of Texas, Inc., 8235 Douglas Ave., Suite 1105 LB67, Dallas, TX 75225
Phone: (214) 750-6633
Local & Western represents companies that have approval to export halal and
kosher products, as well as offals, to the EU and pork to the Russian Federation.
• Loggins Meat Company, Inc.
Loggins Meat Company, Inc., 1908 E. Erwin, Tyler, TX 75702
Phone: (903) 595-1011
Loggins Meat Company produces portion control steaks, marinated steaks,
hamburger and breaded meat products for export to Canada, Mexico, Malaysia,
Japan, Korea, Indonesia, Singapore and the Philippines. This establishment is halal
certified.
• Long Island Beef Company
Long Island Beef Company, 565 West St., New York, NY 10014
Phone: (212) 243-1120
Long Island Beef Company exports to the EU, Latin America and the Caribbean.

• Louis Dreyfus Corporation
Louis Dreyfus Corporation, 10 Westport Rd., Wilton, CT 06897-0810
Phone: (203) 761-2000
Louis Dreyfus is a purveyor/trader of chilled beef sets and offals produced to Asian
specifications. Its major export markets are Canada and Japan.
• MacDonald Meat Company
MacDonald Meat Company, 2709 Airport Way South, Seattle, WA 98134
Phone: (206) 623-7993
Notes The MacDonald Meat Company exports to Taiwan, Thailand, the Philippines, Japan,
Indonesia and Singapore. MacDonald Meats is a Certified Angus Beef processor.
• Meat Commodities, Inc.
Meat Commodities, Inc., 339 Merrimon Ave., Asheville, NC 28801
Phone: (828) 258-0120
Meat Commodities, Inc., is a beef, pork and poultry trader. Its major markets include
Russia, Europe and Canada.
• MeatLink, Inc.
MeatLink, Inc., 16247 N. 108TH Way, Scottsdale, AZ 85259
Phone: (480) 419-8013
MeatLink, Inc., is a trading company dealing with U.S. beef and pork products. The
company is especially interested in the export business to Mexico, South Africa and
Russia.
• Meta Foods, L.L.C.
Meta Foods, L.L.C., 5730 Glenridge Dr., Suite 302, Atlanta, GA 30328-5398
Phone: (404) 843-2400
Meta Foods’ primary product lines are fresh and chilled beef and pork products and
pork and beef offals. Its major export markets are Japan, Korea, Hong Kong, China,
ASEAN, Russia and Eastern Europe.
• Midamar Corporation
Midamar Corporation, 1105 60th Ave. SW, P.O. Box 218, Cedar Rapids, IA 52404
Phone: (319) 362-3711
FAX: (319) 362-4111
E-mail: midamar@mwci.net
Midamar Corporation is a contract slaughter plant, warehouse and distribution
center. This establishment is halal and kosher certified.
• Midway Provision
Midway Provision, 401 South Main, Wayland, MI 49348
Phone: (616) 792-6231
Midway Provision is a trading company dealing in the sale of beef, pork and by-
products, as well as products for the pharmaceutical industry. It exports to Hong
Kong, China, Taiwan, Japan and Mexico.
• Mirasco, Inc.
Mirasco, Inc., 900 Circle 75 Pkwy., Suite 175, Atlanta, GA 30339
Phone: (770) 956-1945
Mirasco is a worldwide organization specializing in the exportation of meat
products. It serves halal customers in the Middle East. The company has offices in
Alexandria, Egypt; Cairo Egypt; Montevideo, Uruguay; and Mar del Plata, Argentina.

• Monfort International (Division of ConAgra Refrigerated Foods International)
Monfort International (Division of ConAgra Refrigerated Foods International), P.O.
Box G, Greeley, CO 80632
Phone: (970) 353-2311
• Northern Beef Industries, Inc.
311 RR 620 South, Suite 103, Austin, TX 78734
Phone: (512) 263-8763
Northern Beef Industries, Inc., specializes in beef and pork offals and grinding
materials. Its main export market is Mexico.
• Omaha Steaks Food Service
Omaha Steaks Food Service, P.O. Box 3300, Omaha, NE 68103-0300
Phone: (402) 597-8100
Omaha Steaks is a purveyor and marketer of steaks, meats and other gourmet foods.
It offers customized products such as Omaha Steaks Angus Beef and USDA Prime
and Choice. Its export markets are the Caribbean and the Pacific Rim countries.
• Parker International, Inc.
Parker International, Inc., 265 E. 100 South, Suite 300, Salt Lake City, UT 84111
Phone: (801) 531-6565
Parker International, Inc., is a trader of beef and pork products as well as a
distributor of beef, beef offals and white cow products under its private label
“Cowboy” brand. Its export markets are Japan, Korea, Hong Kong, Indonesia and
Eastern Europe.
• Provimi Veal Corporation
Provimi Veal Corporation, W. 2103 County Rd., Seymour, WI 54165
The company is halal certified and EU approved for offals and muscle meats.
• Quirch Foods Company
Quirch Foods Company, P.O. Box 3366, Hialeah, FL 33013
Phone: (305) 691-3535
Quirch Foods supplies utility, no roll, select, Angus and Choice beef to its customers
and operates a portion control facility to hand-cut and individually vacuum pack a
variety of cuts for specific use in the foodservice sector. Quirch currently exports to
Mexico, Brazil, Colombia, Venezuela, Ecuador, Peru, Suriname, Costa Rica,
Honduras, Guatemala, Nicaragua and Panama. It also supplies customers in Haiti,
the Dominican Republic, Jamaica, the Bahamas, Turks & Caicos Islands, Antigua,
Barbados, St. Martin, St. Barts and the Cayman Islands. The company would like to
further develop these markets and also would like to expand into Asia.
• Rain or Shine International
Rain or Shine International, P.O. Box 720427, Dallas, TX 75372
Phone: (214) 219-0780
Rain or Shine International is a vertically cooperative beef export operation. Through
agreements with feedlots and a custom slaughter and fabrication operation, the
entire chain from cattle purchasing to feeding to fabrication is customized according
to the specifications of the buyer. It exports to Mexico and Korea.
• Ruprecht Company
Ruprecht Company, 370 North Carpenter St., Chicago, IL 60607-1223
Phone: (312) 829-4100
The company specially selects and ages top quality beef to produce steaks and
chops according to individual customer specifications. Ruprecht exports to the
Caribbean and to Mexico. It would like to export to Japan.
• R.W. Meats
R.W. Meats, 5001 West 80th St., Bloomington, MN 55437
Phone: (612) 897-1134
R.W. Meats is a trader of beef, pork, lamb, veal, mutton and offals including by-
products, cuts and processing materials. Its current export markets are Canada,
Mexico, Chile, Peru and Russia.
• Sakashita Meat Supply Corporation
Sakashita Meat Supply Corporation, 1281 Cabrillo Ave. #306, Torrance, CA 90501
Phone: 310-328-0000
Main product lines include beef, beef offal, and pork products. Sakashita’s export
business is in Japan, Korea and Brazil.
• Simeus Foods International, Inc.
Simeus Foods International, Inc., 812 South 5th Ave., Mansfield, TX 76063
Phone: (817) 473-522
Primary products are portion controlled steaks, breaded products, pork sausage,
cooked meat products and ground beef patties. Brazil is the main export market.
This establishment is halal approved for Indonesia.
• Simplot Meat Products, Inc.
Simplot Meat Products, Inc., P.O. Box 1158, Nampa, ID 83653-1158
Phone: (208) 466-2478
Simplot Meat Products’ export markets are Asia, Latin America, Canada, Australia
and New Zealand.
• Taylor Packing Company, Inc.
Taylor Packing Company, Inc.. Route 706, P.O. Box 188, Wyalusing, PA 18853
Phone: (717) 746-3820
This establishment is EU approved for offals.
• TREX Corporation
TREX Corporation, 1200 Bayhill Dr., Suite 122, San Bruno, CA 94066
Phone: (415) 589-4000
TREX Corporation, an export trading company, deals in beef and beef variety meats,
pork, lamb, and cooked and processed meat items. TREX is the exclusive
representative for several packers and processors and is a licensed exporter of
Certified Angus Beef. It exports to Japan, Taiwan and Korea.
• W&G Marketing Company, Inc.
W&G Marketing Company, Inc., P.O. Box 1742, 413 Kellogg Ave., Ames, IA 50010
Phone: (515) 233-4050; (515) 232-5057
FAX: (515) 233-6229
• Washington Beef, Inc.
Washington Beef, Inc., 201 Elmwood Rd., P.O. Box 832, Toppenish, WA 98948
Phone: (509) 865-2121
The company produces portion control, patties, corned beef, marinated items, pork
chops, lamb chops and some chicken items. Specialty items are available for export,
including crown cut tongues, peeled skirts, sliced oxtails, sliced short ribs, sliced
feet, sliced back ribs. This establishment is EU approved for offals and muscle
meats.

Further Considerations about Global Market
Participation
The U.S. Small Business Administration advises that making the decision to export
requires careful assessment of the advantages and disadvantages of expanding into
new markets. Once the decision, an international business plan is essential.
Exporting can help your business:

• enhance domestic competitiveness
• increase sales and profits
• gain global market share
• reduce dependence on existing markets
• exploit corporate technology and know-how
• extend the sales potential of existing products
• stabilize seasonal market fluctuations
• enhance potential for corporate expansion
• sell excess production capacity
• gain information about foreign competition
In comparison, there are certain disadvantages to exporting. Your business may be

required to:
• develop new promotional material
• subordinate short-term profits to long-term gains
• incur added administrative costs
• allocate personnel for travel
• wait longer for payments
• modify your product or packaging
• apply for additional financing
• obtain special export licenses
These disadvantages may justify a decision to forego exporting at the present time. For
example, if your company’s financial situation is weak, attempting to sell into foreign
markets may be ill-timed. On the other hand, some companies have been successful
selling abroad even before they have made any sales domestically.
When looking to market products or service, one key consideration is whether you will
expand the market or simply compete to replace someone who is already there. A chief
goal of any marketing plan should be to find your own space in the market. That is the
true niche approach. Also, when thinking of expanding your markets through exporting,
do not overlook those products that are presently being imported into the U.S. It is very
possible that you might be able to produce and/or process a product that can readily
replace items presently being imported into the domestic marketplace.
The foreign market sector is filled with unique problems for the marketer. Language and
currency are issues with which you must deal. Unpredictability generated by political
whims can be a negative, as can volatility due to varied monetary and fiscal policies in
other countries. In some cases, tariffs must be overcome. Questions of who controls off-
loading, warehousing and transportation will need to be answered. Extended shipping
times and varied climatic conditions highlight the issues around shelf life and packaging
materials. The needs of foreign customers may be very different.

Good markets for different products and specialty processing are factors on the plus
side. Other cultures enjoy different tastes. Sensitivity to genetically modified (GMO)
products may translate into an opportunity to supply non-GM, organic or natural food
items. Another example is variety meats, which are well accepted in many foreign
countries but not the U.S. When seeking value added, don’t overlook the minor items
and simply capitulate those opportunities to someone else.
There are emerging markets close to home that may represent less challenging logistics
for the niche marketer. The Mexican market is an example of a substantial market for
beef that is showing a positive trend. The cruise ship industry has grown tremendously
and offers a high-end market of its own to those who can offer something special in
product or service.
Relationships are key to all marketing. In the foreign arena this is doubly true. Work with
people who know the territory and can help you interpret the culture and language. You
will need a credible interface to quickly build trust. And you will need to be highly
responsive to the customer. As in all markets today, you have the equivalent of one shot
at the deal and that situation renews itself every day.
Keep in mind several key points.

• Foreign markets automatically demand a different product mix than domestic
markets. That offers great opportunity for market diversity.
• Probability is high that foreign economies will run on cycles that don’t match those
in the U.S., which is an advantage if you have some presence in both arenas.
• Currency values can offer opportunity or a hurdle.
• Politics are a wild card.
• We are in a global economy so the businesses increasingly expect to do business
across borders.
• Digital technology can make this market possible for the smaller player.
Export Assistance Providers

Many governmental agencies and nonprofit groups have expanded information services
and human resources to help in foreign markets. There are also programs that bring
money to your efforts. Some of the organizations that can assist you are discussed here.
Iowa Department of Economic Development

(IDED)
International Marketing Division Meat and Livestock Promotion
Program
IDED’s International Marketing Division in conjunction with the state’s commodity
groups, the U.S. Meat Export Federation and other contractors can provide services to
Iowa companies interested in exporting meat and livestock products.
Specific services offered to meat processors and others are:

• trade show information and coordination
• in-store promotions during missions
• research into new markets
• match-maker appointments in various countries where missions are scheduled

• sponsored receptions in various countries
• trade shows and/or missions
• host buying missions
Buying Missions
Buyers from countries such as Japan, Korea, Mexico and China are brought to Iowa to
meet with processors. IDED helps these buyers with their expenses and provides
transportation while they are in the state. Iowa companies are contacted to determine
their interest, and appointments are scheduled to help them access the buyers in the
visiting delegations.
For more information about this program, contact:
Mark Fischer, Marketing Manager
Iowa Department of Economic Development, International Marketing Division
Phone: (515) 242-4760
FAX: (515) 242-4918
E-mail: mark.fischer@ided.state.ia.us
Export Trade Assistance Program (ETAP)

Participation in international trade shows and trade missions is one of the most effective
ways to enter into new international markets or expand visibility in existing markets.
Trade shows offer the opportunity to meet potential buyers, test market interest and
evaluate the competition. A trade mission can be a very efficient and cost effective
means to meet potential distributors and buyers. Licensing agreements and joint
ventures have also resulted from trade missions.
The State of Iowa offers financial assistance to Iowa companies who wish to take
advantage of international trade shows and trade missions to enter new markets.
Through ETAP, the International Marketing Division of the Iowa Department of Economic
Development will reimburse a sizable portion of a company’s eligible direct expenses per
pre-approved event. Eligible expenditures may include:
• booth space rental
• booth construction at show site
• booth equipment and/or furniture rental
• booth utility costs
• freight costs of equipment and/or exhibit materials to and from show
• interpreter fees at show site
• participation fees for trade missions sponsored by the Iowa Department of
Economic Development, the Iowa Department of Agriculture and Land Stewardship,
the U.S. Department of Commerce or the U.S. Department of Agriculture
• per diem (meals & lodging) for one employee for the duration of the event (rates
calculated at 50 percent of the U.S. Department of State Standardized Regulations)
To be eligible to participate in ETAP, applicants must:

• Employ fewer than 500 individuals.
• Have at least 75 percent of employees employed within Iowa.
• Exhibit products, services or samples of Iowa manufactured, processed or value
added products or agricultural commodities in conjunction with a foreign trade
show or trade mission.
• Have at least one full-time employee or sales agent participate in the event.

Utilization of the ETAP funds are limited by the following:
• three events per state fiscal year
• participation in the same trade show not allowed in consecutive years
• participation in the same trade show a maximum of two times
• one trade show in a specific country per state fiscal year
For more information, contact:
• Iowa Department of Economic Development, International Marketing Division
Iowa Department of Economic Development, International Marketing Division, 200
East Grand Ave., Des Moines, IA 50309
Phone: (515) 242-4760
FAX: (515) 242-4918
E-mail: mark.fischer@ided.state.ia.us
Web site: http://www.state.ia.us/international
Iowa Department of Agriculture and Land

Stewardship
• Patty Judge, Secretary of Agriculture (IDALS)
Patty Judge, Secretary of Agriculture (IDALS), Henry A. Wallace Building, Des
Moines, IA 50319
Phone: (515) 281-5321
“Our challenge is to provide security through increased profitability for Iowa’s
agricultural industry. We can do this by breaking down artificial barriers to trade,
which will allow for fair access. If we are to keep family farmers in Iowa raising
corn, beans, hogs and cattle, we must lower these existing barriers and expand our
markets, which can only be done on a global level.”
Secretary Judge
Meat Export Research Center (MERC), Iowa State

University
MERC was developed in 1984 to support the expansion of exports of U.S. meat and meat
products and aid in the development of a stronger agricultural economy. As part of the
Utilization Center for Agricultural Products, MERC is a multi-disciplinary center
encompassing researchers in meat science, economics, sociology, microbiology,
marketing, food science, transportation and logistics, and political science.
Research is conducted in the following areas:

• market identification and assessment
• product evaluation and product and process development
• demographics and cultural preferences
• trade barriers and public policy assessment
Newsletter
Information and technology developed in the center is transferred to meat processors,
producers and exporters. A monthly newsletter, U.S. Meat Export Analysis and Trade
News, is published in cooperation with the USDA/Agricultural Marketing Service,
Livestock and Grain Market News, Des Moines, IA, and the U.S. Meat Export Federation,
Denver, CO, providing timely price and trade information.

Short Courses
Conferences, seminars and workshops are held to address specific export issues.
Consultations with individual companies address specific product issues. A variety of
short courses designed to provide the latest information in processing technology are
offered to commercial meat processors throughout the year.
Meat Laboratory
This state-of-the-art meat laboratory supports technology and product development. The
lab has full processing capabilities starting with slaughter for poultry and red meats.
Further processed meats, such as franks, luncheon meat and fermented products, also
can be made. The lab is available to private companies for product and process
development.
To request services, contact:
• Randy Petersohn
Randy Petersohn, 194B Meat Laboratory, Iowa State University, Ames, IA 50011-3150
Phone: (515) 294-5321
FAX: (515) 294-6328
E-mail: randall@iastate.edu
Market Studies
New and expanding international markets for U.S. meat and meat products are
evaluated. Researchers study and develop models of the livestock and meat industries of
selected international markets. Models developed in these studies 1) determine
relationships of price, demand and supply and 2) show possible changes in these
relationships due to alternative public policies. Included in these studies are cultural
characteristics that affect current and future demand as well as consumption of meat
and meat products, descriptions of marketing systems, distribution, transportation,
demographics and political profiles affecting public policies.
Product and Process Development
Every international market has unique requirements and specifications for meat
products. Identification of market needs leads to development of products that are
potentially successful in specific markets. Researchers, using the extensive pilot plant
facilities in the ISU Meat Lab and often in cooperation with meat product manufacturers,
develop formulations and processes suited to products designed for specific
international markets.
Value Added Utilization
MERC researchers strive to add value to beef and pork primal cuts by working with
industry creating new or novel further processed products that fit foreign consumers’
tastes. Further processed meat products not only enhance the carcass value of the
livestock by taking the product out of the commodity mode, but add to economic
development as well.
Meat Safety and Meat Quality
The safety and quality of U.S. meats are critical determinants of U.S. export volumes.
MERC researchers examine ways to reduce or eliminate pathogenic contamination,
extend shelf life (Linear Accelerator Facility), find objective measures of quality and
convey to foreign officials and foreign buyers the knowledge that U.S. meat is safe and
wholesome.

Information and Technology Transfer
After gathering international market information and product technology, knowledge is
transferred to processors, producers and exporters. MERC produces a newsletter, U.S.
Meat Export Analysis and Trade News, and holds seminars, workshops and conferences
to disseminate this information. The conferences and seminars provide a forum in which
key people with expertise in international meat and meat product trade share information
that will lead to expansion of meat and meat product exports.
For additional information, contact:
• Sev Johnson
Sev Johnson, Meat Export Research Center
Phone: (515) 294-8899
FAX: (515) 296-6272
E-mail: sevjohns@iastate.edu
www.ag.iastate.edu/centers/merc/
Meat Export Federation

The U.S. Meat Export Federation (MEF) is a nonprofit trade organization formed to
identify and develop markets in foreign countries. MEF has become a central clearing-
house of vital information for groups or companies seeking markets or looking to expand
their presence into foreign markets.
MEF is unique in its private sector funding and governance. It cooperates with allied
industry in its efforts and not strictly in production. There are offices in 13 foreign
countries and representatives around the world. Cooperative projects in various
countries are frequent and professional.
Information is available in a two tiered structure. Members have access to the full range
of information but visitors can glean a great deal. Best access is through the Web site.
Much of the information is generated or analyzed in-house by MEF staff. There are links
to other industry and trade related Web sites. MEF also has offices in Tokyo, Osaka,
Mexico City, Shanghai, Seoul, Moscow and Beirut.
• U.S. Meat Export Federation

U.S. Meat Export Federation, 1050 17th St., Suite 2200, Denver, CO 80265
Phone: (303) 623-6328
FAX: (303) 623-0297
www.usmef.org/
Foreign Ag Service (FAS)/USDA

FAS is an agency of USDA that holds as its mission to assist any and all qualified
exporter candidates. FAS is a comprehensive service provider that offers data and
analysis as well as specific programs for hands-on assistance to the exporting company.
Some examples include:

The Facility Guarantee Program, which is designed to guarantee payments and improve
exporter facilities in the target country. The program is aimed at reducing the physical
constraints to trade in emerging markets or developing countries, such as unloading,
warehousing, distribution, etc.
The Market Access Program (MAP) also uses Commodity Credit Corporation (CCC)

money to help U.S. producers and exporters finance promotional activity in foreign
countries. This program is not only for market development. It includes market research,
technical assistance and service after the sale.
The Supplier Credit Guarantee Program (SCGP), CCC guarantees a portion of payments
due from importers under short-term financing (up to 180 days) that exporters have
extended directly to the importers for the purchase of U.S. agricultural commodities and
products. These direct credits must be secured by promissory notes signed by the
importers.
Two programs underwrite credit extended by the private banking sector in the United
States (or, less commonly, by the U.S. exporter) to approved foreign banks using dollar-
denominated, irrevocable letters of credit to pay for food and agricultural products sold
to foreign buyers. The Export Credit Guarantee Program (GSM-102) covers credit terms
up to three years. The Intermediate Export Credit Guarantee Program (GSM-103) covers
longer credit terms up to 10 years.
FAS is an important stop for any company wishing to begin exporting. It has an extensive
Web site at www.fas.usda.gov/. Additionally, the Midwest has a local outreach office.
Scott Bleggi can provide detailed information about the programs available through FAS.
• Scott Bleggi, Director
Scott Bleggi, Director, FAS Outreach Office, 10500 Buena Vista Ct., Des Moines, IA
50322-3782
E-mail: bleggi@fas.usda.gov or scott.bleggi@bbs.fsa.usda.gov
Animal Plant Health Inspection Service (APHIS)/

USDA
Although APHIS is thought of in the context of quarantine and inspection of imports,
APHIS Veterinary Service is available to work with exporters. The International
Regulation Retrieval System in Fort Collins, CO, can be of great help. It lists animal health
requirements of the other countries. Veterinary Service will work with an exporting
company to meet the foreign country’s requirements and issue certificates. For permit
applications and information about import/export requirements and user fees for
animals, birds and animal products, contact:
• USDA-APHIS-VS
USDA-APHIS-VS, National Center for Import/Export, 4700 River Rd., Unit 40,
Riverdale, MD 20737-1231
Phone: (301) 734-3294
FAX: (301) 734-6402
www.aphis.usda.gov/

Small Business Administration
The SBA provides a variety of resources for small businesses looking to expand their
business through exporting. Two excellent resources, Small Business Development
Centers (SBDC) and Service Corps of Retired Executives (SCORE), are conveniently
located in most U.S. cities. These experienced SBDC and SCORE counselors provide free
and practical advice and assistance to hundreds of companies like yours each month.
Iowa Small Business Development Centers (SBDC)

• Iowa State University Small Business Development Center
Iowa State University Small Business Development Center, 137 Lynn Ave., Ames, IA
50010
Phone: (515) 292-6351
FAX: (515) 292-0020
• Northeast Iowa Small Business Development Center
Dubuque Area Chamber of Commerce
Northeast Iowa Small Business Development Center, Dubuque Area Chamber of
Commerce, 770 Town Clock Plaza, Dubuque, IA 52001
Phone: (319) 588-3350
FAX: (319) 557-1591
• Eastern Iowa Small Business Development Center
Eastern Iowa Small Business Development Center, 304 West Second Ave.,
Davenport, IA 52801
Phone: (319) 322-4499
FAX: (319) 322-3956
Iowa Service Corps of Retired Executives (SCORE)

There are many local SCORE chapters throughout Iowa, to find the one nearest you,
access http://www.score.org/ or contact:
• U.S. Small Business Administration
U.S. Small Business Administration, Des Moines District Office
210 Walnut Street - Room 749, Des Moines, IA 50309
Phone: (515) 284-4422
• U.S. Small Business Administration
U.S. Small Business Administration, Cedar Rapids District Office
215 4th Avenue SE, Cedar Rapids, IA 52401
Phone: (319) 362-6405
FAX: (319) 362-7861
Another excellent resource provided by the SBA is the SBA Guide to Exporting, which
can be accessed at: http://www.sba.gov/OIT/txt/info/Guide-To-Exporting/.
National Cattlemen’s Beef Association (NCBA)

NCBA works to achieve this vision: “A dynamic and profitable beef industry, which
concentrates resources around a unified plan, consistently meets global consumer
needs and increases demand.” It works to advance the economic, political and social
interests of the U.S. cattle business and to be an advocate for the cattle industry’s policy
positions and economic interests.

As family farmers and ranchers, cattlemen share an interest in meeting the needs of
consumers worldwide by providing high-quality, nutritious beef, while setting higher
quality and safety standards than those required by the government.
For further information, access http://www.beef.org/ or contact:
Denver
• National Cattlemen’s Beef Association
National Cattlemen’s Beef Association, 5420 South Quebec St., Greenwood Village,
CO 80111
Phone: (303) 694-0305
FAX: (303) 694-2851
Washington, D.C.
• National Cattlemen’s Beef Association
National Cattlemen’s Beef Association, 1301 Pennsylvania Ave. NW, Suite 300,
Washington, D.C. 20004
Phone: (202) 347-0228
FAX: (202) 638-0607
Iowa Cattlemen’s Association

• Iowa Cattlemen’s Association
Iowa Cattlemen’s Association, P.O. Box 1490, 2055 Ironwood Ct., Ames, IA 50014
Phone: (515) 296-2266; toll free (800) 888-1730
FAX: (515) 296-2261
www.iacattlemen.org/index.htm
Other Resources
This select subject directory contains a quick reference to frequently asked marketing
and trade assistance resources on agribusiness, exports, imports and related topics.
• Additives, Food and Color - Foreign Regulations
Additives, Food and Color - Foreign Regulations, Office of Food Safety and Technical
Service, FAS, USDA
Phone: (202) 720-2239
• AgExport Connections
AgExport Connections, AgExport Services Division, FAS, USDA
Phone: (202) 720-7409
FAX: (202) 690-4374
• Agribusiness Development Program
Agribusiness Development Program, Food Industries Division, International
Cooperation and Development, FAS, USDA
Phone: (202) 690-1339
• Agribusiness-Information
Agribusiness-Information, Food Industries Division, International Cooperation and
Development, FAS, USDA
Phone: (202) 690-2981
FAX: (202) 690-3982

• Buyer Alert Program
Buyer Alert Program, AgExport Services Division, FAS, USDA
Phone: (202) 690-3421
FAX: (202) 690-4374
• Calendar of Food, Beverage, Trade Shows, International/FAS Sponsored
Calendar of Food, Beverage, Trade Shows, International/FAS Sponsored, AgExport
Services Division, FAS, USDA
Phone: (202) 690-1182
FAX: (202) 690-4374
• Commodity Credit Corporation - CCC, Direct Export Sales
Commodity Credit Corporation - CCC, Direct Export Sales, Commodity Credit
Corporation Operation Division, FAS, USDA
Phone: (202) 720-5540
FAX: (202) 720-0938
• Cooperator Programs
Cooperator Programs, Marketing Operations Staff, FAS, USDA
Phone: (202) 720-5521
FAX: (202) 720-9361
• Credit Guarantees
Credit Guarantees, Program Development Division, FAS, USDA
Phone: (202) 720-4216
• Credit Guarantees, Types GSM-102 & GSM-103
Credit Guarantees, Types GSM-102 & GSM-103, Commodity Credit Corporation
Operation Division, FAS, USDA
Phone: (202) 720-3324
• Dairy, Livestock and Poultry Division - Marketing/Trade Information
· Dairy, Livestock and Poultry Division - Marketing/Trade Information, FAS, USDA;
Phone: (202) 720-8031
FAX: (202) 720-0617
· Market Promotion Programs
Phone: (202) 720-2461
· Dairy Export Incentive Program & Export Enhancement Program
Phone: (202) 720-8870
• Emerging Markets Office
Emerging Markets Office, FAS, USDA
Phone: (202) 720-0368
• Export Enhancement Program (EEP)
Export Enhancement Program (EEP), Commodity Credit Corporation Operation
Division, USDA
Phone: (202) 720-3241; (202) 720-5540
• Exporters - U.S. Supplier List
Exporters - U.S. Supplier List, AgExport Services Division, FAS, USDA
Phone: (202) 690-3421
• Exports Certification/Regulation
Exports Certification/Regulation
· Food and Cosmetics, U.S. Food & Drug Administration, USFDA
Phone: (202) 205-4573
· Animals
Phone: (301) 734-3277
• Food Consumption, Prices & Expenditures
Food Consumption, Prices & Expenditures, Economic Research Service, USDA;
Phone: (202) 694-5449
• Food Manufacturing Industry & Competition
Food Manufacturing Industry & Competition, Economic Research Service, USDA
Phone: (202) 694-5376
• Food Safety
· Food Safety, U.S. Food and Drug Administration
Phone: (202) 205-4726
· Food Safety Hotline, Food Safety Inspection Service, USDA
Phone: (202) 720-3333; (800) 535-4555
• Foreign Buyer/Importer Lists
Foreign Buyer/Importer Lists, AgExport Services Division, FAS, USDA
Phone: (202) 690-3416; FAX: (202) 690-4374
• Foreign Trade Data Service
Foreign Trade Data Service, U.S. Bureau of the Census, Economics and Statistics
Administration, USDOC
Phone: (301) 457-3041; (301) 457-2227
• Frozen Foods
· Frozen Foods, Commodity and Marketing Division, FAS, USDA
Phone: (202) 720-1034
· Industry Desk, USDOC
Phone: (202) 482-3346
• Harmonized Tariff Schedule - Classification
Harmonized Tariff Schedule - Classification, Multilateral Trade Negotiations Division,
FAS, USDA
Phone: (202) 720-6064
FAX: (202) 720-1139
• Harmonized Tariff Schedule - Updating
Harmonized Tariff Schedule - Updating, U.S. International Trade Commission
Phone: (202) 205-2602
• Health and Sanitary Foreign Regulations
Health and Sanitary Foreign Regulations, Office of Food Safety and Technical
Service, FAS, USDA
Phone: (202) 720-2239
• Imports
· Animal Health Protection, Animal and Plant Health Inspection Service, USDA
Phone: (301) 734-8170
· Central America, Food Industries Division, International Cooperation and
Development, FAS, USDA
Phone: (202) 690-2981
FAX: (202) 690-3982
· Food Safety Inspection of Imports, U.S. Food and Drug Administration
Phone: (202) 205-4726
· Hides and Skins Imports, Dairy, Livestock and Poultry Division, FAS, USDA
Phone: (202) 720-7285; (202) 720-3690
FAX: (202) 720-0617
· Laws-U.S., Import Policies and Programs Division, FAS, USDA
Phone: (202) 720-1330

· Livestock Import Regulations, Animal and Plant Health Inspection
Service, USDA
Phone: (301) 734-8170
· U.S. Customs Service Imports, U.S. Customs Service, U.S. Department
of the Treasury
Phone: (202) 927-6724
FAX: (202) 927-1393
• Labeling - Foreign Requirements
Labeling - Foreign Requirements, Office of Food Safety and Technical Services, FAS,
USDA
Phone: (202) 720-9408.
• Labeling - U.S. Meat and Poultry
Labeling - U.S. Meat and Poultry, Food Safety Inspection Service, USDA
Phone: (202) 418-8900.
• Market News
· Market News, Agricultural Marketing Service, USDA. Dairy
Phone: (202) 720-7461
FAX: (202) 720-4844
· Livestock and Grain
Phone: (202) 720-6231
FAX: (202) 690-3732.
• NAFTA (North American Free Trade Agreement)
NAFTA, (North American Free Trade Agreement), Asia, Africa and Eastern Europe
Division, FAS, USDA
Phone: (202) 720-1325; (202) 720-9469
• Snack Foods
Snack Foods, Commodity and Marketing Programs, FAS, USDA
Phone: (202) 720-1034
• Tariff-Rate Quotas
· Beef, Dairy, Livestock and Poultry Division, FAS, USDA
Phone: (202) 720-6553
FAX: (202) 720-0617
· Dairy, Import Policies and Programs Division, FAS, USDA
Phone: (202) 720-9439
FAX: (202) 720-6556
• Transportation
Transportation, Shippers and Exporter Assistance, Agricultural Marketing Service,
USDA
Phone: (202) 690-1304
FAX: (202) 690-1340
Chambers of Commerce
Complete listings of worldwide chambers of commerce can be accessed on the
following Internet sites:
• International Chamber of Commerce (ICC)
www.iccwbo.org/

• World Chambers of Commerce
www.ceemail.com/chambers.html
• World Trade Centers Association
www.iserve.wtca.org/
Trade Associations and Organizations

Regional Export Assistance Centers/Regional State Trade
Organizations
• AgExport Outreach Offices
AgExport Outreach Offices, Foreign Agricultural Service, USDA, Iowa. USDA/Farm
Service Agency, 10500 Buena Vista Ct., Des Moines, IA 50322-3782
Phone: (515) 254-1540, ext.653
FAX: (515) 254-1573
• Export Assistance Centers
Export Assistance Centers, U.S. Department of Commerce, Midwestern Region.
Regional Director, 8182 Maryland Ave., #1011, St. Louis, MO 63105
Phone: (314) 425-3300
FAX: (314) 425-3375
• State Regional Agricultural Marketing and Trade Organizations
State Regional Agricultural Marketing and Trade Organizations, Mid-America
International Agri-Trade Council (MIATCO), 400 West Erie St., Suite 100, Chicago, IL
60610
Phone: (312) 944-3030
FAX: (312) 944-1144
www.miatco.org
Internet Sites
U.S. Department Of Agriculture (USDA)
• Agricultural Marketing Service (AMS)
www.ams.usda.gov/
• Agricultural Research Service (ARS)
www.ars.usda.gov/
• Alternative Agricultural Research and Commercialization Corporation (AARC)
www.usda.gov/aarc/
• Animal and Plant Health Inspection Service (APHIS)
www.aphis.usda.gov/
• Cooperative State Research Education and Extension Service (CSREES)
www.reeusda.gov/
• Current Research Information System (CRIS)
cristel.nal.usda.gov: 8080
• Economic Research Service (ERS)
www.econ.ag.gov/
• Food Safety and Inspection Service (FSIS)
www.fsis.usda.gov/
· FSIS Export Library
www.fsis.usda.gov/OFO/export/explib.htm
• Foreign Agricultural Service (FAS)
www.fas.usda.gov/

• Food, Beverage, Trade Shows
www.fas.usda.gov/agexport/shows/tshow.html
• Grain Inspection, Packers and Stockyards Administration (GIPSA)
www.usda.gov/gipsa/
• National Agricultural Library (NAL)
www.nal.usda.gov/
NAL Reference and Information Centers
· General Reference Services
www.nal.usda.gov/ref/
· Agricultural Trade & Marketing Information Center (ATMIC)
www.nal.usda.gov/atmic/
· Alternative Farming Systems Information Center (AFSIC)
www.nal.usda.gov/afsic/
· Animal Welfare Information Center (AWIC)
www.nal.usda.gov/awic/
· Food and Nutrition Information Center (FNIC)
www.nal.usda.gov/fnic/
· Plant Genome Data & Information Center (PGDIC)
www.nal.usda.gov/pgdic/
· Rural Information Center (RIC)
www.nal.usda.gov/ric/
· Technology Transfer Information Center (TTIC)
www.nal.usda.gov/ttic/
· Water Quality Information Center (WQIC)
www.nal.usda.gov/wqic/
• National Agricultural Statistics Service (NASS)
www.usda.gov/nass/
• Rural Development/Rural Business-Cooperative Service (RD/RBCS)
www.rurdev.usda.gov/rbs/
Other Useful Internet Sites

• U.S. Agency for International Development
www.info.usaid.gov/
• U.S. Customs Service
www.customs.ustreas.gov/
• U.S. Department of Commerce
204.193.246.62/
· Bureau of Export Administration
www.bxa.doc.gov/
· Economic Development Administration (EDA) Regulations & Notices
www.doc.gov/eda/
· Trade Information Center
infoserv2.ita.doc.gov/tic.nsf
• U.S. Department of State
www.state.gov/
• U.S. Environmental Protection Agency
www.epa.gov/
• U.S. Ex-Im Bank (Export-Import Bank of the U.S.)
www.exim.gov/

• U.S. Federal Aviation Administration
www.faa.gov/
• U.S. Food and Drug Administration
www.fda.gov/
• U.S. Information Agency
www.usia.gov/
• U.S. International Trade Commission
www.usitc.gov/
• U.S. Office of the U.S. Trade Representative
www.ustr.gov/
• U.S. Peace Corps
www.peacecorps.gov/
• U.S. Trade and Development Agency
www.tda.gov/
Lists of Selected Agriculture and Trade Related

Web Sites
• List of Agriculture Departments in Other Nations
www.nal.usda.gov/ref/govern.htm
• List of International Agricultural Organizations
www.nal.usda.gov/ref/internat.htm
• List of Internet Sites on Agribusiness, Food Industry & Forest Industry Associations
www.nal.usda.gov/atmic/pubs/agriassn.htm
• List of Internet Access for International Business, Economics, Marketing and Trade
Information
www.nal.usda.gov/atmic/links.htm
Reports/Special Reference Briefs

Commodity/Trade Reports
Foreign Agricultural Service (FAS), U.S. Department of Agriculture (USDA). The
publications listed below present information on U.S. and world production, supply and
demand; summary of current trade statistics; the latest trade policy and marketing
developments; and trade for many different commodities. The Commodity Trade Reports
are available via subscription from: National Technical Information Service, U.S.
Department of Commerce, Springfield, VA 22161. Phone: (703) 487-4630.
• Agricultural Trade Highlights. Monthly ($65 domestic; $110 foreign). Provides an
overview of U.S. agricultural exports, specialized coverage of trade topics. Each
issue contains a summary of current trade statistics and the latest trade policy and
marketing development, along with in-depth analyses of country markets and
specific consumer food product exports.
• Dairy, Livestock and Poultry: U.S. Trade Prospects. Monthly ($98 domestic; $214
foreign). Contains U.S. trade information and analyses of the trade of dairy, livestock
and poultry products.
• Livestock and Poultry: World Markets and Trade. Semi-annual ($21 domestic; $42
foreign). Contains information on U.S. and world production, use and trade of
livestock and poultry products, trade policy developments and export market
information.

• Monthly Summary of Export Credit Guarantee Program Activity. Monthly ($70
domestic; $120 foreign). Shows fiscal year commitment figures for the Commodity
Credit Corporation’s Export Credit Guarantee Program (GSM-102) and Intermediate
Credit Guarantee Program (GSM-103) activities.
• U.S. Export Sales. Weekly, based on reports submitted by private exporters ($175
domestic; $320 foreign). Outstanding exports sales as reported and compiled with
other data give a snapshot view of the current contracting scene. All countries with
outstanding sales or accumulated exports are included for each class of wheat, all
wheat, wheat products, corn, soybeans, soybean cake and meal, American prima
cotton, all upland cotton, and cattle hides.
• World Agricultural Production. Monthly ($95 domestic; $160 foreign). Provides
information on U.S. and world production of major agricultural products, including
crop, livestock and forestry estimates, weather and production briefs, and special
articles of interest to the trade.
Publications listed below are published by the Economic Research Service (ERS), U.S.
Department of Agriculture (USDA), and are available via subscription from: ERS-NASS,
341 Victory Dr., Herndon, VA 22070. Phone: (800) 999-6779 (Canada and U.S.); other areas
(703) 834-0125; FAX: (703) 834-0110.
• Food Aid Needs and Availabilities: Projections for 2005. Research report, October
1995 ($12). Stock # GFA-6. Examines the long-term prospects for global food aid
needs and for food aid availabilities from donor countries.
• The Food Marketing System in 1996. Gallo, Tony E.; research report, August 1997
($7.50). Stock # AIB-717. Analyzes and assesses yearly developments in the nation’s
food marketing system, including industry growth, structure, conduct and
performance of food processors, wholesalers, retailers and foodservice firms.
• Global Review of Agricultural Policies: Western Hemisphere. September 1994 ($12).
Stock # SB-892. Describes policies that affect the agricultural sector in 25 countries
in the Western Hemisphere, including policies that affect commodity and input
prices, activities of government-owned companies and integration of economies in
the Western Hemisphere.
• Industrial Uses of Agricultural Materials. Annual, issued in October ($15). Stock
#IUS-1996. Examines how agricultural materials are used by industry. Covers
agricultural materials in seven categories: starches and carbohydrates, fats and
oils, fibers, animal products, forest products, natural plant products, and natural
rubber and resins.
International Agricultural and Trade Reports

Five-report series includes: China, Europe, Newly Independent States and the Baltics,
Apec and NAFTA. Five issues ($26 domestic; $32.50 foreign; single copies are $9
domestic; $11.25 foreign). Each report explains how basic forces are changing
agriculture and agricultural trade. Also includes short- and long-term production,
consumption and trade of the regions key commodities.
Situation and Outlook Report

Outlook for U.S. Agricultural Exports. Three issues ($17). Stock # AES. Offers the latest
value and volume of U.S. farm exports, by commodity and region, as well as agricultural
trade balance, import commodities and export outlook.

Marketing Plan
Organic Markets
“Organic” has become a universal term to describe an array of products, practices and
procedures perceived as healthy for man, animal and the environment. Worldwide, there
are now almost 600 organic producer associations in 70 countries. (http://
www.nofavt.org/Organic%20faq2.htm) Each has developed its own version of the
meaning of organic.
Virtually all definitions tend to share a degree of meaning, yet each definition has its own
unique features. It is important to gather some understanding of how various sectors of
the food market place tend to interpret the term organic.
Organic on the label generally implies to the consumer that:

• The product was grown with a dedication to agricultural practices that strive for a
balance with nature, using methods and materials that are of low impact to the
environment.
• The product was created as a result of a commitment to maintain and replenish soil
fertility with the belief that the highest quality foods are grown on healthy land.
• The contents have been minimally processed to maintain the integrity of the food
without artificial ingredients, preservatives or irradiation.
Organic to the livestock producer generally means farms have been inspected to verify
they meet rigorous standards that mandate the use of organic feed; prohibit the use of
antibiotics; and give animals access to the outdoors.
Production methods are selected based on criteria that meet all federal, state and local
health regulations; work in harmony with the environment; build biological diversity; and
foster healthy soil and growing conditions. Organic generally also means market animals
were raised without the use of toxic persistent pesticides, antibiotics and parasiticides
The Natural Question

Adding to the confusion of what is organic is the clamor caused by a new genre of
product identification recognized as “eco” or “green” labeling. Products wearing those
labels may or may not be certifiably organic. Perhaps the greatest confusion caused by
such labeling surrounds the use of the word “natural.”
According to the U.S. Food Safety and Inspection Services (FSIS) the term “natural” may be
used when products contain no artificial ingredients and are no more than minimally
processed in accordance with the rules of the agency. (http://www.fsis.usda.gov/index.htm)
Natural foods are generally understood to be any packaged food product that does not
contain any added artificial (having no counterpart in nature) additives, but it does not
necessarily extend to the exclusion of pesticides or other chemicals used in processing.
In the early 1980s in response to an explosion of food products claiming to be natural, the
Federal Trade Commission recommended standards for food products so labeled. At the
time, it was recommended that Congress approve a definition be approved that could be
enforced. Congress temporarily tabled the issue, and it never again came up for review.
In general though, natural foods meet this definition: A food may be called natural only if
it contains no artificial ingredients and had no more processing than it would normally
receive in a household kitchen. Minimal processing includes washing or peeling fruits or
vegetables; homogenizing milk; freezing, canning, or bottling foods; grinding nuts; baking
bread; and aging meats.

(http://www.worldwise.com/sustainable_living/fact_sheets/food.html)
A natural label does not guarantee the product has been organically produced and
processed according to the rules of a private certification entity, although it does mean
there has been a minimization of synthetic inputs and it may have been produced and
processed according to those rules. In some cases, products labeled as natural have
possibly originated from growing and processing operations that are phasing into
organic production but have yet to achieve a certifiable status.
Domestic Market Trends for Organic Products

The upward consumption trends in the natural foods market are now significant. They
Information gathered
are no longer products of choice for just a small group of consumers. In ever increasing
from various sources numbers, consumers are seeking what they perceive as healthful, safe food, often with
the caveat that it is produced in an “environmentally friendly” way. Companies across
generally agrees that
the spectrum of the food system are working hard to respond quickly and accurately to
the growth rate these preferences. (http://www.hawiaa.org)
being experienced in Several market studies conducted in recent years have described a sector of the market
comprising about 25 percent of the U.S. adult population (between 40-50 million
the U.S. is mostly
Americans) whose purchasing decisions are increasingly guided by their social and
representative of environmental values. Presently measured at somewhere between 3 to 5 percent of the
total food market, industry analysts propose that by 2008, organic foods will make up
what is happening in nearly 10 percent of the total retail foods market. (http://www.hawiaa.org )
other developed
Public and private research groups register the growth rate of the natural and organic
nations. food business somewhere between 14 and 20 percent per year for the last seven to 10
years. This expansion is remarkable when compared to a growth rate for mass market
foods of an average of only 3 to 5 percent from 1990 to 1997. (http://www.hawiaa.org )
Virtually all projections tend to agree that U.S. sales will continue upward at a very
healthy rate for at least the next several years with some guessing the present rate-of-
growth to continue until at least 2010.
World Market Trends

Information gathered from various sources generally agrees that the growth rate being
experienced in the U.S. is mostly representative of what is happening in other developed
nations. The summaries of recent reports from various offices of the Foreign Agricultural
Service, USDA, paint a picture of world growth, opportunity and market competition in
the organic food sector.
United Kingdom
The market for organic food is increasing by more than 21 percent a year in the UK alone,
and in countries such as Denmark and Austria, sales of organic food are likely to
overtake sales of conventional food within 10-15 years. (http://www.fas.usda.gov/
scriptsg/gain_display_report.exe?Rep_ID=15000064)
Netherlands
The market for organic foods stands poised for growth as consumers are increasingly
drawn to the environmental and health allure of organic foods. Supermarkets are taking
a serious look at expanding their organic food sections, including two major supermarket

chains in the Netherlands, Albert Heijn and Konmar. The Dutch government actively
supports the organic food industry, aiming to advance market share from less than 1
percent of total food consumption to as much as 6-10 percent. In February 1997, the
Dutch Government implemented a roughly $33-million action plan to stimulate
production, distribution and sales of organics. (http://www.fas.usda.gov/info/agexporter/
1997/dutch.html)
Austria
As there are probably opportunities for Austrian organic products on the EU market,
agricultural representatives are interested in the expansion of organic agriculture. About
two-thirds of organic production is sold on the domestic market and the rest is exported.
Imports include mainly fruits, vegetables and feed. Of U.S. products, best opportunities
are for tree nuts and dried fruits. (http://www.fas.usda.gov/scriptsw/AttacheRep/
gain_display_report.asp?Rep_ID=25546221.0)
Belgium-Luxembourg
Organic farming in Belgium is poised for growth with the potential for a ten-fold increase
in the number of producers. (http://www.fas.usda.gov/scriptsw/AttacheRep/
France
Organic food is still a niche market in France in terms of value, representing 0.5 percent
of total French retail food sales. However, it constitutes a growing market both for sales
and the image it transmits to consumers. As a result of the French government action
plan to stimulate organic agricultural production and distribution in France, sales of
organic products are expected to reach FF 15 billion ($2.5 billion) by the year 2003. (http://
www.fas.usda.gov/scriptsw/AttacheRep/gain_display_report.asp?Rep_ID=25545926.0)
Germany
Germany is one of the world’s largest producers and consumers of organic food
products. Significant opportunities exist for U.S. organic food and beverage exporters
who are prepared to invest the resources necessary to properly market their product in
Germany.
(http://www.fas.usda.gov/scriptsg/gain_display_report.exe?Rep_ID=10006016)
China
The interest in “Green Food” is rising quickly. It is apparent that while the people are
attaching importance to the construction of a more ecological environment, they are also
attaching more importance to the evolution of healthy and nutritious food. (http://
www.fas.usda.gov/scriptsg/gain_display_report.exe?Rep_ID=10005512)
Hong Kong
Organic food sales have grown slowly since the early 1990s as local Chinese have
become increasingly health conscious. Organic foods are marketed as health foods
here, and therefore carry the positive health food image. Best prospects for increased
sales are baby food, rice cakes, grains, fruit juice and breakfast cereal.
(http://www.fas.usda.gov/scriptsw/AttacheRep/

Japan
Total sales, including foods marketed as “no chemical” and “reduced chemical,” are
forecast to jump 15 percent in 1999 to almost $3 billion. Fresh fruits and vegetables
account for more than three-fourths of the total. (http://www.fas.usda.gov/scriptsw/
AttacheRep/gain_display_report.asp?Rep_ID=25535985)
Republic of Korea
The market for organic products is relatively small, but has grown rapidly over the past
10 years. Current import regulations are ambiguous, but favor processed organic
ingredients. A majority of consumers surveyed indicated plans to purchase more organic
foods, while a third indicated a willingness to pay 50 percent more for organic products.
(http://www.fas.usda.gov/scriptsw/AttacheRep/
Mexico
In 1985, there were virtually no health food stores in Mexico; now an estimated 500 exist,
more than 90 percent of which are located in Mexico City and Monterrey. The health
food industry is now a $300 million per year business at retail. Retail chains are becoming
more important: Chains represent about 100 stores, or 20 percent of the total. They
handle mainly imported products and sell over 80 percent of Mexico’s health food
imports. The major chains are Super Soya, Nutrisa, GNC, Nutrisoya and Golden Harvest.
U.S. products play a major role in the Mexican health food market. (http://
www.fas.usda.gov/scriptsg/gain_display_report.exe?Rep_ID=10002682)
Argentina
Organic production is estimated at $20 million, of which 85 percent is exported and only
15 percent destined for domestic consumption. However, with the largest per capita GDP
in Latin America and the increasing interest of supermarkets in organic products, good
possibilities are opened for a larger demand of both domestic and imported organic
products. (http://www.fas.usda.gov/scriptsw/AttacheRep/
gain_display_report.asp?rep_ID=25606944.0)
Brazil
Organic farming is growing at an estimated annual rate of 20 percent, although from a
very small base. Although largely limited to crops, organic animal production is growing
as well. Brazil is also exporting some organic products, such as soybeans and sugar.
Imports are insignificant, and undocumented, but market opportunities exist. A final rule
to regulate organic farming is due soon.
Recurring Themes
All farm operations are unique no matter what practices are being used. However, there
are several points that seem to be mentioned repeatedly when discussing the transition
period with groups of producers who have integrated the organic philosophy into their
operations.
• Production methods changed dramatically.
• Making the change was not easy.
• They had to learn by trial and error.
• They had to discover new sources for information.

• They had to learn to think organically.
• There was greater integration of the farm and livestock system.
• There was renewed emphasis on grazing room for all livestock
• There was an initial dip in output, frequently followed by return to near normal levels
of production plus advantage of reduced inputs.
• There was additional emphasis on record keeping for certification maintenance.
• More time was needed for marketing and procurement of acceptable inputs and
supplies. Nearly as much time was spent on marketing as on production.
Pork, Beef and Poultry Products

Marketing, promotion and cultivation of consumer attitudes are all needed to escalate
demand for organic meat products. However, prior to January 2000, labeling was most
frequently cited as the primary obstacle in developing a scaled-up market for organic
meats, as they could not be legally labeled purely as organic – even if certified privately.
Organic meats presently have no legal status with the USDA. As a result, producers
were mainly left to conditionally label their meat products and market them directly into a
fragmented market place made up fractionally of direct-purchase consumers, local
markets, some natural foods retailers, Web sites, restaurants and farmers markets.
Congress passed the Organic Foods Production Act (OFPA) of 1990 to:
• establish national standards governing the marketing of certain agricultural
products as organically produced products;
• assure consumers that organically produced products meet a consistent standard;
and
• facilitate commerce in organically produced fresh and processed food.
However, USDA’s Agricultural Marketing Service (AMS) is still developing regulations for
the use of the term organic on the labeling of food products. A proposed rule discussing
this important issue was published on December 16, 1997, in the Federal Register (62 FR
65850), which resulted in about 280,000 public comments. AMS is planning to reissue a
proposed rule that will address issues raised and seek further comment. Furthermore,
the National Organic Standards Board (NOSB), formed as a result of the OFPA, continues
to advise AMS on promulgating OFPA regulations.
Meat Labeling Issue

Use of the term “organic” by itself is not permissible on meat and poultry products, but
they may be labeled “certified organic by (name of the certifying entity)” if processors
seek prior approval from USDA’s Food Safety and Inspection Service (FSIS) and the claim
meets certain basic criteria. Specifically, to use the claim in labeling, processors will
need to show that products have been certified as organic by an authority or entity that
certifies products as “organically” produced. That entity must have standards that define
“organically produced” and a system for ensuring that products it certifies meet those
standards.
FSIS will permit the claim “certified organic by (a certifying entity)” along with the use of
animal production claims and the term “natural.” FSIS has permitted the application of
“animal production claims,” i.e., truthful statements about how the animals from which
meat and poultry products are derived or raised, on the labeling of meat and poultry
products. For many years, animal production claims have served as an alternative to the

use of the term “organic” on the labeling of meat and poultry products in the absence of
a uniformly accepted definition. Thus, producers may wish to continue the use of animal
production claims on meat and poultry labeling. Examples of animal production claims
are “No Hormone Implants Used in Raising,” “Raised without Added Hormones,” “No
Antibiotics Used in Raising,” “Corn Fed,” “Fed an All Vegetable Diet,” “Raised in an Open
Pasture,” and “Free Range.” The system FSIS has in place for evaluating the necessary
supporting documentation to ensure the accuracy of animal production claims, such as
producer affidavits and raising protocols, will continue to be used whenever these types
Once producers have
of claims are made.
identified which markets
The term “natural” may be used when products contain no artificial ingredients and are
they will be selling to, it is no more than minimally processed in accordance with FSIS Policy Memo 055. This term
may be used in combination with the claim “certified organic by (a certifying entity)”
best to go to those
when the conditions of the policy are met.
markets and ask which
Selecting a Certification Entity
certification they need. Once producers have identified which markets they will be selling to, it is best to go to
those markets and ask which certification they need. When trying to think organically,
always keep in mind that the central theme in the organic process is continuous tracking
of product from time and place of origin to final point of purchase. Again, this is the
reason many present organic producers and processors maintain certifications with one,
two, three or maybe even four different private certification entities – to make sure their
product always has the opportunity to move into the best market while still wearing an
organic label.
Exemptions
There may be cases where your operation is exempt. Under the Organic Foods
Production Act (OFPA), as well as Iowa’s Organic Agricultural Products Act of 1998,
farms and handling operations that sell less than $5,000 worth of product per year of total
agricultural products are exempted. These exemptions do not release you from the
responsibility of being able to verify the claims you might make on your product labels or
in your marketing materials.
Even though your operation may be of a size that is exempt from certification
requirements, this does not mean that you may not have certain reporting and record
keeping responsibilities when presenting or labeling a product as organic.
The Iowa Act states:
47.5(11) Parties exempted from organic certification.
a. Exempted parties.
(1) A person who receives $5000 or less in annual gross income from the sale of
agricultural products shall be exempt from fees and mandatory organic
certification.
(2) Final retailers of agricultural products who do not process agricultural products
are exempted from organic certification in the state of Iowa. Handlers who do
not process agricultural products are exempt from certification.
b. The exempted producer or handler selling agricultural products as organic shall
demonstrate compliance with Iowa Code chapter 190C and this chapter by
implementation and documentation of the following measures:

(1) Submit to the department a signed Exempt Party Declaration form, as provided
by the department, attesting to knowledge of and compliance with Iowa Code
chapter 190C and this chapter.
(2) Submit a $10 processing fee with the declaration to the department.
(3) Maintain records adequate to verify compliance and trace an organic product
from production site to sale for consumption. Records must be kept for five
years.
Even if your production levels exempt you from state or federal certification
requirements, you may find certification is necessary to sell any quantity of organic
production to parties that must in turn guarantee an organic certification to their
customers. It is a common practice amongst processors to refuse acceptance of
delivery of any product claimed to be organic until the seller provides proper
documentation from the preferred certification agency.
Resources for Additional Information

• Alternative Farming Systems Information Center (AFSIC)
Alternative Farming Systems Information Center (AFSIC), National Agricultural
Library, 10301 Baltimore Ave., Rm. 304, Beltsville, MD 20705-2351
Phone: (301) 504-6559
www.nal.usda.gov/afsic.
One of eight information centers at the library, AFSIC specializes in locating,
collecting and providing information about sustainable and alternative agricultural
systems.
• American Pastured Poultry Producers Association
APPPA, 5207 70th Street, Chippewa Falls, WI 54729
Phone: (715) 723-2293
dkaufman@discover-net.net
American Pastured Poultry Producers Association publishes a quarterly newsletter
about production practices, processing equipment, marketing, legal issues and
more. A database networks producers and customers. Membership is $20.
• Appropriate Technology Transfer for Rural Areas (ATTRA)
Appropriate Technology Transfer for Rural Areas (ATTRA), PO Box 3657, Fayetteville,
AR 72702
Phone: (800) 346-9140
www.attra.org
Provides assistance, publications and resources free of charge to farmers,
Extension educators and other ag professionals. Ask for “Adding Value to Farm
Products: An Overview,” and “Fresh to Processed: Adding Value for Specialty
Markets.”
• North American Farmers’ Direct Marketing Association (NAFDMA)
North American Farmers’ Direct Marketing Association (NAFDMA), 62 White Loaf
Road, Southampton, MA 01073
Phone: (413) 529-0386 or (888) 884-9270
www.nafdma.com

• Sustainable Agriculture Network (SAN)
Sustainable Agriculture Network (SAN), Hills Building, Room 10, University of
Vermont, Burlington, VT 05405-0082
www.sare.org/san/htdocs/pubs
As SARE’s national outreach arm, SAN disseminates information through electronic
and print publications. Call (802) 656-0471 or e-mail nesare@zoo.umv.edu for
questions about bulk discounts or rush orders.
• Sustainable Agriculture Research and Education (SARE) program
Sustainable Agriculture Research and Education (SARE) program, U.S. Department
of Agriculture, 1400 Independence Ave. SW, Stop 2223, Washington, DC 20250-2223
Phone: (202) 720-5203
www.sare.org
Administered by USDA-CSREES, SARE studies and spreads information about
sustainable agriculture via a nationwide grants program.

Marketing Plan
Marketing Targets
Food with a Face (Relationship Marketing)
According to the International Food Information Council, the desire by consumers to
know and understand more about their food is fueling an explosion of available food
information. The organization studied articles regarding diet and food safety news issued
by 39 print, broadcast and online media over a three-month period in 1999. The results
were staggering. Some 1,260 nutrition, health and food safety stories appeared during
the three months reviewed in 1999, a 53 percent growth over the same study conducted
in 1997, and a 31 percent growth over the 1995 study.
Now more than ever, consumers want to know more about the how their food was
produced and how it was processed prior to purchase. It apparently is comforting to
consumers to feel a sense of relationship with the individuals who actually produce and
handle their food. The image of a humble man and his donkey gathering hand picked
coffee beans one-at-a-time (a recent advertising image for a major coffee company)
garners mass consumer favor. If you can put a face with your food product and create a
sustainable image that favorably connects your consumer to you or your group, you can
develop a relationship that will foster brand loyalty and repeat business. This is a special
area of demand that remains under-served in the food market.
Prestige Marketing
In certain markets, there are merit perceptions among consumers that can be tapped to
realize added value in products. Many people find it desirable to buy something
“different” or in some way special. It may be the idea of bragging rights or just being the
one to introduce others to something new or different. There may also be an element of
discovery that can be tapped. Certainly, the idea that the product is a cut above
mainstream fare has an appeal. In part, this comes from a need in many consumers to
underscore their ability to make great choices.
Instead of agreeing to pay regular market price for a “very good” piece of beef, a
consumer may instead choose to pay extra for meat products that are marketed as
succulent, tender, gourmet, outstanding, hand-cut, perfectly aged, incredibly juicy, tasty,
tastier, tastiest, tender, beefy, meaty, flavorful, firm, well-marbled, robust and/or
delicious. Those are among words two established specialty meat marketers are
currently using to sell mail order packages of four 10-ounce filets for $65.00 and four
16-ounce T-Bones for $83.00. Shipping and postage not included.
Serving the Server

A growing segment of the food service sector is a phenomenon called “personal chefs.”
The service caters (literally) to busy people who do not prefer to invest their time fixing a
meal. Increasingly, there is not a member of a household who wants to cook or feels
competent to do it well. Hence, services are springing up that help these people create
special menus, then actually come into the home at scheduled times to prepare and
serve the final dishes.
Where this could fit the smaller meat marketer is in hooking products and services to the
personal chef. It could be as simple as being a quick call, quick response provider of
always fresh, always tender products, thereby saving the chef a trip to a market.
Customers would know you and the quality of your goods. The chef would benefit from
an expanded possibility of marketing to prestige levels using “food with a face” and the

producer benefits from the endorsement of the personal chef.
The whole concept of “serving the server” is built on the idea of how to utilize marketing
people and organizations that already exist. Doing so provides a way for the producer
owned enterprise to get more “feet on the street” without payroll expense. In fact, this
facilitates selling product and potentially working an additional service fee into the
transaction. This type of approach fosters expansion of product volume more quickly
than the direct in-house marketing approach. It also keeps costs lower, which results in
added flexibility.
Solution Marketing
The traditional view of solution marketing in food would certainly include the home meal
replacement (HMR). With the surge in households having all adult members working
outside the home there is more emphasis on time management, particularly by the
female member of the household. Studies continue to show the female is the primary
decision-maker on food purchasing. Those decisions are leaning toward convenience,
including fast, heat-and-serve entrees and complete meals. This is an area of growth for
beef even though it already owns the center of the plate. The challenge is to create beef-
based meal options that are attractive, tasty and work well in less than 20 minutes.
Two options for the beef marketer are obvious. First, one could become a specialty
supplier to a company that has a brand and marketplace slotting already in place. This is
the high volume, low margin and short run approach to moving beef. Keep in mind, if the
target companies already have beef suppliers, the challenge is to somehow replace
them through service, price or quality.
The second option is to create product and brand, then enter the retail market directly.
This approach brings much higher margin but will certainly be slower to build volume.
There are substantial costs involved in creating brand identity, as well as high costs in
packaging and labeling in the early stages because volume will be low. There will also be
the need to compete for shelf space at retail, such as slotting fees paid to the store. To
some extent, fees are negotiable.
Personal chefs and standard catering are also forms of solution marketing. In those
situations, the extra service a company provides is the large value item in the equation.
In a similar vein, the old idea of the lunch wagon at a factory parking lot or office
complex is still quite viable. In fact, the idea of offering ready-to-heat-and-eat meals to
workers as they exit the parking lot for home could be very well received. Most workers
do not think about the evening meal until late in the day. The idea of stopping at the
grocery or getting home to face the evening chore is not always a favorable one, so the
opportunity is there to provide the solution through their car window as they leave.
Among high beef user demographic groups, this could be an ideal place to offer beef
entrees.

Ethnic Marketing
As you look for ways to sell the “whole set” of products coming from the market animal it
is important to take a really hard look at other cultures and the ways of their countries for
outlets. Eating habits and tastes are closely tied to family customs and local/regional
norms. This is known as marketing to the learned responses of your consumer. In order
to target these types of markets, it is important to gain a full understanding of the
preferences and practices of the groups you hope to win over as new customers.

Marketing Plan
About Brokers
For the most part, the brokers will probably find a start-up business long before it goes
looking for them. Although there is every reason to be cautious when entering into any
business transaction, don’t ever hesitate to listen to a broker’s offer – it just might be the
best one you are going to get that day.
In the market place, brokers provide a necessary service. Essentially, they are the
professional go-betweens that move product from the producer to the processor and on
to the retailer. Brokers also tend to stand at the intersection through which all types of
market knowledge passes daily. Consider a broker as a source of knowledge and
opportunity.
There will be days when you are going to need to move product and a broker is the only
one bidding. Also understand that many of the markets that you might want to enter may
only purchase through brokers. A broker could be the most economical ticket into the
plane, train, cruise or casino business.
Of course, brokers get paid for what they do. Pay is their reward for the risk they take
when they stand between buyer and seller as the one with the least control but the
greatest responsibility for everyone’s performance.
As in any business or service, there are good brokers and some that aren’t so good.
Remember the final decision is yours on whether or not you want to participate in a
broker’s program. The only difficulty you are likely to encounter with a broker is if you
enter into an agreement that you do not fully understand or have not asked for
clarification of all the details. As with any contract, you should have it reviewed by your
legal counsel before signing if there is any part you do not understand or are concerned
with. Know who is supposed to perform what, when they are supposed to perform it, and
who is responsible for picking up the pieces if somebody drops the ball. Know it and be
comfortable with it before you sign.
The following pages show a listing of the products offered to the market place by one
Eastern U.S. broker. A study of the company’s ad copy and product listing will illustrate
how doing business with a broker might benefit a start-up company by putting its
products on a much larger “menu.” It just could be that someone who started out
shopping through this broker’s list for a special imported meat product might find out
about one of your products and give it a try.
There are also a few good ideas planted in the copy – ideas that could surely take root in
other locales.
(Note: The name of this brokerage company has been changed to avoid any type of
endorsement. The information is presented purely as an example of how others are
selling product and why a broker may be a good person to get to know.)
Chester White Company, Inc. was founded on September 25, 1950. We are soon
to celebrate our 50th birthday and our company continues to grow and prosper.
Auntie Bea once had a vision to start a Food Brokerage Company specializing in
Dairy, Deli, Meats and Provisions. As part of her vision came a commitment not
to stray from the core business at which her company would become
specialists. This has not changed.

There are many food brokers in this market and in markets across the country
who claim to specialize in these areas but if you take a close look, most of them
have bakery lines, or grocery lines, or frozen food lines. Some of them even
have product lines which are non-foods. Worse yet, there are even some food
brokers who service their refrigerated principals with just a “perishables
division.”
At Chester White Company, perishables is what we are all about. We do not

handle any products which do not fall in to the Dairy, Deli, Meat & Provisions
format. This is not what we are all about. This is not where our interests lie. This
is not an area we have expertise in. We are the fresh and processed meat and
cheese folks.
It is our goal as a company to become the standard by which our customers and
packers alike judge every other sales and marketing effort they come in contact
with. We will constantly strive to meet and exceed all expectations regarding
customer service, follow-up and professionalism.
Because we specialize, Chester White Company has the luxury of being able to
choose the very best packers to represent. Each packer knows that they are
being represented by a company who understands their business inside and
out. We feel we are privileged to sell only the very finest products in a category.
This works out well for all parties involved.
The real winner is our valued customer base. A customer can call this office
and talk to a live person from 6:00 a.m. through 6:00 p.m. Monday through Friday.
Even though our office hours are from 8:30 to 5:00, there is always someone
here a little early or a little late to personally handle a question comment or an
order. Our staff is highly trained and boasts of years of experience in the meat
business. Several members of our company have been food industry
professionals for well over 40 years.
Any one who answers the phone in our office is qualified to take and process an
order or obtain information requested by packers and customers alike. Our
commitment to quality products and services extends to everything we do.
If, in the unlikely event a customer has a problem with one of our products, we
guarantee that the problem will be taken care of, in person, within 24 hours of
our office being contacted. In other words, by simply dialing our toll free
number, the problem goes away. We guarantee it.
By sticking to our core business, the business we know best, we have grown
and prospered over the past 50 years in to a brokerage company most
respected for quality products, quality people, professionalism, expertise and
work ethic.

Chester White Brokerage Company
Packer Product
Armour Seasoned, marinated and rotisserie fresh pork products
Armour Advantage Moisture enhanced Fresh Pork Products
Bierig Brothers, Inc Slaughterers and packers of premium quality, Glatt
Kosher veal products. From their new facility in Vineland
New Jersey, Bierig Brothers ships veal cuts all over the
eastern half of the united states of America. Quality and
consistency are the benchmarks of Bierig Veal products.
Chickadee Farms Wood River Offers a new concept! A line of “Meat Solutions” -
Foods, Inc. complete meals ready to go into the oven using only the
freshest of meats, proven recipes and leading edge
packaging to insure the longest shelf life.
Cook Family Foods, Ltd The nation’s leading processor of bone in smoked hams,
portions, ham steaks and other specialty smoked ham
products
Cooper Foods Quality deli turkey breast and cured turkey products
Formaggio Italian Cheese The leader in the specialty mozzarella industry
Specialities, Inc.
Garden-Fresh Foods, Inc. Garden Fresh Foods is one of the nations leading
manufacturers of salads, desserts, dips and fresh cut
produce.
Miami Beef Company Portion control meat products
Prima Foods Imported ham and vegetable products from around the
world
RLB Food Distributors Highest quality produce, deli and salad line in the industry
B. Rosen & Son Finest quality American lamb and veal
Spring Lake American Simply the very best you can buy
Cheese
Sugar Creek Packing Bacon, bacon and more bacon
Company
Swift & Company Fresh Pork Quality fresh pork cuts for retail, food service and further
processing
Salem Packing Company Cow and bull beef cuts and lean beef trim
Trois Petits Cochons “Three Little Pigs” all natural, award winning pâtés and
charcuterie products
Watson’s Quality Food Pre-cooked chicken, turkey, beef and pork products
Products, Inc. including marinated chicken and hot wings
We also enjoy a professional association with H.L. Stein, specialist in the dairy industry
supplying natural cheeses for pizza and other pizza

Marketing Plan
Pricing and Estimating
Sales Potential
Two tasks for any new business are estimating the potential sales volume, the amount
you think you can sell in the first year, and estimating the sales price. These can be
difficult tasks. New business owners are often surprised to learn that formulas exist that
can be of help in both of these areas. However, formulas are much the same as
computers, “garbage in, garbage out.” That is, the answers are only as good as the
assumptions and information used.
Why are these two issues so often difficult in the new business venture? For one thing,
the new business owner often lacks good information about the cost of the new product
if it is one that will be manufactured in his/her business rather than purchased. The new
business does not have information about the market place that is normally brought in by
actually selling a product in the market. The new business also can lack any market clout
– it must be a follower and not a leader in pricing.
A firm that is offering a product at a lower margin may do so because of capacity issues
or because the product is complimentary to another product the firm is selling. The The three factors
product you are selling may have a rival product that is well established in the market
of profits are
place with many recognized features and benefits. To set the price of your product the
same as that one may not work, because your product is new and is not recognized by cost, selling and
consumers as having the same or superior features and benefits. The goal in setting
prices should be to maximize profit as well as gain a share of the market place. As a
the unit sales
small manufacturer, you should not compete on the basis of price alone unless you are volume, in the
the low cost producer. That, for a new business, is difficult to know.
proper proportions.
Basic Rules of Pricing
Pricing of products is a part of marketing strategy. You may want to set a lower-than-
market place price to gain market share and to introduce your product. Your goal may be
to maximize profits. The three factors of profits are cost, selling and the unit sales
volume, in the proper proportions.
Pricing should be considered as part of the marketing mix of product performance,

quality, delivery time, features and benefits unique to your product, and other
advantages you believe you have over your competitors.
Good pricing requires an understanding of influence in market factors, the economy,

technology, competition and resources, and the internal cost of your business. Internal
costs include (but are not limited to) labor, material, overhead and interest. As any of
these conditions change, prices may also change. The point is this: There is more to
pricing than just internal costs. The market sets a price ceiling. The ceiling is, in effect,
the maximum price you can set for your product and still compete in the market place
against similar products.
Two factors are important in determining pricing. One, the market most likely will
determine the pricing at which your product will sell. Two, your internal costs and profit
goal can be used to establish a price floor. This is the lowest price that you can set and
still make a profit.
The difference between the price ceiling, established by the market, and the price floor,
established by internal costs and profits, is the “relevant price range.” Your challenge is
to provide a competitive product priced within that range.

How to Compute Price Based on Cost – Setting
the Price Floor
Several methods of cost based pricing will be discussed with examples. Before that,
however, you must understand the difference between margin and markup. You will hear
both terms. The manufacturer often talks about margins, and the retailer or wholesaler
talks about markups.
Margin and Markup

Many a business fails to make an expected profit because its owner figures his
percentage of margin on the cost of goods. He assumes that the percentages of margin
and markup on cost are the same. This confusion is not strange, because both margin
and markup in dollars are identical. The percentages, however, are different. Both
represent the difference between cost of merchandise and selling price.
Selling price covers the cost of merchandise plus all expenses of operation and net
profit. The selling price is always 100 percent because it is the total amount of money a
business is going to get from the sale.
Margin is always figured on the selling price. It is a percentage of sales.
Example
Suppose we buy an article for $1.20 and sell it for $1.60. The margin is 40 cents, which is
one-fourth or 25 percent of the selling price. Therefore, our margin on this article would
be 25 percent.
Markup can be computed as either a percentage of cost or of selling price. Although
many consider markup a percentage of the selling price, retailing authorities point out
that figuring markup on the cost price is easier and less confusing in everyday pricing.
The important thing to keep in mind is that when markup is figured on the selling price, a
different markup percentage must be used than when figuring the markup on the cost
price. Otherwise, the anticipated margin will not be attained.
Example
Suppose we buy an article for $1.20 and wish to sell it on a markup of 25 percent. What
must the selling price be? The markup of 25 percent times the cost of $1.20 equals 30
cents. Add the 30 cents to the cost price of $1.20, and we have a selling price of $1.50
with a margin of 30 cents, or 20 percent. However, if we want to mark up the article so
that we have a 25 percent margin, we must first determine the percentage that will yield
the desired margin when applied to the cost price. Looking at the Markup Table which
follows, we see that a 25 percent margin is equivalent to a 33 1/3 percent markup on
cost. Multiplying 33 1/3 percent times the cost, $1.20, equals 40 cents. Adding 40 cents to
the cost prices gives us a selling price of $1.60.
However – A markup on cost of 25 percent gives a selling price of $1.50.
Therefore, we must have a margin of 25 percent to cover the cost of operation and net
profit. We would be losing money by pricing merchandise on the basis of a 25 percent
markup on cost! To realize a 25 percent margin, we would have to use a markup of 33 1/3
percent on the cost price.
The following table shows what the markup on the cost must be to give the desired
margin in a number of more common cases. To use this table, find your margin or gross

profit percentage in the left-hand column. Multiply the cost of the article by the
corresponding percentage in the right hand column. The result added to the cost gives
the correct selling price.
Markup Table
Margin Markup Margin Markup Margin Markup
Percent of Percent of Percent of Percent of Percent of Percent of
Selling Price Cost Selling Price Cost Selling Price Cost
4.8 5.0 17.5 21.2 30.0 42.9
5.0 5.3 18.0 22.0 31.0 44.9
6.0 6.4 18.5 22.7 32.0 47.1
7.0 7.5 19.0 23.5 33.0 49.3
8.0 8.7 20.0 25.0 34.0 51.5
9.0 9.9 21.0 26.6 35.0 53.8
10.0 11.1 22.0 28.2 36.0 56.3
10.7 12.0 22.5 29.0 37.0 58.7
11.0 12.4 23.0 29.9 37.5 60.0
11.1 12.5 23.1 30.0 38.0 61.3
12.0 13.6 24.0 31.6 39.0 63.9
13.0 14.9 25.0 33.3 39.5 65.3
14.0 16.3 26.0 35.1 40.0 66.7
15.0 17.6 27.0 37.0 41.0 69.5
16.0 19.0 28.0 38.9 42.0 72.4
17.0 20.5 29.0 40.8 43.0 75.4
Formulas
Which formula to use depends on what information you have to determine the price. If
you are talking to the retailer, who says he or she wants to have a 30 percent margin on
sales, use formula A. If you know what contribution margin you want but need to know if
the margin will give you a sales price within the relevant range and an acceptable
markup to the retailer, use the formula B.
Formula B: Percentage Margin on Selling Price

Percent Margin = 100% Markup on Cost/(100% + % Markup on Cost)
Note: markup on the selling price is equal to the contribution or gross profit margin per
product
Use this formula when you know the total cost of your product with profit and you know
the contribution or gross profit margin you want to attain.
For example, in the above example, we bought an item for $1.20. We wanted to have a 25
percent contribution margin based on sales price left from the sale after paying
expenses. What should the price be? There are two ways to work the problem. One, look
up the markup percent in the table above. The second way is to use our formula B.
Percent Markup on Cost = 25/(100-25) *100 = 33.3%.
Price = 1.20+(1.20*.333) = $1.60.
Does this give you the desired contribution margin of 25 percent?

Sales = $1.60
Less: Cost = 1.20
Contribution = .30
Contribution Margin = .30/1.60 *100 = 25%
So a markup on cost of goods of 33.3 percent provides us with a gross margin based on
sales of 25 percent.
Formula A: Percentage Markup on Cost

Percent Markup = % Markup on Selling Price/(100%-%Markup on Selling Price)
Two basic methods to
In this case, if the retailer says he/she wants a 33.3 percent markup on the sales price, how
determine the price can you compute a sales price? Again assume you know the cost of goods, which is $1.20.
ceiling are trial and error Percent Markup on Cost = 33.3/(100-33.3) = 33.3/67.3 = 50%.
in the market place or The price is then $1.20 +(1.20*.50) = $1.80.
market research. Does that price put you in the relevant range?
Price Ceiling
Two basic methods to determine the price ceiling are trial and error in the market place
or market research. The trial and error approach requires that the product be introduced
to the market place to see what the customer will pay for it. A mistake you do not want to
make is to put the product on the market at a low price, which squeezes your margins.
You often will find it easier to lower your price at a later date than to raise it. Consider
putting the product on the market with higher margins. Then if the market will accept the
product at that price, you will make extra money. If not, you can lower the price to try to
determine where the product will sell. This practice is simply more favorable in
consumers’ eyes.
Market research, however, may prove to be more costly and time consuming. Will it be
less expensive and easier to actually make a small amount of product and do test pricing
in the market place than to use market research techniques? Most small firms find it
more reasonable to try the market introduction approach. Even then, you will find market
research is necessary to see how competitive products are priced and what is
happening as a result. That information should be discovered during your competitor
analysis.
What alternatives do you have if the market will not take your product at the price you
have set? There are several basic options to explore. One is to lower the price. Will that
price still cover costs and allow for an acceptable margin? If not, then you have the
option to not make the product. Another option is to reduce your costs so the price does
cover costs. This may require changes in packaging, delivery, portion size, etc.
Another option is to accept the lower margin, even though you do not make a profit. You
may choose to accept the lower cost if the price will cover cost of goods and still
contribute to paying overhead costs. The assumption here, of course, is that you have
other acceptable products and that this particular product is needed or required in your
product line.

Another option, if the market place will not accept your price, is to somehow differentiate
your product from your competitors. You are trying to make customers recognize your
product as one they will pay a higher price to have. Price sensitivity comes into play with
differentiation or trying to raise price. That is, the less sensitive the buyers are to prices
when purchasing your product, the more likely they are to buy at a higher price. For
example, if a substitute product is readily available, a customer may choose the lower
priced competitor’s product. But if there is no close substitute, then the customer may be
willing to pay a higher price. Also, if the purchase is not a major budget item, there is less
price sensitivity. Finally, if the buyer buys your product on an infrequent basis, then price
may be less of an issue.
Keep in mind that products are bought on the basis of perceived value in the minds of the
buyers and not on the basis of what it costs you to produce the products. Your challenge,
then, is to produce a product at a price equal to or below the buyers’ perceived value for
your product.
Pricing Examples
These examples are approached from the aspect of four elements of pricing: direct costs,
manufacturing overhead, non-manufacturing overhead and profit. With these costs, the
assumption is made that the contribution margin can be determined. Often, however, the
new venture has difficulty determining all costs to determine the contribution margin
required. In that case, a way to approach the issue is to use the gross margin from one of
two sources: Robert Morris Annual Statement Studies, a compilation of financial ratios for
retail, wholesale and manufacturing industries, compiled from company financial
statements; or the IRS Corporate Financial Ratios, by Schonfield and Associates. Most
banks and libraries will have a copy of the Robert Morris book.
Cost Based Approaches to Pricing Using Contribution Margin

The price can be set using several approaches based on which cost input has higher or
equal value, labor, raw material or contribution per pound.
Example 1
You determine your desired contribution margin (gross profit margin) is 30 percent. The
cost of material is $10 per pound and direct labor cost is $10 per hour. If you want a 30
percent contribution margin, the price would then be $10 +$10/60%. Direct labor and
material is 60 percent of the selling price. So the price is $33.33. Proof is this way:
$33.33- 20.00 = 13.33. Contribution margin of $13.33 divided by sales price of $33.33 equals
the desired 40 percent.
Example 2
If the value of the material is high or material is the limiting factor, a contribution margin
can be established for material. If the labor is the limiting factor or if labor can not be
fully utilized at all times, then a fixed contribution margin per labor hour may be desired.
Here is an example based on pounds.
Determine a mark-up on percentage based on price per pound. If the material cost is $5
per pound, and a contribution of $2 per pound is required. Then contribution as a
percentage of pounds is 2.00/5.00 = 40%. The mark-up on factor to use for pounds is 40
percent.
Material cost = $5.00
Labor cost = $3.00
Total = $8.00
Plus Contribution = $2.00

Total price = $10.00
Market conditions will affect pricing decisions, but pricing based on costs will help you
maximize your profits.
Resources
Wilsted, William D., University
of Colorado, Pricing for Small
Manufacturers; Small
Business Administration,
Management Aids 1.005; 1976.
Lennon, Victor A., Chairman of

Lennon/Rose and Company,
Chicago, IL, What is the Best
Selling Price?; Small Business
Administration, Management
Aids 1.002.
Marketing Plan
Distribution of Product
Linking all vertical segments is product distribution. At the present time, most distribution
to existing ethnic and other specialty markets takes place as a direct sale from a
producer (live animal), slaughter/processor (carcass or boxed) or through a network of
jobbers. Many producers located near urban areas of the upper Midwest and far West
report sales of live animals directly from the farm. Some producers supply and assist
with slaughtering of individual animals for direct ethnic buyers. In some cases the
animals are delivered for slaughter to local processing plants. This method of
distribution is only suitable for the very small-scale market.
Some examples of small-scale integrated slaughter/processing and sales of carcass

meat products exist successfully in the U.S. and Canada. Many of these operations are
integrated to production, but some rely on local producers for live animal sales. Most
have acquired packing and processing services by the purchase and restoration of
existing small-scale locker plants in the immediate area of production.
These small-scale packer processors have a common set of strategies designed to

offset higher cost slaughter/processing and distribution costs compared to the
commodity channel. Some of those characteristics include:
• Flexible (multi-species) slaughter
• Flexible job description of most workers
• Targeted customer segments (ethnic groups, ultra fresh, etc.)
• Very high service
• Catering to individual local demand for product/service combinations
• Small order acceptability
Checklist 1
Finding Potential Distributor Partner
Ask the end users of your products what distributors they prefer to buy from.
Ask current distributors if they’re interested in expanding their territories or
know of other distributors who might be available.
Find out what distributors your competitors are using.
Identify distributors of allied products.
Consult directories published by distributor associations. (Check your local
public library for the Encyclopedia of Associations, published by Gale
Research.)
Attend meetings and trade shows sponsored by industry associations.
Place ads in industry trade and association publications.
Post messages to news groups available on the Internet.

Checklist 2
Evaluating Potential Distributors
Financial stability — credit history, timeliness of payments, etc.
Sales and marketing capabilities — size of outside and inside sales force, ability
to generate leads, selling skills, technical competence, etc.
Sales performance — past sales history for same or similar products.
Knowledge of the local market — ability to accurately forecast future sales and
identify changes in customer needs and expectations.
Product mix — types of products carried, including competitive, supplementary
and complimentary items.
Growth potential — capability of distributor to keep pace with any anticipated
growth in the local market.
Inventory handling capabilities — warehouse space, ability to track turnover
rates and other important statistics.
Technology capabilities — possession of and familiarity with the technology
required to do business together most efficiently.
Management ability — viewpoint of distributor on human resources, planning,
training, financial management, communication, etc.
Succession planning — arrangements in place to continue the distributorship in
case of retirement or death of distributor principal.
Overall fit — how well your goals, operating philosophies and business
practices mesh with those of the distributor.
Checklist 3
What to Expect from a Distributor
Maintenance of a well-qualified and well-trained sales force that is familiar with
the manufacturer’s products and is skilled in demonstrating the advantages of
those products to the customer.
Commitment of sufficient resources required for aggressive sales and
marketing of the manufacturer’s products.
The best efforts to achieve market share and other sales goals in a specific
geographical or other area of responsibility.
A commitment to stock recommended inventories of products based on the
needs of the local market.
Prompt payment of all financial obligations.
Prompt communication with the manufacturer regarding changes in the local
market and/or distributor’s own business (e.g., changes in management and
other personnel, and/or operating policies).
A level of service that encourages long-term loyalty on the part of the customer
toward the manufacturer and its products.
Physical facilities and technology necessary to consistently perform the above
functions.
Resource
Edward S. Stecki, President,
Industrial Performance Group,
Inc., Northfield, IL.
Marketing Plan Worksheet
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1. Marketing Goals and Objectives

4. Test Marketing Completed or Planned

SECTION 3 Marketing Plan - 248

The market analysis shows a broad range of prospective clients, covering a

1 Market Goals and Objectives

$37500.00 x 185% = $69,375

Total Restaurant and Farmers Markets: $99,375

Total Sales to Farmers Markets and Restaurant in Year 1

$30,000 $99,375 Total

January February March April May June

July August September October November December

Marketing Plan - 249 SECTION 3

$40,000 $199,375 Total

2 Overall Marketing Strategy

Dealers and distributors will be encouraged by a pricing system that allows

Two of our members have established themselves as weekly regulars on local

We have signed on as a half-time sponsor for Cy Country College football.

Marketing Plan - 251 SECTION 3

The company is selling ultra-high quality and specially tailored attributes in a

SECTION 3 Marketing Plan - 252

Each of those categories can presently be divided this way.

Consumer Direct Distributor/Restaurant Grocery

Marketing assistance will be a break-even consulting service for the owner/

Marketing Plan - 253 SECTION 3

Categories and Skills Experience? Comments

A commissioned sales incentive program is under consideration for meat

Approached properly, these interests may be willing to enter into a mutually

Marketing Plan - 255 SECTION 3

Summer 1998 Winter 1998 Spring 1999 Summer 1999

Fall 1999 Winter 1999 Spring 2000 Summer 2000

Financial Plan - Marketing

July August September October November December

Marketing Plan - 257 SECTION 3

Agricultural groups need to become successful marketers if their value added

A “market” is composed of actual or potential buyers of a product or service and the

Primarily, this manual focuses on development of niche markets. To become involved in a

Economic conditions, the quantity and quality of competitors, consumer trends,

Marketing Plan - 259 SECTION 3

So what is this “thing” they call marketing?

Rule 1: Know your customer(s).

SECTION 3 Marketing Plan - 262

Setting Yourself Apart

Marketing Plan - 263 SECTION 3

SECTION 3 Marketing Plan - 264

Marketing Plan - 265 SECTION 3

SECTION 3 Marketing Plan - 266

Marketing Plan - 267 SECTION 3

SECTION 3 Marketing Plan - 268

Marketing Plan Goals

Additional Resources to Explore

Marketing Plan - 269 SECTION 3

What makes my company/products better than others?

What is unique or different about my company/products?

What criticisms have I heard about my company and/or its products?

SECTION 3 Marketing Plan - 270

Describe other clients you would like to have.

What differences exist between the above two descriptions?

Marketing Plan - 271 SECTION 3

What do customers say about your competitors? (Find out!)

How do your competitors market themselves? What works for them?

SECTION 3 Marketing Plan - 272

has announced ______

The _ will involve _____________

__ noted that