The Rural Voice, 2006-09, Page 42and managed location at the Windsor
Market plus supplying outlets in
Toronto, Chatham, Kitchener and as
far afield as Ottawa and Sudbury,
according to the company website.
The website also lists restaurants that
serve the company's products from
large cities like Toronto and London
to the tiny Brubachers of Ethel, east
of Brussels.
The company started in beef but
has broadened its product lines to
serve the customer, not only with a
wide selection of organic and grass-
fed cuts of beef but adding organic
pork, lamb and chicken and
processed beef and pork products. At
the London location they also have
their own bakery and sells organic
dairy products and produce.
The lessons along the way are
valuable for others seeking to
take their farm products
further along the chain to the
customer, Murphy said.
The pooling of resources and
products helps create the volume
necessary to meet market demand.
Field Gate Organics started with 12
farmers but by this spring had 18
(from the Thorndale
to Kincardine area)
with another 28
organic farmers
supplying its needs.
Some of the farmers
are marketing only
eight to 10 head of
cattle a year so they
benefit from the
volume created by
suddenly dipped one April, they
realized that about one-third of their
regular customers were students from
the university who went home for the
summer.
Among those student customers
they found that many came in as
vegetarians, coming first for the
organic vegetables and fruit then
moving into dairy and some
eventually switched to buying meat.
The key to building customer
loyalty is quality, Murphy said.
"People will come back if you have
quality."
Market research shows that about
10 per cent of people say they would
purchase organic foods to some level
at a fair market price, Murphy said.
So what is that fair market price
the consumer is willing to pay? It
really varies according to the
location, he says. Organic beef prices
vary from $20 to $54 a kilogram.
People buy based on appearance, he
says, followed by the knowledge and
service offered by staff.
"Each consumer that buys organic
food has their own reason and the
value they put on it," Murphy said.
"Our marketing
research shows
consumers are willing
to pay 10-40 per cent
more for organic
food."
Being in the
business of dealing
directly with the
customer requires an
extra area of care. "It
is important how
"Our marketing
research shows
consumers are
willing to pay 10-40
per cent more for
organic food."
selling in a group.
Like any new enterprise, Field
Gate Organics had to research the
market. Organic sales are growing at
a rate of 15 to 20 per cent per year in
Canada, said Murphy, compared to
2.9 per cent for conventional foods.
Organic food sales are expected to
continue to increase for the next 10-
15 years.
Field Gate Organics sales have
grown at a rate of 15 per cent per
month or better, Murphy said. At
their London location "people still
walk in and say 'I didn't know you
were here'."
Having their own retail outlets has
helped create a greater knowledge of
:he market. For instance when sales
It the Covent Garden Market location
people view you and how your staff
represent you," Murphy said. "Also,
how you advertise your product, your
company and your goals."
For organic producers, Murphy
outlined a number of different
marketing options ranging from a
direct -to -consumer sales, to setting
up your own retail outlet, in which
case you need a full line of products,
to working an organic marketing
group. Farmers may choose to work
through wholesale distributors or sell
to retail stores or health food outlets.
For the members of Field Gate
Organics Inc., getting together with
their fellow organic producers to pool
their products and resources has been
the best choice. Their growing
clientele seems to agree.0
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