Points to consider in order to make your farm retail business a success

With demand for agritourism steadily increasing among the public, this presents a unique opportunity to farmers across Scotland to engage with an exciting and growing market. It can allow many farms to diversify their income streams potentially proving key in aiding succession to younger generations.

Whilst agritourism takes many forms from holiday stays, farm tours and experiences, a key component is farm retail. This has been driven by a strong interest among the public in recent years for fresh and high-quality produce sourced directly from local producers. It seems there is a clear market for retailing directly to customers reducing reliance on supermarkets and their pricing policies.

Viability

Whilst this presents a fantastic opportunity, there are undoubtedly challenges not least the cost and time in setting up such schemes. However, it is important to remember that not every farm retail venture requires the cost of setting up a traditional bricks and mortar farm shop. Farm retail schemes can take many forms from online shops, local delivery run on subscription services, meat and vegetable boxes, ready meal schemes produced from farm produce and even vending machines.

Logistics must be considered for every such scheme however with questions such as whether there will be enough footfall and demand in your area to make such a scheme viable or how practical a delivery service would be. Another serious logistical concern faced by many farm retailers is the reduction in local abattoirs making it difficult to run the smaller scales typically involved in farm retail.

Promotion

Perhaps the most important factor in the success of all farm retailing ventures is one not normally faced by those in the farming industry: marketing. It is important to connect to potential customers with a clear brand and message. Consumers place importance on both the locality and story behind a product, so it is vitally important to promote both of these aspects to potential customers.

At the same time, whilst having a clear message and story is vital, getting that message out to the public is equally important. Such ventures need to be shared as much as possible on social media and listings should be made on sites such as Go Rural Scotland if applicable. Perhaps farm retail ventures could also be linked to other agritourism opportunities to increase visibility.

Valuation

A final point to consider which appears a major stumbling block among many in the farm retail sector and which can greatly impact the profitability of these projects is valuation. Many farmers having been forced to accept low prices for so long continue to undervalue their produce and time and are afraid of charging what their produce is actually worth. In any farm retail venture, it’s important to remember that you are offering a product different to supermarkets and a product which most importantly customers want!

If you would like to discuss the viability of creating a farm retail business, get in touch with our EQ Agriculture team via agriculture@eqaccountants.co.uk or call your local office contact.