Permsteading.com

This past weekend, my wife and I attended a conference hosted by the Southern Sustainable Agriculture Workers Group. One particular session caught my eye as a "Must Attend" - Direct Marketing Meat.

The gentleman that taught the class had a most interesting business model. Simplified, here it is:

He has 40 acres.
He stocks 5 goats/acre.
He has 200 nanny goats.
His nannies kid, on average, 1.5 kids/year.
Total kid crop, minus a 10% attrition rate, is 270 kids/year.
At harvest, each kid will yield 30 pounds of meat.
Total annual meat harvest is 8,100 pounds.
He then sales three products (goat kabobs, curry goat and goat burgers) from a mobile kitchen for $9/quarter pound serving or $38/pound.
That yields him a gross yearly income of $307,800.
He estimates costs of 25%.
That leaves him an estimated net yearly income of $230,850.

The only aspect of the operation not handled in-house is the slaughter and processing of the meat.

Here is his Facebook page:



The lesson - cut out every middleman between the farmer and the plate.

I agree George, the only way for a farmer to make any money is to vertically market his goods.Take the wheat and have it ground into flour and then bake bread, grow the grapes and then make the wine, raise the beef and then sell it direct to your customers in your own store or meat shop. Grow your veggies and then sell then direct in Farmers Markets or a road side stand. Around here the price of land is such that if you bought an acre and planted corn, the crop would not pay the interest on the loan, let alone your seed, fertilizer, and machinery costs. If you don't inherit the farm it is dang near impossible the buy a farm and pay for it with prices as they are in this area. Having said that, there are people who are making a living on very small acreage who work very hard and sell specialty products. There is a guy who lives north of Pittsburgh in Mercer County who calls his 5 acre farm The Three Sisters Farm and makes over $40,000 selling salad greens to expensive restaurants in Pittsburgh. He has spoken at the Mother Earth News Fair and written several books on Permaculture. There are many farmers working over 100 acres and can't make $40,000, he is doing it with only 5 acres, and part of the land he lives on, part is in buildings, and part of it is a pond. Having a specialty niche, doing something that people perceive as being special or unusual, like selling Goat Kabobs, seems to be the way to make a living from the land today.

By the way George, Do you see that fancy trailer that he sells his goat meat from, do you have any idea that they cost new? That is a major investment right there, and a major time commitment to be out at fairs and events each and every weekend all summer long cooking and selling your goat. I am not saying that the money isn't good, or that its not worth doing. I am saying its a life style that some could live, and others could not, or would not make that commitment. He works hard for his money, as we all do I guess.

Wow. That really gets a guy thinking, doesn't it? Thanks for that George.

Pennsylvania has a conference on sustainable agriculture this Feb. at Penn State. Here is a link to the event and programs, many issues are the same for small farmers across the Country I am sure.

http://conference.pasafarming.org/

I had a chance to talk with these Folks when I was at the Farm Show in Harrisburg and was thinking about attending the conference this year. They have some interesting discussions and topics.

What did you think of the conference over all George? Was it worth while, did you enjoy the other seminars, what other peals of wisdom did you pick up at the conference? I am sure it was worth attending for the one Pearl of Wisdom you received about marketing strategy for goats and how you can translate that into Pigs. Do you feel that there were other things that you learned that will help you with your goals and objectives?

Most of the purely agricultural stuff was fairly rudimentary for anyone that has studied permaculture for any length of time. Some of the marketing stuff was really helpful.

I see, that has been a problem for me at times as well. They try to break things down to there simplest form so that people with out any back ground can understand it. If you have studied the subject and have a basic understanding you can get bored pretty quickly. I always try to find that one Pearl of Wisdom, that one idea you learn that is worth your days time. Some times you really have to search hard to find it, but I have found that it is normally there if you keep looking. I sounds like the idea from the guy who raises Goats was definitely your Pearl of Wisdom that made the whole day worth while for you.

Ha! I have to work this weekend.

My advice is do. Hands on is where you will learn the most. You are basically starting a business from the ground up. Most likely, in the food industry. The startup costs will be high. In some states, you will need a separate licensed kitchen and a food service license. I am not discounting the knowledge of speakers but they tend to make it sound easier than it is. Niche, networking, and a whole lot of luck are key. Selling farm and organic products is a highly competitive field.

Start small. You learn a lot by working the farmer's markets. It is not at all what I had imagined going in.

Actually, I made it sound easy. The actual speaker made it sound really, really hard. He said right outta the gate to be prepared to work your buttocks slap off. He also delved into the bureaucracy that one would have to satisfy which was daunting at times.

The purpose of my post was to illuminate A business model that CAN be successful and, coincidentally, it is the same model that my father was taught in his high school FFA classes back in the 1950s: the more middlemen one cuts out, the greater the income potential.

To date, every permaculturist I've listened to has stopped short of preparing the fruits of their labor for immediate consumption by a final consumer. Perhaps this might be a step that could propel some of our fellow permaculturalists into profitability.