Agriculture Reference
In-Depth Information
action often results in stock sitting on the shelf from reducing sales. Retailing
is a 'now' industry and action to remedy faults needs to be immediate.
Many countries have a well-developed farm shop retail network,
especially in Canada, the USA and the UK. Any farmer thinking of entering
this tourism sector should take a close look at what is happening in those
regions. The above countries each have annual conferences organized by
the farm retail association for this sector of the market. The annual confer-
ence is a great opportunity to network with existing farm retailers and pick
up new ideas.
Suggested benchmarking guidelines for farm markets/shops
Although each farm shop or farmers' market has a different marketing mix, a
farm retail business needs a guideline to measure the business against.
The following, by Nigel Chandler, farm manager at Garson Farm in the
UK,
13
is meant as a guideline to measure farm retail business performance:
Average labour bill
15% of turnover. Note:
20-
25% if a
production kitchen is part of the mix
Marketing
2% of turnover
Bakery department
Overall gross profit
35%
Cakes
65% mark up
Frozen bake off bread
100% mark up
Fresh bread delivered
45% mark up
Wastage
3%
Frozen
Ice cream tubs
70% mark up
Frozen meals
37% gross profit
Loose frozen fruit and vegetables
100% gross profit
Wastage
2%
Butchers
Based on the butcher having own business
15% gross profit or a fixed rent
Deli
42% gross profit
Grocery
40% gross profit
Chilled foods
65% mark up
Cut cheese and cooked meats
90-
100% mark up
Olives
150% mark up
Fruit and vegetables
40% gross profit
Wastage
7.5%
Grocery wastage
1%
Average store gross profit
40%
Grow the Unusual
Culinary tourists are often searching for the unusual, especially the local un-
usual. They are searching out specific food items and meals that they cannot
eat or buy at home; it is part of the fascination of the travelling experience.
When we arrived in northern Italy in November we found the markets
