Market Research for Market Readiness: upcycling pork organ meat into pet treats and pork fat into salve

Research Objectives:

We explored the use of the Market Research for Market Readiness set of tools. These include a manual, an Excel workbook, and several training videos created for free use by value-added farmers by Catherine Durham, professor of Applied Agricultural Economics at Oregon State University. The tools were evaluated for appropriateness of the following activities:                   

1. Create a standard operating procedure for training founders, staff or high school students from rural high schools near our farm to conduct consumer testing at events on our farm and at farmers markets that we attend. Consumer testing will determine the acceptance and potential of two existing product lines. Both are made from up-cycled by-products of our farrow to finish pork enterprise. They are pet treats made from pork organ meat and skin care made with lard. One version of the test will be conducted with staff or volunteers interacting with the interviewee, providing samples, and assisting with the recording of answers. This format will be best suited to large public events that take place on our farm. We will also create a second protocol, better suited to a busy farmers market scenario. In this second protocol, the interviewee will record answers themselves into a tablet. Market staff will be able to introduce the survey through signage and conversation, recruit participants from customers, and a space within the limited market booth for this activity will be provided. 
   • In 2024, (3) high school students were hored by Alluvial Farms to engage with marketing activities, both on-farm as well as at local farmers markets. These (3) staff were trained to operate a farm stand at the Bellingham Farmers Market, Lynden Farmers Market and Skagit Farmers Market. The Bellingham Farmers Market is a year-round, high-traffic market that Alluvial has attended for many years and has an established customer base. The Lynden Farmers Market and Skagit Farmers Marlet were both new markets for Alluvial in 2024, and turned out to be very low traffic markets that did not generate adequate revenue to continue attending throughout the full season.  Consequently, the decision was made to stop attending these two markets and focus on the Bellingham Farmers Market as well as on-farm events. In September, Alluvial was a destination as part of the Whatcom County Farm Tour, which resulted in 400+ attendees.  In 2025, Alluvial will continue vending at the Bellingham Farmers Market and also participate in the Whatcom Farm Tour.
2. We will use the results of this consumer testing to better understand consumer acceptance of:

• our two product lines overall,
• attributes within our two product concepts,
• attributes of packaging or product labels.
  • Given the decrease in market attendance, more results need to be captured in the first part of 2025 in order to move onto the next steps of evaluation .

3. We will also examine market potential for our two product lines by studying consumer purchase intent and price acceptance.
   • As noted above, additional customer feedback is needed in the first part of 2025 in order to effectively examine market potential for these products.
4. We will then evaluate and utilize results in product formulation, labeling, or market channel positioning in order to attempt to realize a 685% increase in total gross value-added revenue from 2023 to 2025.
   • Based on the revenue increase from 2023 to 2024, the intial projection of a 685% increase after 2025 is unrealistic. Both enterprises show promise to significantly increase overall revenue, but it will most likely take more time to realize significant gains. In addition, the pet treat product appears to be better received by customers than the skin care product.

Goals to achieve research objectives:

Goal #1. Ballot creation for both Oinkment and Pet Treats.

This will be completed by the principal investigators in the fourth quarter of 2023, before the start of the grant period. We will follow the protocol outlined in Market Research for Market Readiness Manual, by Catherine Durham, of Oregon State University.  Complete materials available at no cost to value added farmers include a manual, an Excel workbook, and several training videos.  The manual describes a set of procedures to conduct and report on a consumer test. The consumer test design and analysis and reporting is made easier by use of an Excel workbook. As the farmer creates the survey ballot within the workbook, it automatically sets up a worksheet where you enter the data. Once the data is entered, the workbook produces all of the figures and tables for your own evaluation and that can be incorporated in a sales pitch, business plan, or feasibility study.

• Updated notes/activities to the originally proposed Goal #1: The original proposal stated staff would make a customer survey with the OSU template and survey clients. After tracking down the OSU staff who made the survey tool, it was determined that she is now retired in Maine and not actively taking new clients.  However, she did spend some time working to help edit the excel based tool. From a practical standpoint, it's a little bit of an outdated tool and clunky to edit, but could make a good base for a survey project. A Pet treats version of the survey is included in the products list. Grant funds were also used for the time to work with Craig McAnsh of Native marketing in North Carolina to develop the pet treats market expansion plan that is included as a product with this report. In addition to the market expansion plan Craig helped to develop an alternative customer research survey in google forms that is a more modern tool and will be easier to administer at a farmers market or on-farm event. 

Goal #2. Consumer test survey event planning and production. This is the responsibility of the principal investigators. We are in conversation with the Nooksack Highschool FFA advisor to train their students in our testing methodology in order that students could conduct pilot test events during our winter 2024 farmstand events. Test events during the grant period will take place at Alluvial Farms in 2024 in continued partnership with agriculture teaching staff and students at our three local rural high schools, Nooksack High School, Mt. Baker High School, and Ferndale High School.  Specifically, test events during the grant period will take place at one Seattle farmers Market, one Bellingham Farmers Market, on our farm during the mid-September 2024 Whatcom County Farm Tour and on our farm at our 2024 October weekends u-pick pumpkin patch open houses.

• Updated notes to Goal #2: The collaboration between school districts did produce (3) high school students that engaged with the test events. While there were a number of school field trips from all three school districts - Nooksack, Mt. Baker, and Ferndale, the (3) students who ended up working at Alluvial and engaging with the tests were from Mt. Baker.  Unfortunately, the Seattle Farmers Market did not accept Alluvial into their 2024 vendor mix, due to seniority of other vendors and overall composition of vendor products. This resulted in attendance at only the Bellingham Farmers Market.

Goal #3. Maximize consumer test survey events over the course of one year. This is the responsibility of the principal investigators. The plan for objective 2 contains at least two pilot test events before the grant period, and at least four test events during the grant period, with the opportunity to do a great deal more if we can systematize a Standard Operating Procedure for recruiting, training, and equipping students to conduct the testing, or if we decide to use founders time to conduct testing as well.

• Update to Goal #3: Given that the original tool did not perform as well as hoped, the opportunity to systematize an SOP for equipping students to do the testing was more challenging than expected. While students felt comfortable selling Alluvial products, the additional questions about product development did not flow as smoothly as hoped.

Goal #4. Evaluate and use testing results in product formulation, labeling, or market channel positioning. This is the responsibility of the principal investigators ongoing during the grant period, in partnership with our graphic designer, production staff, and marketing assistant staff.

• Update to Goal #4: It's been determined that more date and touch points with customers needs to be captured in the first part of the 2025 farmers market season in order to evaluate and test results.

Goal #5. Produce a report for use in education program in year two. Please see "Sample Report" and "Market Research for Market Readiness Manual" attached as supporting documents at the end of the application. 

• Update to Goal #5: This is still the intention