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. Created 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 helped 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 was conducted with staff and volunteers interacting with the interviewee, providing samples, and assisting with the recording of answers. This format was best suited to large public events that take place on our farm, such as the annual Whatcom County Farm Tour where over 400 individuals visited the farm. We also created a second protocol, better suited to a busy farmers market scenario. In this second protocol, the interviewee recorded answers form the customer/interviewee interaction. Market staff were able to introduce the survey through signage and conversation. This method was also used when school groups and other farm tour groups were hosted on-farm. 
2. We used 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.  

3. We also examined market potential for our two product lines by studying consumer purchase intent and price acceptance.
4. We evaluated and utilized results in product formulation, labeling, or market channel positioning in order to realize a 81% increase in total gross value-added revenue from 2023 to 2025.
   • Based on the revenue increase from 2023 to 2024, the initial 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.
   • As noted above, we believe that initial projections were greatly overestimated. Furthermore, we believe that both products - pet treats and oinkment - are better suited to wholesale outlets. While the farmers markets are a great way to get feedback on products, the overall clientele is relatively limited. Alluvial has established a monthly subscription service for both products - pet treats and oinkment - and has found much more interest in the pet treats. The price point for these monthly subscribers is $10/bag + a flat fee of $5 for shipping. This has allowed for expansion of market base, with some customers throughout the state as well as out of state. However, we believe that more significant growth can be had via platforms like Amazon and Chewy, as well as retailers that operate many brick and mortar facilities, like Mud Bay.  Alluvial continues to make inroads with these retailers and is planning to launch both products on Amazon in Q4 of 2026.  In order for the retail price on these platforms to be competitive in the broader market place, Alluvial will potentially need to further reduce the wholesale price, counting on volume to make up the difference.

Goals to achieve research objectives:

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

This original goal was outlined to  be completed by the principal investigators in the fourth quarter of 2023, before the start of the grant period. The plan was to follow the protocol outlined in Market Research for Market Readiness Manual, by Catherine Durham, of Oregon State University.  Leading up to the project start, it was found that the complete materials were available at no cost to value added farmers which included a manual, an Excel workbook, and several training videos.  The manual described a set of procedures to conduct and report on a consumer test. The idea was that the consumer test design and analysis and reporting would be made easier via use of an Excel workbook. In theory, as the farmer created a survey ballot within the workbook, it would automatically set up a worksheet where data could be entered. Once the data is entered, the workbook would produce all of the figures and tables for evaluation and which could 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. Additionally, it was found that at on-farm events and corresponding interactions with clients, basic flip charts and dot voting worked well to capture data. General conversation with groups, especially school groups, generated helpful feedback about barriers to purchasing/adopting the use of the skin care products. 

Goal #2. Consumer test survey event planning and production. This was the responsibility of the principal investigators and involved conversations with the Nooksack Highschool FFA advisor to identify and train students in the testing methodology in order that students could conduct pilot test events during our winter 2024 farm stand events. Test events took 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.  Test events during the grant period took place at one weekly, year-round Bellingham Farmers Market, on-farm during the mid-September 2024 and 2025 Whatcom County Farm Tour, on-farm during 2024 October weekends of u-pick pumpkin open house events, and through various school group farm tours during the 2024-2025 seasons.

• Updated notes to Goal #2: The collaboration between school districts produced (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. Each of the school field trips - Nooksack, Mt Baker, and Ferndale - had approximately 50-60 students in attendance. The students were given an overarching tour/explanation of Alluvial Farms with a specific discussion about the value-added enterprises. The pet treat production system was viewed (an on-site production component) and end product was shared.  The skin care production process and end product were also discussed. In this case, samples of oinkment were shared with students and discussion was had about different skin care products they used and what characteristics they looked for in a skin care product. These discussions were also had with the other school groups and urban farm programs that visited Alluvial.

Goal #3. Maximize consumer test survey events over the course of one year. This was the responsibility of the principal investigators who were able to plan at least two pilot test events before the grant period and at least four test events during the grant period.

• 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. Consequently, most of the discussion and data collection fell to the founders who were more comfortable soliciting information from groups and facilitating broader discussion about the importance of value-added enterprises, the details of production and application of end-use products.  

Goal #4. Evaluate and use testing results in product formulation, labeling, or market channel positioning. This was 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 was determined through customer feedback and interactions that the pet treat products performed well in the areas of product formulation and labeling. As previously noted, the farmers markets are a relatively limiting market channel and Alluvial believes that there is more potential via wholesale channels.  Alluvial did secure a larger wholesale arrangement via Made In Washington, which has both an online presence and a brick and mortar storefront in Seattle. The relationship helped Alluvial adjust prices in light of increased volume per purchase for both the 5oz bags as well as the meal topper.  The oinkment products have not found a home in the wholesale channel yet. While the local food coops (Skagit Coop and Bellingham Food Coop) have both expressed interest in carrying these products, neither have made commitments to purchasing. Moving forward, Alluvial is casting a wider net for wholesale outlets, including large web-based platforms like Amazon.  Alluvial believes that current labeling, bar codes and product formulation are refined enough for products to be placed in broader wholesale channels. 

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: Ultimately, Alluvial staff found that feedback about both products was best captured through informal discussion with clients at the farmers market as well as on-farm events. The pet treats needed much less explanation - most customers were willing to purchase without asking questions or being provided any information. That said some questions continued to pop up for this product - ex. do cats like them, is there any corn in the ingredients. The oinkment required much more explanation once the customer realized there was lard in the product. Ingredient explanation and production method were the most referenced pieces of information. And having samples available for the oinkment resulted in many customers trying the product, but fewer made the leap to a purchase.  
• This information was presented at the California Small Farms Conference via a virtual power point presentation.  Alluvial Principle, Matt McDermott, made the presentation titled - Whole Hog Profitability. McDermott also presented similar information in January '25 to the Viva Farms educational cohort. This is a group of new farmers (approximately 20) looking to establish small farm businesses and were particularly interested in value-added enterprises that support primary enterprises.