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Farm Diversification
Farm Diversification | So you want to… sell your own spirits?
May 27, 2021
Farm Brand
Top tips and advice on diversification from farmers – Gin bar diversification
May 29, 2021

Why research is key to farm diversification success

May 28, 2021
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Farm diversification

Why research is key to farm diversification success

Farmers looking to diversify should consider doing in-depth market research before taking the plunge, to be confident that they are giving potential projects every chance of success.

Investing borrowed or carefully hoarded cash to a new enterprise can be a daunting prospect, particularly if big sums need to be committed up-front, such as for holiday accommodation.

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William Fry, managing director at diversification expert Rural Solutions, says the marketplace is maturing and farmers need to be on their guard against giving the green light to a project simply because it is what they would most enjoy doing.

Despite formal research costing a hefty £3,500-£7,500, it can help prevent a new business becoming out-muscled by existing businesses operating in the same sector.

“I think often the research will compete with what people will feel they want to do,” says Mr Fry.

“You have to market test it and you have to turn your back on your preferences.”

Regional focus

He said farms with an idea of what they wanted to do should search out similar businesses in other parts of the UK and see how similar those regions are to their own, as a first indicator of whether something is likely to be successful.

Those unsure of which farm diversification to pursue should find regions similar to their own and see what has been successful there.

At least two-thirds of farms now have some form of diversification, and one in five non-diversified farmers say they will definitely or probably diversify in the future, according to NFU Mutual survey data.

What are the latest trends in farm diversification?

To be successful, business owners looking to add a new diversified business in the coming year need to exploit a narrow niche within an existing market

William Fry at Rural Solutions said businesses needed to be quite specific – for example a wedding venue deciding if it was aiming to attract couples who were marrying for the first time or the second, with first timers favouring more ceremony and formality and those getting hitched again tending to prefer a more casual approach.

With most of the common consumer-facing rural diversifications now well represented across the country, he said giving a narrow range of potential customers exactly what they want was the way to get noticed in a crowded field of competitors.

“The overwhelming weight of travel at the moment is into leisure, health and wellbeing,” Mr Fry said.

He said that trend had played a big part in the rise of glamping, as people were choosing accommodation that helped them to relax by feeling as far away from their usual surroundings as possible.

“The countryside is the new seaside,” says Mr Fry. The explosion in popularity of leisure activities such as cycling has caused people to swap a traditional day out on the coast for inland destinations.

Business management

Farm Diversification

Farms and rural businesses have benefited from changing holiday trends, with many people choosing to take a larger number of short breaks instead of one big summer holiday.

Further help has been provided by the decline in the pound since the Brexit referendum, which has reduced the spending power of holidaymakers overseas, meaning these breaks are increasingly being spent within the UK.

Defra statistics show that in 2017-18 there were 63,800 tourist-related businesses registered in rural areas, accounting for 11% of all registered businesses in the areas.

In the most sparsely populated rural areas, jobs linked to tourism account for more than one-fifth of total employment.

Crowded marketplace

In such a crowded marketplace, banks will require a credible analysis of what customers are available to the proposed business and what income can be expected from them – and this is where market research comes in.

Research companies have access to huge amounts of data on the spending habits of consumers for each postcode across the UK.

Identifying the potential number of customers that would reasonably be expected to travel to the farm, and what they might be willing to spend, can then enable a business to pitch an offering targeted at those they are most likely to attract, said Mr Fry.

There were big differences between an area like Nottinghamshire, where there was a large population within a 45-minute driving distance, and Northumberland, which had very low population density and required different strategies for success.

Potential customers are also profiled according to their supermarket habits, with Aldi-type shoppers having lower spending power but higher rates of loyalty than Waitrose-type shoppers who are much less likely to repeat spend at a particular destination.

“Once you know how ma

ny people you have in certain drive times then you do a competitor analysis to understand who is doing something similar,” said Mr Fry.

An informed decision can then be made about whether competing with rivals is possible, or if the market is already saturated.

Case Study: Pentre Fach, Llandrindod Wells

agri-marketingSecuring access to £300,000 of finance to turn derelict barns into holiday accommodation required mid-Wales farmers Gareth and Julie Rees to put together a detailed business plan that included market research.

They approached rent

al agency Sykes Cottages for advice before building work had even begun on the two earmarked buildings on their farm near Llandrindod Wells.

Sykes takes care of marketing and booking for a network of 14,500 holiday homes across the UK and Ireland, in return for a commission.

It advised the couple on the es

sentials to attract the most visitors and put together an income forecast for them that satisfied their lender, HSBC, that they had a viable business plan.

Farm Diversification decision

It also helped them to decide that they were making the right diversification decision rather than expanding farming operations to a pig or poultry enterprise, said Mrs Rees, who spends about two days a week servicing the houses between guests.

With their part of the Welsh borders being sparsely populated, tourists are coming to the area for the scenery, country walks and the ability to get away from the crowds and noise of places like Manchester and Birmingham.

Sykes advised that the weakest aspect of the area was the lack of things to do after dark, making a hot tub an essential selling point for holidaymakers expecting to make the most of an evening in.

Despite adding significant cost and work – the water quality must be checked daily while guests are in the residence – Mrs Rees said it has been successful in attracting more visitors than they would otherwise have got in the 14 months since they opened.

They also opted to go for higher bed numbers than many of the existing holiday properties in the area, with one barn sleeping eight and the other six people, allowing them to attract extended family gatherings and university reunion parties as well as traditional holidaymakers.

“We are happy with how it is going,” said Mrs Rees. “With the bigger barn it is going better than expected and it is slightly carrying the smaller one.”

Team effort

Securing the right bank manager, architect and builder was also vital for a successful project, she said.

They chose local builder TLP Construction, which had previous experience in building holiday accommodation and was able to advise on how fixtures and fittings should differ from a family home in order to be more hard-wearing.

With a third property now being renovated, the Rees family say they have no regrets about making the leap beyond traditional farming, despite the workload being greater than they had originally estimated.

However, they advise that any farm looking to follow suit must be prepared to make time to interact with guests, many of whom are interested in agriculture and eager to learn more about the workings of the farm.

Although Sykes takes care of the marketing by advertising the accommodation on its website, the Reeses are also looking to improve their own social media profile, posting more on Facebook and Instagram, to attract guests directly.

Here at Flame Marketing with offer help and guidance when setting up farm diversification. Including a FREE initial marketing consultation to set up a plan of attack for the direction you want to target for your business.

 

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5 Instagram Reel ideas to market your artisan-spir
5 Instagram Reel ideas to market your artisan-spirit farm business

🍸 Why do we use [insert unusual ingredient] to make our [insert spirit]?
🍸 A tour of our distillery! What system do we use?
🍸 3 ways we are making our [insert spirit] carbon-neutral!
🍸 How do we make [insert spirit]? See our behind-the-scenes process!
🍸Cocktail Masterclass
🍸 Which spirit should I choose for my cocktail?

Do you use reels for your business?


Alternative meat products to add to your farm busi
Alternative meat products to add to your farm business - Charcuterie 

Charcuterie can be an excellent option for extending a product range as the products can be made from your existing meat supplies, or you could choose to team up with a local charcuterie business. 

Additionally, the shelf life of charcuterie products is often significantly longer than other meat-based products. Charcuterie also often uses less desirable parts of an animal, such as in the case of using cheaper cuts in salamis.


Instagram Reel ideas for your dairy diversificatio
Instagram Reel ideas for your dairy diversification

🧀 What happens to male calves on our farm?
🧀 A tour of our milking parlour! What system do we use?
🧀 Why do we use mob grazing for our cows? And what is it?
🧀 How do we make our ice cream? See our behind-the-scenes process!
🧀 Cheese tasting masterclass
🧀 Which cheese should I choose for my cheese board?
🧀Why should you buy milk from vending machines rather than from the supermarket?

 #cheese #britishcheese #dairy #dairyuk #britishdairy #milk #milkvendingmachine


8 farm diversification options for livestock farme
8 farm diversification options for livestock farmers

1. Milk vending machines – for dairy diversification
2. Crop mazes – for kid-friendly farm diversification
3. Shepherd Huts – the classic farm diversification
4. Glamping – the agritourism option
5. Ice cream – the tasty farm diversification
6. Storage containers – the commercial farm diversification
7. Clay pigeon shooting – for estate diversification
8. Growing truffles – the high-end farm diversification

If you are planning a farm marketing strategy to promote your farm diversification then we would also recommend you book a consultation with us.

 #lamb #hogget #beef #organicfarming #pork #rarebreed #highwelfaremeat #agrimarketing #backbritishfarming #farmdiversification #ukfarming  #farmmarketing #farmbusiness #agriculturemarketing #buybritish #organicfarming #agribranding #farmbusinessinnovationshow #farmlife #ruralpowerhouse #CountryLandandBusinessAssociation


Diversification idea – wool business!
Why choose a

Diversification idea - wool business!
Why choose a wool business?

A wool, yarn or fibre business can be an effective farm diversification for adding value to something that is often a by-product of the sheep farming sector. But there are also lots of other types of fibre to consider, from alpaca to plant-based fibres. Fibre businesses are useful for bringing in additional income on a smaller scale and tend to work well alongside a wider farm business strategy or even as a way to make money from your smallholding.

Fibre businesses can range from selling raw fleece through to spinning yarn and even dying yarns. 

Do you sell wool or fibre from your farm?

 #wool #yarn #knittinguk #felting #sheep #rarebreedsheep #britishwool #handspunyarn


How much would you need to sell to invest £600 pe
How much would you need to sell to invest £600 per month in your business? 

Is it 20 veg boxes? 2 glamping holidays? 100 bars of soap? 
How many new clients would we need to bring you?

With packages starting from as little as £200 and most under £675 per month, why not? 

#glamping #agrimarketing #backbritishfarming #farmdiversification #ukfarming #agribusiness #britishfarming #farmmarketing #farmbusiness #socialmediamarketing #contentmarketing #agriculturemarketing #devon #rurallife #rbst #agristudent #buylocal #supportfarmers #buybritish #shopsmall #dairy #organicfarming #agribranding #youngfarmers #farmbusinessinnovationshow #farmlife #thisfarminglife #ruralpowerhouse #CountryLandandBusinessAssociation


Video content for wool businesses needn’t be har
Video content for wool businesses needn’t be hard. Some ideas could include:

🐑 How is it made videos – show the processes within your business, such as spinning
🐑  Why do we do … – explain your practices and educate your audience
🐑  Product reveals – show your new products dressed and displayed in the best possible light
🐑  Before and after – show your goods before and after processes: from sheep to yarn,
🐑  Meet the team – show yourself or your team behind the business.


Want to transform your farm business?
Are you read

Want to transform your farm business?
Are you ready to take your agri-business to the next level?

Instalment option - 6 monthly instalments of £1250
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Find out more on our website - go to the link in bio

 #glamping #agrimarketing #backbritishfarming #farmdiversification #ukfarming #agribusiness #britishfarming #farmmarketing #farmbusiness #socialmediamarketing #contentmarketing #agriculturemarketing #devon #rurallife #rbst #agristudent #buylocal #supportfarmers #buybritish #shopsmall #dairy #organicfarming #agribranding #youngfarmers #farmbusinessinnovationshow #farmlife #thisfarminglife #ruralpowerhouse #CountryLandandBusinessAssociation
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