The food market is a tricky one. People are always in need of food, after all, but it can be hard to find your space amongst the huge producers with enough volume to make your home-grown business look like a lemonade stand. That doesn’t mean it’s impossible to find your place, however. Here are a few tips on how to do it.
Increase production, lower costs
Profit in the food industry requires that you’re able to produce a certain amount of goods. Finding ways to lower costs while increasing volume is crucial. Investing in industry-level equipment from manufacturers like Fertilizer Dealer allow you to more efficiently store and distribute fertilizer, for instance, cutting down on the costs of that particular process. If you can’t produce enough of a volume to make up for the costs of producing the food in the first place, you should look into other options.
Focus on a niche
Being able to produce enough to make a profit is and will always be important. However, there are certain products that have a lot more value per kilo. No matter the industry, finding your niche can be immensely profitable, if it’s large enough to sustain the business. Right now, in food production, hops for homebrewing and ginger are two of the biggest niches. Keep an eye out on agricultural and food business reports to see what the next hot-ticket items are. Keep the space you have aside for the next niche you’re able to capitalize on. For a smaller farm or food production business, one niche can be enough to keep the business profitable enough to grow.
Find new markets
Who are you selling to? Farmer’s markets have their audience, but it might not be enough to do much more than keep the business sustainable. If you want to make it profitable instead, then you might need to look at finding different markets. As Local Food Marketplace suggests, you can start selling ingredients to restaurants who would benefit from being able to brand their food as being organically grown and locally sourced. The same goes for grocers and retailers in your area, too.
Lease what you don’t use
If you don’t have the capital or equipment to make use of all the land at your disposal, you don’t necessarily have to use it. Instead, you can make money off it by leasing it to other farmers or producers as shown at Farmland Info. Similarly, if you bought equipment in the past but haven’t had as much use to it, you can lease that as well. Not only are you making money off assets that you’re not using, but you’re also sustaining the business ecosystem by providing resources that other business owners do need.
Small farm owners and homesteaders do not have the space nor the capital to compete head-to-head with the massive food production corporations out there. They simply don’t. They can, however, still find a profit by being smarter in how and what they produce, as well as how they use the assets at their disposal.