While a large quantity of specialty commodities are sold in the United States through a number of marketing outlets, much of these are brought in from other countries. Ethnic and specialty stores and to a lesser extent chain stores are the outlets for most of these commodities. Although some of the commodities can be produced locally, many producers lack production and marketing skills needed for these commodities. Thus, local farmers are incapable of profiting from this segment of the agricultural industry. Because mainstream markets do not handle much of these produce marketing them takes on different strategies and planning. On the other hand, many consumers who would be willing to purchase these commodities are unaware of the availability because they are not advertised.

In recent years, the proliferation and growth in farmers markets and specialty stores and a return to past marketing strategies have been playing important roles in the sales of these commodities and new meaning to the viability of the small farmer. In addition, supermarkets chains, restaurants, hospitals and the public in general are becoming less reluctant to sample, sell or purchase specialty commodities. Therefore, there is much more reason for cooperation and collaborative efforts to become involved in specialty commodities. The clothing, agricultural and household industries have also seen increases in the demand for specialty commodities. This has given rise to increased interest in entering these markets as a means of remaining in business, starting new ventures as well as for enterprise diversification.

While the market share for specialty commodities is smaller that that of conventional commodities, prospects seem positive as the demand for these products is growing at a fast rate. One only has to visit specialty stores, farmers markets, some chain stores and family owned and operated businesses to observe the extent to which specialty commodities are being sold.

Background

The need for specialty ethnic commodities is on the increase. Partly through curiosity, culture and the need to satisfy ones desires. From the farmers point of view specialty commodities are a blessing in disguise, since these commodities are usually high value commodities which do not use the traditional markets. Because of this, however, specialty markets customers must be targeted, a customer base has to be established and consumers for these commodities. Producers selling these commodities requires more knowledge of the products since there is usually a specific reason for acquiring these commodities, in addition to the fact that these nontraditional commodities are not well known and consumers usually need information on the usage.

While many market outlets exist, entering into the specialty commodity markets takes a lot of effort and planning. The targeted community determines marketing and advertisement strategies, commodity and amount produced, forms of advertisement and market days. The closer consumer/producer relationship however, helps in providing a good customer base for such commodities. To enhance business specific strategies to entice and keep consumers returning, and bringing other customers must be used if the market is to remain viable for a along time.

When one considers the queries of producers and consumers who are interested in specialty commodities it is clear that special strategies have to be developed to satisfy consumers and give viability to the business. Some of the more frequently asked questions about specialty commodities are: What are specialty commodities?, what are the advantages of specialty commodities?, why specialty commodities?, where can we get them?, can we produce them?, but, the most extensively asked question is, where do we market them?. Following are answers that may help to shed some light on strategies needed to build markets for these commodities.

• Specialty commodities are traditional or non-traditional farm products or bi-products designed to satisfy a specific (cultural, economical, health, environmental) niche.

• Products or bi-products of conventional crops produced for niche markets. They may be edible or non-edible products to which value is added to increase returns. Examples. The list is endless but includes: jams, jellies, wines, herbs and herbal products, ornamentals, fruits, vegetables, household products, agricultural products, clothing, hair and skin care and therapeutic products.

Why Specialty Commodities

Many factors have given rise to the move to specialty commodities which include:

• The small farm crisis
• Alternative strategy to continue farming
• Lack of ability to compete with large scale agronomic crop producers
• Lack of profitability of small agronomic crops operations
• Satisfying a specific ecological or cultural demand
• Applicable to alternative systems
• Valuable for enterprise diversification
• Tap into nontraditional market
• Start new business enterprise

Advantages of Specialty Commodities

• High value alternatives
• Less competition
• Improve cash flow
• Fill social and cultural needs
• Ecological satisfaction
• Higher cash returns
• Diversification
• Increase household/business income

Where can we get them

Sources vary, some result from ideas borne out of necessity, and sometimes through trial an error while others result from mistakes. But, mainly, they are ideas developed out of one’s basic survival instinct. Some are developed from being creative/innovative and the willingness to take chances, as well as believing in one’s self and products and being persistent. In addition, ideas develop through domestic and foreign travels, attending workshops, seminars, field days, getting ideas from friends, and other businesses, watching the markets and just being observant. Raw materials which may include seeds can be obtained from domestic and foreign specialty companies, as well as local companies of traditional products. In some instances some materials may be found in the backyard. Examples include wild flowers, weeds and herbs.

Strategies and Techniques to Enter into Ethnic Markets

As with any other business, it is important to make certain that there is adequate knowledge on the enterprise. This should be well organized that time and effort are wisely spent. It is necessary to learn as much as possible about business in general and be confident in your approach to financiers, customers, and creditors as well as other business-related entrepreneurs. Check out the local market outlets to become familiar with the available information on the specific product or products you will have to offer.

Planning

In starting a new venture it is important to develop strategies that will work in your favor. Whether family owned or not, individuals should be brought to the table to decide on who will take responsibility for the various aspects of the business. Planning is essential to any business, old, new, or continuing and sessions should include but not limited to the following:

• Mission
• Goal(s) and objectives
• Management responsibilities and labor requirement
• Production inputs and strategies to obtain them
• Market outlets
• Facility and machinery requirement and availability
• Finance requirement and sources
• Capacity for expansion
• Evaluation

Considerations for Success

• Plan to be successful
• Start small, think big, then grow
• Keep the middleman out of your profit
• Sell as much as possible before you plant or produce
• Learn the rules of the marketing strategies you plan to use
• Learn the rules regarding on or off-farm business
• Learn the commodity regulations
• Become familiar with available resources and use them
• Keep records
• Buy wholesale/bulk
• Network
• Be cooperative
• Ask questions
• Know your commodity (ies)
• Give demonstrations
• Participate in events sponsored by organizations
• Subscribe to helpful magazines
• Join alliances
• Keep talking, be persistent, be patient
• Diversify, not only commodity but also market (wholesale and retail)
• Build your own image, produce out of season

A satisfied customer can be a great advertising medium. Customers spread the words and can help you to sell your commodity without you being aware of this happening. The following could help to broaden your customer base. It is important to keep in touch with your customers so that you can alert them of new products, and ask questions to get response as to how the products will be received. Make it difficult for your customers to replace you. Take the following into consideration if you are planning to succeed.

• Keep prices fair
• Make acquaintances with your customers
• Be consistent and regular
• Take orders
• Listen to your customers
• Make/return calls
• Be pleasant/be sensitive
• Fulfill promises
• Maintain quality, integrity
• Sell appearance, presentation, quality, convenience

Advertisement is an important business tool. Large companies spend millions of dollars advertising well known products. However, a small business can do well at advertising without spending that much. It is important to advertise that your business will gain publicity to expand its market share. Advertisement can be accomplished through most if not all of the following low cost media:

• Satisfied customers
• Cooperative Advertising and Direct Market Associations
• Group Promotions
• Flyers and Posters
• Sampling and Tasting Events
• Group Festivals
• Other print and electronic media to include the World Wide Web
• Give samples, demonstrations and recipes

Markets for Specialty Commodities

Commodities can be marketed through outlets which include the following:

• Farmers markets
• Specialty/ethnic stores
• Roadside stands
• Pick-Your-Own
• Community Supported Agriculture
• Restaurants, Hospitals, Hotels
• Mail order
• Home delivery
• Food buyers club
• Natural product stores
• On/off-farm sales
• Cooperatives

Mailing address for the author: Assistant Professor, College of Agricultural, Family and Consumer Sciences, Southern University and A&M College, Baton Rouge, Louisiana 70813

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