Farmers Would Supply You If They Could Only Find You

Food marketing at its essence has always been the interaction between food consumers and food producers. 'Paddock to plate' is the term used to describe the food distribution chain between growers and consumers.

Prior to industrialization or about 150 years ago 'paddock to plate' was the face to face interaction between food growers and food consumers as local farmers brought their excess produce to town markets for sale. 'Paddock to Plate' was one on one.

Over the last 150 years that's changed dramatically. As food processing techniques evolved grocery shops emerged and in the 20th century supermarkets evovled. In the latter part of the 20th century, these supermakets development into vast warehouse-sized, supermarkets, selling a wide range of food from around the country and now around the world.

Each step of the evolution of the 'food chain' has seen an every growing number of corporate entities enter the food chain between the 'paddock and the plate' pushing producers and consumers ever further apart.

For example, it is estimated that fifty-six companies are involved in the making of a can of chicken noodle soup that you find on a supermarket shelf.

Farmers in Australia receive just 10 cents out of every dollar spent on food. That means that 90 cents of each dollar spent by consumers on food goes to all of those who have positioned themselves between the farm gate and your plate.

Supermarkets have become so powerful in Australia that there is no longer any connection between rising food prices and the amount farmers are paid for their produce. For example between 1990 and 2009 the price of milk in Australia rose 114%, whilst over the same period the CPI increased 46% and the farm gate price for milk increased just 6%.

Farmers across the country are completely disillusion with the corporatized food processing & distribution chain in Australia which now sees just two retailing giants Coles & Woolworths accounting for 55-60% of the food spend.

In an effort just to survive many younger farmers are looking to the internet as an alternative food marketing system. The internet offers growers the ability to find and supply consumers directly, thus cutting out the corporate middlemen.

The internet marketing of farm produce is a win win for producers and consumers. Cutting out the corporate middlemen means that producers can supply consumers with fresher healthier produce at a cheaper price than the supermarkets whilst retaining a larger share of the dollar spent on food.

"National Farmers' Federation chief executive Ben Fargher said farmers were under pressure to find innovative ways to sell produce."
"What's becoming more and more apparent is different marketing avenues being used," he said. "
Supply chains are becoming much shorter than before, when there were four or five steps between the farmer and consumer."

South Australian farmer Michael Arnold, whose family has grown fruit near Loxton for three generations, said ...

"... he only made 50c a kilogram selling citrus through traditional methods while online that rises to about $3.50 a kilo."

Consumers also win as that same fruit in the supermarket retails for $5 to $6 a kilo. The internet gives food producers and consumers the ability to turn back the clock 150 years by removing the multiple middlemen from the food chain so that once again 'paddock to plate' means exactly that. The internet has completely obliterated the wall that had been developed over 150 years between food producers and food consumers.

Progressive farmers are lining up to sell directly to the consumer - now they can find them.