| Community-Based Marketing and Value Adding: Marketing and Trading Clubs |
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Joanna Green and Duncan Hilchey Community Food & Agriculture Program, Cornell University The following material is excerpted from the publication, "Growing Home: A Guide to Reconnecting Agriculture, Food, and Communities". Green and Hilchey (2002) Ithaca, NY: Community, Food, and Agriculture Program, 151 pp. To order the complete publication, click here and select "Publication Order Form". Overview Marketing and trading clubs are small-group, farmer-to-farmer organizations in which members share marketing information and in some cases experiment with investments such as commodity futures contracts. There are perhaps more than 100 marketing and trading clubs across the country; North Dakota alone has nearly 50. In New York a number of marketing clubs have been formed, often with support of a Cornell Cooperative Extension agent or local agribusiness. Marketing and trading clubs typically have 10 to 20 members. Though administrative support may come from non-farmers, the farmers themselves take on the leadership role, choosing when and where to meet, and what the topics of discussion will be. Meetings can take place on farms, at schools, Cooperative Extension offices, or other public places. The formality of a marketing club depends on its purpose. Club members in the grain and livestock businesses typically pay an annual fee of $25 to $200, which the group then invests in the commodity markets. These members learn risk management through their experience as an investment group. Because of potential risks and legalities, formal incorporation of the club might be necessary. In Iowa, this type of marketing club is called a "trading club." Other marketing clubs serve an educational function only, and therefore do not need to be incorporated. In these clubs, members can work on and critique one another's business plans, marketing strategies and insurance policies, take field trips, or host guest a speaker. A more formal structure might be necessary if they choose to cooperatively market products, purchase inputs as a group, or conduct other business activities. Nine key factors for a successful marketing club The following list is based on the experience of the Montana Grain Growers Association. This appears to be good advice regardless of whether the group is making investments. 1. Commitment to success Source: Marketing Club Leader Resource Notebook, see below for purchasing information. References Marketing Club Leader Resource Notebook Texas Cooperative Extension Master Marketer Program. For more information, contact: For more information, contact: |
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