Aim for it! New Farmer 61 | Who decides the price!?
I am Hata-sen, a former teacher who is aiming to become a new farmer specializing in honeyberries (haskap) and has started training this spring.
Recently, I have been taking a break from posting long articles every day, but I have been writing and saving 1500-2000 character pieces on marketing, agricultural management, and information useful to you.
My favorite rice bowl dish is conger eel tempura bowl.
Thank you as always for reading.
Well, in about a month, the harvest of haskap (honeyberries) will begin, and haskap picking and sales will start.
I am currently preparing the EC site for the farm I plan to take over, but there is one thing that is bothering me. That is the price of the haskap.
At that time, the topic of price determination was just being discussed on the Voicy channel of Mr. Takatsusa, an agricultural management consultant.
It was very educational, so I will share it with you too.
How much would you pay for 1 kilogram of haskap?
The difficulty of farmers having price-setting power
The debate continues over whether farmers can set their own prices. However, in reality, this is a very difficult challenge.
Currently, most farmers sell their products through JA or wholesale markets, and prices are determined by market trends or negotiations with trading partners.
Farmers cannot freely decide the price themselves.
Furthermore, since prices are influenced by consumer demand, no matter how high a price you set yourself, it is meaningless if it is not purchased at that price.
Ultimately, it is the consumer who decides the price, and even if a farmer sets a price they like, there is no guarantee it will sell.
The 'pricing power' that is more important than price-setting power
More important than the debate over price-setting power is 'pricing power'.
This refers to the ability to determine product prices advantageously and strategically.
For example, the iPhone is purchased by many consumers despite its high price. This is because the iPhone has a unique appeal that others do not have. The same can be said for agricultural products.
High-quality agricultural products are more likely to be sold at higher prices than those from other regions. In order for farmers to have pricing power, they need to improve the quality of their own agricultural products and provide something of value to consumers.
Elements necessary to increase pricing power
To increase pricing power, the following elements are important.
Quality improvement: By providing high-quality agricultural products, you can make consumers feel that they have high value.
Stable supply: You need the ability to supply stably at the timing requested by consumers and business partners. This allows you to build a relationship of trust.
Flexible response: Being able to respond quickly to sudden increases in demand or complaints is also an important element in increasing pricing power.
Rather than spending time debating price-setting power, strengthening these elements and increasing pricing power is a truly important strategy for farmers.
Now, in today's article, I have summarized what was discussed on Mr. Takatsusa's Voicy, which was very educational for me as I decide the selling price of haskap.
What exactly is the right price to deliver delicious haskap berries from this land in Hokkaido to everyone across the country?
I think I'll rack my brain a little more.
If you read this article and felt like you'd like to try some haskap berries, I would be happy if you could like or follow!
By the way, the farm's Instagram is here.
I share the current state of the fields and information such as planned sales start dates.
Thank you so much for always reading until the end.
Let's enjoy new discoveries together next time too!
End
I also write about various other things, such as education x something, and marketing topics.
I would be happy if you read them.
I would be very delighted if you could 'like' or 'follow'.
The article that has been read the most this month is here.
The Teacher Skill Research Group, where I serve as a community manager and director.
We have a regular meeting on Friday, June 10th.
We will read Lynda Gratton's 'The 100-Year Life' using a method called ABD.
The participation fee is free for the first month.Please apply here!
We are sharing information on the official Instagram of the Teacher Skill Research Group.
I would be very happy if you could follow and share this as well.
I am streaming the after-talk of the May 24th regular meeting of the Teacher Skill Research Group sub-seminar on stand.FM.
I had a conversation with Momo-san, the second village chief of tomajoDAO!
It was a conversation filled with laughter, ranging from teaching topics to farming topics.
Please listen to it while you're doing other things!