Direct marketing as an additional line of business, especially for family-run dairy farms

Jan and Felix HOHMANN

Description

In Lower Saxony, Hannover, the young farmers Jan and Felix and their families run a dairy farm with 150 Holstein Friesians, which are produced exclusively on the farm’s 50 ha arable land and 80 ha permanent grassland. The dairy cows graze from April to October on 30 ha grassland. To create a second foothold in their milk sales and to become more independent from fluctuating milk prices, Felix and Jan´s parents build their own small dairy and successfully created a direct marketing system which allows them to not only reach more revenue per product for their milk, but also to establish a personal relationship with their customers. They produce preferred milk in their own dairy on the farm. Preferred milk is produced under higher quality standards, and it is pasteurized at a lower temperature, maintaining a fresher taste and slightly more nutritional value. It’s considered a higher-quality alternative to regular supermarket milk. Through the customers’ subscriptions, they deliver their milk twice a week to private households, kindergartens and schools. The customers receive fresh milk regularly, delivered directly from the farm to their homes. The subscription involves a set amount of milk (weekly or monthly) at a fixed price. The farm also offers other products like pasteurized milk at higher temperatures and yoghurt. Keeping the value chain partially on the farm comes with additional workload, too, including the bottling, cleaning and delivery. Technology was installed for the cleaning and bottling process. The Initial challenges upon implementation of their direct sales were opening and keeping the local customer base and maintaining communication with customers. It involved a learning process and once these hurdles were cleared, the increased income speaks of the benefits of more market independence and closer customer relationships.

Additional information

Main domain of innovation

Improvement of marketing

Agroclimatic area

Atlantic central

Climate

Moderate rainfall

Soil Type

Sand

Management

Pasture dairy

Technical

Difficult

Finance/investment

Mid

Market

Local-rural

Social

Full-time farmer

Top
Translate »
Tweet
Share