A picture of a person with gloves cutting a bunch of lavender flowers using a pruner appears. The image moves to the right and the screen is split into two halves. The title of the video, “Niche Marketing in Agriculture” appears on the left side.
Closed boxes of Apple cake on a shelf appear. Next, a plate full of nachos sits next to a spoon of corn flour and a whole ear of corn, still with its husk on.
Have you heard the term niche market? Do you know exactly what it means?
The screen splits into two halves. On the right side, a photo shows a trunk full of apples in an apple farm. Meanwhile, the term 'Niche Market' is defined as 'a smaller segment of an industry on which a specific product is focused' on the left side."
A niche market is a smaller segment of an industry on which a specific product is focused.
A shelf of steaks with greens labeled at $14.99 appears. A family of a father, mother and a child walk on a snowy path in a place full of Christmas trees. The father is carrying a snow sled with a tree in it.
The product features are aimed at specific products or services that consumers want but competitors are not currently providing.
A tree with green apples on it appears. A stack of tortillas with corn on its side appears next.
In agriculture, niche market products may allow smaller operations and urban producers to thrive in their specialty markets.
Different flavored Cobbler of Apple Country Orchards appear on a shelf in a store. A packet and a bottle of lavender-scented foam bath appears. The text-bar below reads, “Value Added - any process that changes a raw product into one of greater value with different characteristics.”
Niche markets also allow for the development of value added products—any process that changes a raw product into one of greater value with different characteristics.
Bags of pre-washed salads; two glass jars, one with honey and the other filled with lavender seeds; white and brown colored soaps with "Goat Haus Dairy" labels; Christmas trees planted on a farm; a red, orange, and white printed rug; and packaged cuts of beef on a shelf appear one after another.
Examples might include products like prewashed and bagged salads, lavender honey, goat milk soap, cut your own Christmas tree lots, mohair rugs, and branded meat.
Several jars labeled “Raw Honey” and frozen pork meat appear on different shelves.
These products are the same materials as their raw counterparts but can be sold at a premium.
The screen split into two halves. A bar of yellow soap with a print of a deer kept on a rug appears on the right side. The heading-text, “success of niche market products'' with the text, “Higher returns than with ordinary commodities,” “The opportunity to open new markets,” “Extended product marketing season,” “A unique product or service not typically available elsewhere” under it as bullet points appear on the left side.
Reasons for the success of niche market products may include: higher returns than with ordinary commodities, the opportunity to open new markets, extended product marketing season, or a unique product or service not typically available elsewhere.
An apple orchard appears under a clear blue sky. Packets of apple rings labeled as “Dried Apples” appear on a rack.
An apple orchard, for example, can make niche market products from their commodity by drying apple rings and selling them locally to specialty markets.
A plate of apple jelly next to a bottle of Apple Butter and two slices of bread with glaze of apple butter appear on a table.
They could make apple jelly, jam, or apple butter.
Jars of pumpkin and sweet-potato butter appear on a shelf, next.
They could also have other fruits and vegetables processed to market under their brand.
A barnyard and farm covered with Christmas decorations with fairy lights glowing at night appears.
Agricultural tours are becoming more popular, and some operations can rent out facilities for special occasions.
Several logs of apple trees stacked on top of each other appear.
This apple orchard even sells their tree trimmings and dead trees as firewood.
A picture of a person holding a bunch of lavender flowers appears. Next, products related to lavender like burning scented candles, lavender crystals, a bar of lavender soap, and bottles of essential oils appear on a wooden table.
Lavender is popular as a culinary or medicinal herb, and as a fragrance in a variety of products.
A backyard garden planted with mixed flowers appears followed by the picture of a huge farm with several rows of lavender plants and the picture of lavender products.
Lavender farms can range from a small backyard garden yielding a few hundred dollars to large scale acreage farms that can bring in thousands of dollars in revenue—especially if they produce and market value-added products.
A girl cutting stems of lavender flowers in a lavender farm appears. Several bunches of lavender stems tied together with elastic bands are placed upside down on wooden logs.
Most producers sell directly at their locations as “cut your own” stems or at a local market as dried bunches to the public or florists.
Some bowls full of lavender buds on a tabletop, some netted bags filled with lavender buds stacked on top of each other, lavender soaps placed in a plate next to lavender body foam and a bottle of essential oil is placed next to lavender stems appear one after another.
Lavender buds can be removed from the bunches and sold in large quantities or used to make sachets or made into other value-added products such as lotions, soaps, aromatherapy oil, and fragrances.
Different lavender products like spray, cream, scented candle and a bowl full of lavender buds are kept on a table top.
These niche market products will result in a much higher revenue than the raw product.
Two medium rare steaks with greens on top of them appear. Shelves of beef steaks with labels of the company on its side appear.
You may have noticed that retail meat products increasingly are associated with a brand name.
A packet of sliced bacon of “Raider Red Meats” brand appears. Meats of different brands are kept on shelves in packets.
This means that they are packaged to a set of specifications promising to serve the needs of its consumers. Every branded product is unique and can designate its own guarantees.
A picture of different cuts of branded beef on the shelf appears. The screen splits into two halves. The picture shifts to the right side. The heading-text, “Branded Meat Products” appears on the left with the text, “May be cut and trimmed to a certain specification,” “Designated as"natural " or"antibiotic free”,” “Have a certain fat content” under it as bullet points.
Branded meat products are often associated with a specific quality. Branded products may be cut and trimmed to a certain specification, designated as natural or antibiotic free, or have a certain fat content.
A shelf of "Raider Red Meats" branded sauces and spice mixes appears.
Niche market meat retailers could also develop value-added products like branded spices or sauces to increase their retail line.
Two packets of different Beef Jerky and bottles of steak seasoning of the same “Raider Red Meats” brand appear one after the other.
The increased revenues from niche market products could also serve as unique fundraising opportunities or to support scholarship programs for your local FFA chapter.
Goat milk, lavender, and apple products appear on store shelves.
These examples give you an idea about how agricultural producers are making niche operations work for them.
A girl wearing a checkered shirt and a jacket standing next to a cow herd in a barn looks at the camera smilingly. Another girl is chopping off a baby tomato on a farm. A man in a cornfield is holding an ear of corn.
Now, think about a niche market you might be interested in pursuing. Are there opportunities for you to take a commodity from your area and turn it into a valuable niche market product?
Packets of lamb chops of the same brand kept on a shelf appear. Next, a herd of white sheep appears. Sheep’s wool next to a woolen thread and a knitted woolen cloth appears.
One thing’s for sure, agriculture is constantly evolving and there’s always a place for creative ag entrepreneurs in the niche market business.
A person opens a fridge in a store, takes out a packet of meat from it and leaves.