Empire Valley Ranch is a family farm in British Columbia, Canada who was using the conventional channels to market their cattle. They would sell their weaned calves on the spot market to area buyers most likely for an established per pound live weight. Essentially they were selling a commoditized product to a faceless buyer. However, they have decided to differentiate their product by taking a risk and switching to a system where they finish their calves on a grass-fed diet and production is free of hormones and antibiotics. This allows them to enter a niche market with fewer buyers and for the time being higher prices and greater margins. They have had to establish direct relationships with their customer base in order to assure their product can be moved. “One must be able to build a real relationship with your customer. Once you build that trust then you most likely will have a customer for life/There is nothing better than a person coming in or calling to say they love your beef.” –Joyce. The risk seems to be working out for them and their new customers.
http://www.bclocalnews.com/bc_cariboo/williamslaketribune/community/89484742.html
ehennin2, 2 years ago | FlagThis seems like a great niche market that they are involved in. However, as rmaschh2 explained,
there are numerous companies starting to do this. Is it possible at some point that so many companies enter into these markets and then competitio n will consume profits? Empire Valley should keep their eyes on the future in order to keep their market share or to grow. Either way, reltionshi p management will be a key factor in terms of consumers and meat packers (e.g. Rodear Meats Ltd.).
rmaschh2, 2 years ago | FlagIt seems that there are numerous amounts of companies that have been changing their products in order to enter into niche markets due to increased profits. Now adays there are many people that are will to pay more for these types of products and it is making companies and farmers more profitable
than they have been in the past.
Eli, 2 years ago | FlagI think that having a differenti
ated product only helps Empire in establishi ng relationsh ips with buyers. If they have such customers that call in and say "I love your product," it takes less pressure on sales volume and gives more power to the business relationsh ip. Having a unique product that certain people will remain loyal to would pay dividends for the investment and initial risk. Good article.
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