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Socio-Economic Montage

A Study of Primary Niche Market Agricultural Production Opportunities for the Kootenays

Authored by:
Clint Ellison, P. Ag.
Andrea Gunner, P. Ag.

Sponsored by:
Ministry of Small Business, Tourism and Culture
Ministry of Agriculture, Fisheries and Food

April 15th 1996

Location of Publication:
"Columbia Basin Trust Collection"
Ministry of Agriculture and Food, Creston, BC

This study, an identification of the primary niche market agricultural production opportunities in the Kootenays, evolved from a need identified by Agri-Forestry participants (government and non-government) in the Kootenay Value-Added Forum.

The study area, which encompasses the Kootenay-Boundary, Central Kootenay, East Kootenay and Columbia Shuswap regions, has a significant agriculture base and many direct farm marketing and farmhouse processing operations. Producers in the area face challenges of topography, modest population densities and long distance to major markets. Many producers with small holdings and/or marginal operating conditions have always supplemented their income by working off farm. There is an ever increasing trend for this requirement of producers on larger holdings and/or less marginal circumstances. Currently, farm income pressures are intensifying and competition from global marketplace prices for traditional raw product are eroding farm income. There is a need to create more revenue per production unit while keeping input costs under control.

The report identifies specialty and organic produce, culinary and medicinal herbs, and opportunities within these commodities for small-scale operations, between two and ten acres. It also provides information on current trends, opportunities and constraints, and provides detail on the following topics:

Farm Business - An overview of small-scale farm business in Canada and in the Kootenays.

Marketing - An overview of the Kootenay market, current trends, and the "marketing environment". This section also provides information on market opportunities for produce and medicinal plants.

Case Studies - Sample marketing strategies for three types of opportunities: i) narrow (specialty products with limited production); ii) moderate (direct or on-farm markets - for areas where there is significant tourist potential or a population density); and iii) wide (for markets which are already serviced by a number of suppliers, but have growth potential).

Business Planning - Information and worksheets to assist producers to prepare their business plan.

Buyers and Distributors - Includes produce and medicinal herb buyers and distributors for British Columbia and the region, western Canada and the United States. Farmer's markets, restaurants and trade shows are also included.

Producers - Includes fruit, vegetable and medicinal herb producers in the region.

Information Sources - Includes government, industry and bio-dynamic and organic certification agencies and education programs. A materials list of organic production standards is also included.

Suppliers - Includes seed sources, nurseries, trucking, export brokers, soil amendment suppliers, pest control suppliers, testing laboratories and equipment suppliers.

Soil and Climate Capability for Agriculture - Includes an overview of the land base, and agricultural capability and use in the region.

Government Programs - Identifies federal and provincial government programs relevant to niche market herbs, medicinal plants, and organic and specialty fruits and vegetables.

Report recommendations include both producer and government strategies. The formation of producer community networks within an accessible area is suggested. These networks could be used as a forum to distribute knowledge and resources. Particular areas of attention are trucking and distribution, packaging and handling, processing and marketing. Other activities and recommendations are as follows:

certified organic verification courses which are available by correspondence;

a Kootenay Region certification agency for organic growers;

producer associations or networks within the local area (a strong producer association is critical for functioning with other agences - government, industry, etc);

facilitation of distribution and marketing;

facilitation of shared storage, processing, packing and handling facilities;

direct mail marketing for processed products; and,

increasing the information base - attend seminars, subscribe to grocery industry periodicals.

The report also recommends that government can best assist Kootenay Region producers by facilitating producer community networks and providing extension services. Suggestions are as follows:

coordinate and foster information access between Ministries (ie. Agriculture, Forestry and Small Business) and Access Centres. "Where to go" or "who to contact" for information;

subscribe to and make available a variety of industry publications;

publish a quarterly newsletter which includes a listing of library resources, relevant industry technology, market and production information from various sources, and a specialty calendar of events (global);

facilitate and host seminars and workshops. Suggested topics include: health and labeling regulation issues which affect cottage industry processing, label and package design, Agricultural Land Commission regulations of on-farm activities, specialized equipment demonstrations, preparing a (realistic) business plan and processing technologies;

instigate ongoing medicinal plant market research of products, prices and volumes on a global basis. Information is currently available from research institutes and grower associations. Develop and maintain a database of this information; and,

investigate establishing a Website on the Internet.

 
 

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