Dairy Sheep Symposium - the Department of Animal Sciences ...

Dairy Sheep Symposium - the Department of Animal Sciences ... Dairy Sheep Symposium - the Department of Animal Sciences ...

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07.03.2013 Views

1. The majority of the people in the targeted categories are also interested in supporting the small or local producer in contrast to the larger cheese producing companies or international producers. This has given Shepherd’s Way Farms a distinct marketing advantage over imports and mass produced cheeses. Retail cheese buyers, chefs and consumers demonstrate a strong buying response to a farmstead cheese when they have the opportunity to meet the producers and feel that they are supporting not only a quality cheese, but also the family farm which produces the cheese. While this is considered a niche market, the United States imported $143 million of sheep milk cheeses in 1997 and consumption continues to rise annually. The main retail outlet for Shepherd’s Way Farms cheeses are co-ops and natural food stores, which are a growing area of retail foods. There are more than 10 co-ops in the Twin Cities area alone. Nationally, just one of the several natural foods chains - Whole Foods Markets - has over 100 stores. Because of the versatility of both the Friesago and Queso Fresco, Shepherd’s Way Farms has also developed a strong restaurant base, which is crucial in sales and marketing. Chefs who use the cheeses are asked to contribute recipes that are then made available during samplings and demonstrations. This gives the cheese an additional draw for the consumer as well as additional positive advertising for both the restaurants and the Farm. 2. Currently, most sheep cheeses are imported and are offered at a higher price than Shepherd’s Way Farm products. Many small, farmstead cheese operations have difficulty establishing an identity and a functional marketing strategy and can also struggle to deliver consistent quality products in efficient manners. Generally, customers looking for a quality, nonimported artisan cheese would have a very limited selection. Shepherd’s Way Farms has developed a brand identity and consistent, widely endorsed products. Management of the milking flock includes no use of hormones or steroids, which classifies Shepherd’s Way Farms’ cheeses as natural. The Farms’ identity as a local artisan cheese producer and its coordinated marketing, sales, and service set it apart from competition. Some other sheep cheese producers include Old Chatham Shepherding Company (New York), Sally Jackson (California), Bass Lake (Wisconsin), Love Tree Farm (Wisconsin), and Vermont Shepherd (Vermont). Shepherd’s Way Farms cheeses are significantly different in type and style of cheese, pricing, and versatility than those provided by other sheep cheese producers and are not directly competing for market shares. 3. Shepherd’s Way Farms cheeses are marketed directly to the co-op and natural food stores’ cheese buyers and to chefs, through personal meetings and samplings. To promote the cheese in-store, Shepherd’s Way Farms coordinates demonstration samplings during peak sales hours. Customers appreciate the opportunity to meet the shepherd and cheese maker, which helps establish a unique customer loyalty. Individual stores also promote the cheese through their own sales and promotions. Personal attention is one of Shepherd’s Way Farms strongest sales and customer retention strategies. 4. To date, the response to minimal sales and advertising has been exceptional, with demand continually exceeding supply. Upon expansion, sales efforts will increase accordingly to expand the customer base into a variety of metropolitan areas.

5. Cheese is delivered in person, weekly, within the Twin Cities metro area. Orders from outside the metro area are served by two-day postal delivery, in custom made, insulated boxes with ice packs to ensure that the product remains fresh. 6. Pricing is one of the elements that makes Shepherd’s Way Farms cheeses so appealing, both to the retailer and to the customer. In an effort to keep the cheeses accessible to a wide range of consumers, the Friesago and Queso Fresco are priced in the mid-level range which places Shepherd’s Way Farms in an advantageous competitive position against more expensive cheeses. Factor and Demand Conditions 1. Specialized factors for the success of Shepherd’s Way Farms include both labor and infrastructure. Cheesemakers with experience producing sheep milk dairy products are crucial for developing the correct product and correct production methods. There are very few individuals with this necessary experience in North America. Our response was to identify individuals with specific experience and to invite them to work and learn with us. As for infrastructure, the proper cheese manufacturing, aging and distribution facilities are important to ensure the quality of our product and our success in bringing it to the marketplace. 2. The advantage that sheep milk offers which drives innovation is twofold. One is the composition of the milk and how this affects the types of cheeses and dairy products that would most likely result in a superior product than if other types of milk are used. For example, our Queso Fresco de Oveja is a superior product to one made out of cow’s milk because it is firmer, less bitter and has a longer shelf life. Yogurt and butter are two other examples of products that would be superior due to the components of the milk. The second driving advantage is the uniqueness of sheep milk. Using the above example, Queso Fresco de Oveja is unique in North America, no other cheesemaker or company produces a similar product. This uniqueness drives innovation without the pressures of competition. Each product will assume a preferred position in the marketplace. The emphasis then becomes choosing those products most marketable. Disadvantages of infrastructure drive innovation of a different kind. First of all, the small production capacity required of farmstead cheese manufacturing dictates that maximum use be made of the assets. This is accomplished by ensuring continuous use through the use of frozen milk to guarantee that the highs and lows of the production cycle are mitigated. At the same time, the need to maximize the efficiency and output determine the innovation of products which realize these goals. 3. Our customers are consumers who are cheese lovers, consumers who are looking for dairy alternatives to cow milk products, and individuals who actively support farm based products. 4. The primary suppliers for both equipment and commodities are based in Wisconsin. The main supplier of sheep milk is the Wisconsin Dairy Sheep Cooperative. Equipment and supplies come primarily from cheese product supply companies based in the Madison to Milwaukee area.

1. The majority <strong>of</strong> <strong>the</strong> people in <strong>the</strong> targeted categories are also interested in supporting <strong>the</strong><br />

small or local producer in contrast to <strong>the</strong> larger cheese producing companies or international<br />

producers. This has given Shepherd’s Way Farms a distinct marketing advantage over imports<br />

and mass produced cheeses. Retail cheese buyers, chefs and consumers demonstrate a<br />

strong buying response to a farmstead cheese when <strong>the</strong>y have <strong>the</strong> opportunity to meet <strong>the</strong><br />

producers and feel that <strong>the</strong>y are supporting not only a quality cheese, but also <strong>the</strong> family<br />

farm which produces <strong>the</strong> cheese. While this is considered a niche market, <strong>the</strong> United States<br />

imported $143 million <strong>of</strong> sheep milk cheeses in 1997 and consumption continues to rise<br />

annually.<br />

The main retail outlet for Shepherd’s Way Farms cheeses are co-ops and natural food stores,<br />

which are a growing area <strong>of</strong> retail foods. There are more than 10 co-ops in <strong>the</strong> Twin Cities<br />

area alone. Nationally, just one <strong>of</strong> <strong>the</strong> several natural foods chains - Whole Foods Markets -<br />

has over 100 stores.<br />

Because <strong>of</strong> <strong>the</strong> versatility <strong>of</strong> both <strong>the</strong> Friesago and Queso Fresco, Shepherd’s Way Farms has<br />

also developed a strong restaurant base, which is crucial in sales and marketing. Chefs who<br />

use <strong>the</strong> cheeses are asked to contribute recipes that are <strong>the</strong>n made available during samplings<br />

and demonstrations. This gives <strong>the</strong> cheese an additional draw for <strong>the</strong> consumer as well as<br />

additional positive advertising for both <strong>the</strong> restaurants and <strong>the</strong> Farm.<br />

2. Currently, most sheep cheeses are imported and are <strong>of</strong>fered at a higher price than Shepherd’s<br />

Way Farm products. Many small, farmstead cheese operations have difficulty establishing an<br />

identity and a functional marketing strategy and can also struggle to deliver consistent<br />

quality products in efficient manners. Generally, customers looking for a quality, nonimported<br />

artisan cheese would have a very limited selection.<br />

Shepherd’s Way Farms has developed a brand identity and consistent, widely endorsed<br />

products. Management <strong>of</strong> <strong>the</strong> milking flock includes no use <strong>of</strong> hormones or steroids, which<br />

classifies Shepherd’s Way Farms’ cheeses as natural. The Farms’ identity as a local artisan<br />

cheese producer and its coordinated marketing, sales, and service set it apart from competition.<br />

Some o<strong>the</strong>r sheep cheese producers include Old Chatham Shepherding Company (New<br />

York), Sally Jackson (California), Bass Lake (Wisconsin), Love Tree Farm (Wisconsin), and<br />

Vermont Shepherd (Vermont). Shepherd’s Way Farms cheeses are significantly different in<br />

type and style <strong>of</strong> cheese, pricing, and versatility than those provided by o<strong>the</strong>r sheep cheese<br />

producers and are not directly competing for market shares.<br />

3. Shepherd’s Way Farms cheeses are marketed directly to <strong>the</strong> co-op and natural food stores’<br />

cheese buyers and to chefs, through personal meetings and samplings. To promote <strong>the</strong> cheese<br />

in-store, Shepherd’s Way Farms coordinates demonstration samplings during peak sales<br />

hours. Customers appreciate <strong>the</strong> opportunity to meet <strong>the</strong> shepherd and cheese maker, which<br />

helps establish a unique customer loyalty. Individual stores also promote <strong>the</strong> cheese through<br />

<strong>the</strong>ir own sales and promotions. Personal attention is one <strong>of</strong> Shepherd’s Way Farms strongest<br />

sales and customer retention strategies.<br />

4. To date, <strong>the</strong> response to minimal sales and advertising has been exceptional, with demand<br />

continually exceeding supply. Upon expansion, sales efforts will increase accordingly to<br />

expand <strong>the</strong> customer base into a variety <strong>of</strong> metropolitan areas.

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