Adding value to a farming business

Getting started
“We had no option but to add value,” says Tim. “We weren’t getting a good price for our oilseed rape, and cold pressing and rapeseed oil were becoming trendy in 2007 when we got started, so we thought ‘let’s have a go’. 

“We came up with a brand, installed a rudimentary press and cleaning system in an old farm building, but were disappointed with our first product. We are glad to say it has since improved, but it was certainly a steep learning curve at first!”

Having been driven to start Fussels Fine Foods due to unfavourable commodity prices, Tim and his brother Andy have found the best route to market isn’t always the first. “We started off selling our oil in 500ml glass bottles at local markets. We were fortunate to be doing well, helped by our involvement with organisations such as Taste of the West and the Guild of Fine Food.

“But our glass bottle supplier posed the question of whether we wanted to order much larger tins. I didn’t understand, until he said, ‘what about your food service customers?’ We hadn’t even considered that as an option; now we sell more of those [tins] than anything else.”

A lot of what Tim said rings true for Chris and Rachel.

“I’m third generation, and the two generations before me progressed by increasing sales,” says Chris. “My grandad had 40 cows, my dad increased that to 120, and I have increased that to 300, but that is where we hit our ceiling. We weren’t going to be able to accommodate more, so that’s when we started to add value, and sell directly to consumers. The thought of it can be quite daunting, but the reality is finding a different channel of sales can be very exciting.”

Graham Eggins explains how he, too, needed to explore new avenues when he set up Scilly Chilli on the island of Bryher in ‘Embracing challenges and adapting to change’. 

Learn from more experienced farmers
For many farmers, adding value can be a great way of gaining more control of their farming business, boosting finances and helping secure a better future for younger generations. While it happens differently for everyone, valuable lessons can be learnt from those with experience.

Chris and Rachel started by selling milk from an honesty fridge and have found seeing their business from the perspective of both consumer and seller was important in understanding the process. “I spent a week away meeting with a lot of dairy farmers selling their milk directly to the public across the country, as well as vending machine salesman,” comments Rachel. “The idea was to learn as much as possible. It was invaluable, and I learnt about pitfalls of what we were trying to achieve.”

Nailing the marketing from the beginning is also very important, says Rachel. “Because first impressions last. We were lucky enough to have friends who helped us with the logo, website and label design. Giving on-farm access and being open and transparent with the public has very much been a part of our offering, so aligning our brand with that has been important.

“We’ve put glass windows in our parlour, and we have a map showing the public where the cows are grazing that day, so we aren’t holding anything back. If they don’t like what they see, then they don’t have to buy it.”

Tim adds: “As farmers, I think we are sometimes guilty of rushing into things when we aren’t quite ready. In an ideal world, doing a bit of research in the first instance and trying and testing your product are valuable exercises.”

Start at the end
According to Tim, it’s also worth asking yourself what you want out of the business and your ‘exit’: “It’s easy to make mistakes as farmers when we diversify, and a common one I have found it that we don’t start with an exit or end in sight. It’s linked to succession; you need to ask these questions of yourself and your business before setting out.”

Chris’ end goal is a selfless one. “My vision is to give the next generation more options. We have established it to a certain point and created a platform, and that could now go many ways. I wouldn’t put any pressure on which direction that took, but we’d like to think there were various avenues.”

Andrew Brewer and Nikki Yoxall talk about understanding what you want from your business is ‘Finding balance in farming’.

What role does adding value have for the future of farming?
“I think it has a strong role,” comments Chris. “Think about the 80/20 principle – 80% of consumers, in my mind, are quite content to go to one of the big supermarkets, but 20% are more willing to pay for more premium, locally sourced produce. The challenge now is producing high quality products to target that 20%, which is the exciting opportunity.” 

“I would agree,” comments Tim. “I don’t think there is any such thing as a farmer anymore, in the sense of when we grew up. You have to be an agricultural business, be discontent with just growing your crops, and you have to add your value so you can provide for that 20%.”

Take home messages
1.     Seek first to understand. It’s important to talk to consumers and retailers.

2.     Plan. Establish the route to market. Figure out the costs, practicalities, risks and potential organisations you would need to work with. 

3.     Develop. Be prepared to keep an open mind and keep an eye on whether what you are doing is the right thing.

Listen to the full main episode and bonus below - also available via Spotify and Apple Podcasts.

About our guests

Tim Fussell set up Fussels Fine Foods with his brother Andrew in 2005, producing rapeseed oil from crops grown on their family farm in Somerset. Read more of their business story in ‘Brand growth accelerated by supermarket presence’.

Chris and Rachel Knowles of Trink Dairy are just outside St Ives, the third generation on Chris’ family farm. Having won several Taste of the West awards for their milk, they have now added Trink Dairy Natural Yoghurt to their product range.