From Commercial Dairy to Direct Sales
Yoder-Way Farm in McVeytown, Pennsylvania was established in the 70s as the Yoder family’s commercial dairy. Lois and her husband, Jeremy, decided they could no longer maintain a sustainable living with the milk prices they received on the commodity market. After switching to direct sales, the Farm has now built a 6-figure beef operation. We recently met with Lois to discuss their transition to direct sales, and how they maintain a consistent ordering process:
Moving Direct from the Commercial Dairy
As third generation Farmers on Yoder-Way Farm’s dairy operation, Lois and Jeremy Yoder found that they could no longer support their family by selling on the commodity market. The Farm could not expand any further, with cows’ health deteriorating, inconsistent wholesale prices and increasing regulations. The Farm could not set their own dairy prices, and the income could not sustain their Family Farm business. In 2019, they had to sell their dairy cows due to high input costs, and Jeremy found a full-time job.
The family had a few beef cows and their friends started inquiring about purchasing beef from the Farm. Yoder-Way started selling quarters, halves and wholes to their friends and family. Their friend successfully sold products direct to their community and recommended they do the same. This encouraged the Yoder family to obtain a retail license at the end of 2020, and to kick off their Farm store in January 2021.
Now, the Farm sells beef, pork, chicken and eggs to their local community in Pennsylvania. While the majority of their sales come from beef (cuts and herd shares), Lois says their best decision was to sell chicken, since poultry is quicker to raise and process than cattle. The Farm currently does 60-70% of their sales through their online store for delivery. The Yoders made the switch to online sales because they know the majority of people are online and value convenience.
Selling Subscriptions for Recurring Cash Flow
Yoder-Way Farm has built a consistent base of recurring cash flow due to Subscriptions and herd shares. This allows them to butcher 2 heads of cattle and 3 pigs every month, with ongoing orders in advance. The Farm has added on chicken, eggs and Thanksgiving turkeys to increase their cash flow. Lois shared that, “Subscriptions have been a huge blessing for us. It brings in that base of financial support that we need each month.”
Offering beef and pork Subscriptions has provided consistency for their Farm operations, while meeting ongoing demands of their Buyers. Their herd share ensures they’re consistently delivering products to Buyers each month of the year, helping them better control their inventory and processing dates. The Farm’s Subscriptions run on an ongoing basis, so they never have to worry about hassling Buyers to sign-up again or put in their payment information after each purchase. Farmer’s choice boxes help the Yoder family keep their inventory well-organized and turnover on a consistent basis.
Yoder-Way offers 10 and 15 pound mixed boxes to serve different household sizes. When starting their Subscriptions, the Farm had flexibility to change their boxes and product offerings as they figured out what Buyers desired from their store. For example, Lois used to sell whole chickens but found that certain chicken cuts and broth sold better. She is looking to add chicken Subscriptions in the future to meet Buyer demand.
Read: The 4 P’s of Marketing: Successful Farm Subscriptions
Building Relationships through Marketing
Lois had no background in marketing and decided to start posting regularly on social media to attract Buyers. Her brother (who is a marketer) gave her advice to put herself out there, show her face and what they were doing on the Farm. People cared about their family and their business, and were eager to learn more. Over time, her platform grew.
I realize how folks really do want to connect to their food source. They want to know what’s going on and where their food comes from. And, if I want them to be able to do that, I’m going to have to educate them. And that keeps buyers coming back to the Farm – telling them what’s going on with their food and how the animals are being raised.
- Farmer Lois
Initially, Lois had to get over her fear of putting herself out there, but now she says it doesn’t feel strange to share video posts of herself on the farm. Lois knows that her followers are her community; her friends, family, other Farms and local Buyers. Her advice for other Farmers is to keep investing in marketing when getting started. You may find yourself repeating information over and over again (ex: store hours, location), but this will encourage new Buyers to shop your products.
Listen: The ABCs of Social Media’s 3 E’s
Yoder-Way Farm sets aside time each week to draft out their email newsletter. With every email send, more orders come in. Staying top-of-mind and at the top of the inbox is key. Buyers need reminders to be encouraged to not miss out on a product. Since the Farm offers delivery every Wednesday and Thursday, they send out their newsletter on Monday mornings as an order reminder.
For our cash flow to remain steady, I need to send out this newsletter and I need to write this post every week. That’s a big mind shift. It’s not something that I can do in my spare time. Rather, it’s the most important thing I can do to ensure that my cash flow remains steady.
- Farmer Lois
Conclusion
Yoder-Way Farm made the transition to direct-to-market protein sales after their commercial dairy operation failed to provide a viable income on the commodity market. By investing in consistent marketing and building a base of recurring orders (Subscriptions), the Farm has secured a 6-figure income with 60-70% of their sales coming through their online store for Delivery. Lois has built a strong community through social media and email marketing, and is able to use ongoing Subscriptions to ensure they have a base of recurring cash flow for their family.
Barn2Door offers software for Independent Farmers to create and promote their brand, sell online and in-person, and save time managing their business. If you’re curious to learn more, watch this 5-minute video.