Webinar Recap: Customers Stocking Up? This Rancher is Selling Out with Strong Local Marketing

Kelsey Ducheneaux runs DX Beef, selling grass fed beef to customers on the Cheyenne River Sioux Indian Reservation in South Dakota. She’s a 4th generation rancher, Natural Resources Director for the Intertribal Agriculture Council and a strong advocate for sustainable local businesses, regenerative agriculture and food systems. 

This past week, Kelsey graciously joined Barn2Door for a 30-Minute Webinar: “Customers Stocking Up? This Rancher is Selling Out with Strong Local Marketing.” She shared insights about the opportunity for local food producers to build a successful direct-to-market business. If you missed the broadcast, you can watch the full recording here (30-mins) or read on for the key takeaways (5-mins). 

1. An Opportunity to Fix a Broken Food System  

Kelsey shared that 95% of DX Beef is purchased by her local community (on the reservation). Despite being in the midst of cattle country, the Cheyenne River area in South Dakota is one of the largest rural food deserts in the country. Ultimately, Kelsey observes a disconnect between the producer and the consumer, and a lack of investment in local economies, to support the Farmers and Ranchers selling food. Most the cattle in her vicinity are transported more than 1,800 miles round-trip to feedlots, processing and packaging plants before making it back for eventual sale at the local grocer. By focusing on her local community, DX Beef has grown 750% since early 2019, due to a sweeping national trend towards local, healthy food and the recent pandemic compelling 1 out of 3 Americans to search online for food. “I doubt any of the customers who purchased from me will go back to grocery store beef,” said Kelsey. “They know there’s a trustworthy and great tasting local product.” Read ebook (10-mins): 2020 Buyer Trends every Farmer Needs to Know.

2. Stop Selling Cattle, Start Selling Beef ⁠— Own your Customers

Throughout the webinar, Kelsey touched on the importance of investing in a high quality, premium end product (grass fed beef). She emphasized that there is a huge difference in profit margins and quality control that comes with a transition from selling at auction barns to going direct-to-market and owning your customer relationships. “Eat your own product,” Kelsey said. “Not just one animal. Standardize your practices to create a consistent end result.” DX Beef began offering $50 and $100 burger bundles, which cater to customers with limited cash flow and/or freezer space, who really just want a delicious, trustworthy product to feed their families. Her product met local demand and exceeded expectations - spurring growth and customer loyalty. Read blog (5-mins): Why Bundle? Because Meat Subscriptions Work.

3. Start Small, and Communicate with Your Customers

Kelsey encouraged prospective beef producers to start small, and identify potential customers before harvesting their first animal. State and local regulations for meat sales vary throughout the country, so make sure to understand the legal requirements to sell, whether by the quarter half and whole for buyer pickup at the butcher, or as individual cuts for resale. Regardless, Kelsey implored beginning ranchers to build their customer list and to get educated on the process with a few animals before expanding too quickly. “Those first few animals will take a lot of work,” she explained, “but it’s so worth it knowing that people are gathering around your product and feel safe eating it. We have a unique position as producers, to help inform consumers and de-mystify product labels. It will benefit other producers, the consumer and the environment.” Read blog (5-mins): Making a List. Checking It Twice.

Read the Farmer Spotlight: DX Beef to learn more about Kelsey’s growth and business tactics. We are honored to support Kelsey and other members of the Intertribal Agriculture Council at Barn2Door.

Free business and marketing best practices are available online if you would like to access more resources for your Farm. 

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