Project Title:  Badgerland Produce Auction  Round 2 (2004)   

Project Leader (s):  Keith Vander Velde

Project Collaborators: Lorrie Jansma,  Badgerland Produce Auction Manager

Project Category:  Marketing    

Situation:  Badgerland Produce Auction in it’s first year of operation had $60,000 worth of sales and in year two the sales were $155,000. With more producers wanting to consign to the auction or expand their produce production new markets need to be developed. The Badgerland Produce Auction has projected a need to grow the sales to he $400,000-$500,000 range to meet the increased volume of produce available. The auction has not generated enough income to fund a full time manager and marketing promotion is necessary in January-April when major trade shows are held. A grant source is needed to fund the salary and expenses of attracting new buyers to the market at industry shows. With over 75 producers supplying the auction with produce new buyers must be sourced or the supply will exceed demand and prices drop having a negative impact on producers. As an advisor to the auction the Marquette County Ag Agent wrote this grant for market development.

Response:  The grant was written for the Badgerland Auction to look at new options and seek future buyers and sellers. Participation on the steering committee of Central Ag and Food Facility (CAFF) and the Homegrown Lunch (WHL) committee are both important to market development and our representative took an active role on these committees.  Funding was used to promote the Produce Auction at trade shows, and to large institutions such as the University of Wisconsin system, local school districts, State and Federal Correction Facilities, and to whole grocery and produce distributors who service the area chain stores and restaurants. Some of the work was focused on direct contact at places of business meeting with the purchasing agents for distributors.  Grower educational meetings were be conducted prior to the growing season to make growers aware of what produce and size specifications are necessary for the 2005 season. The produce auction at a display and booth at 4 major shows in the spring of 2005. Total attendance at these shows was over 3,400 people with a majority seeing our display at the show and over 1200 brochures distributed. In addition 11 volume buyers of produce were visited directly and given the list of produce available and the prices received by producers.

Results:  The 2005 season began in April and Year to Date figures indicate a sales volume of $220,000. This is below budget but is primarily the result of lower production by the growers due to cool spring weather and limited rainfall in the area. Prices have increased 10-14% for most items and there are more buyers attending the auction. The auction has 84 producers providing produce in 2005. In addition 11 Amish producers put up cold frames and have produce available 3 weeks before normal season and will be able to sell later in the season due to frost protection in the cold frames.”

Evidence:  Increased sales volume in 2005 and 5 new volume buyers plus on order buyer for 5 locations in Wisconsin Dells.