E-mail: nass-ny@nass.usda.gov
(518) 457-5570

 

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DIRECT MARKETING SURVEY

 

DIRECT SALES TO CONSUMERS

The value of all agricultural products marketed directly to consumers by New York producers in 2000 totaled over $230 million, more than twice the total in 1987.  Almost 18 percent of the State’s farmers reported some direct sales and averaged $34,530 per farm selling direct.  Direct sales to consumers accounted for 7.4 percent of all farm cash receipts.

Nursery and greenhouse products lead the way and accounted for 47 percent of the total, with direct sales of $107 million.  Direct sales averaged $40,169 per producer selling direct.  Direct marketing accounted for 34 percent of all cash receipts from nursery and greenhouse products. 

Vegetables were second most important with 16 percent of the total.  Direct sales totaled $36.7 million and averaged $16,238 per farm selling direct.  Direct marketing accounted for 8 percent of all cash receipts for vegetable crops.

Fruits and berries placed third with direct sales of $36.7 million, or 16 percent of the total.  Direct sales averaged $22,307 per farm selling direct and accounted for 18 percent of all cash receipts for fruits and berries.

Meat, poultry and dairy products were in fourth place with direct sales of $14.5 million, or 6 percent of the total.  Direct sales averaged $8,682 per farm selling direct.  Because most milk is sold wholesale, direct sales in this category accounted for only 0.7 percent of all cash receipts for these products.

Other agricultural products such as maple, honey, cider, firewood, etc. accounted for $35.1 million in direct sales.  Direct sales averaged $13,002 per farm.



 

Number of Producers Marketing Directly to Consumers, Average Sales per Farm, and Percent of Total Receipts Attributed to Direct Sales, New York, 1987 and 2000

 

1987

2000

     

  Number of Farms in New York

40,500

38,000

  Number Direct Marketing to Consumers

6,125

6,667

       Percent of Total

15.1

17.5

  Total Direct Sales (000)

$   112,259

$  230,213

       Average Sales Per Farm Selling Direct

$     18,328

$    34,530

     

  All Farm Cash Receipts (000)

$2,526,500

$3,125,415

       Direct Sales Percent

4.4

7.4

     

  Fruit Direct Sales (000)

$     12,778

$     36,673

       Number Selling Direct

1,043

1,644

       Average Direct Sales

$     12,250

$     22,307

  All Fruit Cash Receipts

$   143,711

$   202,941

       Direct Sales Percent

10.3

18.1

     

  Vegetable Direct Sales (000)

$     24,438

$     36,681

       Number Selling Direct

1,741

2,259

       Average Direct Sales

$     14,037

$     16,238

  All Vegetable Cash Receipts (000)

$   261,112

$   469,460

       Direct Sales Percent

9.4

7.8

     

  Nursery and Greenhouse Direct Sales (000) 1/

$     45,165

$   107,275

       Number Selling Direct

1,400

2,641

       Average Direct Sales

$     32,261

$     40,619

  All Nursery and Greenhouse Cash Receipts (000)

$   208,046

$   315,504

       Direct Sales Percent

21.7

34.0

     

  Meat, Poultry and Dairy Direct Sales (000)

$     19,478

$     14,465

       Number Selling Direct

1,715

1,666

       Average Direct Sales

$     11,358

$       8,682

  Meat, Poultry and Dairy Cash Receipts (000)

$1,800,193

$1,930,727

       Direct Sales Percent

1.1

.7

     

  Other Ag Products Direct Sales (000) 2/

$     10,401

$   35,119

       Number Selling Direct

1,911

2,701

       Average Direct Sales

$       5,443

$   13,002

     

1/  Includes Christmas trees in 2000.

2/  Includes Christmas trees in 1987.

 

NUMBER OF DIRECT MARKETING PRODUCERS

The total number of New York producers doing direct marketing of some type in 2000 was 6,933 compared with 6,941 in 1987.  This is 18 percent of all farms in the state.  If farms with one or more milk cows are excluded, because only a few are involved in direct marketing, then nearly 1 of every 4 remaining farms does some direct marketing.

The survey indicated 6,667 producers were selling products direct to consumers and 1,866 were selling direct wholesale.  There were 5,064 with direct sales only to consumers, 266 only direct wholesale and 1,603 selling both to consumers and direct wholesale.


 

 

                                     Number of Producers Direct Marketing Agricultural Products

                                                         by Category, New York, 1987 and 2000

Category

Number of Producers

Percent of Total
 Direct Marketers 1/

1987

2000

1987

2000

     

  Direct to Consumers

6,125

6,667

  88

  96

  Wholesale to Others

2,734

1,866

  39

  27

  Total Direct Marketers

6,941

6,933

100

100

         

  Direct to Consumers Only

4,206

5,064

  61

  73

  Wholesale to Others Only

   815

   266

  12

    4

  Direct to Consumers and

1,920

1,603

  27

  23

  Wholesale to Others

  Total Direct Marketers

6,941

6,933

100

100

     

1/ Percentages do not add to 100 because of farms which conduct business in both categories.

                                

 
Number of Producers in Direct Marketing, by Geographic Region,
 New York, 1987 and 2000

 

Region

Direct

Wholesale

All

Number

Percent

Number

Percent

Number

Percent

1987

2000

1987

2000

1987

2000

1987

2000

1987

2000

1987

2000

                         

  Northern

   385

   330

    6

    5

   268

   107

  10

    6

   483

   352

    7

    5

  Northeast

   120

   267

    2

    4

     50

     89

    2

    5

   122

   271

    2

    4

  Western

1,644

1,588

  27

  24

   633

   401

  23

  21

1,882

1,641

  27

  24

  Central

   881

1,198

  15

  18

   450

   323

  17

  17

   990

1,236

  14

  18

  Eastern

   693

   909

  11

  14

   341

   245

  12

  13

   747

   928

  11

  13

  Southwest

   642

   568

  11

    8

   248

   189

    9

  10

   721

   605

  10

    9

  Southern

   446

   505

    7

    8

     80

   122

    3

    7

   452

   519

    7

    7

  Southeast

   987

1,016

  16

  15

   444

   297

  16

  16

1,100

1,058

  16

  15

  Long Island

   327

   286

    5

    4

   220

     93

    8

    5

   444

   323

    6

   5

                         

  TOTAL

6,125

6,667

100

100

2,734

1,866

100

100

6,941

6,933

100

100

                         



WHOLESALE DIRECT MARKETING
by Type of Purchaser

A  total  of  1,866  producers  were  indicated  to  have  sold products direct wholesale with a total value of $138 million.  Nursery  and  greenhouse  producers  accounted  for  $75.3  million  and  55  percent  of  the  total.  Vegetables  ranked  second with  a  value  of  $22.3  million  and  16  percent  of  the  total.  Meat, poultry and dairy products totaled $13.6 million and 10 percent  of  the  total.  Fruits  and  berries  sold  wholesale  direct were valued at $12.9 million, forest products, $2.4 million, and miscellaneous other products $10.9 million.

More  than  half  of  the  direct  wholesale  value  was  from  sales to  retail  stores  and  totaled  $72.7  million.  Direct  wholesale  to other  growers  totaled  $56.0  million,  or  41  percent  of  the  total.  Direct  sales  to  restaurants  were  indicated  to  be  $4.0  million, and  to  public  institutions,  $1.9  million.  The  remaining  sales were  to  schools  and  private  institutions  and  totaled  about  3.1 million.

 

Number of Agricultural Producers Marketing Products Directly, to Other Growers, Retail Stores,
Restaurants, Schools, Public or Private Institutions, and Gross Value of Direct
Wholesale Sales, by Type of Purchaser, New York, 2000

Product

Number
of
Producers

Direct Wholesale Gross Value

Value by Type of Purchaser

Other Growers

Retail
Stores

Restaurants

Schools

Public
Inst.

Private
Inst.

 

                                                                         1,000 dollars

                 

  Fruit & Berries

   338

  12,874

  4,124

  8,001

   231

     99

     75

   344

  Vegetables

   419

  22,672

  3,001

19,188

   364

     49

     24

       46

  Meat, Poultry &  Dairy Products

   237

  13,557

  4,225

  6,071

2,913

   138

   100

   110

  Nursery  &  Greenhouse

   653

  75,321

37,383

34,150

     76

1,382

1,694

   636

  Forest Products

   141

    2,350

  1,745

     485

       -

       -

       6

   114

  Miscellaneous
  Products

   438

  10,931

  5,502

  4,848

   399

     44

     28

   110

  All Products

1,866

137,705

55,980

72,743

3,983

1,712

1,927

1,360

                 

                              

IMPORTANCE OF DIRECT MARKETING

Direct marketing producers were asked if the production and sale of agricultural commodities was their principal or supplemental source of income.  Of the 6,933 producers 30 percent said their principal source of income was from agriculture.

The producers were also asked if direct marketing was essential, important, or not important to the operation.  Over half of the producers said direct marketing was essential and slightly over a third said it was important.  Only 12 percent said it was not important to the operation.


 

 

1987

2000

     

  Number of Direct Marketers

6,941

6,933

     

  Percent of Direct Marketers saying the production

  and sale of agricultural products was:

   

     1.  Their principal source of income

33

30

     2.  A supplemental source of income

67

70

  Percent of Direct Marketers saying direct marketing was:

   

     1.  Essential to the operation

44

53

     2.  Important to the operation

38

35

     3.  Not important to the operation

18

12

     

Survey conducted in cooperation with the New York State Department of Agriculture & Markets,
Nathan L. Rudgers, Commissioner

The information presented in this brochure displays only the direct marketing highlights.  For questions regarding the overall survey, methodology used, or for a copy of the full report, please contact:

NEW YORK AGRICULTURAL STATISTICS SERVICE
 1 Winners Circle, Albany, New York 12235-0001
Telephone: (518) 457-5570

E-Mail: nass-ny@nass.usda.gov
Home Page: www.nass.usda.gov/ny