How Commodity Checkoff Organizations Can Support Stakeholders.
The nature of managing commodity associations and checkoff programs differs from traditional for-profit organizations in many ways. One of the major differences is that your business is inextricably tied to helping your stakeholders – farmers, growers, ranchers, cattlemen – grow their business and be profitable. Their success is your success.
With this unique feature of commodity organizations comes its own unique set of challenges. At Rhea + Kaiser, our experience working with commodity groups gives us a better picture of those obstacles and equips us to help you overcome them.
Here are just a few of the challenges we know you face in your business, along with a few tips to get you started on overcoming them to create solid business outcomes – for you and your investors.
IF YOUR MAIN CHALLENGE IS PRESSURE FROM INCREASED CONSUMER DEMAND…
Consumers are becoming more interested in what is in their food. They’re setting the bar higher for what they are looking for in quality food ingredients, including a reduced carbon footprint and decreased greenhouse gas emissions, transparency about production practices and more.
That’s a lot for those responsible for growing crops or raising livestock to factor into their operations. As an association, you want to help your stakeholders share what they are already doing to meet these consumer demands and set them up for success to help position them for the future.
Start by sharing what your stakeholders are doing to respond to and meet consumer priorities. Build up your organization’s content that highlights how farmers, ranchers and growers incorporate these practices into their operation and how that impacts consumers. Also, create opportunities for your stakeholders to interact with consumers and share their stories first-hand, whether that’s online or at in-person events.
An example of this is the work we did with the Illinois Soybean Association. Through the development of an event called Gather Around the Table we connected leaders from end user and CPG companies with ISA staff and Illinois farmers. The goal was spreading the message of sustainable soy and increasing potential customers’ confidence in the fact that Illinois soybean farmers are delivering a product that contains qualities consumers are looking for.
IF SALES OF YOUR COMMODITY ARE DOWN, AND SO ARE YOU CHECKOFF FUNDS…
When sales are down, your funds are down. This can prove to be a challenge, especially when you’re trying to help the farmers and ranchers you represent be profitable during those valleys.
These leaner times mean making the most of your marketing efforts. Earned and owned media channels play an important role in reaching your audience at any time, but especially when you’re doing your best to optimize a tight budget. Look at how you can maximize your organic social media presence. Communicate the benefits of the commodity you represent by leveraging connections with media. Look at opportunities outside of traditional media, too, such as podcasts, content partnerships or influencer content.
Look at the marketing tools your business uses. Are you using all the features? If not, you might be able to discover new ways to capture and track leads or produce and distribute content. If you find any of your tools aren’t serving you, it could be time to say goodbye.
IF YOUR CONCERN IS INCREASING DEMAND FOR YOUR COMMODITY THROUGH NEW USES…
When the typical avenues of demand for your commodity begin to become stagnant, look for opportunities to create new uses for the product to diversify and increase demand.
The key is to build relationships and spread awareness about the benefits of your commodity and how it can enhance end user and CPG companies’ product offerings. Leverage your existing contacts and channels to connect with key organizations who can help those you represent level up their contributions.
Finding new uses could mean working with a brand to incorporate your commodity into their end product to increase sustainability. It could also look like partnering with other organizations to launch a new brand entirely. No matter the case, it’s important to lay the foundation of awareness and develop supporting content and material to help you reach your goal of creating new use opportunities for the commodity your organization represents.
At R+K, we’re no strangers to demand creation in the agricultural commodity space. We helped the Indiana Soybean Alliance with this challenge as they contributed to the launch of Poreshield, a soy-based concrete durability enhancer. This new product was a completely new brand separate from the ISA brand, so we helped them establish the identity of the product and launch Poreshield into the market.
IF INCREASED REGULATIONS ARE AN OBSTACLE FOR YOUR STAKEHOLDERS…
As consumers demand transparency as they work to understand what is in their food and their journey toward a sustainable tomorrow continues, more regulations are put on producers to help meet those standards. That’s where you come in. It’s part of your responsibility to help them navigate those evolving expectations and address them through their practices.
Communication is key in situations like these. How are you already communicating with your stakeholders? If you can, begin to incorporate messages about the changes in regulations through the channels you use on a regular basis, such as a newsletter, direct mail, email or social media. Make sure evolving consumer demands are on the agenda whenever your staff meets with stakeholders, whether that is a board meeting, farm visits or annual meetings. Provide materials for your team to help with those conversations.
Change takes time, that’s something we at R+K know well. But we’re here for you as you support the people who work every day to grow and raise our food. Let us know how we can help.
Interested in learning more? To learn more about the work R+K has done to support commodity associations like yours, check out the work we’ve done with the Illinois Soybean Association and the Indiana Soybean Alliance.
If you would like to learn more about how we can help you achieve your business goals while overcoming industry challenges, contact our Business Development Manager.