From farm to fork, from barn to brand: a study of farm diversification

In recent years, the agricultural sector has faced significant economic and environmental volatility, prompting many farm businesses to diversify. The diversification possibilities are vast; additional agricultural enterprises can be added, farm produce can be sold directly, the farm assets can be used for tourism, recreation, events, storage and energy generation. Each diversification has its own benefits and challenges.

This study focuses specifically on farms that have chosen the route of direct selling, particularly where value has been added to the farm’s primary produce - for example, when a dairy farm uses its milk to produce cheese or ice cream.

Field visits were conducted in the UK, Ireland, the Netherlands, Brazil, and Rwanda to explore the challenges, benefits, and key considerations of this type of farm diversification. These visits included farms, farm shops, and the support networks that assist such enterprises, including consultants, local government bodies, and funding organisations.

A wide range of direct-selling ventures was observed, including:

• Rwanda: Tea and coffee
• Brazil: Dulce de leche (caramelised milk) and rapadura (cane sugar block)
• Ireland: Ready-meal potatoes and cheese
• Northern Ireland: Ice cream and soap
• The Netherlands: Cheese
• UK: Direct meat sales and cider

Whilst the stories behind each of these diversifications was unique, there were common motivations, challenges and benefits. The need to spread the risk in uncertain economic times was the most common impetus for farm diversification along with the added driving force of needing a way to sustain additional generations on the farm and enable small farms to turn a profit. The major challenges were financing the venture, having the time to invest and the infrastructure to support it. The rewards were financial but also included a sense of personal accomplishment from customer feedback.

When exploring farm diversification there are several factors to consider. These include geographical location, sales route, marketing, the access to a support network and the use of technology to reduce people and time constraints. However, the most important factor in success of such an enterprise in having the person and personality to provide the drive.