Marketing is that part of your business that transforms production activities into financial success.  Unanticipated forces, such as weather or government action, can lead to dramatic changes in crop and livestock prices.  As agriculture moves towards a more global market, these forces stem increasingly from world factors.  Other farmers’ weather and other governments can affect your prices.  When these forces are understood, they can become important considerations for the skilled marketer.  Marketing risk is any marketing related activity or event that is uncertain leading to the variability and unpredictability of prices that farmers both receive for their products, and pay for production inputs.  (After National Crop Insurance Services’ Crop Insurance and Risk Management Primer, Risk Overview, page 35.)

Today’s challenging market characteristics bring increased opportunity and increased risk to Christmas tree growers.  The changing supply and demand characteristics of the Christmas tree industry are causes of concern among growers and industry experts.  In such an environment, growers should approach marketing decisions with an informed, balanced, and strategic approach.  Successful implementation of available marketing tools and strategies depends on growers understanding the risks and rewards involved with each marketing decision.  By understanding marketing opportunities and risks, growers can add substantial value to their operations through proper marketing of trees.

 

Two articles are presented on the topic of Marketing Risk:

1. From the National Crop Insurance Services’ Crop Insurance and Risk Management Primer, we provide an article by Dr. Laurence M. Crane entitled Marketing Risk.

2. From Cornell University’s “Smart Marketing” newsletter, we provide an article by Wen-fei L. Uva entitled Managing Marketing Risks.

These articles were selected for their relevance, ease of understanding, and completeness; however, they do not provide an exhaustive discussion of Christmas tree marketing risk.  Readers desiring additional information about Christmas tree marketing risk are encouraged to explore the reference links provided below.

 

 

Additional References

 

Library Sources

• National Ag Risk Education Library: http://www.agrisk.umn.edu/;

• Recognizing Risks: http://www.wvu.edu/~agexten/farmman2/riskmang/risk.htm.

Articles

• Christmas Tree Marketing: http://www.umext.maine.edu/onlinepubs/htmpubs/7009.htm;

• Live tree sales fall as fake market grows: http://www.msnbc.msn.com/id/6671230/?GT1=5936

• Marketing: Critical for Effective Farm Management: http://www.smallfarmsuccess.info/management/print_544.cfm;

• Tree Farmers Seek Bigger Market with Designer Line: http://www.dailygamecock.com/news/2004/11/29/Holiday/Tree-Farmers.Seek.Bigger.Market.With.Designer.Line-815692.shtml;

• Direct Marketing Alternatives: http://www.uwex.edu/ces/agmarkets/DM03.html;

• Christmas tree marketing: http://info.ag.uidaho.edu/pdf/CIS/CIS0896.pdf;

• Weed Management in Conifer Seedbeds and Transplant Beds: http://www.ces.ncsu.edu/depts/hort/hil/hil-449.html.

 

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