Building Local Ag Markets: Island Naturals
Clear signage to promote local produce at Island Naturals
Russell Ruderman
Owner, Island Naturals
Develop strong marketing skills: become a spokesperson for your products
Russell Ruderman is committed to purchasing and marketing local food from Hawai‘i’s farmers. The focus on local food blossomed over the last six years, according to Ruderman, when a steady stream of farmers and food manufacturers began approaching the store and asking him to carry their products. Despite the increase in local food production, Ruderman is surprised at the number of gaps remaining in Hawai‘i’s local food production.
Russell Rudderman at the Hilo store.Over 200 farmers supply locally grown fruits and vegetables to Island Naturals’ four stores, located in Hilo, Pāhoa, Kailua-Kona, and Kealakekua. Island Naturals buys direct from farms and through distributors that carry organic and locally grown food. To encourage customers to purchase locally grown foods, Island Naturals gives preferential treatment to local items, providing these products with unique signage and better placement in the store. For new products, Ruderman encourages producers and manufacturers to arrange to set up a sample table in the store, and introduce their product to customers. “It is powerful when the customer meets the producer,” says Ruderman, “it exposes the person to the taste but more importantly establishes that personal connection; in Hawai‘i’s small community these relationships make a difference.” If a farmer is not comfortable marketing or showcasing their product, Ruderman believes that it is worth their time and money to find someone who is capable of marketing on their behalf.
One of the biggest challenges farmers face, says Ruderman, is consistency; the more consistently the farmer delivers, the more successful the store can be in marketing their product. Another important requirement for farmers is basic business and people skills. Farmers should be comfortable talking about their product and how it was grown, offer a reasonable price based on the cost of production, and provide the store with an invoice upon delivery. As with most stores, Island Naturals requires farmers to provide business documents, such as a general excise tax license, and accept payment by check thirty days after invoicing. Successful long-term business relationships require both the farmer and the purchaser to be familiar with each other’s expectations and capabilities.
If a farmer is interested in selling their products to Island Naturals, Ruderman encourages them to approach the store with a sample and speak with the produce manager. He also stresses the need for farmers to conduct preliminary research, to come in and speak with the produce manager and identify gaps in purchasing and availability, and grow a product that is in demand. “We cannot buy kale from 20 people,” Ruderman says, “think about what is not being grown and experiment with that.” For example, Island Naturals’ most popular vegetable is broccoli, of which 10 cases are flown in per week for each of the island’s stores. Other heavily imported vegetables include potatoes, carrots, and onions; and the store can never carry enough local eggs or organic papaya to meet the demand. Island Naturals would also like to see increased supplies of locally produced fruit juices and locally sourced chicken, turkey, pig, lamb, and fish.
This interview was excerpted with kind permission of the authors from:
Elevitch, C., N. Milne, and J. Cain. 2012. Hawai‘i Island Farmer’s Guide to Accessing Local Markets. Hawai‘i Community College Office of Continuing Education and Training, Center for Agricultural Success, and Permanent Agriculture Resources. http://hawaiihomegrown.net/pdfs/Hawaii-Island-Guide-to-Accessing-Markets.pdf