Our small American farms are disappearing because they are unable to compete with larger domestic or international farming operations. To make matters worse, a growing number of retail chains require that their suppliers employ sophisticated traceability technology, but small farmers do not have the resources to provide traceability due to the high price and time commitment incurred to implement existing traceability systems. As a result, small, local growers will be increasingly shut out of retail chains. The Produce Traceability Initiative (PTI) is an industry-wide effort, intended to move the supply chain to a common standard for electronic produce traceability by the end of 2012. The plan involves adopting a standardized system of case bar coding for all produce sold in the United States, to allow product to be tracked throughout the distribution chain. If it is successful, the plan will maximize the effectiveness of the industry's current traceability procedures, improve internal efficiencies and assist public officials when they need to quickly trace back a product to narrow the impact of future recalls. However, a significant challenge to the plan's success has been smaller growers' reluctance to adopt the GS1 technology required for participation, because the technology can be expensive for a very small operation to acquire and implement. A GS1 manufacturer's number is required before a small grower can label any of their cases of produce for traceability under the system required for compliance with the PTI. The cost of a manufacturer's number can range from $750 into the thousands for the first year, with subsequent annual renewal fees that varies depending on a company's annual sales. For the struggling small to medium sized grower, even $750 is too steep a price to absorb. Through consumer education and demand-focused marketing, Top 10 will ultimately increase competition in the domestic market for premium produce, and will increase awareness of locally grown produce in the American market. The GS1 traceability system will encourage fair pricing and increased access to high quality, safe domestic produce and this should increase domestic demand. As the consumer becomes informed about fresh produce, and are educated through demand-side marketing, the public will make a shift toward a healthier diet. Increased consumer awareness and education may increase consumption of healthy fruits and vegetables. Sustainable and organic growing methods will become popular with the consuming public and sustainable practices will be more profitable due to increased consumer awareness and the resulting demand for sustainable produce from smaller farms. This will act as a catalyst in the farming community, encouraging farmers to achieve a higher sustainability rating and develop more sustainable farming methods, therefore protecting the environment for future farmers. OBJECTIVES: The objective of our research is to determine if small farmers selling 100% traceable produce under a nationally recognized trademark will increase the profitability of the small farm and provide a net return on investment for the technology and marketing expense required for the plan's implementation. Using consumer feedback as a marketing tool, small farms can create an identity for their product outside the operation of a commodity based approach and facilitate consumer education and dialogue on high quality produce. Through our online community, consumers will become educated, developing the ability to appreciate produce that has distinguishable characteristics, such as a higher sustainability rating or fresher taste. Growers will be able to create a relationship between consumers and their produce, not unlike wineries and their wine club members. The development of the consumers' ability to discern high quality produce among the nominal produce and identify with that produce will allow the small producer to sell their produce at a premium. This in turn will help the business of farming on a small-scale turn profitable, thereby stimulating local communities across this nation. The first step in providing these services is attracting growers in the proper demographic: small growers that produce higher than average quality produce. We have already launched this recruitment effort and our early successes have convinced us that we will be able to attract the right kind of growers in sufficient numbers that these grower's labeled and traceable produce will be more appealing to consumers. Consumers will are educated about what makes the produce exceptional (from a small grower, sustainability, taste, low pesticide use whatever the grower specifies based on consumer preference) as well as the story behind the produce that cannot be told with traditional media. The grower's value system, the grower's life story, the grower's secret to finding a balance between remaining profitable and doing the right thing for their community and the environment. Produce marketed to the consumer's specific requirements will result in increased consumer demand, and, in turn, lead to higher prices paid by produce buyers. Consumers can scan the barcode with their Blackberry or iPhone, learn about the produce and the farm where it was grown, and even rate the produce if they choose to. This is made possible through the use of "Extended Packaging," a service provided by a number of companies utilizing the standard barcodes utilized under the GS1 system.3 This extended packaging will allow the consumer to feedback for the grower, allowing the grower to shift and adjust their operations and their marketing to the recommendations of the consumer. This feedback system allows for continual improvement in the grower's message and the expenditure by the grower to speak directly to what is important to the consumer - market forces drive innovation rather than regulation forcing it on the grower
