USDA/PSU IPM PARTNERSHIP Northeastern IPM Center

Annual Report

A. GRANT DATA Project Title: Red Tomato IPM Working Group: Communicating IPM Benefits to Consumers Grantee Name: Red Tomato, Inc. Type: IPM Working Group (IWG) Grant Subward Number: 3134-RT-USDA-2013 Total Grant Award Amount: $35,000 Grant Award this Project: $ 20,000 Project Period: March 1, 2007 – February 28, 2008 Reporting Period: March 1, 2007 – February 28, 2008 Report Submittal Date: April 30, 2008 Project Director: Michael Rozyne Red Tomato 1033 Turnpike Street Canton, MA 02021

781-575-8911 mrozyne@redtomato.org States involved: CT, MA, ME. NH, NY, VT and PA

B. SUMMARY In this one-year project, Red Tomato (RT) and our Working Group partners focused on building the market for IPM-grown apples in the Northeast by crafting educational/promotional vehicles for the Eco Apple program, targeted primarily at trade buyers and the buying public. The close working relationship among growers, scientists, and marketers in our Working Group resulted in:

1) Powerful yet simple marketing messages linking IPM, the Eco Apple program and the environmental and social value of fresh, Northeast apples;

2) Increased awareness and demand among consumers for locally grown, Northeast Eco Apples from new packaging and promotional materials, media outreach and educational programs;

3) Total 2007 Eco Apple sales of $1,472,000, representing a 130% growth in sales over 2006, and 11 new customer accounts.

C. GOAL AND OBJECTIVES The goal of this project was to better market Northeast apples that are grown under advanced IPM standards and thereby provide economic rewards and incentives to participating growers. The project was designed to research and test diverse marketing strategies to integrate messages of environmental health impacts linked to IPM growing practices with local freshness and quality. The strategies and materials developed in this project have linked consumers with the Eco Apple product and individual orchards, deepening the demand for these apples, stimulating increased revenue to growers while providing continuing incentive for grower commitment to advanced IPM practices. The objectives of this project were the development of key consumer messages (Objective #1); distribution of a series of targeted media/press outreach and press releases (Objective #2); development of marketing tools and identification of promotional vehicles (Objective #3). The principal deliverables were (1) powerful yet simple messages crafted to convey the benefits of IPM practices and its link to local, fresh apples; (2) targeted media outreach promoting the Eco Apple message and grower stories; (3) new customized packaging developed as the primary marketing vehicles for Eco Apples (see Appendices for support documents).

D. WORKING GROUP MEMBERSHIP The RT IPM Working Group consists of 29 stakeholders from 7 Northeastern states—CT, MA, ME, NH, VT, NY and PA. Members include farmers from 12 Northeast apple orchards, 8 researchers and extension agents, 1 IPM crop consultant, and Thomas Green, President of the IPM Institute of North America—plus convener Michael Rozyne and RT consultants Susan Futrell, Communications and Diane Stalford Rast, Graphic Design. The diversity and breadth of knowledge in the group has given unusual depth and practicality to this project. Working Group Members include:

• Thomas Green, Ph.D., CCA, TSP, IPM Institute of No. America, Madison, WI • Michael Rozyne, RT Managing Director Researchers and extension educators in the IPM program at UMass Amherst: • Daniel R. Cooley, PhD, Associate Professor of Plant Pathology; • William Coli, PhD, IPM Coordinator; Extension specialist; • Arthur F. Tuttle, MS, Extension IPM field leader, plant pathology; • Jon Clements, Extension Tree Fruit Specialist, and • Richard Bonanno, PhD, Adjunct Professor. Bonanno also owns and operates Pleasant

Valley Gardens Farm in Methuen, MA • Juliet E. Carroll, PhD, Fruit IPM Coordinator, NYSIPM Program, Cornell University,

Ithaca, NY • Harvey Reissig, Cornell University, Ithaca, NY • Art Agnello, NYSAES, Cornell University, Ithaca, NY • Rob Koch, crop consultant, Apple Leaf, Kingston, NY • Calvin Beekman, Beekman Orchards, Boyertown, PA • Michael Biltonen, Stone Ridge Orchard, Stone Ridge, NY

• Aaron Clark, Clark Bros. Orchard, Ashfield, MA • Homer Dunn, Alyson’s Apple Orchard, Walpole, NH • Peter and Laurie Ten Eyck, Indian Ladder Orchard, Altamont, PA • Ezekiel Goodband, Scott Farm, Dummerston, VT • Barney Hodges, Sunrise Orchards, Cornwall, VT • John Lyman, Lyman Orchards, Middlefield, CT • Steve and Marilyn Meyerhans, The Apple Farm, Fairfield, ME • Bob Rigdon and Walt Blackler, Apple Acres, Lafayette, NY • Glenn Schreiter, Saxtons River Orchards, Saxtons River, VT • Vito and Joe Truncali, Truncali Farms, Marlboro, NY • RT consultant Susan Futrell, Communications • RT consultant Diane Stalford Rast, Graphic Design

E. PROGRESS The RT Working Group (WG) convened as planned for our annual face-to-face meeting in March 2007. The meeting brought members up to speed on the outlook for projected sales growth in 2007, key marketing positions of RT and Eco Apples, broader market trends such as local, domestic fair trade and eco/sustainable vs. organic, and societal concerns related to food such as obesity and contamination/food safety. In-depth discussions at the annual meeting of IPM (and Eco Apples) and its relation to organic certification and domestic fair trade informed the work plan and priorities of the WG by identifying the primary concern of growers for marketing: packaging and promotional material with greater visibility for individual Eco Apple orchards. RT staff consulted WG members on the format and verbiage for the new Eco Apple packaging and branding. The WG met in monthly teleconferences, with the agenda, priorities and notes sent to all members. A more extended conference call was held at the end of 2007 in lieu of a second face-to-face meeting. We had additional calls in early 2008 and in-person strategic planning meeting of a subset of the Working Group prior to the March 2008 annual meeting. The WG meetings focus on the content and integrity of the Eco Apple IPM protocol, farm-level production and pest issues, marketing, sales and logistics, and project development. The WG further advanced the production protocol, most notably by elimination of all organophosphates as allowable substances. WG progress on marketing-related activities included:

• Identification of grower priorities for new packaging • Farmers wrote stories to be printed on side panel of new apple totes • Review potential format and verbiage for new apple tote bags and case boxes • Draft and review Frequently Asked Questions fact sheet 2007

F. RESULTS The key priority addressed by this Working Group was “to successfully market regionally-grown tree fruits to Northeastern markets that are quality controlled by the application of a certification based on IPM standards that is appropriately suited to New England growing

conditions.” This project also addressed the NE IPM Center priority to develop IPM educational materials and outreach programs to help the public to understand IPM. Our increase in sales of Eco Apples fulfills the NE IPM Center priority to improve economic benefits to growers using IPM methods. We measured the success of this project by the following criteria and indicators: Development of simple and accessible language that describes benefits of Eco Apple

protocol to consumers Press coverage of results and benefits of program Public relations and education efforts that reached our target audience through our new

product packaging, store demos and tastings, distribution of marketing materials, Fair Trade farmer tour, and school education programs

Quantitative Results

Target Audience Reached through Marketing Vehicles New packaging and promotional materials

- Point-of-sale signage with new messages was used by three grocery chains as well as by several growers in their own retail stands

- New apple tote bags highlighting individual orchard name and location, farmer story told in the farmer’s voice (54,000 cases sold (8 totes/case), conservatively estimating 2 impressions / consumer at home, resulted in 432,000 impressions, with many more viewing the totes on display in stores.)

- New apple case box with RT messages and orchard name raised profile among trade buyers and produce departments

- Frequently Asked Questions Fact Sheet on Eco Apples Eco Apple Education and Promotion

- Media outreach on Eco Apple program and value to NE apple growers, resulting in feature article in the Boston Globe, reaching over 360,000 readers

- RT Community Outreach Program staff conducted 5 supermarket demos, 350 shoppers sampled 7-8 apple varieties and voted for their favorite

- Tasting at Boston Vegetarian Food Fair made over 5,000 contacts. Participants sampled apples, asked questions (mostly about Eco Apples in relation to organic), and took Eco Apple brochures

- Classroom education sessions, held in 15 Massachusetts public schools, educated 239 third grade students

- Presentation at the Carlton School Sustainability Fair reached 94 students, parents and teachers

Farmer Tour “Faces of Fair Trade: Uniting the Global and Local”

- Press releases widely distributed - 2 newspaper articles published, with circulations of approximately 300,000

readers - 5 RT Eco-Apple growers participated as speakers - Positive response from audiences of over 375 activists, many remarking that they

rarely have the opportunity to hear directly from farmers and appreciated the stories and information

2008 Marketing/Public Relations Plan

- Identified and contracted Sue McGovern, McGovern Communications to develop a plan to ramp up RT’s public relations efforts for Eco Apples in 2008

Impact on Sales New accounts - 11 new accounts in MA, NJ, NY, PA secured between April 2007 – March 2008 Sales Growth of Eco Apples

- 2006 sales of Eco Apples $643,000, 24,000 cases - 2007 sales of Eco Apples $1,472,000, 54,000 cases, representing 130% growth

over 2006

Impact on Apple Growers Grower Participation

- 2005/2006: 475 acres and 6 growers Eco Apple certified - 2007: 771 acres and 12 growers Eco Apple certified

Grower Income - Average dollar volume marketed by growers through RT was $108,680 . - This is an increase of 98% from the 2006 average dollar volume of $54,923

G. IMPACTS 1) Powerful yet simple marketing messages linking IPM, the Eco Apple program and the environmental and social value of fresh, Northeast apples. RT staff worked with brand advisors and WG members to craft the key messages that link the environmental benefits of advanced IPM practices with the quality and cultural benefits of fresh apples grown by Northeast family farmers. These messages are captured in the following phrases used in our new point of purchase materials:

Grown on Northeast family farms, by stewards of land, water and wildlife, using natural methods and minimal spray, closing the distance from farm to table.

Trust the Farmer. Know the Orchard. LOVE the Fruit. Fresh produce in season, grown on Northeast family farms.

The marketing materials were re-designed to connect consumers with farmers by including orchard names and location, farmer stories and photos, using the compelling graphics which are already a strong part of the brand. The new apple tote bags include an easily understood description of IPM. 2) Increased awareness and demand among consumers for locally grown, Northeast Eco Apples from new packaging and promotional materials, media outreach and educational programs. We made changes to our apple packaging and promotional materials based on our newly crafted messages for Eco Apples. The Eco Apple tote bag was customized to increase the visibility of individual growers to consumers, and a new case box did the same with trade buyers. The new apple tote bag integrates the orchard name and location into the bag’s artwork and devotes an entire side panel to the farmer’s story written in the first person and signed by the grower. The other side panel describes RT and defines IPM practices and the Eco Apple program (see Appendix for examples). The case box carries RT’s name, new Eco Apple marketing messages and includes the orchard name, logo and location. RT staff found that buyer feedback on the new packaging was uniformly very positive. Buyers mentioned that the identification of the farm on the tote bags was very important to them, because it strengthened the local connection and increased customers' feelings about the authenticity of the product. The description of IPM also reinforced the confidence of customers about the apples being ecologically grown. Building on our successful educational campaign with trade buyers and produce managers in 2006 (funded by a prior grant from the NE IPM Center), our Community Outreach Program

educated over 5,350 consumers through in-store tastings and food fairs. Another 333 third grade students, parents and teachers were educated through our classroom education program. RT’s sponsorship, with Equal Exchange and Oké USA, of the “Faces of Fair Trade: Uniting the Global with the Local” farmer tour was a unique opportunity to highlight the shared goals and challenges of global and local farmers. The tour featured Latin American banana farmers, a pecan farmer from Georgia, and RT apple growers. The speaking events in five cities positioned RT and the Eco Apple program as part of the larger movement to support family farmers through fair trading terms both at home and abroad. By linking the eco message with a family farm and fair trade story, we were able to attract broader media and audience during "October is Fair Trade Month” than the eco message might have alone. The events were well-received and generated valuable media interest and grower involvement. Fresh apples are the core (!) of RT’s apple season sales, however growers are urging RT to develop value-added products as well. In 2007, we researched processed apple products that could serve as marketing vehicles for Eco Apples year-round, as well as providing a market for our growers’ apples beyond the fresh season. While we made significant progress on these products, they are still in development. We expect to launch new products in 2008 and are optimistic that they can provide a valuable avenue for increased grower incomes and far-reaching consumer education about the benefits of IPM practices. 3) Total 2007 Eco Apple sales of $1,472,000, representing a 130% growth in sales over 2006, and 11 new customers accounts for Eco Apples were acquired. The 2007 sales growth of Eco Apples is impressive when compared to an average growth rate of organic produce of 10.9% annually1 or to the standard 2-4% annual growth rate in the conventional food market2. The sustained sales growth clearly demonstrates that RT’s unique partnership with farmers is successfully educating trade buyers and consumers about the benefits of IPM practices and their link to healthy, fresh, local apples. It is evidence of the ability of consumers to understand the complexity of IPM and value (and pay a premium price for) the uniqueness of a Northeast apple. Between April 2007 and March 2008, Red Tomato acquired 11 new customers for Eco Apples, including D’Agostino’s in New York City, King’s in New Jersey, Fruit Guys in Pennsylvania, and the Perkiomen (PA) School District. RT highly values our relationship with growers. We commission an annual survey to track the levels of satisfaction, effectiveness of RT’s 2007 activities and identify areas for improvement. Nine of the 19 respondents in 2007 were apple growers. The 2007 grower survey (See Appendix 3) showed high levels of grower satisfaction with the experience of marketing their fruit through RT. When asked to rate the advantages of working with RT, growers rated the following benefits as the most important:

• Access to new markets

1 Organic Trade Association. 2006 OTA Manufacturer’s Survey. http://www.ota.com/pics/documents/short%20overview%20MMS.pdf 2 Philpott, T. “Filling Their Sales: If organic food is so popular, why are so few farms transitioning their land?” GRIST. 22 Mar 2007 http://www.grist.org/comments/food/2007/03/22/organic/

• Relationship with RT and their marketing expertise • Increased price

The following figure shows the relative importance that growers placed on the relationship with RT and its marketing expertise (6-9), the Eco Apple brand (6-4), and access to packaging options that come with the brand (6-5), the latter two are clearly increasing in importance over time as sales of Eco Apples increase. Figure 1. Average ratings for nine possible advantages to marketing through Red Tomato.

1 2 3 4 5

6-8 Opportunity to work with othergrowers

6-6 Certification

6-5 Packaging options

6-3 Help marketing difficult grades,varieties

6-4 Use of RT or Eco-Apple Brand,slogan

6-2 Access to secure/stable markets

6-7 Price

6-9 Relationship with RT; itsexpertise

6-1 Access to markets …

200720062005

*From: Grower Satisfaction Survey: Red Tomato’s 2007 Local Marketing Program. Duane Dale, DFD Associates, February 28, 2008. Grower comments about the value of RT and the Eco Apple program included one large-scale grower who sees Eco Apples as a way to gain experience with IPM practices that he believes “will become the standard approach to spray programs”. Another grower commented that “Red Tomato is the only [broker] whose charter and goal is to see the success of the farmers. Except for Red Tomato, I’ve never been asked ‘how much do you need to take home in order to succeed?’. Volumes of apples marketed through RT increased in 2007. The average dollar volume marketed by growers through RT was $108,680. This is roughly double the 2006 average dollar volume of $54,923. Grower participation increased as well: in 2005/2006, six farms totaling 475 acres were Eco Apple certified; in 2007 we had 12 growers and 771 acres certified.

H. NEXT STEPS The feedback from shoppers, students, and growers to the new Eco Apple marketing campaign has been overwhelmingly positive, as evidenced by robust sales growth and positive responses in the grower survey. We regard this project to develop messages and materials for consumers around IPM practices and their link to local apples as a work-in-progress and believe we have been so far successful. Combined with our prior work with trade buyers and produce managers, this year’s work positions Red Tomato and our partners for greater growth and positive impact on our local food systems and family farms. RT’s work with farmers has clear economic benefits to growers relative to increased income and market access; however, we plan to sharpen our calculations in 2008 on the diverse benefits to growers of advanced IPM and the Eco Apple program to fully represent the impact. We are also researching dependable methods of quantifying the pesticide impact from the Eco Apple program, a commonly asked question. Growers identified the development of differentiated and value-added products as key areas of improvement for RT. The expected finalization and launch of a processed apple product based on Eco Apples represents an exciting diversification option for RT, providing year-round sales for our producers’ apples. It will present major communication opportunities and an ongoing way for the Eco Apple message to reach a greater number of consumers.

I. APPENDICES Appendix 1 Eco Apples Packaging and Promotional Materials (sent separately as .pdf files) Note: these materials are proprietary and are not to be disseminated beyond the Northeastern IPM Center without permission from Red Tomato. Appendix 2 Media Coverage

• Boston Globe Business section, November 3 , 2007 (attached below). http://www.boston.com/business/articles/2007/11/03/focusing_on_core_business/

• “The New Face of Fair Trade”. The Bulletin - Philadelphia's Family Newspaper (attached below).. http://www.thebulletin.us/site/index.cfm?newsid=18982674&BRD=2737&PAG=461&dept_id=576361&rfi=8

• The Hartford Courant article archive http://pqasb.pqarchiver.com/courant/results.html?st=advanced&QryTxt=Fair+Banana&type=current&sortby=REVERSE_CHRON&datetype=6&frommonth=09&fromday=01&fromyear=2007&tomonth=03&today=20&toyear=2008&By=Eric+Gershon&Title=That's+A+Fair+Banana

Appendix 3 “Grower Satisfaction Survey: Red Tomato’s 2007 Local Marketing

Program”. Duane Dale, DFD Associates. February 28, 2008 (attached below).

APPENDIX 1. November 3, 2007

BUSINESS Section, p.1

Focusing on core business Canton-based Red Tomato negotiates for local growers

By Diedtra Henderson, Globe Staff | November 3, 2007

ASHFIELD - Aaron, Brian, and Dana Clark grow apples on the same rolling hills in Western Massachusetts as did their father, grandfather, and great-grandfather.

The fact that land Herbert Clark purchased in 1886 remains the Clark Brothers Orchard in 2007 is due to a combination of luck, skill, a helpful microclimate, and, in recent years, the same kind of cooperative marketing agreement that seeks fair prices for small Latin American producers selling bananas.

After the state's apple industry slipped at the end of the last decade, the Clarks were among several local growers who turned to a nonprofit called Red Tomato for help scouting new markets and raising consumer awareness about locally grown fruit.

From 1997 to 2002, Massachusetts lost 1,150 acres of apple-bearing land. By 2002, the most recent year of a federal census, some 384 orchards survived, down from 457 five years earlier, as struggling orchards gave way to residential developments. Last year, Massachusetts farms produced about 32 million pounds of apples worth $14.8 million. Massachusetts remains a tiny player when compared with the 5.65 billion pounds produced by Washington state growers who account for 58 percent of the nation's apple production.

"The whole industry has gone through real tough times," said Aaron Clark, 57. "You've got to find markets that are willing to pay more. The people who are surviving are finding niche markets."

That's where Red Tomato comes in.

Canton-based Red Tomato, founded in 1996, works with small farmers in the United States, negotiating sufficient prices for crops to sustain family-run businesses and expanding market access, said spokeswoman Susan Futrell.

Rather than approaching stores individually, Red Tomato helps nearly three dozen fruit and vegetable growers sell their crops and handles logistics to deliver produce from farm to market.

The group promotes the fruit it represents as "born and raised here," selling produce from participating growers as "Eco Apples" in totes that bear the grower's name and tell a snippet of each orchard's story.

In 2002, Red Tomato brought in $40,500 in additional sales to the Clarks; last year, that rose to $84,000. In 2007, according to Futrell, apple sales that Red Tomato is brokering for the orchard are on track to double that figure. In addition, Clark averages a $3 per case premium when he sells the Eco Apple brand on his own. Other regional apple farmers participating in the program include such family farms as Alyson's Apple Orchard in Walpole, N.H., and Lyman Orchards in Middlefield, Conn.

Jon Clements, an extension tree-fruit specialist at the University of Massachusetts Cold Spring Orchard, said growers and Red Tomato are tapping heightened consumer demand for locally produced food.

"If you can work with the Eco Apple group and get a little more money or improve their image, that is the way to go," Clements said. "We can grow a much better apple in season than Washington. That's where the future of our apple industry is."

In recent years, the Clark brothers have also diversified their crop, moving from a few traditional apple types planted generations ago to such lucrative varieties as Macoun and Honeycrisp, which wholesales at roughly $55 per bushel, versus $24 per bushel for McIntosh.

This year, they expect to produce 40,000 bushels, slightly more than 4 million apples. One-quarter of their acreage is planted with Honeycrisp, which so far, has generated more than half the farm's revenue through sales at such stores as Whole Foods Market.

"Apple farming is a constant battle of trying to find new varieties that will bring a premium price," Clark said. "Farmers are the biggest gamblers in the world."

Even as they turn to Red Tomato to expand their markets, the Clark brothers continue to serve local sellers. On a recent morning, Aaron Clark drove 15 miles delivering just three bushels of apples to a local merchant who sells Clark Brothers fruit. He said it was "crazy" to make such a sale at $60 when a loaded trailer brings in $20,000, "but we like to do it."

Diedtra Henderson can be reached at dhenderson@globe.com.

© Copyright 2007 Globe Newspaper Company.

11/02/2007

The New Face Of Fair Trade By: Alexandra Stafford , The Philadelphia Bulletin Philadelphia - Carlos Vargas gripped his coffee mug, the hot brew inside warming his hands. "When I see this cup of coffee," Mr. Vargas said, "I see the effort of a lot of people." Mr. Vargas, a Costa Rican banana farmer, spoke thoughtfully. "It's not anonymous," he assured the small audience gathered around a coffee table at Joe Coffee Bar last Tuesday.

Mr. Vargas couldn't say that about any cup of coffee at any coffeehouse in the city. In 2002, Joe Cesa opened his café at 11th and Walnut, resolving to sell only Fair Trade coffee, a commitment few (if any) café owners in the city had made at the time. Years passed before customers fully understood the terms - Fair Trade, organic and shade grown - describing the shop's coffee. Some customers even walked out before giving the brew a try. Today, however, these labels draw people inside Joe Coffee Bar. More people know the higher price they pay for Fair Trade coffee, chocolate and nuts helps distant farmers send their children to school, receive better health care and obtain a better quality of life overall. They know their dollar helps families continue to farm using ecologically sound practices. And they know that Fair Trade coffee, grown on small farms under a forest canopy - where it thrives - tastes superior too. For these conscientious shoppers, perhaps the introduction to the next generation of Fair Trade products - one that includes bananas and domestically grown pecans and apples - will be less of a shock. In honor of Fair Trade month, four farmers on a tour called "Faces of Fair Trade: Uniting the Global and Local" have been visiting various cities, sharing their experiences with audiences at each stop, recounting the many challenges they face as small farmers in a globalized world (including low prices driven by increased market supply from countries such as China). An eclectic mix - Mr. Vargas and fellow banana grower Yocser Godoy Carranza from Costa Rica; Diann Johnson, a pecan farmer from Georgia; and Glen Schreiter, an apple farmer from Vermont - these growers represent the new faces of Fair Trade. Mr. Vargas and Mr. Carranza foremost reminded the audience about the team effort required to get their bananas to the U.S. They expressed their gratitude to each player in the production chain: Oké USA, the organization that not only pays them fair wages, allowing them to invest in health care, education and housing, but also finds them retail markets in the U.S.; the shops who agree to sell their bananas at a higher price; and to all the members of the banana-growing co-operative (Coopetrabasur) in Costa Rica who persevered through years of hardship. "We are a community of survivors," Mr. Vargas said proudly after describing a series of events (including being abandoned by Chiquita) that led to the formation of their co-op. Mrs. Johnson similarly thanked Equal Exchange, the oldest and largest Fair Trade for-profit organization in the country, for purchasing 50 percent of her pecan harvest this year. For the past 20 years, Equal Exchange has partnered with farmers in Latin America, Africa and Asia, bringing Fair Trade coffee, tea and chocolate products to the U.S. But after realizing that domestic farmers face many of the same challenges producers in marginalized regions of the world face, Equal Exchange began working with farmers in the U.S. too. Equal Exchange distributes pecans from Mrs. Johnson's co-op, Southern Alternatives Agricultural Co-operative (SAAC), all over the country. Members of SAAC commit to helping children with homework after school, to counseling troubled adolescents and to bringing the elderly meals-on-wheels. By purchasing these pecans, a person helps these programs continue to thrive. Equal Exchange also sells almonds from a co-operative in Central California and cranberries from a farm in southeastern Massachusetts. And for ensuring the sustainability of his 40-acre orchard in Saxtons River, Vermont, Mr. Schreiter thanked Red Tomato, a nonprofit organization dedicated to connecting farmers and consumers. Red Tomato purchases 50 percent of Mr. Schreiter's apples as well as fruits and vegetables from family farms located all along the East Coast, supplying shops throughout New England. Because few farmers' markets operate near Saxtons River, and because the farm's isolated location discourages many visitors, Mr. Schreiter believes his orchard could not survive without Red Tomato. In 11 years, Red Tomato has succeeded in bringing locally grown produce to markets such as Whole Foods and Trader Joe's. In 20 years, Equal Exchange has brought numerous Fair Trade goods to hundreds of cafés and stores, reaching over a million consumers. And for the past two years, Oké USA has delivered bananas throughout New England, reaching supermarkets, natural food stores and college campuses. And as demand and awareness increase, these Fair Trade products will reach more retail locations. But "we can't do it alone," implored Julia Knott, a saleswoman for Oké USA. Ms. Knott says grocery stores will not commit to purchasing Fair Trade bananas until they see a market for them. Ms. Knott encouraged the audience to speak to the produce managers at their local grocery stores - often only one person is responsible for placing orders. "Six years ago," said Mr. Cesa, "no one knew about Fair Trade coffee," but today, "everyone is selling it." Mr. Cesa had hoped to start selling Oké bananas by last Tuesday (the date of the tour stop in Philadelphia), but couldn't find another shop willing to split an order, which apparently would fill his shop ceiling to floor. "I can't bring in a barge of bananas alone," said Mr. Cesa. "I'm drinking as much coffee as I can."

©The (Philadelphia) Evening Bulletin 2007

Grower Satisfaction Survey Red Tomato’s 2007 Local Marketing Program

Duane Dale DFD Associates

February 28, 2008

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Grower Satisfaction Survey: Red Tomato’s 2007 Local Marketing Program Duane Dale 3 DFD Associates February 28, 2008 INTRODUCTION

In order to assess the effectiveness of its 2007 marketing program and to identify possible areas for improvement, Red Tomato4 commissioned a study of the opinions of participating growers. Duane Dale of DFD Associates was selected to design and carry out the study and prepare this report. Dale had conducted a similar study for the 2005 season during December 2005 and for the 2006 season during January and February 2007. Telephone interviews were used to gather information. Red Tomato provided the names, phone numbers, and basic background information for 19 growers who were active in Red Tomato’s 2007 marketing program. Most had marketed through Red Tomato for several prior years. All are male. Their farms are in the states of Massachusetts (8), Connecticut (3), New York (3), Vermont (3), New Hampshire (1), and Pennsylvania (1). Most of these growers had Red Tomato dollar volumes above Red Tomato’s median level for 2007. Their average dollar volume marketed through Red Tomato (as reported by Red Tomato) was $108,680 (up about 100% from the 2006 interviewee’s mean dollar volume of $54,923) and their median was $75,696. Fifteen other growers worked with Red Tomato in 2007, but the 19 interviewed accounted for 98% of Red Tomato’s 2007 purchases from growers. The 19 growers – a 100% sample of the intended interviewees – were interviewed between February 13 and 21, 2008. Fourteen had been interviewed for the previous year’s study. Their attitude toward the interview was cooperative. The length of most interviews fell in the range of 10 to 30 minutes with an average of just over 18 minutes. None requested that any of their responses be rendered anonymous. Eleven of the 19 grow tree fruits: seven only apples, two grow only other tree fruits, and two grow apples and other tree fruits. The other eight grew vegetables (7) and/or berries (3), including heirloom tomatoes, strawberries (3), blueberries, and mixed vegetables. The interview questions were drafted by Duane Dale in consultation with Michael Rozyne of Red Tomato. Most are the same or similar to questions for the 2005 and 2006

3 The author can be contacted at (603) 367-8336 or ddale@DFDassociates.com. 4 Red Tomato is a nonprofit marketing organization based in Canton, Massachusetts, that helps family farmers survive and helps make sure that people can find high-quality produce. More information is available at www.redtomato.org.

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seasons, but some questions were modified, some were dropped, and a few were added. The 2007 season interview questions are included as an appendix to this report. INTERVIEW FINDINGS New growers The five new growers were asked how they got started working with Red Tomato. Three reported that they had been contacted by Red Tomato. The other two contacted Red Tomato after learning of it from another grower or at a land-grant university’s “fruit school.” Season Overview This year’s interview began with this question:

Overall, how would you describe your experience of marketing through Red Tomato during the 2007 season?

Thirteen responded with clearly positive responses (“very good,” “quite good,” “very positive”) including three whose responses were most strongly positive (“exceptional,” “excellent,” “probably our best year ever with Red Tomato”). Of the others, four responded with phrases like “OK,” “satisfactory,” or “average.” Only two gave a negative assessment overall, including one who left the program after an experience in which berries were rejected by a major account and one who suffered hale damage to a fruit crop, which made much of his crop difficult or impossible to market. Follow-on questions to the overall question probed for especially positive aspects of marketing through Red Tomato in 2007 and any problematic aspects. Positive aspects included these points:

• More sales / volume (7) • Red Tomato’s success at handling increased volume (6) • Ease, convenience, logistical competence (5) • Good working relationship, good to work with (4) • Good price, decent price (2)

Volume

The next group of questions in the interview addressed the volume of produce that these growers market through Red Tomato.

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Q2: Approximately what percentage of your total wholesale produce business would you say that you marketed through Red Tomato?

Range: 1% to 55% with a mean of 25% and a median of 20%.5 2006 range: 5% to 40% with a mean of 19% and a median of 20% 2005 range: 1% to 70% with a mean of 16% and a median of 10% Q3: Would you prefer to market a higher volume through Red Tomato than you did in 2007?

Fourteen answered affirmatively, three mixed, none a simple “no,” and two gave no response. Of the three mixed or cautious responses, one was concerned about the uncertainties if added volume would come from a new and unknown customer, one was concerned about the risk involved in expensive packaging, and one was trying to decide whether he has the capacity to jump to higher volumes through Red Tomato that could provide more solid profitability. In 2006, 15 of 16 answered yes; the remaining one was satisfied with the present level. Three of the 15 “yes” responses were tentative, because they were contingent on the growers’ ability to supply RT at a higher level. In 2005, all answered in the affirmative.

Q4: In 2007, were there times when you had difficulty meeting the volume that Red Tomato would like to market for you? Seven of the 19 answered yes. For one of the seven, the issue was packing efficiency, not production; one said yes, but that he wants to have trouble meeting volume (rather than the opposite problem of not enough orders). One planted extra after some shortfalls in 2006, so the main season was fine, but Red Tomato would have taken more in the late season if he had the produce for it.

In 2006, 10 of 16 answered yes. In 2005, eight answered yes. Benefits of Marketing Through Red Tomato Q5: What would you say are the advantages of working with Red Tomato compared with other wholesale marketing channels? The growers’ responses are presented in four groups: Relationship, Communications, Values (6) Honest people, nice to deal with, not out to steal your money; out to get you a good amount of

money, not lowering grower’s price. Communications is getting better and better; we’re on the same page. Don’t have anybody else

like Michael – a lot of other brokers are playing games. Working with people who are pleasant to work with. Being a less adversarial relationship. Talking

to MR; he knows / understands what we’re doing.

5 Two growers gave percents of specific crops, so they were not included in tabulating this measure (percent of total wholesale). Because their crop percents were high, it is possible that their “percent of total wholesale business” was higher than 55% and would therefore extend the range.

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RT is the only one whose charter and goal is to see the success of the farmers. Never been asked "how much do you need to take home in order to succeed?" or "What is the price that you’ll feel happy about this transaction and make money?" other than by RT.

Nice people. Seem to do a good job on planning: six months ahead, we might be talking about a product we don’t currently grow.

The atmosphere -- conversations with MR are very laid back, very professional and yet personal. Logistics, convenience (5) Super job. Makes his job easier. Call from RT on Thursday or Friday gives him his orders. Ease of marketing From a grower on a good-sized island: Comparison is with an Island distributor, which makes

things easy with one big pickup. [But it’s easy with RT too] because they’ve done the selling, and we deliver an off-island trip we’re making anyway.

RT’s pick-up at his farm or a neighboring farm is a convenience. Fact that RT puts sales calls in and then getting to him with orders. Special effort, steadiness. Price (4) Return to grower is generally better than other channels. Price (3) – [and from one of the three…] 10-15% more than other wholesalers. But also: Just another broker. … Not getting higher prices. Marketing success, brands (1) RT image has gained acceptance, is looked for. Quality to buyers; environmental consciousness. Question 5 was an open-ended opportunity for growers to name Red Tomato’s advantages. By contrast, Question 6 asked for ratings (1 to 5) of nine pre-selected possible advantages to working with Red Tomato. Q6: I have a list of possible advantages to marketing through Red Tomato which I’ll read you, and I’d like you to rate each one with a number from 1 to 5, where 5 means it is a very important advantage and 1 means it’s not important. 6-1. Access to markets that I wouldn’t have the time to pursue on my own. 6-2. Access to markets that may be more secure or stable than other marketing channels that are available to me. 6-3. Help with marketing grades or varieties that might have been difficult to market through other channels. 6-4. Use of the Red Tomato brand, the Eco-Apple brand, or the “Born and Raised Here” slogan. 6-5. Access to packaging options that come with the brand. 6-6. Certification. 6-7 Price 6-8 The opportunity to work as a team with other growers, learning from one another and collaborating/ 6-9 Relationship with Red Tomato and its employees, including the marketing expertise they provide.

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Figure 1 (below) shows the average ratings of these nine possible advantages to marketing through Red Tomato, comparing this year’s responses to those for the previous two seasons (2006 and 2005). A “5” rating is high; a “1” rating is low. The figure uses shortened wordings of the possible benefits; growers were responding to the complete wordings shown above. Figure 1. Average ratings for nine possible advantages to marketing through Red Tomato.

1 2 3 4 5

6-8 Opportunity to work with othergrowers

6-6 Certification

6-5 Packaging options

6-3 Help marketing difficult grades,varieties

6-4 Use of RT or Eco-Apple Brand,slogan

6-2 Access to secure/stable markets

6-7 Price

6-9 Relationship with RT; itsexpertise

6-1 Access to markets …

200720062005

The wording of item 6-1 was changed for 2007, deleting the word “new” from the previous wording, which was:

Access to new markets that I wouldn’t have the time to pursue on my own. This could be partly responsible for its shift in rank from second to first. Considering the three top-rated items as a group, there is consistency over the three seasons. These three, and only these three, consistently had average ratings above 4:

6-1 Access to new markets that I wouldn’t have the time to pursue on my own. 6-9 Relationship with Red Tomato and its employees, including the marketing expertise they provide. 6-7 Price [This item was not included in the list for the 2005 season.]

High Import.

Low Importance

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For 2007, the lowest average rating was 3.3 (item 6.8). In 2006, three average ratings were lower than that – suggesting higher overall satisfaction this season. (This could be related to the higher dollar volumes in 2007.) The three lowest-rated items in 2006 were rated more favorably in 2007 (ranking 5th, 7th, and 6th for 2007):

6-4. Use of the Red Tomato brand, the Eco-Apple brand, or the “Born and Raised Here” slogan. 6-5. Access to packaging options that come with the brand. 6-3. Help with marketing grades or varieties that might have been difficult to market through other channels.

As a further indication of growers’ priorities, question 11 asked the interviewees to choose a first and second choice benefit of working with Red Tomato from this list of possible benefits: ___ The volume of product you are able to market through Red Tomato, OR ___ Access to markets, OR ___ Price and your net return, OR ___ Some other type of benefit

Consistent with the responses to the nine items of question 6, “Access to markets” got the highest ratings: 75% chose it as either first (44%) or second (31%). Volume, which doesn’t have a counterpart in question 6, was ranked almost as highly as Access: 69% chose it as either first (44%) or second (25%). Price was identified by 44% as either first (13%) or second (31%). For the 2006 season, access was first (75%), price was second (50%) and volume was third (44%). It is plausible that higher sales volume through Red Tomato in 2007 led to that higher rating for volume. Two of the three non-respondents said that these benefits were “tied” or “equal.” Grower Practices 7-1. Has your work with Red Tomato led to changes in your mix of commodities or varieties?

Eleven answered yes, seven no (two of those “not yet” but with changes in mind), one non-response. 7-2 Has your work with Red Tomato led to changes in your processing or packing?

Nine answered yes; nine answered no (one non-response). Grower Satisfaction Three questions addressed prices through Red Tomato. A fourth addressed grower satisfaction with Red Tomato itself.

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9a. For all the products that you marketed through Red Tomato, would you say that the price you received was…

Much higher / Somewhat higher / About the same / Somewhat lower / or Much lower

…than you would have received without Red Tomato’s collaboration?

9b. How satisfied are you, overall, with the prices you received through Red Tomato in 2007? Very satisfied / Satisfied / Neutral / Dissatisfied / or Very Dissatisfied

9c: How satisfied are you with the net return you achieved through Red Tomato in 2007, ? Very satisfied / Satisfied / Neutral / Dissatisfied / or Very Dissatisfied

Q10: Overall, how satisfied are you with your Red Tomato experience and relationship? Very satisfied / Satisfied / Neutral / Dissatisfied / or Very Dissatisfied

For 9a, 75% reported that the prices through Red Tomato were either much higher (12.5%) or somewhat higher (62.5%) than without Red Tomato’s collaboration.

For 9b, 87% were either very satisfied (56%) or satisfied (31%) with the prices they received.

For 9c, 64% were either very satisfied (29%) or satisfied (35%) with the net return they received through Red Tomato (after factoring in costs).

Question 10, regarding overall satisfaction with “your Red Tomato experience and relationship, got the highest ratings of this group of four questions: 89% were either very satisfied (72%) or satisfied (17%). Two were neutral and one did not respond to this question. Process Improvement Numerous grower comments make it clear that communications between growers and Red Tomato is open and frank. It is, therefore, much less likely that interviews with the growers would reveal totally new focal points for process improvement than might be the case within an operation that has less-open communications. That notwithstanding, topics for possible process improvement are reviewed here. Two questions toward the end of the interview yielded possible themes for process review: Q12: What could you or Red Tomato do to contribute to success in your marketing relationship? Q13: Is there any other topic that you want to raise, that I haven’t asked about? In this section, the responses to those two questions are combined, along with selected responses to earlier questions. Production Maintain consistent quality. [On grower’s part:] production and packaging efficiency. We’re hoping for no weather-related event next year that would affect quality, so that we can move more volume.

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Volume, predictability of orders, additional crops, value-added products Other wholesale crops? [Should I be growing other crops for RT to market? Should RT be developing markets for other crops?] Would like more volume through Red Tomato, perhaps by selling other commodities – possibly prunes, plums, pears Develop more volume. Because of shipping costs to New England [from Pennsylvania], have to be sure to put more volume on a truck [than might be acceptable on a shorter trucking run]. If somebody could tell what kind of crop we’re going to have…. Very hard to look at tree and tell; can’t know before they’re in the box. Would like to set something up where he has an idea -- say “about 60% Mac’s” -- would know how many bushels or pallets/wk (some RT outlets, or more). Would like to know ahead consistently through the 8- to 10-week height of the season. More volume; expanding the volume as long as not long the incident with the rejected load. Full-scale RT marketing of value-added apple products (cider, sauce, baked …) Further development of late winter and spring program. Have sales team focus as much of effort on the winter as on the fall. Haven’t sold Cortland bags through RT since Nov. Be proactive instead of passive re the winter. There’s been no sale or promotional concept in the winter. Pricing Higher price would be nice, but I’m realistic. Increase price of Mac quarter-peck totes [which the grower making the comment believes he supplied most of, reportedly often been below market price] Red Tomato’s customers RT needs to diversify to other markets, not count on WF quite so much. MR has other smaller customers in mind. Maintain strong rapport with [this grower’s] main customer (TJ’s). They [RT] find new accounts Wholesale customer’s preferences and practices RT [should try to] nail WF down re size of pumpkins before seeds need to be ordered. Re-establish position with WF. [Comment from one of the larger-scale apple growers.] Solution on trucking strawberries (to warehouse vs. to door). [Eliminate the “rejected loads” problem.] TJ’s buyer thought 10-day apples were soft based on sample of 1 apple; they weren’t. Figure out a solution to D’Agostino’s. Marketing – Branding –Product Differentiation Mike does a very good job going out, trying to find unique markets. Further enhance the differentiation on the shelf -- ex. sticker on individual apple (Eco Apple sticker). Eco-Apple brand shows promise; need to expand it into count apples. Certfication Had some IPM [Eco Apple] certification issues -- esp. spray schedules; different growing conditions may require leniency re requirements. [This grower geographically removed from other Eco Apple growers.] Have to pay $350 for Eco Apple certification, and I don't think it's exacting enough – not distinctive enough from regular fruit. RT doesn't want to raise the bar too much out of concern for cutting back

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the volume available. We, with a high bar (for sprays, etc.) get grouped with [other growers who don’t adhere to the same standards] "Safer" [Eco Apples] is a risky position. Could be construed by media to say that the other 98% [of his apples that he isn’t growing to Eco-Apple standards] aren’t as safe as they could be. So: not particularly wanting media to jump on ‘Eco-Apples are safer.’ " Packaging New packaging (boxes) -- expectations were high, but there’s a problem: His warehouse is built for stacking high (24’ ceilings) but those those boxes won’t stack reliably. Didn’t work with stapler; had to use tape. Interaction between Red Tomato and the growers Communications are good. Reduce the going back and forth [by phone] and esp. cancelled orders. How to do it with one call? Expensive proposition: pick-up in NY state, dropped in Boston. Stored in trailer on dock to assemble orders, then to TJ’s warehouse (3 trucking charges). "A bit complex for my taste, but I understand why they have to do it that way." We were in a surplus position in ‘07. MR raised price to TJ’s for NY product but return to rowers here was less than with other major customers. Question will be where to go (pricewise) if market gets short. Pie gets sliced many ways: grower, RT, 3 truckers (to get it to the customer), specialty packs. And his packing is done at a pack-house along L.Ontario = 4th trucking. (Chance that a more local guy could do the packing.)Doesn’t hold a lot of benefit for him. (v.lg.scale apple grower) When dealing with other brokers or stores, one call usually takes care of things. RT starts later in the day, often takes several calls back and forth to get something solid. Sometimes calls back to cancel the order [apparently, more often than with his other brokers]. Not as professional; hasn’t mastered the trade yet. Would like more information coming out re the computerized "paperwork" -- how they want it filled in. He hates redundant work. Trucking Resolve the trucking problem. Cherries go bad relatively quickly. Packing more and holding them to make up a truckload doesn’t work: mold. He: move volume of strawberries, esp. early, before Mass. gets going. Days per week of pickup. OK for it not to be everyday, but it’s been intermittent; better if more consistent. Red Tomato’s capabilities Continued development of the staff. Other / general Last year before season, dinner and party for growers and staff -- lot of fun, should do every year. In the past, the problems have been overshadowed by RT’s usefulness. Less useful this year. They seemed a bit nervous about giving our farm orders this year. [In other words, weather-related] quality issues heightened problems. Look forward to (barring weather problems again) a better, more positive experience this season – more volume, they do more work for us instead of being more work for us.

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RED TOMATO’S IMPACTS This study, including the interview questions on which it is based, was not designed to serve primarily as a gauge of Red Tomato’s impacts on the farms, the region, or the food supply, but the study does provide some useful impact indicators which are summarized here. How are local farmers benefiting? Farmers report the following benefits from working with Red Tomato:

• Access to markets that they wouldn’t have the time to pursue on their own. This benefit was rated highest of nine possible benefits of working with Red Tomato.

• The volume of product they are able to market through Red Tomato. Growers were asked to estimate the percentage of their total wholesale produce business would that they marketed through Red Tomato. For 2007, the mean of these estimates was 24.7%.

• A price that is usually better than they could obtain through other marketing channels. 75% of responding growers reported that the prices they got through Red Tomato were higher than they would have gotten otherwise – sometimes much higher.

• Access to Red Tomato and its employees, including the marketing expertise they provide. This item was ranked second out of nine possible benefits, after “access to markets …” from a list of nine possible benefits. One grower added “access to researchers, tech. people, and marketing experts [through Red Tomato].”

Red Tomato’s programs provide a training and testing ground for both large- and small-scale growers: • A small-scale vegetable grower is learning the elements of wholesale marketing (including such basics

as how to prepare and use a Bill of Lading) as he expands beyond his local market area.

• A large-scale apple grower sees Red Tomato’s Eco Apple program as a way to gain experience with IPM practices that he believes “will become the standard approach to spray programs.”

• One grower, when asked whether he benefited from “The opportunity to work as a team with other growers, learning from one another and collaborating,” explained that he was the “other grower” that his neighboring farmers were learning from. He said that he was educating these others because he saw the benefit in having a cluster of growers, all producing

Red Tomato benefits farmers because it has a goal of helping small farmers survive. The growers experience the difference:

“Red Tomato is the only [broker] whose charter and goal is to see the success of the farmers. Except for Red Tomato, I’ve never been asked ‘how much do you need to take home in order to succeed?’ or ‘What is the price that you’ll feel happy about this transaction and make money?’

Red Tomato helps growers with their advance planning:

“They do a good job on planning: six months ahead, we might be talking about a product we don’t currently grow.”

Growers report that they have increased their plantings and adjusted their mix of crops and varieties to address the market opportunities Red Tomato has found for them:

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“…large-fruit cherries … more peaches … heirloom tomatoes … IPM spray program and Eco Apple certification … best-sized varieties of pumpkins … smaller apples … romaine hearts … didn’t cut down apple varieties that hadn’t been selling because Red Tomato found markets for them.”

Are more farmers entering into relationship with Red Tomato and/or allies? Yes. Five of the 19 farmers interviewed about the 2007 season were new to Red Tomato. Three were approached by Red Tomato; the other two learned of Red Tomato and initiated the contact. Are more farmers staying in business because of their work with Red Tomato? Red Tomato’s records show that the average dollar volume marketed through Red Tomato in 2007 was $63,544 per farm, with a median of $12,200. Volume was up in 2007 for most growers in the study, and many praised Red Tomato for handling the extra volume smoothly and successfully. When asked how satisfied they are, overall, with the prices they received through Red Tomato in 2007, 56% said “very satisfied” and 31% said “satisfied.” By finding new market outlets for small family farms, Red Tomato serves as a driver for expansion for many of its growers. As one grower put it, when asked whether there were times when he had trouble meeting the volume that Red Tomato wanted,

Sometimes it was a challenge, but I want to have trouble meeting volume [because it shows that there’s more of a market out there for him].

Another grower explained, I couldn’t always meet Red Tomato’s desired volume in 2006, so I planted more in 2007.

He was then able to meet Red Tomato’s desired volume during the heart of the 2007 season but…

We could have gone longer if we’d had the product for it. Red Tomato’s growers strive to meet growing demand in a variety of ways:

… putting 20 acres (out of 100) into Eco Apple production … leasing 30 acres for Eco Apples … drip irrigation for strawberries … upgrading our packing capacity … .

Are there beneficial changes in their production practices? A substantial portion of Red Tomato’s produce volume is in Eco Apples. Growers agree to an integrated Pest Management protocol and pay to have their operations certified. Partly because of their interaction with Red Tomato, these growers have modified other practices in a variety of ways – some of them mentioned already – including …

… crop and variety selection, including heirloom varieties of tomatoes and apples … increased production … leased acreage … drip irrigation … plant for an early or late crop to meet expected demand through Red Tomato.

The interview questions follow.

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GROWER INTERVIEW QUESTIONS – 2007 SEASON Hello, is this (farmer’s name) ? Good. This is Duane Dale, and I’m calling on behalf of Michael Rozyne at Red Tomato. I’m calling growers who marketed through Red Tomato in 2007. We’re interested in getting a frank, honest assessment of how Red Tomato has been doing. So I’d like to ask you some questions about your work with Red Tomato. It will probably take about 10 to 15 minutes. Would this be a good time to do that, or would you rather pick a different time for me to call you back? Red Tomato is eager to learn all it can from the farmers it works with, so as to improve next year’s program. If there’s anything you say that you don’t want identified with you as an individual, just let me know that as it comes up. I’ll check again at the end to see if there’s anything that falls into that category. Here’s my first question: ~~~~~~~~~~~~~~~~~~~~~~~~~~~ BACKGROUND Q1: [Only for growers not interviewed about the. ‘05 or ‘06 seasons.] How did you get started working with Red Tomato? GENERAL OVERVIEW QUESTION: Q1.5: Overall, how would you describe your experience of marketing through Red Tomato during the 2007 season? [special emphasis on “during the 2007 season” for those I’ve interviewed before or who’ve been with RT for years] Especially positive? Problems that you experienced? VOLUME Q2: Approximately what percentage of your total wholesale produce business would you say that you marketed through Red Tomato in 2007? Q3: Would you prefer to market more [produce] through Red Tomato than you did in 2007? Q4: In 2007, were there times when you had difficulty meeting the volume that Red Tomato wanted?

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MARKETING THROUGH RED TOMATO Q5: What would you say are the advantages of working with Red Tomato compared with other wholesale marketing channels? Q6: I have a list of possible advantages to marketing through Red Tomato which I’ll read you, and I’d like you to rate each one with a number from 1 to 5, where 5 means it is a very important advantage and 1 means it’s not important, for the 2007 growing season.. 6-1: Access to markets that I wouldn’t have the time to pursue on my own.

[Review the rating scale if necessary.] 6-2: Access to markets that may be more secure or stable than other marketing channels that are available to me. 6-3: Help with marketing grades or varieties that might have been difficult to market through other channels? 6-4: Use of the Red Tomato brand, the Eco Apple brand, or the “Born and Raised Here” slogan. 6-5 Access to packaging options that come with the brand. 6-6 Certification. 6-7: Price 6-8: The opportunity to work as a team with other growers, learning from one another and collaborating? 6-9: Relationship with Red Tomato and its employees, including the marketing expertise they provide. 7: [For those who marketed through Red Tomato in the past:] Were there differences in the process of working with Red Tomato this year, compared with other years – either positive or negative? If so, what? 8-1: Has your work with Red Tomato led to changes in your mix of commodities or varieties? (If yes, probe for specifics.) 8-2: Has your work with Red Tomato led to changes in your processing or packing? (If yes, probe for specifics.) 7-3: If so, has this been a good thing or a bad thing? PRICE Q9: I’d like to look at the prices you obtained through Red Tomato, compared to the prices you think you would have gotten for the very same items, sold through some other comparable channel. For instance, if Red Tomato picked up your produce at your farm, compare prices against other FOB channels, or make a price adjustment in your mind for the value of Red Tomato’s trucking services. So here’s the question: For all the products that you marketed through Red Tomato, would you say that the price you received in 2007 was 9a. Much higher / Somewhat higher / About the same / Somewhat lower / or Much lower …than you would have received without Red Tomato’s collaboration? 9b. How satisfied are you, overall, with the prices you received through Red Tomato in 2007?

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Very satisfied / Satisfied / Neutral / Dissatisfied / or Very Dissatisfied 9c: How satisfied are you with the net return you achieved through Red Tomato in 2007 (after you’ve factored in your costs)? Very satisfied / Satisfied / Neutral / Dissatisfied / or Very Dissatisfied Q10: Overall, how satisfied are you with your Red Tomato experience and relationship? Very satisfied / Satisfied / Neutral / Dissatisfied / or Very Dissatisfied Q11a: Would you say that the most important benefits of working with Red Tomato have to do with … The volume of product you are able to market through Red Tomato, OR Access to markets, OR Price and your net return, OR Some other type of benefit Q11b: And what would you say is the second most important area of benefits? (Read same list as above, without the item they chose as #1.) Q12: What could you or Red Tomato do to contribute to success in your marketing relationship in 2008? Q13: Is there any other topic that you want to raise, or do you have any other comments or suggestions? Q15: There is a new organization called The Carrot Project that’s conducting a survey of fruit and vegetable growers to help them address the financing needs of family farmers. The person who will be contacting farmers is also a member of Red Tomato’s board of directors. Would you be willing to participate in a phone interview with The Carrot Project? Q16. Are there any of your responses that you want to be sure are presented to Red Tomato anonymously? Thanks very much for your time.