Rise of the Machines

During the pandemic, the on-farm vending machine market soared, with many consumers choosing to shop locally.

However, since restrictions have been relaxed demand for locally produced goods available at the vending machines has remained high.

Word of mouth and the power of social media has been effective advertising for these businesses, especially among younger consumers. This growing demand for low mileage products is reflected in the increased numberof both milk and produce vending machines across the UK and Europe.

Purchasing from farm vending machines appeals to consumers on a number of fronts, including the “feel good” factor of supporting local producers and family businesses. The experience aspect of farm vending machines has also proven to be a draw, especially if the consumer has heard about it through social media coverage and wants to share the experience with their followers. The products sold tend to have an element of storytelling to them, providing a background to the items sold and the business behind the vending machine.

Some vending machine locations have taken this a step further by allowing consumers to take a tour of the calf sheds, watch the milking or see the lambs. They may also showcase a storyline of how the product has been produced and customers can get a better idea of where their food has come from. This might be a big appeal for parents trying to educate children on how food is produced. By having a farm vending machine more of a connection may be formed with local communities and used subsequently to create some positive PRespecially for dairy businesses, which have been under scrutiny in recent years.

The farmers that have invested in these vending machines are generally able to receive a higher price for their product as they are selling direct to the consumer and customers are usually willing to pay a higher price for a product they regard as better quality. However, set-up costs and initial investment can be significant, along with ongoing maintenance costs. Location has also proven crucial for these businesses to be successful, for example the ideal location is on the edge of an affluent village or town with ample parking. Ensuring the accessibility of the location of the vending machine is very important to ensure footfall is high, which could prove to be limiting to some farms. The current cost of living crisis may undermine the appeal of on-farm vending machines as their products are generally more expensive than in the supermarkets.

Welcoming the public onto the farm raises the question of health and safety risks. It is crucial that farmers ensure they have suitable insurance cover for any new venture. Off-farm milk vending machines are also an option for those not wishing to deal with the public or who are limited by their location, for example having a milk vending machine in a local shop. This does however reduce the ‘experience factor’ that many consumers value. Members of the farmer co-operative

First Milk can enter the vending machine market in a different route to sell cheese and milk under its new ‘Golden Hooves’ brand. This brand is heavily focussing on regenerative farming methods and only works with producers who adhere to these principles. The sites will also have a produce vending machine planning to sell locally sourced jams, honey, cream and butter from businesses all following regenerative practices. These will be operated as a franchise agreement where the farm will pay a franchise fee and a small percentage of the profits from sales while First Milk will provide the branded vending machines as well as marketing, business and administrative support.

We will watch with interest as this route to market develops and matures. n

Smith