The Business of Agriculture Podcast 414 - The Reality (& Economics) of Direct-To-Consumer Agriculture | Damian Mason
Sep 8, 2025
Missouri dairy producer J.R. Burdick is reshaping his business by transitioning from conventional dairy to direct-to-consumer A2 milk sales. He shares insights on the challenges of packaging and logistics, while detailing how this change has boosted his profit margins. The discussion dives into the significance of community engagement, the need for transparency in farming, and the importance of adapting to market demands. J.R. emphasizes building customer relationships and the complexities of scaling this innovative model in agriculture.
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Pivot From Coop To Direct Sales
- J.R. Burdick left his dairy co-op after they threatened to stop pickup over unsigned paperwork and decided to sell direct to consumers.
- He sold many cows, paid debt, and pivoted into a premium direct-to-consumer milk business out of necessity.
Differentiate Or Lose To Retailers
- Do differentiate your product if you plan to sell direct; competing on commodity price loses to big retailers.
- Target a premium niche that customers will pay extra for rather than matching mass-market offerings.
Where The Consumer Dollar Goes
- Retail grocery captures massive margins on farm goods, leaving producers with a sliver of the consumer dollar.
- Capturing post-farm value is a clear path to improving farm profitability if you can reach customers directly.