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Farmers boost sales by landing on menus

A customer heads for a table in a Subway restaurant in Champaign, Ill. Subway has added breakfast to its menu, a move that requires it to buy millions of eggs. Farmers can see big sales when a restaurant chain adds the crops and food they grow to its menu.

CHAMPAIGN, Ill. — Ted Higginbottom was happy to see a dish heavy on peanuts this week on the menu at an Asian chain restaurant, but he said the Mandarin Kung Pao didn't land there by chance.

The 60-year-old Texas peanut farmer said his industry has pushed hard to get peanuts onto menus at restaurants like Pei Wei — a national, 163-location chain owned by P.F. Chang's. Whether its peanuts, cranberries, oats or other products, producers have found that successfully marketing to national outlets can pay off with big sales.

"If not for organizations like the (National) Peanut Board, there would not be as many peanut farmers in the U.S.," Higginbottom said. "Some of them wouldn't be in business."

Some note that successfully wooing big chains can lead to pressure to reduce prices, but Higginbottom said that wasn't a concern for the peanut board. The organization started as a decades-old quota system that set peanut farmers' production levels and prices was about to end in 2000, throwing growers for the first time into a free market.

The board needed buyers and fast.

"All the sudden it became very important to that farmer to market his peanuts," said Higginbottom, who farms near the West Texas town of Seminole and was a past chairman of the board.

The board raised fees from farmers, then began spending several million dollars a year promoting cooking with peanuts or derivatives such as peanut flour. The result is the number of top 500 U.S. restaurant chains that have dishes with peanuts on their menus has increased by 39 percent in the past four years and peanut butter almost 50 percent, according to food industry data firm Technomic.

The organization also works with universities to get peanuts onto their campus menus, said Bob Coyle, a marketing team leader with the board.

"It helps obviously to increase the use of peanuts, but it also helps us in not just education, but in feeding a consumer that is going to become a bigger consumer in their lives," he said.

Growers of some commodities, such as Canadian oats, don't have such a sophisticated marketing arm.

"It's something we need to get more involved with," said Manitoba oat farmer Bill Wilton, president of Prairie Oat Growers.

But Canada's oat farmers — who grow most oats sold in the United States — have benefited since the 1990s from research indicating that oats can help reduce the risk of heart disease. Canadian oat exports have more than doubled since the mid-1990s, according to the Canadian government.

"Basically when you realized that oats can lower cholesterol, that was really why oats jumped," said Randy Strychar of Oat Insight, a trade publication.

Oats' healthy reputation has won it spots on menus at restaurants such as Starbucks. Next year, it will likely snare farmers a giant new customer: McDonald's plans to add oatmeal to its menus across the United States.

With 14,000 U.S. locations, it's a big deal to farmers when McDonald's adds their product to its menu.

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