Selling Direct to the Wholesale Marketplace

Selling Direct to the
Wholesale Marketplace
a practical guide for farmers who want to sell to
restaurants, retail stores & institutional buyers
Selling Direct to the Wholesale Marketplace
1
PAGE 2:
INSIDE COVER
No copy.
This guide
was created
by and for
farmers.
Here’s how it came about:
I
n response to requests from area farmers and businesses, The
Fair Food Project of White Dog Community Enterprises – an
organization in Philadelphia devoted to connecting local farmers
to local markets—developed a series of regional workshops on
“Selling Direct to the Wholesale Marketplace.”
These workshops, offered throughout southeastern Pennsylvania,
Delaware, and southern New Jersey, were attended by hundreds of
growers interested in preparing for the challenges of selling to the
wholesale marketplace.
Fair Food developed the workshop curriculum based on its six years
of experience connecting growers to the wholesale marketplace.
The workshops featured Fair Food staff and other guest experts in
selling direct wholesale, including both farmers and buyers from
restaurants, retail stores, and institutions. The most fruitful of
these workshops featured lively participants with questions and
comments, creating an environment of peer-to-peer learning.
Evaluation follow-up has shown that several participants have added
direct wholesale customers to their businesses. For newer farmers,
the workshop provided an introduction to this business model for
future growth.
Fair Food’s approach is to prepare growers for the wholesale
marketplace, not demand that they implement any principles. The
workshops showed that some farm businesses were not ideal for
direct wholesale, which helped these farmers clarify other markets
viable for their success.
Now, with support from the USDA Risk Management Agency, the
Fair Food Project has taken the material and insights from the
workshops and created this manual as an introductory guide to
family farmers who want to sell direct wholesale.
While the content flows from Fair Food’s experience in Greater
Philadelphia, this guide is intended to assist any farmer who wants
to sell to restaurants, retailers and institutions no matter where
they are based.
To learn more about who created this manual, and those who
supported its development, go to page 28.
tableof
contents
The Basics of Getting Started
Who are my potential direct wholesale customers?
x
How do I find customers
who fit my abilities and needs?
x
How do I choose and
approach potential buyers
in my area?
x
How can I build and maintain the trust
of my new wholesale customers?
x
Nuts & Bolts Advice
How do I set prices?
x
How do I let customers know what’s available?
x
What do I need to know about packing,
packaging and grading of my products?
x
Do I need to deliver?
x
How do I bill my customers?
x
What licensing and certification will I need?
x
How do I market myself and my products?
x
How do I balance my wholesale and retail business?
x
Do I have to do this on my own?
x
Tips for Selling to Specific Markets
Restaurants
x
Independent Grocers
x
Institutional Buyers
x
Resources
Endnotes
x
Appendix A- Organizations and Resources
x
Appendix B- Pricing
x
Appendix C- Product Information Documents;
Appendix D- Bookkeeping Documents;
Appendix E- Local Food Guides
x
About the creators of this guide
x
Basics
The Basics: part 2
How Do I Find The Customers Who Fit My Abilities and Needs?
Different wholesale customers have different needs. It’s important for you as a grower to assess the needs of each customer you’re
considering so that you’ll know what each expects of you. Equally important is assessing your own needs to make sure a business
relationship is sensible and desired. Below are some things to consider.
The Basics: part 1
Who Are My Potential Wholesale Customers?
Most of you probably understand retail sales: selling direct to consumers through farm stands
and farmers’ markets. Wholesaling is a different animal. It means selling to someone, who will
then sell your product to someone else. As you can imagine, this has an impact on how you
market, prepare, and price your goods.
In this manual, we primarily focus on “direct wholesaling,” which cuts out any middlemen
who might take an additional chunk of your food dollar. In direct wholesaling you have direct
contact with the seller of your product.
Your potential DIRECT wholesale customers include:
Restaurants: Independently owned restaurants (as opposed to chain restaurants) typically
make regular orders and seek both the specialty and highest quality items, which are not
readily available from other distributors.
Caterers: Like a restaurant, specialty items not readily available from other distributors
often attract caterers. They can be more complicated to work with because their volume of
business is not as consistent as that of a restaurant, but the right caterer can be a lasting,
loyal customer.
Independent Grocers and Food Coops: Focusing less on specialty items, independent grocers
and food coops can demand a higher volume and are often more flexible than restaurants and
caterers. Food coops in particular are likely to have a commitment to buying local.
Institutions: Institutions can be a good fit for larger farms or farmer co-ops that can provide
either a high volume of a few products, or a broad variety of product from multiple farms.
Institutions generally prefer to work with a limited number of purveyors, have stricter industry
guidelines and compliance requirements than smaller wholesale buyers, and may prefer
growers to sell through the institution’s pre-established distribution channels.
Chain Grocery Stores: Due to higher demand by mainstream consumers, chain grocery
stores are expressing interest in local products. Often, opportunities for selling to chain
stores depend on the initiative of an individual buyer at a given store. These customers
typically expect a consistent, uniform product with a lengthy shelf life.
Although they are not direct wholesale customers, you may also want to consider Distributors
as a potential sales outlet. Like institutional buyers, a reliable distributor can be a good
business partner for higher volume growers who are willing to get paid less for their products
to offset the distributor’s services, namely providing delivery and sales. Since distributors
provide these services and must add their own markup to the products they sell, they
generally pay less for product than direct sales outlets.
Assessing your customers’ needs
Product: Not all products work for all customers. If you have specialty produce items, restaurants might be a good fit. If you’re selling
Certified Organic products, then a natural food grocery store might work better. Figure out who is best suited for your products. For more
details on different customers’ needs, please refer to the section on “Tips for Selling to Specific Markets,” which starts on page 15.
Volume: Assess your volume potential in relation to your customers needs. For example, a restaurant may place smaller orders
because they have less refrigeration, while a food coop could demand a much higher volume.
Pricing: Some customers have tighter budgets than others. Assess whether you can accommodate the price standards of your client.
For example, a buyer could love your product but ask you to adjust the price to fit their budget. Is it still worth it for you?
Packing: For some customers, particularly grocery stores and distributors, packing according to industry standards may be important.
For example, standard packing for lettuce is 24 heads to a bushel. Other customers, such as restaurants, can often accommodate
alternative packing options as long as they are consistent.
Packaging: Assess the best packaging for your customer. For example, a restaurant wants salad greens in bulk, where as a store
may prefer shelf-ready, retail-size packages to reduce their labor inputs.
Appearance: Seemingly arbitrary, customers, particularly chefs, might be particular about product appearance. For example, one buyer
might like that your radishes arrive with the greens still on, while another wants them chopped off. When in doubt, ask your customer.
Cleanliness: As a general rule, the cleaner both you and your product are when you make a delivery, the better. For example, a
customer doesn’t need to see feathers stuck to your eggs to know that they are fresh, and while you don’t need to wear a suit and tie,
you should be clean and presentable when you walk into a customer’s place of business.
Assessing your own needs:
Delivery: How often and how far are you willing to go to make deliveries? It is important for you to establish consistent delivery day/s
and an achievable delivery route so that you are able to provide this service and still make a profit.
Minimum orders: Are your customers buying enough to make it worth the trip? We strongly recommend setting a minimum order
requirement for delivery. Calculating your costs for delivery will help you set your minimum.
Terms of payment: How long can you wait to receive payment on a delivery? Know your terms of payment and make them clear
upfront. If you decide that you need cash on delivery (COD), be aware that for some customers this will not be possible. 15 to 30 days
is customary for most restaurants and retailers, while institutions can extend payment cycles to 45 days or longer.
While you need to establish the limits of the service you will provide, as you develop relationships with your wholesale buyers, some
flexibility is advisable.
Selling Direct to the Wholesale Marketplace
5
The Basics: part 3
How do I choose and approach potential buyers in my area?
Once you have decided on the type of customer who fits your needs, the hunt is on. Here are
some tips for locating specific customers in your area ... and making a connection with them
How to locate potential customers
Food hosts this type of “industry-only” gathering annually, providing a format for growers to meet buyers and learn how to serve them
best. FreshNet, an e-newsletter by the Chef’s Collaborative, lists events like these from around the country (Endnote 1).
Target specific areas: To ease your delivery logistics, target prospective customers on your projected delivery route. Another approach
is to find a few key customers and build a delivery route around their businesses.
The Basics: part 4
How can I build and maintain the trust of my new wholesale customers?
Farmer recommendations: A fellow farmer may have a customer that wants a product he/
she cannot provide. Farmers experienced with wholesaling may know the best customers
to approach.
We cannot stress enough how important it is to create a good relationship with your customers. If they know that they can trust you and
the quality of your product and service, you will have them as customers for a long time.
Chef/Buyer recommendations: Chefs/Buyers know one another and “talk shop.” Ask your
buyers to refer you to their friends in the business.
How to create strong relationships with your customers
Dining guides in print and online: These will list new restaurants or highlight restaurants that
might want locally farmed products. You want to work with restaurants that are successful, and
those in the media typically are. Fair Food’s Philadelphia Local Food Guide lists restaurants
that buy from local producers. For other Local Food Guides, see Appendix E.
Fair Food Project and other non-profits: Fair Food offers free consulting to farmers to
help connect them to wholesale opportunities in the Philadelphia region. If you are not from
Philadelphia, check Appendix A for organizations in your region.
How to learn more about the customers in which you are interested
When targeting restaurants, read the menu to ensure the cuisine suits what you grow. If
possible, eat at the restaurant to better understand how your products may be incorporated.
“Seasonal” menus are often geared toward local food.
Be Honest and Direct: Be clear and upfront about your strengths and limitations. Example: “From the beginning, we tell customers to
have another mushroom provider because we cannot guarantee full product availability all season long. The customer knows what to
expect from our farm.” (Angela Evans, Oley Valley Mushroom, Oley PA)
Communicate Frequently: Buyers are very busy people and they hate surprises! If a delivery will be delayed, if a product on your list
is not available, if hail just damaged your tomato crop, contact the buyer ASAP. They will appreciate prior notice so they can find other
sources, and they are more likely to order from you again you in the future.
Be Consistent: Wholesale customers are buying your products sight unseen. They rely on you to provide a consistently high quality
product with every delivery.
Deliver What You Promise: It is better to promise an accurate amount and fulfill that promise with each delivery than to inflate your
capabilities to get a sale, only to let your customer down.
When targeting stores, visit the store to see what products they offer and for what prices.
Start with a business plan.
A restaurant’s or store’s website can be a great resource for learning about potential
customers. They often include menus, the philosophy of the business, name and background
of the chef, and other valuable information.
Thoughtful planning is the foundation of a successful enterprise. Creating a business plan will
help you to define your business, identify your market niche, calculate the cost of doing business,
analyze the risks, and clarify your goals—all of which are essential to determining the customers
you need to develop the business you want.
Making that first contact with potential customers
Visits: Visiting potential customers in-person is most productive for first contacts until you
build a good reputation. Bring product and price info as well as samples if possible. Be
professional!
The National Sustainable Agriculture Information Service (ATTRA) website (Endnote 2) has helpful
links for farm business plans, and cooperative extension agents often have resources to help you
create a plan.
Cold calling: Cold calling is difficult for everyone. Identifying who is responsible for food
purchasing and the most suitable time to contact her/him is half the battle. Even when a
buyer is interested in your product, s/he may be too busy to call you. Continue trying until you
reach the right person on the phone. Follow up and be persistent. For restaurants, a good
rule of thumb is to call between 2pm and 4pm to avoid the lunch and dinner rushes.
Local Grower/Local Buyer Gatherings: Throughout the country, organizations offer “meet
and greet” events to connect growers with potential wholesale buyers. In Philadelphia, Fair
Selling Direct to the Wholesale Marketplace
7
Nuts & bolts
nuts & bolts: part 2
How do I keep customers informed about what I have, and when it’s available?
nuts & bolts: part 1
How do I set prices?
Setting prices is an art, not a science. It requires practice and experience. Below we list
several recommendations to consider as you price for the wholesale marketplace.
Calculate your minimum. You need to know the minimum you can sell your product for and
still make a satisfactory profit. If that amount is too high for your market, then you should
either find a new market or grow a less cost-intensive product for your current market.
Ask. Do not hesitate to ask buyers what they are paying for the same product from other
sources. Some buyers will show you other growers’ price lists.
Set one price for all customers. Always charge the same price to each wholesale customer.
If a customer finds out that you are selling to someone else cheaper, you will have difficulty
keeping this customer’s trust and business. The sole exception involves larger customers,
when employing a volume discount can encourage business.
Be realistic. Generally, wholesale prices are less than retail prices, as the wholesale
customer is reselling your product in some form. Have realistic expectations when entering
the wholesale marketplace.
Research prices in the marketplace. Seek out sources for daily prices in your region. The
Philadelphia and New York Produce Terminals publish market reports daily and PA Department
of Agriculture publishes weekly livestock market reports (see Endnote 3).
Do not under-value your product. Whenever possible keep your prices competitive but
buyers often expect to pay more for high-quality, locally produced food that comes directly
from the farm than they would for product from other sources. The freshness and flavor of
local products can be a big selling point.
See Appendix B for an additional pricing resource by New Farm.org.
Hand out a product and price list to all your customers: The list should include products, delivery terms, ordering deadlines, and contact
information. We recommend adding prices to your product list to avoid surprises when invoices are sent ... remember, buyers hate
surprises!
Communicate product availability as often as necessary: Even if your product list only changes seasonally you may want to send it out
every month as a reminder. Product availability can also be communicated by telephone, but you will need to establish a regular day and
time for talking to your customers.
Provide a seasonality chart: Seasonality charts are easy to develop on a spreadsheet and are a great way to communicate what you are
growing and when it’s in season. This resource is especially helpful for growers who extend the season and have products available at
times that many other producers do not. [If space, include an example]
Ask other farmers what they do ... and ask your customers what they want. The best communication ideas come from other farmers,
who have learned what works the hard way. Catch them at conferences, during slow times at farmers’ markets, etc. Your customers are
another great resource. Ask them what they prefer, and what they expect. See Appendix C, page 27, for a sample Product/Price List and
Seasonality Chart from a farmer in the Philadelphia region.
Selling Direct to the Wholesale Marketplace
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Nuts and bolts: part 3
Do I need to deliver?
What do I need to know about packing, packaging and grading
of my products?
The answer is almost always YES. No matter how great your product is most buyers will not come to you to buy it. To sell direct
wholesale on any scale, you must be able to deliver product consistently and efficiently. Do whatever you need to do to accommodate
your buyers—as long as it makes sense for you, in both time AND money.
Some of your customers—especially retailers and institutional buyers—may require packing,
packaging, and grading to industry standards.
Industry standards
While some customers are less concerned with standardized packing and packaging, it
is wise for growers to familiarize themselves with industry standards, especially for the
institutional market.
Kansas State University Cooperative Extension provides a great resource for understanding
industry standards for packing and packaging. See Endnote 4.
When in doubt, you can ask the customer, “How do you want that boxed?” Chances are they
will be flexible, as long as the product arrives undamaged.
Grading
The USDA lists grading standards and terms on their website. See Endnote 5.
For many direct wholesale operations, these USDA terms are less important than the simple
notion that growers need to grade their product into “firsts” and “seconds.”
A grower can maximize sales by selling seconds, if possible. Always label them as lower
grade so it is clear that they are not your finest products. You can present them for processing
and value-added items such as sauces or stocks. Institutions may be particularly interested in
products that are in perfectly good shape but not uniform enough for the retail market.
Where: Figure out how far you are willing to travel to make deliveries. Many farmers target an area and seek customers close by to limit
their travel costs. Metropolitan areas typically offer a greater concentration of potential customers than rural areas
How Often: Your delivery frequency will depend both on your ability to make trips and the needs of your customer. Once or twice a week
is most common for direct wholesale deliveries, usually offering the grower ample time to farm while still providing enough product for
the customer. Twice a week delivery schedules are attractive to businesses with less storage space or those that move product quickly,
but they do not always work for small farmers. Less frequent deliveries, bi-weekly for example, can work well, especially with products
that won’t perish quickly (frozen meats, value-added sealed products), although very clear communication is a necessity with this delivery
schedule.
When: Some customers will have particular days they want delivery. For example, restaurants often close on Monday, so they are not
there to receive your product. It is common for farmers who direct retail at farmers’ markets to make several direct wholesale deliveries
on market days. In some cases, chefs will even come to the market to pick up orders, though they will often expect a better-than-retail
price for this practice.
Nuts and bolts: part 4
How do I bill my customers?
You’ve found a customer, set a price, and made the delivery. All is well, except you still need your money! Creating an efficient billing
system and structure is crucial to operating a smooth business. The following suggestions will help your payment procedure function
smoothly.
Invoices: Bill your customers in a timely fashion, preferably upon delivery. If you do not present an invoice upon delivery, send one promptly
and make sure your name, address, and terms of payment are clear. Prompt billing sends the message that you need prompt payment.
Delivery Receipts (P.O.D.): Always present an itemized receipt upon delivery. This document should include both how much the customer
ordered, and how much was delivered, in case this is different. You may also use the invoice as a delivery receipt. Just be sure that the
invoice will end up in the hands of the person who pays the bills. In larger organizations this may not be the person who orders or receives
the delivery.
Past Due Statements: Occasionally, a customer will not pay promptly. Do not let payment lag to the point that your business suffers.
Be clear about your payment terms (14 days, 30 days, etc) when you start the relationship and state it clearly on your invoices. Create a
mechanism for sending past due statements.
See Appendix D – Bookeeping Documents on page 27 for a sample invoice, delivery receipt and past due statement.
Selling Direct to the Wholesale Marketplace
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Nuts and bolts: part 5
What licensing and certification will I need?
Because you are selling your product for resale, direct wholesale often requires licensing and
compliance standards to ensure the safety of your products. In addition, some certifications
add marketing value to your product by promoting growing and production methods deemed
desirable for particular markets.
Organic Certification
A full list of Organic Certifiers in the United States is available on the New Farm website.
See Endnote 6 page X, resource number X, for details.
HowToGoOrganic.Com, a website by the Organic Traders Association, provides excellent
resources on transitioning to organic, along with state by state listings.
Pennsylvania Certified Organic is a USDA-accredited organic certifying agency that educates
and certifies growers and processors of organic products in PA and its six adjoining states.
See Endnote 7 for details.
Meat Licensing and Certification
NJ: Rutgers Food Innovation Center is a great resource for food processing questions.
Endnote 13
DE: The Delaware Dept. of Ag requires producers to take a class before being certified to sell value-added products. They offer
workshops focused on home-processing. Endnote 14
Nationally: The National Center for Home Food Preservation connects producers to resources in their home states. Endnote 15
Raw Milk
Raw Milk standards vary broadly from state to state. Many states don’t allow any sale of raw milk. Some have certifications to sell raw
milk from the farm, and others allow wholesale marketing with the proper permits.
PA: Allows resale of Raw Milk with a “jugger/capper” permit. Contact the PA Dept. of Ag’s Milk Sanitation Program with certification
questions. Endnote 16
NJ, DE, and many other states: It is illegal to sell raw milk.
All states: “A Campaign for Real Milk” has a website that includes a state-by-state breakdown of current standards. Endnote 17
Humanely Raised Certification
Any meat that is resold for consumption must be slaughtered, butchered, packaged and
labeled at a USDA certified facility.
Like Certified Organic, Humanely-Raised Certification can add perceived value to your product based on how your animals are raised.
Two primary certification programs exist, one through the Animal Welfare Institute. Endnote 18, and the other with Humane Farm Animal
Care. Endnote 19 Fees for certification vary according to farm size and animal type, and subsidy is available for some producers.
Meat processing and selling regulations vary state-to-state.
Food Safety Audits
In Pennsylvania: John Berry’s “Farmer’s Guide to Processing and Selling Meat or Poultry”
outlines PA’s standards. See Endnote 8 for details.
While third-party food safety audits are not government mandated for farms, some larger buyers, namely grocery chains and distributors,
are increasingly requiring them in response to food safety scares in recent years.
In New Jersey: Contact your local health department for information. See Endnote 9 for details.
In Pennsylvania and New Jersey: GAPS (Good Agricultural Practices) is the current standard for third party audits, and both states have
GAPS coordinators. Endnotes 20 and 21
In Delaware: Contact the Food Products Inspection Office, Delaware Department of
Agriculture. See Endnote 10 for details.
Other states: Since regulations vary state-by-state, contacting departments of agriculture,
cooperative extension agents, and local health departments are typically good starting places
to find answers to meat certification questions.
Value-Added Products
When raw products are processed into “value-added” items, they are subjected to safe-handling
regulations and kitchen certifications. This may apply even if you are just washing and packaging
raw whole product (such as salad greens) in retail-size packages. Large retailers, distributors, and
institutional buyers may require you to use Hazard Analysis and Critical Control Point (HACCP)
principles.
Federal Regulations: See the U.S. Food and Drug Administration’s Center for Food Safety
and Applied Nutrition website for federal standards when operating a food business. Pay
particular attention to information about HACCP guidelines. Endnote 11
All states: The National GAPS Office lists contacts for all states with the GAPS program. Endnote 22
Private Consultants often have food safety certification programs or offer food safety audits other than the GAPS audit.
Liability Insurance
We believe all farmers should have product and general liability coverage along with their farm policy. Remember: Your farm is at stake.
How much coverage? One million dollars of coverage is a common baseline for small farms, though institutional buyers and chain grocery
stores may require more.
Where do I go for insurance? Talk with your current agent for their rates, and do not hesitate to shop around for affordable insurance
coverage. Midlands Management offers a sustainable farm insurance policy geared to small family farmers who sell direct retail and
wholesale in some states. Endnote 23
PA: Penn State University’s “Food Entrepreneur Resources” has a wealth of knowledge for
value-added producers. Endnote 12
Selling Direct to the Wholesale Marketplace
13
Nuts and Bolts: part 6
the web. Link your website to high profile resource sites such as localharvestpa.org.
How do I market myself and my products?
Brochures: This is an attractive way to give buyers and their customers a look into your far.
Fair Food understands that many farmers prefer to farm, not focus on sales and marketing.
While tracking down customers, taking phone calls, and visiting buyers can be tedious, it is
essential for a successful direct wholesale business. A good marketing strategy is essential.
You may have the highest quality products available, but if the customer doesn’t know
anything about who you are or why you do what you do, you will struggle to sell them.
Product/price lists: Make them clear and readable and always include your contact information.
Remember what you’re selling!
Sure, you’re selling produce, or meat, or dairy, and sure, it needs to be clean, attractive and
tasty. But you’re also selling a story and an idea:
Labels: Include your logo on all your products to increase brand recognition.
Wholesale Food Guides: Increasingly, organizations like Fair Food are creating guides that list local farmers, so wholesale buyers can identify
who they want to purchase from. Refer to Appendix A for organizations that may provide marketing opportunities for local farmers.
Nuts and bolts: part 7
How do I balance my wholesale and retail business?
Your story: The buyer is also interested in your story. Pictures from the farm are helpful for
marketing. The stronger the buyer can connect to you and your farm, the greater the interest
he/she will have in buying and selling your product and supporting your business.
We recommend that a farmer focus on building either a retail or wholesale market first. Once that source of income is established,
exploring other sales channels can help your business thrive.
Your message: You can sell your product and yourself by selling a message. For example,
Here’s a message that Meadow Run Farm in Lititz, PA, includes with its wholesale price list:
“We believe in raising our animals with plenty of green grass, fresh air, sunshine, and whole
grains. We never feed them hormones, antibiotics, reprocessed animals or manure. We raise
them naturally and treat them humanely from beginning to end, all to ensure our customers
receive some of the finest meat and poultry products available today.”
If one market starts slumping then others can offer security.
There might be higher profit potential in new markets.
Diversification offers more options to sell different grades of crop.
A product that does not sell in retail may sell to a restaurant, and vice versa.
When your CSA customers can’t eat another zucchini, you may be able to sell
high volume to a wholesale customer at a lower price.
Questions that will help you refine your message
What are the inherent values of your product? Is your product local, organic, grass-fed
or antibiotic-free? Feature those attributes to market your food. These values set your
products apart from others.
The Pros of Market Diversification:
Cons:
Spreading too thin. Some farmers do not have the quantity of product it takes to sell to different markets.
Meeting the different needs (prices, packaging, delivery, billing) of several types of customers can be inefficient and confusing.
What is your U.S.P. (Unique Selling Proposition)? What does your product or product line
have that others do not? Find a niche that will appeal to the type of buyer you are interested
in. Find a selling proposition that resonates with local businesses. Some examples:
Feature specialty foods: Especially with restaurants, specialty items are a big hit. Position
yourself as a farmer who will deliver unique vegetables, special cuts of meat, or artisan
cheeses. Emphasize that you have a unique product unavailable from other suppliers.
One approach to serving multiple markets:
Lancaster Farm Fresh Organic Farmer Cooperative serves many wholesale customers but also
has a thriving CSA. They treat the CSA like any of their wholesale accounts. As a customer that
requires several thousand dollars worth of product per week the CSA is very important but does
not take precedence over regular direct wholesale customers.
Promote the idea of supporting local farmers: Buyers may want to buy from you because
either they or their customers want to support local agriculture. For example, a restaurant may
put your farm’s name in their menu. Help them by having a succinct, compelling statement
of who you are and what you do. Chefs and retailers may want to use your farm photos or
logos in their own marketing materials. Make sure you have these in formats they can easily
download and use.
Promote the idea of supporting the local economy: Most of your buyers will be local, small
business owners who face similar challenges in the business world. They may see the value
in supporting their local community and other small business owners.
Tools to use in getting your message out
Websites: Becoming more common and less expensive, websites do not need to be lavish.
A simple site listing contact info, your products, and their availability is sufficient. Include a
brief bio (with pictures) about your farm. Increasingly, customers are sourcing products using
Selling Direct to the Wholesale Marketplace
15
Nuts and bolts: part 8
[If space permits, we should feature LFF (coop) and Green Meadow (Grower/
Distributor). We have pictures of both and could write something out for them
pretty fast.] - NEXT PAGE
Do I have to do this on my own?
Many farmers manage to develop a wholesale business on their own, but we strongly
recommend collaboration of some kind. There are many advantages, including mutual
support, ability to offer more to clients, shared risk, centralized distribution and billing, etc.
When collaborating, you can focus on what you do best: farming while some of the logistics
are delegated to others. On the down side, you have to share the opportunities. Here are
some options available to you:
Grower Cooperatives: A formal type of collaboration
Growers are dues-paying members of the cooperative, and each owns a share of the business.
These dues pay for administrative costs, which focus on sales, distribution, and other
business logistics.
This model helps growers stay on the farm, spending less time making deliveries and
finding customers.
The Keystone Development Center offers resources for cooperative business start-up in the
Mid-Atlantic states and has connections to organizations that support cooperatives in other
regions. Endnote 23
Note: Other types of farming cooperatives exist such as production co-ops, which are typically
larger and have not always been helpful to farmers, namely in the fruit, vegetable, and dairy
industries.
Collaborations/Partnerships: Less formal types of collaboration
Growers have their own businesses but work together to market or deliver their product.
This method benefits growers who do not have their own distribution infrastructure
established but want to sell direct wholesale and farmers who have a distribution method in
place that is not at capacity.
Grower/Distributor Model:
The grower sells his/her own product but also buys from other farmers to add to his/her
product line.
This model can work well for both growers—one adds diversity to his/her product line, and
the other saves time and money on sales and delivery.
This model is most effective when the grower/distributor creates a brand and markets all the
products under that farm name.
The success of this model often depends on the grower/distributors ability to efficiently and
consistently acquire product from neighboring farms. It is important that grower/distributors
establish a system for accessing product for sale to the wholesale marketplace.
Selling Direct to the Wholesale Marketplace
17
Tips for
specific markets
Tips for Specific Markets: part 1
Selling Successfully to Restaurants
Why Restaurants?
Restaurant customers are appealing to farmers who have specialty items or the highest
quality products. Even smaller, diversified farms can find success with restaurants because
they often require smaller quantities of premium products. The rewards of selling to
restaurants include:
Market Diversification: Restaurant sales are another way to add to a retail or CSA business,
especially since the product line for each market is similar.
Lasting business partners: Chefs come and go. If you create a relationship with one, she
may stay with you at a new restaurant. Also, sous chefs get promoted, and they can be new
customers.
New business partners: Chefs and restaurant staff talk. If you are easy to work with and
have a great product, new chefs will hear about it.
Good publicity: Chefs may put the name of your farm on the menu, or inform service staff
about you so diners will have exposure to your business.
Making contact
Chefs have the reputation of being intimidating and difficult to approach. Don’t believe it. While the stresses of the restaurant life can
mount, many chefs will like talking with a local farmer who has something to offer them.
Cold calling: It is best to call between 2 and 4 pm, the time when most chefs are not consumed with lunch or dinner service. Learn who
to ask for, and be confident.
In-person visits: Successful restaurant sellers suggest bringing samples with price and product availability information. In-person visits
like these can give the chef a chance to sample your best products, as well as a glimpse into your farm and how it operates. Visits,
especially after the initial contact, give you a chance to market new items and talk up what life on the farm entails.
Follow-up: Be persistent. If you leave a message and don’t hear back, call again, remembering that restaurant life is chaotic and
consuming. The buyer could still be interested and need a phone call from you to remind him/her.
Invite them to visit your farm: They might never get the chance to do it, but some chefs would love the opportunity to see your operation.
Some restaurants even offer staff field trips to farms.
What restaurants want
Beyond using media outlets for food trends, remember that most chefs don’t need another commodity product, i.e. white potatoes, yellow
onions or celery. They want something special that will stand out on the plate—something to feature in a dish, or even build a dish around.
Read menus: Many restaurants offer elaborate descriptions of menu items. Are items you grow or produce on his/her menu? Restaurants
often post menus on their websites.
Ask the chef: Once you establish a business relationship, ask the chef what he/she wants but cannot find locally. You can take a chance
at growing it, which will further solidify your relationship with the chef.
Where do I start?
What about organics? Restaurants are not necessarily concerned whether your product is “certified organic” or not. In many cases,
chefs equate “organic” with “expensive.” The chef is more apt to base his/her purchase on quality, freshness and a relationship of trust
– not certification.
Once you have developed your business plan and know you want to sell to restaurants, you
need to find the right ones for you. One approach to getting started might be developing
products that you can sell confidently and seeking restaurants that want those items. Or you
can base what you grow on what restaurants are looking for. Either way:
Easy-to-work-with packaging: Chefs do not have time to unwrap, unbundle, or wash items unnecessarily. They want product as
ready-to-use as possible.
Target the smaller ‘upscale’ restaurants first, as they generally have more flexibility in ordering
and menu planning than a larger or corporately owned restaurant. Places with “seasonal”
menus are good staring points.
Scan magazines and newspapers for information on what restaurants might buy locally or to
discover current food trends that might influence what you want to offer. These include Food
and Wine, Saveur, Bon Appetit, Gourmet, Food Arts, The New York Times Wednesday food
section, local dining guides, and the food section of the local paper.
Consult with non-profit organizations that want to help you sell to restaurants, such as the
Fair Food Project.
Selling Direct to the Wholesale Marketplace
19
Tips for specific markets: part 2
Selling Successfully to Independent Grocers
Why Independent Grocers?
Independent grocers are appealing to farmers because they offer more flexibility than many
restaurants, without demanding the high volume of some institutions. The rewards of selling
to independent grocers include:
Higher volume: Stores need much more product than restaurants do. They provide the
opportunity to sell more
More products: Stores are not just looking for specialty items. They are more likely to buy
several of the items on your product list.
Delivery Flexibility: Stores provide more delivery options because most of them receive
trucks several times per week if not daily.
Where do I start?
Once you have developed your business plan and know that you want to sell to independent
grocery stores, you need to find the right ones for you. Stores can vary in the market niche
they appeal to and the types of food they want to carry. Depending on what you produce,
look for stores interested in the following:
Certified Organic: While restaurants may not be concerned with organics, stores commonly
are because these items are in high consumer demand, and customers will pay more for
them. This does not mean they are only interested in organics, however.
Local: Grocery stores, from smaller food coops to chain grocery stores are responding to the
consumer demand for local food. Stocking local produce and creating “the farmer down the
road” image is vital to that strategy.
Locally-minded: Many independent stores will be interested in your product because they
are local businesses also. This is particularly true with food coops that are usually committed
to supporting their local economy.
Follow-up: Be persistent. These buyers are busy people, so you cannot wait around for them to return calls. Check back in and find a
time to talk about your business and products.
Offer to come into the store for a demonstration: This is a way to market your product to the consumer and the store’s purchaser at
the same time. If you cannot do the demo yourself, offer some free product for the store to sample and make sure they have information
about your farm on hand for customers, such as a brochure.
Invite them to the farm: Store buyers may take you up on this offer to see how your operation works, especially if you are selling them
an organic, humanely-raised, grass-fed, etc. product. They may want to bring customers or staff.
What Independent Grocers want
These buyers are often looking for certified and/or sustainably farmed products. Other product considerations include:
Value-added products: e.g. jams, pickles, salad mix
Fresh, USDA-certified meats in retail cuts. Some stores may prefer frozen meats.
Products that meet state and federal packing and growing inspection requirements.
Products that are “shelf-ready”: Make it as easy as possible to price and deal with products. For example, have produce bunched and
ready for sale.
Standardization and uniformity: Sizes of produce and packages should be consistent, as should seasonal product availability. “A one
and a half-foot zucchini isn’t going to fly, nor will a call from a grower with 9 cucumbers one week and 7 tomatoes the next,” says one
store owner.
If the store sells a product by weight or by the bunch, package and sell it to them in the form that fits their needs.
Retailers need to know the shelf life of a product and may have specific requirements. You should learn to harvest, package and deliver
your products to suit those requirements.
What about the chain stores?
Increasingly, some larger chain grocers have expressed interest in local producers. In our experience, it depends on the store’s manager
as to which of these might buy locally. While we do not discourage farmers from contacting chain stores, we do note that these stores
are apt to require a high volume of product and consistent product uniformity.
Humanely-Raised: This certification is similar to organic in that it is currently in high consumer
demand and subject to increased mark-up.
Making contact
Many independent grocers, particularly natural or health food-oriented ones, are
excited to connect with more local farmers and sell your product, so you shouldn’t feel
intimidated by them.
Cold-calling: Find out who is in charge of ordering and the best time to reach him/her. Some
stores will have different buyers for produce, meat, and dairy.
In-person visits: Samples and price lists are valuable tools when meeting a buyer face-toface. In-person visits let the buyers sample your best products and get some insight into
your farm operation. It is also an opportunity for you to see what products the store is already
selling and to do some comparative price checking.
Selling Direct to the Wholesale Marketplace
21
Tips for specific markets: part 3
Selling Successfully to Institutional Buyers
There are two types of institutional food service structures, Self-Operated Dining Services that
are managed by employees of the institution itself, and Contracted Dining Services where the
institution brings in an outside company to manage all the dining operations.
Self-Operated Dining Services (SODS):
SODS follow the purchasing policies of the institution, so the manager has the independent
authority to enter into purchasing contracts and chose from whom to buy.
The autonomy of SODS managers often makes them more accessible for farmers, since they
have greater flexibility in who they purchase from.
Nonetheless, most SODS have “prime vendors” through whom they buy the bulk of their
product. Usually, they can purchase product from other vendors as well, but farmers should
expect to either a) have a large enough volume to make a purchase beneficial to the buyer
or b) have a relationship with a distributor who can offer the farmer’s product along with a
broader selection of products.
Contracted Dining Services (CDS):
CDS are typically large companies that have many contracts throughout the region (Parkhurst
Dining Services, serving the Mid-Atlantic), country (Chartwells), or world (Aramark).
CDS are often bound to national buying contracts, and individual food service managers at
each institution are restricted in how much local food purchasing they can do.
Why Institutional Buyers
Institutions such as universities, hospitals, schools and eldercare facilities are appealing
customers for farmers that produce at a higher volume. The institutional food service industry
is a very demanding market but it can provide long term, steady and loyal customers. Food
buyers from many different institutions, both self operated and contracted, are looking for
sources of locally grown food to incorporate into their daily food service operations.
Higher volume: more products going to fewer destinations.
Reliable market: While restaurants and chefs may come and go, institutions are established
and their buyers are looking for long-term relationships with suppliers they trust.
Distributor connections: If an institution prefers to buy through their existing suppliers this
can lead to a beneficial relationship with a distributor who is selling to multiple customers and
may even be willing to pick up from the farm. Financial return for products may be lower but
distribution expenses are reduced or even eliminated.
A market for seconds: products you can’t sell retail: Schools may be thrilled with smaller
than usual apples or hospitals can use tomato seconds that are quite usable but do not fulfill
the requirements of retailers – too ripe, too small, inconsistent in size, etc.
Important Considerations
Approved vendor requirements: Institutions and Food Service contractors may have approved vendor requirements that you must fulfill
before you can be considered as a supplier. For instance, institutions may require food safety and food handling certification or a food
service contractor may want a third party auditor to inspect your facilities. (We have found in some cases this may be avoided by inviting
the buyers out to your farm for a visit.) Food service contractors may require a higher than usual liability coverage – sometimes $4-5
million. When you speak to the buyer ask if they have approved vendor requirements. You need to weigh this additional expense against
the potential income from these customers. Keep in mind that becoming the approved vendor for one food service contractor makes you
eligible to sell to all the accounts they serve in your region so the payoff can be substantial.
Payment terms: Selling to institutions can mean a longer than usual payment turnaround, especially with the larger food service
contractors. In some cases it may be as long as 45-90 days. You need to be sure you can wait that long for payment. However, credit
card transactions are now becoming more common with institutional accounts and really facilitate rapid payment. For this reason it may
be worthwhile for you to invest in credit card processing.
Distribution complexity: In some cases large orders may get broken into many smaller lots delivered to multiple sites on each campus.
You must be sure this does not affect your income.
Where do I start?
While the barriers may seem daunting don’t be discouraged. There are farmers throughout the U.S. successfully doing business with
institutions of all kinds. If you want to sell to institutions you need to consider their specific needs as you develop your business plan. The
key to success is to build a good relationship with a food service director or purchaser who truly wants to support local farmers and make
it as easy and efficient as possible for them to buy from you. Here are some service features that will make you attractive to institutional
food purchasers.
Easy-to-work-with farmers: All buyers prefer suppliers that are easy to work with and respond to their needs, especially institutional
buyers given the volume of food they must organize and the quantity of mouths they must feed.
Established distribution channels: Decide if you want to do your own distribution or use a middleman and make sure the system is in
place before you approach a buyer. The reliability and regularity of delivery is a key element to a successful relationship.
Farmer collaborations: Institutions greatly appreciate farmer cooperatives and farmer/distributors who consolidate products and provide
a single distribution and billing system for products from several farms.
Distributor-connected farmers: It is much easier for an institution to receive product via their pre-existing distributors than to add a
farmer directly to their delivery schedule.
Professional documents: Invoices, price sheets, packing sheets, etc – it is most important that these are very professional looking
for institutions where the chain of command is much longer and your documents must be easily traceable in their ordering and billing
system
Ease of ordering: Email and online ordering systems are very attractive to institutional buyers.
Industry standards: Investigate how the institutions want their products packaged. Usually industry standards apply so you need to work
that into your post harvest handling and packing systems. However, some institutions may prefer bulk packed boxes with less packaging
and no stickers or tags, and even returnable crates, which can save you money.
Product size and condition: Institutions may prefer products that you can’t typically sell retail. Farmers have had success with child
serving size apples or tomatoes that are too ripe for retailers.
continued on nest page
Education: Institutions offer opportunities to educate many consumers about your product
and may even help to develop educational materials about you and your farm.
Selling Direct to the Wholesale Marketplace
23
Fresh-cut product: Institutional kitchens often purchase large quantities of preprocessed
products such as precut and washed greens and sliced vegetables. You may want to
investigate the practicality of processing your products in some way or collaborating with a
local processor.
Bulk packs: This may be preferred for processed or packaged foods such as milk, cheese
and meat products.
Certified Organic products: Organic food is increasingly popular among college students.
Though organic items are typically more expensive, university buyers are still attracted to
them given the demand from their students. Some hospitals are also seeking organically
grown products.
Making contact
The challenge with institutions is finding out who to talk to, since they usually have a large
staff. Start by finding out who is in charge of dining services. Titles vary but you can usually
find the right person by asking to talk to the Director or Manager of Dining Services. In some
healthcare situations you may get passed on to Nutrition Services. For K-12 schools there
may be a director of dining services for the whole school district.
Start with who you know: Reach out to institutions in your own community - your children’s
school or your local hospital.
Management structure: Find out if they are self-operated or have a large or small food
service contractor so you know what you are dealing with.
Cold-calling: Perhaps more difficult in the institutional setting but not impossible. After you
call, make sure you get the buyer a price list and availability sheet and delivery schedule.
In-person visits: Buyers are busy people, you will need to make an appointment. This is a
way to show them who you are and to give them a sample of your product. Come prepared
with a price list and availability sheet and delivery schedule.
Sell through a distributor: Be aware that many institutions prefer dealing with distributors
and may give them preference. Most Institutions have a “prime” contract with a large broadline supplier such as Sysco or US Food Service and then smaller contracts with local or
regional vendors. If this is the case try finding out who is their local distributor and approach
them directly.
Demonstrations: One institutional buyer noted that he loves tastings. It is a way to get the
consumer excited about the food and to demonstrate to the buyer the quality of the product.
Dining service staff may want to do a tasting in the dining room for their students, residents
or staff and they love to have a farmer there to tell his/her story.
Farm tours: Food service professionals have almost no contact with the people that grow their
food. Invite them out to the farm to see it first hand and you may see a dramatic awakening
as they get to know and trust you.
Reach out: If you need assistance contact a nonprofit farmer assistance organization like
Fair Food/White Dog Community Enterprises. They may know of institutions interested in
buying local and can often serve in the role of facilitator.
resources
NORTHEAST
Chef’s Collaborative
www.chefscollaborative.org
89 South St., lower level,
Boston, MA 02111
617-236-5200
[email protected]
Promoting sustainable cuisine by teaching
children, supporting local farmers,
educating one another, and inspiring the
public to choose good, clean food.
Community Involved in Sustaining
Agriculture (CISA)
www.buylocalfood.com/index.html
1 Sugarloaf Street,
S. Deerfield, MA 01373
413-665-7100
CISA links farmers and communities to
strengthen agriculture and enhance the
economy, rural character, environmental
quality, and social well-being of western
Massachusetts.
Cornell Good Agricultural Practices
(GAPS)
www.gaps.cornell.edu
Good Agricultural Practices Network for
Education and Training; “Food Safety
Begins on the Farm”
Delaware Department of Agriculture
dda.delaware.gov/
2320 South DuPont Highway,
Dover, Delaware 19901
302-698-4500
Farm to City
www.farmtocity.org
318 Gaskill Street,
Philadelphia, PA 19147-1503
215-733-9599
[email protected]
Farm to City is a Philadelphia- based
program whose goal is to unite
communities, families, and farmers yearround through good locally grown food.
Farm to School
www.farmtoschool.org
Farm to School brings healthy food from
local farms to school children nationwide.
The Food Trust
www.thefoodtrust.org/
One Penn Center,
1617 John F. Kennedy Blvd., Ste 900
Philadelphia, PA 19103 215-575-0444
Working to Ensure that Everyone has Access
to Affordable, Nutritious Food.
The Glynwood Center
www.glynwood.org
PO Box 157,
Cold Spring, NY 10516
845-265-3338
Glynwood Center helps communities
address change in ways that conserve
local culture and natural resources while
strengthening economic well-being
Northeast Organic Farming Association
– NJ (NOFA-NJ)
www.nofanj.org
60 S. Main St., P.O. Box 886,
Pennington, NJ 08534
609-737-6848
[email protected]
NOFA-NJ serves as a catalyst in the
development of a sustainable agricultural
system; educates about organic practices;
farmers build and maintain sustainable
operations; and offers USDA-accredited
organic certification.
Northeast Organic Farming Association
– NY (NOFA- NY)
www.nofany.org/index.html
PO Box 880,
Cobleskill, NY 12043-0880
607-652-NOFA (6632)
NOFA-NY is an organization of consumers,
gardeners and farmers creating a
sustainable regional food system which is
ecologically sound and economically viable.
PA Department of Agriculture
www.agriculture.state.pa.us
2301 North Cameron Street,
Harrisburg, PA 17110
717-787-4737
The Pennsylvania Department of
Agriculture encourages, protects and
promotes agriculture and related industries
throughout the commonwealth.
Pennsylvania AgMap
www.agmap.psu.edu
(814) 863-3500
[email protected]
AgMap is Pennsylvania’s online
agricultural directory.
NJ Department of Agriculture
www.state.nj.us/agriculture
Department of Agriculture,
P.O. Box 330,
Trenton, NJ 08625
Northeast Organic Farming Association
– NJ (NOFA-NJ)
www.nofanj.org
60 S. Main St., P.O. Box 886,
Pennington, NJ 08534
609-737-6848
[email protected]
NOFA-NJ serves as a catalyst in the
development of a sustainable agricultural
system; educates about organic practices;
farmers build and maintain sustainable
operations; and offers USDA-accredited
organic certification.
Northeast Organic
Farming Association – NY
A Department of Agriculture
www.agriculture.state.pa.us
2301 North Cameron Street,
Harrisburg, PA 17110
717-787-4737
The Pennsylvania Department of
Agriculture encourages, protects and
promotes agriculture and related industries
throughout the commonwealth.
Pennsylvania AgMap
www.agmap.psu.edu
(814) 863-3500
[email protected]
AgMap is Pennsylvania’s online agricultural
directory.
Pennsylvania Association for
Sustainable Agriculture (PASA)
www.pasafarming.org
114 West Main Street,
P.O. Box 419,
Millheim, PA 16854
814-349-9856
[email protected]
Rodale Institute
www.rodaleinstitute.org
611 Siegfriedale Road,
Kutztown, PA 19530-9320
610-683-1400
[email protected]
FRN is a national nonprofit organization
that provides communications tools,
technical support, networking and
information resources to organizations
nationwide that are working to rebuild local,
community-based food systems.
Leaders in organic solutions for global
warming, famine prevention and nutrition
since 1948.
Market Maker
www.national.marketmaker.uiuc.edu
Rutgers Food Innovation Center
www.fire.rutgers.edu
87 East Commerce Street,
Bridgeton, NJ 08302
856-459-1125
[email protected]
The Rutgers Food Innovation Center is a
unique business incubation and economic
development accelerator program, which
provides business and technology expertise
to small and mid-sized food companies
in New Jersey, and utilizes its outreach
capacity to reach food and agribusinesses
throughout the nation.
NATIONAL
ATTRA – National Sustainable
Agriculture Information Service
www.attra.ncat.org
P.O. Box 3657,
Fayetteville, AR 72702
800-346-9140
ATTRA provides information and other
technical assistance to farmers, ranchers,
Extension agents, educators, and others
involved in sustainable agriculture in the
United States.
An interactive mapping system that locates
businesses and markets of agricultural
products, providing an important link
between producers and consumers.
Sustainable Agriculture Research and
Education (SARE)
www.sare.org
USDA-CSREES, Stop 2223,
1400 Independence Ave. SW
Washington, D.C. 20250-2223
SARE Provides Grants and Information
to Improve Profitability, Stewardship
and Quality of Life. sustainability is
the underlying value of the mainstream
food system — the norm rather than the
exception.
Food Routes Network
www.foodroutes.org
PO Box 55 - 35 Apple Lane, Arnot, PA
16911
570-638-3608 | [email protected]
FRN is a national nonprofit organization
that provides communications tools,
technical support, networking and
information resources to organizations
nationwide that are working to rebuild local,
community-based food systems.
Pricing
From New Farm/Rodale Institute
Pricing Part 1
Introduction to Pricing:
Developing Your Pricing Plan
www.newfarm.org/depts/NFfield_trials/
factsheets/pricing/index.shtml
Pricing Part 2
Cost Concepts: The First and Most
Important Step Toward Effective Pricing
www.newfarm.org/depts/NFfield_trials/
factsheets/pricing/index2.shtml
Pricing Part 3
Recording and Tracking Costs
Start Simple
www.newfarm.org/depts/NFfield_trials/
factsheets/pricing/index3.shtml
Pricing Part 4
Creating a Budget Practical Numbers,
Quicker Than You Think
www.newfarm.org/depts/NFfield_trials/
factsheets/pricing/index4.shtml
Pricing Part 5
Setting A Price Don’t Just Take A Price,
MAKE Your Price!
www.newfarm.org/depts/NFfield_trials/
factsheets/pricing/index5.shtml
Pricing Part 6
Improving Your Profits With Organic
Production: A Win-Win Proposition For
You and Your Customers
www.newfarm.org/depts/NFfield_trials/
factsheets/pricing/index6.shtml
Pricing Part 7
How To Sell Premium Value:
Helping Your Customers Understand
and Appreciate Your Organic
Value-Added Products
Pennsylvania Association for Sustainable
Agriculture (PASA) is a nonprofit
organization working to improve the
economic and social prosperity of
Pennsylvania food and agriculture.
Ecotrust Food and Farms Program
www.ecotrust.org/foodfarms
Jean Vollum Natural Capital Center,
721 NW Ninth Ave, Suite 200
Portland, Oregon 97209
503-227-6225
[email protected]
Market Maker
www.national.marketmaker.uiuc.edu
Pennsylvania State Cooperative
Extension
www.extension.psu.edu
323 Ag. Administration Bldg.,
University Park, PA 16802
Ecotrust works to create a vibrant regional
food system where sustainability is the
underlying value of the mainstream food
system — the norm rather than the
exception.
Sustainable Agriculture Research and
Education (SARE)
www.sare.org
USDA-CSREES, Stop 2223
1400 Independence Ave. SW, Washington,
D.C. 20250-2223
Philadelphia Local Food Guide
www.localfoodphilly.org
SARE Provides Grants and Information
to Improve Profitability, Stewardship and
Quality of Life.
Western North Carolina
and Southern
Appalachian Mountains
www.buyappalachian.org
Mission: To enhance the quality of life of
Pennsylvanians by providing nonformal
outreach educational opportunities
to individuals, families, businesses,
and communities throughout the
Commonwealth.
Food Routes Network
www.foodroutes.org
PO Box 55 - 35 Apple Lane,
Arnot, PA 16911
570-638-3608
[email protected]
An interactive mapping system that locates
businesses and markets of agricultural
products, providing an important link
between producers and consumers.
www.newfarm.org/depts/NFfield_trials/
factsheets/pricing/index7.shtml
Local Food Guides
Food Routes
www.foodroutes.org/ffarticle.jsp?id=3
PA Local Food Guide
www.buylocalpa.com
Endnotes
FreshNet
Farmer-buyer events and other local food events around the country
www.chefscollaborative.org/Publications___Press.html
Page 27:
Resources, page 6
Appendix D- Product Information Documents
Agricultural Business Plans
www.attra.org/attra-pub/summaries/agriculture_planning.html
• Product and Price List [1 page Sample]
• Seasonality Chart [1 page Sample]
Pricing: Philadelphia Market Connectio
www.phillyproduce.com/
Appendix E- Bookkeeping Documents
PA Department of Agriculture Weekly Livestock Market Reports
www.agriculture.state.pa.us/agriculture/cwp/view.asp?a=391&q=128642
• Invoice [1 page Sample]
• Past Due Statement [1 page Sample]
Industry Standards Information
www.oznet.ksu.edu/library/hort2/mf979.pdf
USDA Grading standard
www.ams.usda.gov/standards/
Organic Certifier’s list
www.newfarm.org/ocdbt/
Pennsylvania Certified Organic
www.paorganic.org/index.htm
John Berry’s “Farmer’s Guide to Processing and Selling Meat or Poultry”
lehigh.extension.psu.edu/Agriculture/Farmers_Guide.pdf
New Jersey local health department list
www.state.nj.us/health/lh/directory/lhdselectcounty.htm
Delaware Dept. of Agriculture, Food Inspection Office
John Gargani @ 302.698.4543
FDA Center for Food Safety and Applied Nutrition Standards for Food Business
www.cfsan.fda.gov/
Penn State University Food Entrepreneur Resources
www.foodsafety.psu.edu/processor/resources.htm
Rutgers Food Innovation Center:
Julie Elmer @ 856.459.1125 Ext. 13
Univ. of Delaware Cooperative Extension
For information on value-added processing and workshops offered by DE Dept. of Ag on this topic:
Contact Sue Snider, 302.831.2524.
National Center for Home Food Preservation
www.uga.edu/nchfp/business/starting_business.html
PA Dept. of Agriculture, Milk Sanitation Program
717.346.3223
Information on raw milk laws in each state
www.realmilk.com/happening.html
Animal Welfare Institute’s Humane Husbandry Criteria
www.awionline.org
Humane Farm Animal Care’s Certified Humane Raised and Handled
www.certifiedhumane.com
PA Good Agricultural Practices (GAPS) program:
Contact Luke LaBorde, Penn St. [email protected] or 814.863.2298.
NJ Good Agricultural Practices (GAPS) program:
Contact Wes Kline, Rutgers Cooperative Extension [email protected] or 856.451.2800
National GAPS Program, Cornell University
www.gaps.cornell.edu/index.html
Midlands Management Corporation
www.midlandsmgt.com Contact: Roger Park- 800.800.4007
Keystone Development Center
www.kdc.coop or 717.792.2163
The Creators:
White Dog Community Enterprises
and The Fair Food Project
The “Selling to the Wholesale Marketplace” manual is a project of White Dog Community Enterprises’
Fair Food Project. White Dog Community Enterprises’ mission is to cultivate a Philadelphia regional
economy that is inclusive, just, environmentally healthy, and based on local business ownership. This
organization helps to create, strengthen, and connect locally owned businesses and farms that provide
essential human needs to our region; support minority entrepreneurs in this new economy; and educate
the public about the benefits and responsibilities of building a local living economy.
WDCE’s flagship program, The Fair Food Project, is dedicated to bringing locally grown food into the
Philadelphia marketplace and promoting a humane, sustainable agriculture for the Greater Philadelphia
region. Founded in 2001 to connect farmers and chefs, Fair Food has expanded it’s goals to include
fostering connections between farmers and a range of wholesale buyers, and educating consumers about
the inherent values of a local food system.
Fair Food’s programs include:
The Consulting Project: A membership-based program providing assistance and consultation to chefs
and other wholesale buyers who want to buy locally grown foods.
Buy Fresh Buy Local Campaign: Fair Food is the local coordinator for the Southeastern Pennsylvania
chapter of this national campaign, which helps consumers find locally produced foods, offers educational
events, and produces the annual Philadelphia Local Food Guide.
The Fair Food Farmstand: Located at the Reading Terminal Market, the Farmstand sells 100% locally
grown food year round and educates consumers of the benefits of supporting local farms.
Farm to Institution: Working to address the barriers associated with getting local food into food
service facilities, this program focuses on connecting family farmers to institutions such as colleges and
hospitals to increase farm profits and access to locally produced food.
Farmer Outreach and Assistance: This program seeks out limited resource farmers to prepare them to sell
to the wholesale marketplace, by providing workshops, consultations, events, and training materials.
Supporters
The “Selling Direct to the Wholesale Marketplace” manual would not have been possible without support
from the USDA Risk Management Agency. In addition, numerous organizations have contributed to
this body of work including . . .
Selling Direct to the Wholesale Marketplace
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