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 9 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 11 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 31
© Copyright 2026 Paperzz