Farm to Grocery Store Is It the Right Market for Your Farm?
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Developing a Relationship Many grocery stores use local dis- United States Department of Agri- tributors to source certain pro- with a Wholesale Distributor culture data reports that Ameri- Farm to Grocery Store duce, and for smaller direct-to- cans consume 700 pounds of of Are you prepared to harvest and store service. It should be noted, fruits and vegetables per year. deliver your produce with reliable however, that the vast majority Is it the right market for transportation and manpower di- of product goes through retailers There is boundless opportunity for rectly to a local grocery outlet ? Do distribution centers so the mar- Connecticut growers to produce you have a way to market your ket for direct-to-store sales fruits and vegetables as long as your farm? excess produce while it’s fresh? seems limited and intermittent. they can find the appropriate out- let to market their quality produce A project of the Connecticut Farm Bureau Association Establishing a positive relationship Compliance with food safety at the right price. With support of a USDA Specialty Crop Block Grant with local produce distributors can standards such as GAP certifica- simplify a farmer’s marketing strat- tion is becoming essential to do Although Community Support Agri- Administered by the Connecticut Department of Agriculture culture (CSA’s), farmers’ markets egy, and provide a farmer with pro- business with wholesale produce cessing and packaging, but you distributors. and other direct-to-consumer sales methods can provide growers top must understand that you should be prepared to receive less for that value, the vast majority of produce is purchased at grocery and mass produce to compensate for the ser- vice the distributor provides. market outlets. The goal of this Connecticut Farm Bureau project is to help increase WWW.CFBA.ORG Contacts for Local Local Produce Distributors the competitiveness of Connecticut Grocery Opportunities Bozzuto’s, Cheshire, CT Bozzutos.com Wakefern Food Corp. Elizabeth, NJ grown fruits and vegetables by in- Big Y Foods Inc., Springfield, MA Derrick S. Jenkins, Vice President Produce/ C&S Wholesale Grocers, Hatfield, MA creasing supply chain options— to Kevin Barry, Dir. of Produce and Floral Floral Divisions 908-527-7587 *Cswg.com 413-504-4671 [email protected] expand distribution into this mar- [email protected] Freshpoint, Hartford, CT Geissler’s , East Windsor, CT ket as a way to increase access to Terrence M. Murphy, Procurement Mgr. Freshpointct.com Fay Davis, Produce Manager Produce Division Connecticut consumers of fresh, 860-623-6336 [email protected] P Jarjura & Sons Company, Waterbury, CT 908-527-3451 locally grown produce. Highland Park Market, Farmington, CT [email protected] HPC Food Service, South Windsor, CT Brian Gibbons, Store Mgr.& Produce Mgr. Whole Foods Market, Inc., W.Hartford, CT Hpcfs.com After conducting interviews with 860-674-9536 Drew McLachlan, NA CT Local Forager M&M Produce, Hartford, CT produce managers of large grocery- [email protected] and West Hartford Culinary Specialist LaBonne’s Markets, Woodbury, CT 860-523-8500 OrFoodEx, Roxbury, MA chains and local independent Robert LaBonne, Jr., President & CEO [email protected] Orfoodex.com stores, Connecticut Farm Bureau 203-263-1940 [email protected] Sardilli Produce, Hartford, CT has created this concise overview Mark Zotti, Produce Supervisor/Buyer Sardilliproduce to assist growers who may be con- 203-266-4202 [email protected] This is the list of contacts who were helpful to CFBA in this project sidering this market as an oppor- Stew Leonard’s, Norwalk, CT and who are open to be contacted Scott Varanko, Produce Manager Created by Connecticut Farm Bureau tunity for growth. 203-847-7214 by local producers. Association, Inc. To learn more, please contact Walmart US, Bentonville, AR Visit www.cfba.org for a more This project was funded by a Specialty CFBA at 860-768-1107 and a staff Ronald G. McCormick, Sr., Dir. Sustainable comprehensive listing of local Crop Block Grant from the United States Agriculture Produce & Floral/Meat & grocery outlets throughout Department of Agriculture through the member will meet with you to pro- Seafood Connecticut. Connecticut Department of Agriculture. vide more information. 479 -273-4048 [email protected] Is Wholesale to Grocery Each Store is Unique Store Right for You? Every grocery store has their own unique product needs based on their customer base. Each grocery store has their own special process for developing a relationship with farmers. Not every grocery store is a good fit for a As a farm manager and business producer. owner, you must exam your profit model and product mix to determine Targeting the Type of Grocery Store if selling wholesale to grocery stores Large Multi-State – While the paperwork process and FSMA /GAP certification requirements can be considera- is right for you. Grocery stores gen- ble, a number of farms currently work with Connecticut grocery stores. Obtaining these approvals and certifica- erally pay wholesale market rate tions may provide you a competitive advantage because few Connecticut farmers have obtained them. In addi- prices for locally grown produce. In tion, with the larger stores, economy of scale is on your side and you can move large volumes of product. Some addition they will require that your multi-state chains do permit individual local produce buyers to negotiate and purchase locally from non-GAP cer- products be sorted, graded, cleaned, tified growers, for single stores, too. packaged and delivered to their specifications. Some smaller farms Mid-Sized Multi-Location– Probably the sweet spot for most growers. They are willing to work collaboratively have success using grocery stores to with growers. Delivery to multiple locations could be a challenge for some farmers. purchase excess products. Other Small Stand-Alone – A better match for smaller farms. Because of their independence, these buyers are easier to larger farms of greater scale have develop a relationship with and more responsive to the seasonal inconsistencies that occur with locally grown. success with multi-state stores. You will need to carefully evaluate Opportunities for Farmers whether this market might fit profita- This relationship must be nur- Non-produce Items Pricing If Selling Wholesale To a bly into your business plan. tured over time to establish, and Exending the Season All produce buyers indicated an in- Grocery Store Makes Sense paperwork may take months to Grocery stores pay market rate for Develop a Relationship All produce buyers expressed an terest in increasing the availability complete. produce regardless of quality, prove- for Your Farm Business, interest in products that are availa- of other types of Connecticut When produce managers begin a nance, size or appearance. Even high- then……. ble earlier in the seasons or later in grown/processed items including new relationship with a farm they Quality end grocery stores expect to make their normal profit margin on locally the season. bedding plants, hanging plants, Identify the Type of Grocery consider many factors when deciding While there is little tolerance for if the farm is a good fit for their grown produce. honey, maple syrup, etc. Store less than first quality produce at Custom Production store. They may consider produce Aggregation Arrange to Meet with the retail outlets, grocery stores did Many retailers express that although Many produce buyers expressed an varieties, timing, delivery schedules, consumers desire to purchase local Produce Buyer not express an interest in paying interest in working closely with Aggregation is when produce is pricing, packaging, reliability, harvest product, they do not seem willing to more for high quality—quality farmers to customize produce combined from several sources to Complete Any Paperwork, schedules, insurance coverage, food pay more for it. Retailers regret that safety processes, and availability. produce is expected from the their margin on selling local product is quantity and variety so they can fulfill an order. Buyers appreciate Permitting Yourself Plenty of top to the bottom of every box. less than on non-local product which utilize local products that are informal and efficient aggregation Time for it to be Processed unique and not widely available arrangements that farmers use to limits dollar sales volume. Cultivate a Relationship ensure a consistent supply. Estab- Contractgrowing is not common. elsewhere. lishing aggregation partners could Build on the Relationship Growers need to be prepared to watch out for their own bottom line when open up new opportunities for me- Be Professional negotiating prices. dium-sized produce farms who Be Honest about your Capacity might not produce the volume nec- and Update the Buyer on essary to fill trucks to supply to a Produce Development and chain’s distribution warehouse. Harvesting .