1. FRUIT and VEGETABLE MARKETING Small Farm Conference Wednesday May 16, 2007 Dr. Allen F. Wysocki Food and Resource Economics (352) 392-1826 ext 403 wysocki@ufl.edu View this presentation at: http://www.fred.ifas.ufl.edu/~wysocki/Articulate/May-2007-Central- Florida-Small-Farms-Conference-F&V-Marketing/F&V-Marketing.html Hosted by the Lake County, Orange County, and Seminole County extension offices

2. Marketing Fruits and Vegetables May 16, 20072 Looking into the Crystal Ball qThe U.S. food system is changingThe U.S. food system is changing qAccess to large markets is diminishing qUnderstand value qStart small, think big

3. Marketing Fruits and Vegetables May 16, 20073 INPUT SUPPLIES AGRICULTURAL PRODUCTION COMMODITY ASSEMBLY INITIAL PROCESSING FURTHER MANUFACTURING WHOLESALING RETAILING CONSUMPTION MAJOR ALTERNATIVE MARKETING CHANNELS OF THE US FOOD SYSTEM Agricultural Input Suppliers Local Assemblers Terminal Assemblers Food Manufacturers U.S. Consumers Government Purchases Export Markets Import Markets Initial Food Processors Integrated Food Service Wholesalers/Distributors Non-Integrated Grocery Wholesalers Integrated Grocery Wholesalers Non-Integrated Food Service Wholesalers Specialty RetailersFood Service Outlets Agricultural Producers Retail Food Stores

4. Marketing Fruits and Vegetables May 16, 20074 Are You Offering Value? qWhy do buyers have price objections? LSeller has not effectively communicated LValue is different for different customers LValue is and not necessarily a firm amount. LPerceived value = ________________ Value Perceived Perceived Benefits Price

5. Marketing Fruits and Vegetables May 16, 20075 Accessing Wholesale/Retail Markets qState Farmers’ Market Sellers qLarger produce grower/shippers qProduce brokers qProduce Suppliers qFoodservice suppliers qIndependent retailers qRestaurants http://www.florida-agriculture.com/marketing/markets/sanford_market.htm Sanford State Farmers’ Market http://www.longandscottfarms.com/ Long and Scott http://www.eastcoastfruit.com/index.html East Coast Fruit Company, Inc. http://www.chrobinson.com/ CH Robinson, Worldwide, Inc. http://www.sysco.com/home.html Sysco Foodservice http://www.iga.com/ IGA http://www.emerils.com/restaurants/orlando_emerils/ Emeril’s Restaurant-Orlando

6. Marketing Fruits and Vegetables May 16, 20076 Access to Wholesale/Retail Markets: The Pros qGenerally a larger volume channel LSize of the sale is a relative concept qAccess to new and different markets qLess need for daily marketing once a relationship is established

7. Marketing Fruits and Vegetables May 16, 20077 Access to Wholesale/Retail Markets: The Cons qLarger volumes may be greater than producer’s capacity to supply qBuyer may want additional promotional support qGenerally, you will sell at the lowest average market price in exchange for volume qIncreased potential for being taken advantage of relative to the market

8. Marketing Fruits and Vegetables May 16, 20078 qProducer must deliver consistent acceptable quality product qProducer must be able to supply products when and how buyers want them, including any packaging requirements qProducers may be required to meet 3 rd party certification requirements qBarriers to access aplenty (e.g., corporate buying mentality, etc.) Access to Wholesale/Retail Markets: The Challenges

9. Marketing Fruits and Vegetables May 16, 20079 qOne-on-One access to the end-users of your products (who you are may matter) qSmaller, more manageable volumes qGenerally receive a higher price vs. wholesale qMore flexibility relative to your product availability qIncreased ability to move all variability in product quality Access to Direct Markets: The Pros

10. Marketing Fruits and Vegetables May 16, 200710 qSmaller volume requires more customers to move the entire crop qMore daily marketing required LDoes this fit the operation and skills? qJust because you remove the middleman, doesn’t mean you can skip their functions LMay or may not earn higher profits qIs their a large enough customer base? Access to Direct Markets: The Cons

11. Marketing Fruits and Vegetables May 16, 200711 qMeeting customer expectations LRestaurants LWalk-in customers LInternet sales qAccess to various customer groups requires different approaches and skills qCan you constantly find ways to differentiate your product/service? Access to Direct Markets: The Challenges

12. Marketing Fruits and Vegetables May 16, 200712 In Conclusion… qThe U.S. food system is changing qAccess to large markets is diminishing qUnderstand value qStart small, think big qJoin organizations like the: LFFVA http://www.ffva.com/ LFarm Bureau http://floridafarmbureau.org/

13. Thank You qFor more information visit the Small Farms web at http://smallfarms.ifas.ufl.edu http://smallfarms.ifas.ufl.edu qTake a virtual field day tour by visiting the Virtual Field Day web at http://vfd.ifas.ufl.edu http://vfd.ifas.ufl.edu This presentation brought to you by the Small Farms/Alternative Enterprises Focus Team.