FRUIT and VEGETABLE MARKETING Small Farm Conference Wednesday May 16, 2007 Dr. Allen F. Wysocki Food and Resource Economics (352) ext 403 View this presentation at: Florida-Small-Farms-Conference-F&V-Marketing/F&V-Marketing.html Hosted by the Lake County, Orange County, and Seminole County extension offices

Marketing Fruits and Vegetables May 16, 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

Marketing Fruits and Vegetables May 16, 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

Marketing Fruits and Vegetables May 16, 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

Marketing Fruits and Vegetables May 16, Accessing Wholesale/Retail Markets qState Farmers’ Market Sellers qLarger produce grower/shippers qProduce brokers qProduce Suppliers qFoodservice suppliers qIndependent retailers qRestaurants Sanford State Farmers’ Market Long and Scott East Coast Fruit Company, Inc. CH Robinson, Worldwide, Inc. Sysco Foodservice IGA Emeril’s Restaurant-Orlando

Marketing Fruits and Vegetables May 16, 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

Marketing Fruits and Vegetables May 16, 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

Marketing Fruits and Vegetables May 16, 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

Marketing Fruits and Vegetables May 16, 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

Marketing Fruits and Vegetables May 16, 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

Marketing Fruits and Vegetables May 16, 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

Marketing Fruits and Vegetables May 16, 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 LFarm Bureau

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