Retail and restaurant sales are an opportunity for farmers and food businesses to increase sales volume and revenue, while building brand awareness in the local marketplace. But selling farm products to retail buyers isn’t as easy as showing up with samples. Before approaching grocery store and restaurant buyers, farmers must understand the market, obtain required insurance and certifications, and comply with industry standards for packaging and labeling.
Understand the market: products, people, promotions and pricing
Visit the grocery store(s) you wish to sell product to. Survey the store’s current products, customers, promotions, and pricing. Pay special attention to similar products that your products will compete against, noting the price range. Typical retail mark-up is 40%; if the retail price of fresh asparagus is $2.89 per pound, the grocer paid about $1.73 per pound.
Enjoy a meal at the restaurant you wish to sell products to. Look for language or signage that promotes local sourcing. Notice fellow diners- will your products appeal to the restaurant’s typical customers? Review the menu and consider if your products are a good fit. Make note of prices on the menu. Restaurant industry food costs average 30-35%, depending upon the style of restaurant.
Insurance and certifications
Retail and restaurant buyers may require vendors to maintain a level of product liability insurance, worker’s compensation and/or other insurance policies. Grocers may require vendor farms to be Good Agricultural Practices (GAP) certified. Buyers will appreciate a copy of your farm’s food safety plan, and an invitation to perform an on-farm food safety inspection.
Be prepared to provide buyers with documentation proving your products are USDA Certified Organic, Certified Natural, Verified Non-GMO, Animal Welfare Approved or other specialty certifications. You may need to explain terms like “grass-fed”, “pasture raised”, “natural”, “antibiotic free”, and how those terms can be used to market products to customers.
Packaging and labeling
Grocery stores and restaurants require product to be delivered in packaging that complies with industry standards. Packaging may need to include USDA or industry grading, sizing and quality standard information.
Understand legal regulations for labeling retail products, including Country of Origin labeling, USDA inspection seals, label claims, weights and business contact information that allows for product traceability. Many grocers require a price look up (PLU) or universal product code (UPC) label.
Pitching your farm products
Farmers that understand the market, obtain required insurance and certifications, and comply with industry standards for packaging and labeling, can approach buyers with confidence! The first successful sale is the start of a long-term mutually beneficial buyer-seller relationship.
Need help getting ready for retail?
Join the Ohio State University Direct Food and Ag Marketing Team for MarketReady Producer Training.
Dates: Two-part training on Thursday, November 1, 2018 and Friday, November 9, 2018
Time: 10 a.m. to 2:30 p.m. both days
Location: OSU Extension- Cuyahoga County, 12200 Fairhill Rd. E Bldg. Cleveland, OH 44120
Fee: $30 covers both days (lunch is provided)
Register: Contact email@example.com or 740-289-2071 ext 132 by October 30th.
*Article originally published in Farm & Dairy Newspaper
The Association of Cooperative Educators (ACE) presents the 2018 webinar series “Planting the Seed: Empowering the Next Generation of Co-op Rural Development Professionals.” Staff from the CFAES Center for Cooperatives presents the Center’s signature online training, Co-op Mastery, an online education resource for rural and agricultural cooperatives to start, grow and participate in a cooperative business.
The free webinar takes place November 15th, from noon to 1 p.m.
For more information about the webinar series contact firstname.lastname@example.org
A conference connecting healthy food, farms and communities, dedicated to the life and work of Patrick Kaufman.
Join us Nov. 9 for a one-day conference to connect practitioners, researchers, activists and others engaged in the development of regional food hubs to network and share best practices. Practitioners and researchers will share the findings of a food hub project aimed at improving food access in Columbus, among other learning opportunities.
This conference is presented by Methodist Theological School in Ohio, the Initiative for Food and AgriCultural Transformation (InFACT) of The Ohio State University, Franklinton Farms, and Seminary Hill Farm on the campus of MTSO. It is supported in part by a Linkage and Leverage grant through InFACT.
TIME AND LOCATION
The conference will be held from 9 a.m. to 4 p.m. Nov. 9 on the campus of MTSO, 3081 Columbus Pike in Delaware. Here is a Google map. A full schedule for the day will be posted soon.
1 cup Land O’ Lakes butter, softened
¾ cup America Crystal sugar
¾ cup American Crystal brown sugar
1 tsp vanilla
1 tsp baking soda
½ tsp salt
½ tsp Sunkist orange zest
1 heaping cup all-purpose King Arthur flour
1 heaping cup self-rising King Arthur flour
6 oz Ocean Spray Craisins
½ cup Blue Diamond sliced almonds
- Preheat oven to 350 degrees.
- In a large bowl, beat butter and sugars until creamy.
- Add vanilla, eggs, soda, salt and orange zest. Mix well.
- Incorporate flours to form dough.
- Stir in Craisins and almonds.
- Drop by spoonful onto ungreased baking sheets.
- Bake for 10-12 minutes, until golden.
- Remove from heat and allow to cool on pan.
- Store in airtight container.