2pgs, Grocery stores typically buy large volumes of fresh and processed foods as well as other household items, reselling their products to individual consumers. Grocery stores are appealing because they sell everything customers need at one convenient place. Depending on the size of the town, these stores may have more than one location. Very large grocery chains operate stores across broad regions of the country. Many grocery stores are now interested in selling products grown by local farmers.
2pgs, Institutional markets are entities such as cafeterias in state and local government buildings, schools, universities, prisons, hospitals, or similar organizations. These institutions are becoming more interested in buying local food, which provides a new marketing opportunity for a medium to large-scale farm
2pgs, Produce distributors are businesses that aggregate product and resell it in small or large quantities to their customers. Distributors may be an individual with a van or a company with a fleet of eighteen-wheelers. A distributor’s primary relationship is purchasing directly from farmers, although distributors can also buy from brokers or packing houses.
2pgs, Produce packing houses are large-scale businesses that buy produce from growers through a contract and then re-sell it on the open market. They sell very large quantities. Packing houses can also own land, renting plots to farmers to grow specifically for them, and sometimes supplying seed, inputs and packaging. They have invested in equipment such as coolers and fumigators, so they have the ability to store large amounts of product. Packing houses never own the product once they receive it, therefore the price the farmer receives is based on what it sells for at the end of the chain. Some packing houses are cooperatively owned by farmers
2pgs, Restaurants are businesses that provide full meals and drinks, and try to offer a unique atmosphere and menu for customers. Some restaurants, especially locally owned ones, now want to feature dishes using local produce. This presents a good marketing opportunity for farmers to sell to them directly.
2pgs, Wholesale buyers are typically located in permanent stalls at a terminal market. Terminal markets are central sites, often in a metropolitan area, that serve as an assembly and trading place for agricultural commodities. Wholesale buyers will purchase products from farmers, brokers, or packing houses in large quantities, and resell it.
2pgs, Agritourism combines agricultural sales with on-farm activities that involve the customers. These can include hayrides, mazes, pumpkin patches, farm tours, a bed and breakfast, or other endeavors. “Pick-your-own” or “you-pick” operations allow customers to wander out into the fields or orchards to pick their own apples, berries, pumpkins, or other crops. Customers check in at the farm stand when finished and pay by weight or volume. This can be a fun activity, especially for kids, and can sometimes allow customers to get larger volumes at lower prices.
