2pgs, Aggregators are agricultural businesses or cooperatives of growers that consolidate and distribute agricultural products. They typically support regional growers of diverse sizes and experience, and sell products to local or regional markets. The consolidation of multiple farms’ products can help supply fresh product for distributors and other wholesale customers and is not limited by grower size.
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, A produce broker is a salesperson who has access to any seller in the food chain, including packing houses, processors, agribusinesses, and mid- to large-scale farms. Typically they work with large-scale farms. A broker will help arrange the logistics of getting your product from your farm to their buyer, often taking commissions based on a percentage of the sale. Their success depends on their reputation and they spend years building relationships.
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
Zanello, Giacomo (author), Shankar, Bhavani (author), and Srinivasan, C.S. (author)
Format:
Paper
Publication Date:
2012-04
Published:
Ghana
Location:
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 186 Document Number: D00950
Notes:
Paper presented at the 86th annual conference of the Agricultural Economics Society, University of Warwick, United Kingdom, April 16-18, 2012. 23 pages.
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 179 Document Number: C35974
Notes:
Presented at the 2010 Agricultural Outlook Forum, U. S. Department of Agriculture, Arlington, Virginia, February 18, 2010. 25 pages., Focuses on the development and nature of market information services from USDA in support of organic farm products.
