2pgs, CSA is a system of direct marketing where consumers pay the farmer at the beginning of the growing season for a weekly box of fresh fruits and vegetables. A CSA “share” is harvested and delivered to customers over a period of several months. CSAs may include meat, grain, flowers, or value-added products such as bread or cheese, in addition to fresh produce.
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, 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
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.
Agricultural Communications Documentation Center, Funk Library, University of Illinois Document Number: C36861
Notes:
Agricultural Publishers Association Records, Series No. 8/3/80, Box 13, Pages 4-7, minutes of the annual meeting, APA, Chicago, Illinois, October 18, 1938., Discussion about needs and methods. Led to an approved motion to plan a presentation to be used for united action.
