Question: Do You Need an Organic Food Distributor?
Not all farmer use an organic food distributor. However, a food distributor can be very helpful, especially if you want to sell larger volumes of farm goods.
Answer:
An organic food distributor can help you out by acting as the middleman between farm and retailer.
So, do you really need a distributor? Benefits of working with a food distributor may include the following.
- Less direct marketing: Not all farmers love the sales end of farming. With direct marketing and sales, such as a farmers' market you'll be working one-on-one with retailers and consumers, selling directly. If you're not comfortable with direct sales a distributor could be helpful, as they'll manage sales for your products.
- Help with packaging: Not all farms have the equipment, time or space for packaging products. A food distributor can manage the packaging hassle for you.
- Fewer deliveries: Product delivery is a huge consideration for farmers. Not only do you need a large enough truck but also the time to make product deliveries to retailers. A distributor will pick your product up at the farm and get it where it needs to go.
- A larger market: It's not true across the board, but many organic retailers and restaurants don't have time to seek out individual farmers to purchase products from. Instead retailers and other sellers of organics will rely on food distributors to find products and deliver them. If you're working with a reputable food distributor you may be able to sell more product.
- Sales across states: Knowing your own local market for products is difficult enough - also getting to know the national market and sell to the market is extra hard. A food distributor can help you sell your products to a much larger national market. Also, selling products to other areas can be very lucrative. For example, if you sell a product like organic berries that don't grow well in other areas, your berries can fill a need in that area.
- Easier financial arrangements: In many cases, working with a distributor can result in an easier to manage financial situation. Most food distributors are larger and have a steady flow of cash, which means, unlike a small business, the distributor is more likely to pay you when they say they'll pay. Distributors also tend to know what other farmers are selling their products for and can share that information with you. This means you'll be able to compete and set prices at a cost consumers will pay.
