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market-farming - Re: [Market-farming] Selling to grocery stores

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  • From: robert schuler <sunnfarm AT bellatlantic.net>
  • To: Market Farming <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] Selling to grocery stores
  • Date: Wed, 03 Aug 2005 11:15:01 -0400

I sold direct and exclusively to grocery stores for 20 years, its ok as a
temporary way to get rid of extras but not very profitable in the long run.
Personally selling to grocery stores was a big mistake, and something I would
change if I could do it all over again. As far as pricing. At the moment and I
say "the moment" tomato prices are abnormally high for this date. That is
because locally they are very scarce but in a week or so wholesale prices at
the farm level should fall to the summer average of $6-10 a 25 pound box. The
USDA price you see is the shipping point price charged to the supermarket by
the wholesaler its not the farm price. Caution is needed because listed USDA
shipping prices are often rigged by shippers who compete with other shippers.
The actual price charged to the grocery store may be a lot less. Generally
speaking when you sell to a grocery store expect to be ripped off.... Bob
Sunny Meadow Farm
Bridgeton, NJ.

Lynn Wigglesworth wrote:

> I have a LOT of Brandywine and Brandywine cross tomatoes ready to ripen.
> It'll be more than I can sell through my farmstand, and I'm thinking of
> selling the excess to the local grocery stores. Has anyone done this? What
> price can I expect for vine-ripened heirloom varieties, delivered (by me)
> once or twice a week?
>
> According to the USDA market reports, vine ripes from NJ are $18 for 25
> pounds in Philadelphia (closest large market to us). Grocery stores would
> still have to pay to ship from these hubs, right? So the stores pay about
> $.72/pound plus trucking? With gas prices being so high, the trucking
> could add a lot to the grocery stores cost for non-local tomatoes. I'm
> only 5 miles from the store; finally high fuel prices are in my favor!
>
> And these are summer prices....I think winter tomatoes could pay well. If
> I can develop a good relationship with the local stores, I'm considering
> adding heat and lights and running my greenhouse through the winter,
> growing tomatoes (and maybe Asian cucumbers, peppers) to sell to grocery
> stores. I've grown heirloom tomatoes in the greenhouse and they do well,
> but I've never carried them through the winter. It's not a huge investment
> of money, and will payback in a year or two IF IT WORKS, but I'd like to
> consider all the pros and cons before I do it. Any thoughts?
>
> Lynn Wigglesworth
> Peasant Farmer
> Tioga County, PA
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