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market-farming - Re: [Market-farming] pricing

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Subject: Market Farming

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  • From: "Cherry Tree Farms" <ctfarms AT helicon.net>
  • To: "Market Farming" <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] pricing
  • Date: Wed, 24 May 2006 09:50:33 -0400

USDA does not have the pricing I was talking about; their price reporting is
what you get if you take it to the auction house. To go back to my original
example of peppers, auction price at that time was $4.65 net to the grower.
So just to take it to the low-volume (comparatively) retailer instead of the
auction house was worth $7.15, more than double the return though there is
the ordering and billing additional work as well. Trying to price at 10%
over terminal market puts one way under price for the small shops (not
significant volume grocery stores/supermarkets). Sure, you can move a lot
of product while undercutting everyone else but do you want to leave that
much money on the table each delivery? And take it back through your
accounting system; where is your break even point and can you afford to sell
for only 10% over auction?

Market breakdown (traditional):

Producer sells to wholesaler (auction house, where USDA & New Farm price
data comes from)

Wholesaler sells to Distributor (Chain supermarkets buy at this level,
truckload qty.)

Distributor sells to purveyor (Mixed truck loads, still truckload qty.)

Purveyor sells to retailer (Bushels, 1/2 bushels, lbs, etc)


The White family is proposing to sell at the purveyor level, they need to
price at that level.

Good luck,
Doyle


----- Original Message -----
From: "TxBeeFarmer" <TxBeeFarmer AT HotPop.com>
To: "Market Farming" <market-farming AT lists.ibiblio.org>
Sent: Wednesday, May 24, 2006 8:06 AM
Subject: Re: [Market-farming] pricing


Go to the following USDA address for the Agricultural Marketing Service. It
gives current pricing reports for all types of commodities broken down by
region and point of sale. Look on the left side of the page under "Browse
Commodity". I think you'll want to add 10% or so to the price since your
produce is local, fresh, and generally more desirable. Let me know if this
is what you were looking for.

TxBeeFarmer
West Texas Zone 7b

----- Original Message -----
From: "White Family" <samhainfarm AT yahoo.com>
To: <market-farming AT lists.ibiblio.org>
Sent: Tuesday, May 23, 2006 12:28 PM
Subject: [Market-farming] pricing


> Hello to everyone. I have been an active listener for about a year now
> and this is my first posting. I welcome everyone's comments. We are
> selling at the farmers market for the first time this year!! We are very
> excited. Additionally, we are selling to a local café. I am about to go
> and discuss the plans for this venture with the owner this week. He is a
> very agreeable man who is interested in supporting sustainable, local
> growing.
>
> I am seeking advice from those already embroiled in this type of
> business. Also, how do you price the deliveries? Do you just agree to
> deliver what you have for a set price each week? Do you price certain
> crops individually?
>
> We will be delivering both produce and flowers in reusable containers, so
> costs are low.
>
> Suggestions?
>






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