Enhance Marketing of Fruits And Vegetables

Enhance Marketing of Fruits and Vegetables

     Fruits and vegetables are usually more difficult to market than to produce. There are ready markets available daily or weekly for grain and livestock in almost all areas of the United States. There are few similar markets for fruits and vegetables. Most commodities are produced in abundance and long established market channels may be closed to small scale or new producers.

     A producer may need several years to establish a marketing program. The number of produce buyers has decreased rapidly in recent years. One major nationwide supermarket chain has plans to consolidate the number of buying stations for produce to eight in the United States. A grower has little chance of selling to a local store in a supermarket chain as purchases are made through a central warehouse. As the number of buyers has decreased, the number of producers has decreased, but their acreage has increased considerably. There is often a delay of four to six months after shipment in receiving payment in the wholesale market system when selling through a broker. This often presents a cash flow problem for many growers. Wholesale buyers have strict and specific product quality, grade, and packaging requirements. These purchasing practices and price squeezes have eliminated market availability to many producers.

     The future shows more promise for large scale producers or small scale producers than for mid sized producers. The large scale producer can afford the large equipment needed for production, and the use of migrant labor. Small scale producers can use smaller equipment, often hand operated, and family or local labor to substitute for other equipment.

     Large producers are linked through brokers to supply produce over a relatively long season or year round and it is difficult for small scale producers to supply the quantity and quality required over a long period. Both types of producers can be highly successful or can go broke as production and marketing practices are highly volatile. A mid sized producer is less efficient, and often can’t economically justify the purchase of needed equipment or substitute labor for equipment.

     The small scale producer needs to seek local market channels. There are opportunities, but a producer must work to find them. Direct to the consumer markets bring highest prices to the producer, but also require more producer time in marketing. A diverse group of crops is ideal, since market demand changes rapidly. A commodity may sell well and bring high prices for a long period, but demand and prices may drop drastically over night. Supply and demand has a tremendous effect on marketability and prices of produce.

Proceedings of the ... annual meeting of the Florida State Horticultural Society

Agriculture decisions

Color atlas of postharvest quality of fruits and vegetables

Hearings

Processing fruits, science and technology