Forming Produce Marketing Alliances
The distribution network for marketing produce is becoming increasingly competitive. The major buyers are looking more favorably toward their sources of supply that can deliver a consistent quality product year round, assure product safety, deliver large volumes of produce and more sophisticated tracking and distribution technology. Other services typically provided by only the biggest suppliers may be looming on the horizon as standard industry expectations. Returnable packaging, provision of market research information, offering value added products and in-store shelf management are already being provided by some of the more sophisticated suppliers.
This kind of competition can be a tall order for the little guy. How can a small producer or cooperative keep up with the demands of the market? Many small producers have resorted to focusing on smaller niche markets. Other producers, however, have found that forming marketing alliances with other growers and shippers is a viable way to grow with the market. A group of producers in Western Kentucky has marketed sweet corn; including some that is specially packaged in collaboration with some growers in Florida and Georgia. A few growers and handlers in Central Kentucky have been working with a larger firm out of California that handles specialty produce. They have been marketing selected produce items under the California firm into retail stores in the Midwest and Eastern US. A Wisconsin pepper processor has been working with some Kentucky producers to partner on some of the production and processing in Kentucky. These kinds of partnerships are going to become increasingly attractive for producers in Kentucky as they seek to adapt to the more demanding produce market.
Win-win arrangements can emerge from such alliances as Kentucky producers can provide other producers and handlers with market access, distribution and seasonal production. Kentucky producers can win by getting connected into already developed markets and by accessing the management and produce marketing sophistication of other growers or grower organizations. Such alliances may well be the path ahead for many producers all over the country.
For More Information
For additional information, please contact, Tim Woods.