A produce auction is a wholesale market outlet for local farm and greenhouse products. Fresh produce, as well as a variety of other agricultural products, is offered for sale to the highest bidder.
Some Kentucky growers use produce auctions as the main market channel for their farm. Retaining a committed and reliable grower base is one of the keys to produce auctions as a sustainable local wholesale market. For many producers, however, the produce auction is only one of several market channels for their farm products. Growers considering produce auctions as part of their marketing plan should realize produce auctions and other wholesale markets will reflect seasonal price volatility. Auction sellers should realize that many factors influence prices paid for produce at auction. Seller reputation, bidder demand and the presence of large-volume order buyers can all impact buyer willingness to pay. Quality, placement of lots in the auction order, and lot size can all affect prices received.
Benefits of Auctions
- Set days and times for delivery
- Ability to group produce into various lots
- Ability to “test market” new products or sizes of produce for wholesale