Tips for Selling to: NCAT Marketing Tip Sheet Series

Produce Brokers
A produce broker is a salesperson who has access to any farm to their buyer, often taking commissions based on
seller in the food chain, including packing houses, proces- a percentage of the sale. Their success depends on their
sors, agribusinesses, and mid- to large-scale farms. Typi- reputation and they spend years building relationships.
cally they work with large-scale farms. A broker will help
arrange the logistics of getting your product from your For this market you can expect:
• Higher volume of product
Advantages J  key point • Lower prices per unit

  • Barrange
rokers have relationships with many buyers and can
a sale more easily than the farmer can. =
  • Brokers generally have a better understanding of the

=
market conditions and prices than the farmer does.
  • Working with a broker allows you to focus on production,
rather than sales.
  • Brokers can arrange transportation, either from your
farm or from a terminal market.
=

Considerations
  • Brokers prefer to deal with larger volumes, but it is
not a requirement.
  • While you can sell a larger quantity, you should expect
a lower price per unit.
  • Research your broker and their reputation. Farmers
can sign an agreeement with a broker that clearly
delineates lines of fiscal responsibility.
  • Itandis advantageous when working with brokers to have clear
concise agreements regarding volume throughout
the season. Written agreements are helpful but not required.
• Inproperly
order for a broker to sell your product, you will need to
sort it for high quality, cool it, and store it.

Key Questions to Ask Yourself

• Dwith
o you know others who have had good experiences
this broker?
Photo: Rex Dufour, NCAT

• Do you have enough volume to still see a profit after

paying a commission to a broker and selling at wholesale prices?
•

Would you rather entrust someone else to sell your products
so that you can focus only on production?

Produced by the National Center for Appropriate Technology • www.ncat.org • 1-800-275-6228 (1-800-ASK-NCAT)
(Parent organization of the ATTRA Project, www.attra.ncat.org)
 Tips for Selling to Produce Brokers J  key points
J  Check with other growers and get a sense of the broker’s or the brokerage company’s reputation
before you work with them. You want someone with an excellent track record who comes highly
recommended. You can check their credibility through their DUNS number (www.dnb.com) or
through the Blue Book (www.producebluebook.com). There may be a fee for credit-check services.

J  Written contracts are preferred, but not standard. However, it’s always a good idea to have
some type of written agreement with the broker outlining price, volume, time period,
and whether the broker is purchasing the product from you or only negotiating a sale.
These documents are critical to protecting both parties if anything goes wrong.

Resources
•ATTRA
ATTRA Publications. Prices vary for individual publications. Many are free. An inexpensive subscription to
will give you access to all 400+ publications and databases. Phone 800-346-9140. www.attra.ncat.org
— Illustrated Guide to Growing Safe Produce on Your Farm: GAPs (2011) (English & Spanish)
— Post-Harvest Handling for Fruits and Vegetables (2000) — New Markets for Your Crops (2008) (English & Spanish)
— ATTRA website’s Marketing, Business and Risk Management section: www.attra.ncat.org/marketing.html

•marketing,
The Packer is a weekly newspaper covering fruit and vegetable news, produce shipping, distribution, packing,
and trends in fresh produce in North America. www.thepacker.com

•theWholesale Success: A Farmers Guide to Selling, Post Harvest Handling, and Packing Produce is a 255-page manual for
produce wholesale industry. It covers food safety, post-harvest handling, packing and grading standards, fulfilling
orders, recordkeeping, billing, and building relationships. The manual includes harvesting, cooling, storing, and pack-
ing information for 103 different fruits and vegetables. Phone 708-763-9920. www.familyfarmed.org/wholesale-success

•grade
AMS Fresh Fruit, Vegetable, Nut, and Specialty Crop Grade Standards lists the U.S. Agricultural Marketing Service
(quality) standards for each fruit, vegetable and nut sold as commodities. http://tinyurl.com/ams-grade-standards

•safety
Food Safety and Liability Insurance for Small-Scale and Limited Resource Farmers gives a brief overview of food
and liability insurance. Published by the Community Food Security Coalition.
www.foodsecurity.org/insurance.htm

•FoodComo Proteger Su Negocio Agrícola y Producir Alimentos Seguros en Su Granja is a Spanish audio version of the
Safety and Liability Insurance brochure above. From the Community Food Security Coalition website, you can
click on the link to listen to the mp3 version on your computer, or you can request a CD of this recording by contacting:
[email protected], or (503) 954-2970. www.foodsecurity.org/insurance.htm

• USDA Terminal Market Report lists current wholesale prices online at http://tinyurl.com/3znaeuf
•ventional
Rodale Institute Organic Price Report can be configured to show organic only or to compare organic and con-
wholesale prices at the current market rates. Prices of fruit, vegetables, and grains are listed for six different
wholesale terminals across the U.S. www.rodaleinstitute.org/Organic-Price-Report

•http://sfp.ucdavis.edu/pubs/sfnews/Archive/93052.htm
UC Davis Small Farm Program’s Wholesale Market Resources explain wholesale buyers and terminal markets:
and http://sfp.ucdavis.edu/pubs/sfnews/archive/92091.htm
This tip sheet was developed with assistance from Dina Izzo, Bludog Organic Produce Services,
and Bob Corshen, Community Alliance with Family Farmers.
The development of this material was supported through USDA/NIFA/OASDFR Tips for Selling to Produce Brokers
www.outreach.usda.gov/oasdfr © 2013 National Center for Appropriate Technology—NCAT
By Marisa Alcorta, Rex Dufour and Tammy Hinman
Production: Karen Van Epen
Find this on the Internet at www.attra.ncat.org/marketing.html
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