1. Fruit &Vegetable Marketing AG BM 102

2. Introduction Must have a market first Some important PA fruit & vegetables Potatoes, tomatoes, processing vegetables Fruits – apples, peaches, cherries, plums, grapes Some farmer’s market and wholesale production

3. Consumption trends Canned in long-term decline, except tomatoes & applesauce Frozen stable Fresh growing

4. Important factors Perishability Price/quantity risks Seasonality Alternative product forms/markets Product bulkiness Geographic specialization Quality and grades

5. Leola Produce Market

8. Fresh Marketing Channels Shipping point markets – Leola - Buffalo Valley Produce Auction (Mifflinburg) Wholesale terminal markets – Philadelphia – New York - Baltimore To supermarket chain – local foods Farmer’s markets Roadside markets Community Supported Agriculture

9. Ag Tourism

12. More channels Tomato broker Green bean broker Cooperatives – Tuscarora Organic Growers Southwestern vegetable cooperative Apples have a scale advantage from regional specialization that carries over to other tree fruit

13. Processed markets Potato chips Furman Foods - tomato products Hanover Foods – frozen & canned vegetables Knouse Foods – applesauce - coop Contracts usually required – very specific Economies of scale Length of season Small-scale processing – Tait Farm

14. Vinnitsa, Ukraine

15. Grapes Table grapes – are there any in Pennsylvania? Concord grapes – National Grape (Welch’s) Wine grapes – make your own wine or sell to winery – Wine marketing – many local wineries Very long bearing period and high up-front costs Can you get a contract?

16. International trade Sinaloa and Nogales Chile and Philadelphia Hanover Foods and Costa Rica Broccoli and Guanajuato Four Seasons Produce Lots of exports of apples, but imports of apple juice

17. Marketing Costs Leola – 8% commissions, box costs 67 cents Direct marketing –very expensive –Scale important –Length of season – try to broaden product mix, flowers, ice cream, corn maze, produce from others –Erie peach grower

18. Concluding comments How will you sell it? Is there a local buyer? Can you direct market? Can you satisfy the requirements? – labor, quality, timing, management Can you get a contract?

19. Concluding comments How will you manage the growing season? How will you ensure continuing relations? What do you do with your low quality production? What do you do with what you can’t sell?