Produce Auctions
Produce Auctions
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.
Key Requirements
| Marketing Time Required | Low |
| Required Product Volume | Medium |
| Potential Sales Volume | Medium-High |
| Price Per Item | Medium-low |
| Difficulty of getting into this market | Low |
| Importance of Product Quality & Shelf-Life | High |
How do I get started at a Produce Auction?
Getting started as a vendor is a relatively straightforward process. You will need to contact the auction to get a seller number and any other information they provide to new vendors. This may include packaging requirements, food safety requirements, timing for dropoffs, and any other logistical concerns. Once you have completed that process it's simply a matter of dropping your produce during the allotted windows. Most auctions host educational and information sessions for growers during the off-season and sometimes throughout the year. Attending these sessions and familiarizing yourself with this channel will go a long way. You can also check out Auction Price Reports to see if selling at these markets makes financial sense for your operation.
Challenges
- Highly variable pricing.
- Prices lower than direct markets.
- Higher Quality expectations than some direct markets.
- May require compliance with stronger food safety practices
Opportunities
- More sales volume potential than other channels
- Marketing time required is very low
- 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