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Agri Business Review | Monday, June 26, 2023
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When it comes to selling their agricultural goods, farmers have many possibilities. Farmers' markets and community-supported agriculture (CSA) subscription programs are two direct-to-consumer outlets that frequently offer the cheapest pricing points compared to other outlets.
Fremont, CA: When it comes to selling their agricultural goods, farmers have many possibilities. Farmers' markets and community-supported agriculture (CSA) subscription programs are two direct-to-consumer outlets that frequently offer the cheapest pricing points compared to other outlets. They also need a lot of labor and expensive marketing efforts.
Buyers have a front-row ticket to the season's abundance at produce auctions. The first spring tomatoes (ahead of other market vendors) or the final autumn peppers could be yours for the right price. When purchasing at an auction, purchasers can inspect the goods in person and determine their quality before deciding. When supply is high, auctions provide purchasers immediate cost benefits (lower prices) that may not be reflected in other mediated market outlets.
Local and traceable food is offered at auction
There are rumors that "you don't know where the produce comes from" when you attend auctions. However, such differs for most of the products offered in Pennsylvania auctions. Both food firms and consumers value traceability. Most of Pennsylvania's auctions are producer-only. Therefore, resellers of imported goods are not allowed. Most of the goods offered in Pennsylvania auctions are regionally or locally grown.
The highest focus is quality
The auction serves as many farmers' main market outlets. Others find that the auction relieves the burden of surplus supply beyond what is already being sold through other channels - best case scenario, due to a bountiful crop; worst case scenario, due to a transaction failure. In any case, the farmer will benefit from bringing premium quality to the auction.
After all, before bidding, customers will assess the quality for themselves. The auction is a social community founded on relationships, as was described in part before, and with those relationships, trust, and reputation. Loyal client relationships that pay off are given to farmers that continuously deliver high-quality food.
Prices are reasonable
As in the rest of the market, supply and demand influence auction prices. Prices are often at a seasonal low when zucchini is at the height of its season and readily accessible from every farm in the state. In contrast, the first tomatoes of spring and the last peppers of fall will be in short supply and may cost more due to the intense competition among bidders that day. Compared to wholesale wholesalers, who may attempt to "ride out" market volatility, pricing changes at auctions may be more responsive to the market. This can occasionally lead to large savings over competing retailers and occasionally to higher prices.
Auctions provide volume and variety.
Auctions offer favorable sourcing alternatives for many food businesses, including restaurants, retail farm markets, supermarkets, hospitals, universities, K–12 schools, and more. Multiple farms' worth of seasonal goods are combined at auctions. Eliminating the need for purchasers to contact each farm separately gives them a one-stop shop and streamlines the process of procuring from nearby farmers. Auctions are a fantastic option for purchasers that transact in large volumes.
A terrific way to feel a connection to food and the farmers who grow it is through auctions. The special bonds we have with food and one another are brought to life when we can see, smell, touch, and sometimes taste the season's bounty.