Farmer’s market prices are typically the most expensive, because it requires more transportation, labor, packaging, etc. alongside typically being a smaller amount of product. The diversity of crops for sale can also affect pricing. A good way to get an idea for what prices should be in your area is often to simply go to the farmer’s markets and see what the average prices are for different foods.
One step to the left on the diagram, at about 55-80% of the farmer’s market price, is produce sold in slightly larger quantities to smaller wholesale buyers such as restaurants or retailers. This often requires a larger variety of products with specific packaging, and delivery. Farmers will also have to spend a few hours per month maintaining business relationships, but this can be beneficial to the brand.
When working with food hubs or other larger wholesalers, the prices are typically 35-55% of the farmer’s market prices. This is a less personal relationship, the farmer might not directly know where the produce will end up being sold after being redistributed. It requires more consistent packaging, but sometimes can have shorter delivery routes as they may have their own delivery trucks. Food assistance programs purchasing from local farms typically fall in between these two categories of wholesalers, depending on the size of the organization.
The least expensive category is for the largest wholesale customers, who are typically purchasing pallets of produce at a time. Frequently, they can handle pickup/delivery themselves, and require standardized packaging before they are redistributed to retailers. Some of the largest food banks can fall into this category with common produce items, before they are sent out to smaller pantries.