Institutional Sales 101: Exploring Farm to School Sales

What are Farm to Institution Sales?

Institutions with cafeterias such as K-12 schools, colleges, and hospitals, increasingly want to purchase locally grown products. Their purchasing can take many forms: some institutions buy directly from a farm while others purchase through a conventional distributor. Many institutional buyers want to develop a long-term purchasing relationship with a local farm.

Why Start Now?

While schools or hospitals don’t pay retail prices, they often pay a better price than “regular” wholesale customers. They can be reliable customers who pay their bills and promote your farm in the cafeteria. The demand is enormous. The number of school districts in Massachusetts preferentially purchasing local has risen from 12 to over 200 in the last few years.

Are Farm to Institution Sales Right for My Farm?

You don’t have to answer “yes” to all these questions, but they are important to consider when you begin to evaluate institutional sales:

• Do you already wholesale?
• Do you have the ability to communicate regularly with schools and track orders?
• Do you have the capacity to deliver or arrange for deliveries?
• Do you have a diversified product list or the ability to buy local product from other growers?
• How does the school calendar fit with your current harvest season?
• Are you prepared to meet potential insurance or safe agricultural practices requirements?
• Can you provide any light processing of farm products for schools with limited kitchen equipment?
• Do you sell to food distributors, stores or other farmers?

Want to explore this further?

We can help you connect with school or institutional food services that are interested in buying locally grown products. We can provide information about this market sector and help you ask the right questions to determine profitability and viability.  Contact us.