Produce from different growers can be compared before purchase, with a commission going to the wholesale agency. Packaging is standardized. Specialization in crops is typical. Harvest for processing-involves contracts between grower and processor that specify price, quantity, quality, volume and responsibilities. Processors provide the sales expertise, grading, and sorting once the produce is delivered.
Growers are normally large scale and located near by for easy transportation of produce.
Consumers are willing to pay more for the fresh, unusual and high quality produce, making this an important market for small acreage farmers. Volume is small, crops are usually very perishable, and growers need to be located close by. 5. These are business organizations owned and operated by farmers to facilitate their bargaining power, reduce costs, combine services, provide vertical integration, and promote their products to wholesalers, retailers, or the public. Cooperatives are voluntary and are designed to increase net profits. Farmers who produce smaller quantities of produce can combine with others to reduce handling, packing, shipping, and marketing costs.