Growing a good crop is only the first step for a farmer who wants to sell to supermarkets and food manufacturers, a panel on retail procurement and market access told the Future of Food Conference in South Africa. Getting onto formal retail shelves also takes knowledge of what buyers want, a consistent supply, the right packaging and price, compliance and, above all, relationships.
Litha Kutta, head of partnership development and ecosystem coordination at the Land Bank, said farmers often struggle to get finance because they must meet several requirements before they are investment-ready, and the same is true of markets. Producers need help to understand a buyer's specifications and adjust before they approach one. "It's not a question of selling. It's understanding what is needed," she said. In practice that means going to a retailer or manufacturer with questions about volumes, quality, packaging, price and supply terms before committing to production.
Kutta said the lack of networks between farmers and buyers is still a barrier. She described an emerging malt drink producer she met at an industry event who was later considered when a buyer needed a replacement product; instead of building a factory to reach the volumes, the producer found a solution through toll manufacturing. Farmers should use industry events, producer organisations and market engagements to meet buyers, she said.
Karin Kleinbooi, executive manager for inclusion and development at South Africa Wine, said a good product is not enough: producers must know who their consumers are and what they will pay for, and a brand story only works when the quality is there too.
Cedric Nephawe, divisional manager for programme management at Joburg Market, said fresh-produce farmers often lack information on prices, commissions, quality and packaging, and urged them to visit the market, watch what happens to their produce and build relationships with market agents. Prices follow supply and demand, he said, and poorly presented produce can struggle to sell even when it is good.
Gary Jackson, founder of Jackson's Real Food Market & Eatery, told producers to understand their own product, packaging and pricing before talking to a retailer, and to test products in smaller markets first and use customer feedback to improve them.
Photo: Guinivere Pedro / Wikimedia Commons (CC BY-SA 4.0)
Source: Food for Mzansi
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