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In 2020, U.S. farms sold $10.7 billion in edible food through direct and intermediary channels, with 73% of those sales going through intermediaries like distributors, restaurants, and grocery stores. This shift reflects a growing opportunity for farms to move beyond farmers' markets and CSAs and into larger-volume partnerships that offer more consistent sales and year-round demand.
Selling to distributors, however, requires more than just a good harvest. Farms need to meet strict quality standards, follow food safety protocols, and offer clear pricing and availability. Distributors rely on suppliers who are organized, reliable, and equipped to scale. This means having systems in place to manage inventory, streamline communication, and reduce friction at every stage of the order process.
This guide breaks down the essentials of selling produce to distributors, from identifying the right partners and negotiating terms to improving fulfillment and managing ongoing relationships. We’ll also cover how tools like Local Line can support your wholesale operations, making it easier to scale without losing control of your workflow.
A food distributor is a company that purchases products from growers or producers and supplies them to retailers, restaurants, institutions, and other buyers. They serve as the logistical and commercial bridge between farms and markets, helping ensure fresh, frozen, or packaged goods reach their destination efficiently and safely.
Food distributors handle everything from storage and transportation to inventory management and order fulfillment, often working with high volumes and strict quality control standards.
Distributors play a key role in expanding a farm’s reach beyond direct-to-consumer channels. By selling to a distributor, producers can access established networks that sell to grocery stores, restaurants, food service providers, and regional markets. This not only reduces the burden of managing individual sales but also provides more predictable demand and streamlined logistics.
One of the most well-known examples is Sysco. As a global leader in food distribution, Sysco supplies grocery stores, hospitals, corporate cafeterias, and restaurants with everything from fresh produce to packaged ingredients. They’re known for their extensive logistics network, strict adherence to food safety standards, and strong supplier relationships.
Partnering with food distributors can be a smart move for farms looking to grow their wholesale operations. Distributors open access to broader markets, reduce the burden of logistics, and create more stable income opportunities. Instead of juggling dozens of small customer orders, farms can shift their focus to larger, more efficient deliveries, freeing up time and resources to focus on production.
Below are the key benefits of selling produce to distributors:
Distributors connect you with grocery stores, restaurants, institutions, and food service operations–customers that are difficult to reach through direct sales alone. This gives your farm visibility in markets where volume and consistency are valued.
Selling produce wholesale means bigger orders and more product moving off the farm in a single transaction. For growers with reliable output, distributors can help significantly increase revenue without requiring a proportional increase in sales effort.
Instead of coordinating dozens of weekly deliveries to individual customers, you can fulfill fewer, larger orders. This reduces transportation costs, streamlines packing, and helps maintain consistent delivery schedules.
Working with a distributor means less time spent on individual customer acquisition, support, and invoicing. This lets your team focus on farm operations while maintaining a steady sales pipeline. Tools like Local Line can help manage your distributor relationships, price lists, and fulfillment processes all in one place.
Established distributor relationships often lead to repeat orders and long-term contracts. This level of stability helps with planning and reduces the financial uncertainty that can come with seasonal or one-off sales.
Selling wholesale also comes with trade-offs. Margins are slimmer, standards are stricter, and customer feedback loops are slower. But with the right strategy, these challenges can be managed.
Distributors operate on wholesale margins, which means you’ll earn less per unit compared to direct-to-consumer sales. To stay profitable, you’ll need to sell higher volumes and tighten your pricing strategy.
Distributors expect consistent quality, proper packaging, and full compliance with food safety standards. Having certifications like GAP or HACCP is often a prerequisite for getting your foot in the door.
Without direct feedback, it’s harder to track changing consumer preferences. You’ll need to rely on your distributor’s insights or supplement with your own market research.
Wholesale accounts often operate on Net 30 or Net 45 terms. That delay can impact cash flow, so it's essential to plan accordingly and factor payment timelines into your financial planning.
Ultimately, selling produce to distributors is a different game than selling through farmers markets or a CSA. It requires higher standards, larger volumes, and more professional operations. Below, we share the 6 key steps to sell farm products to wholesale markets:
Before you even consider contacting wholesale distributors, your farm operations must align with wholesale market expectations. Distributors are accountable to their customers (retailers, restaurants, institutions) and rely on their suppliers for consistent, safe, and high-quality products.
Wholesale buyers operate on specifics. Be prepared to meet consistent standards for size (e.g., ensuring apples fit standard tray counts like 88s or 100s), ripeness (e.g., shipping tomatoes at a specific color stage for optimal shelf life), brix levels for sweetness in fruits, and freedom from defects. Understand USDA grade standards for your key crops, as buyers often use these as a benchmark.
This is non-negotiable. Compliance with food safety regulations like the FDA's Food Safety Modernization Act (FSMA) Produce Safety Rule is the baseline. Many distributors, especially larger ones or those serving retail, will require third-party Good Agricultural Practices (GAP) certification (like USDA Harmonized GAP or other recognized audits like PrimusGFS) as verifiable proof of your farm's commitment to food safety. If you market as organic, ensure your USDA Organic certification is current and readily available. Having these certifications builds immediate trust and opens doors.
Your packaging must protect the product during potentially long transit, fit standard pallets, allow for proper cooling, and meet buyer specifications. This often means using industry-standard waxed cardboard boxes, plastic RPCs (Reusable Plastic Containers), or specific clamshells, packed to consistent weights or counts. Proper pre-cooling and maintaining the cold chain are critical.
Wholesale prices are lower per unit than direct sales. You must know your precise cost of production for each crop to negotiate effectively and ensure profitability. Research current wholesale market prices via USDA Market News. Understand that distributors typically require a margin of 25-40% or more. Develop clear wholesale price lists, potentially with volume discounts, and establish minimum order quantities (by dollars or units) to make deliveries efficient and cost-effective.
👉Read more about how to price farm products for wholesale
Not all distributors are the same. Some specialize in local products, others in bulk national supply. You want a partner whose business model, customer base, logistical capabilities, and values align with yours.
Once you've narrowed down your list of top food distributors, look at:
Start with a shortlist of 3–5 distributors who align with your size, values, and market.
Your first impression matters. A professional and prepared sales pitch increases your credibility:
Use email or phone to make initial contact, and always follow up. Distributors are busy, so persistence (not pestering) pays off.
Here’s a professional and effective email outreach template you can use when reaching out to a food distributor for the first time:
Subject
Supplying [Distributor Name] with Fresh [Type of Produce] from [Your Farm Name]
Body
Hi [Distributor's First Name],
My name is [Your Name], and I run [Farm Name], a [certified organic / GAP-certified / local] farm based in [Your Location]. We currently grow and wholesale a range of fresh [type of produce, e.g., greens, root vegetables, or seasonal fruit], and I’m reaching out to see if you’re open to new supplier partnerships for the upcoming season.
Here’s a quick snapshot of what we offer:
I’ve attached our current wholesale line sheet with pricing, pack sizes, and availability. Please let me know if you'd be interested in a quick call or if there’s someone else on your team I should connect with.
Thanks for your time, and I look forward to hearing from you.
Best,
[Your Full Name]
[Farm Name]
[Phone Number]
[Email Address]
[Farm Website or Social Media, if applicable]
Once you've made contact and established interest, it’s time to talk numbers and logistics. Be prepared to discuss and document key points, such as:
Discuss the pricing structure clearly. Confirm payment terms (e.g., Net 30 means payment 30 days after invoice). Understand your rights and the distributor's obligations under PACA (Perishable Agricultural Commodities Act) regarding timely payment for accepted produce.
Finalize delivery schedules, lead times for orders, required appointment scheduling, specific receiving locations or docks, and procedures for pallet exchange or handling.
Define quality standards clearly, potentially referencing USDA grades. Crucially, agree on the process for handling rejected products. Who is responsible for inspection, documentation (photos are essential), and freight costs if a load is refused?
Discuss minimum order sizes per delivery. Will there be any volume commitments expected per season? Are there any exclusivity agreements being requested (carefully consider the pros and cons)?
Always insist on a written grower agreement or food distribution contract that details all negotiated terms. Review it meticulously, ideally with legal counsel experienced in agricultural contracts, before signing. This document is your reference point for the business relationship.
A signed contract is the start, not the end. Building a strong, collaborative relationship with your distributor is vital for sustained success and navigating inevitable challenges.
Reliability builds trust faster than anything. Consistently deliver the agreed-upon quality and quantity, properly packaged and cooled, on the agreed-upon schedule. Accuracy in paperwork (packing slips, invoices) is also part of this reliability.
Don't wait for problems. Keep your distributor informed. Provide regular availability updates, such as what's coming into peak harvest and what's winding down. Give advance notice if weather or other issues might impact volume or quality. Make it easy for them to plan.
Issues will occasionally arise (weather impacts, transportation delays, unexpected pest pressure). When they do, communicate quickly and honestly. If possible, offer solutions or alternatives. Being a proactive partner, rather than just a supplier, strengthens the relationship.
Ask your distributor contact how your products are performing, if the packaging is working well, or if their customers have provided any feedback. Acting on constructive feedback shows you are invested in the partnership's success.
Managing the increased complexity of wholesale orders, inventory, and customer communication manually can quickly consume valuable time and lead to costly errors. Leveraging the right technology is essential as you scale your wholesale operations. Consider embracing farm software and agriculture apps that include features like:
For example, if you’re selling to three different distributors with different price points and delivery days, platforms like Local Line allow you to manage it all in one place, no spreadsheets or back-and-forth emails.
Local Line makes selling to distributors easy by streamlining the sales process from order to fulfillment. This platform offers key features that simplify each step, ensuring efficiency and clarity for fresh produce growers and other sellers.
Key Features:
By leveraging these features, Local Line enhances the sales process, making it easier for sellers to connect with food distributors and expand their reach.
👉Learn more about Local Line's features for farms and food producers
Ready to get started? Create your Local Line account and start selling wholesale to distributors in minutes.
Broadline food distributors, which handle a wide variety of products, typically take a gross margin of 10 to 15 percent. After covering their operating costs, their net profit usually lands around 2 to 5 percent. For specialty items like organic or niche produce, margins can go as high as 20 to 30 percent.
Once your product reaches the retailer, they often add another 30 to 50 percent on top. When setting your wholesale prices, be sure to leave enough room for each player in the supply chain to profit while still keeping your product competitive in the market.
Most distributors start with a baseline requirement of GAP (Good Agricultural Practices) certification, along with a food safety plan based on HACCP principles. Larger chains may ask for more rigorous third-party audits under recognized food safety schemes such as SQF, PrimusGFS, or GlobalG.A.P.
If you are selling organic produce, you will also need to provide a current USDA Organic certificate for verification.
You will need a few key documents before you can sell wholesale. These usually include a business license, an Employer Identification Number (EIN), a resale certificate for your state, commercial invoices, and packing lists.
If your annual produce sales exceed 230,000 US dollars, you will also need to register for a PACA license. It is a good idea to keep digital copies of all paperwork organized and ready to upload to distributor onboarding portals.
It depends on the size and reach of the distributor. Many regional distributors will pick up orders directly from the farm, known as FOB (Free On Board) farm, as long as your order meets their minimum pallet requirement.
On the other hand, national or larger distributors often expect you to arrange delivery to their distribution center. Be sure to clarify logistics terms early on so you know exactly who is responsible for transportation and risk.
Smaller, regional distributors may accept orders as small as 5 to 10 cases per product per week. Larger foodservice distributors typically look for 20 to 50 or more cases per order, which usually adds up to one full pallet. Meeting these quantities helps distributors plan efficiently and reduces handling costs.
Most distributors operate on Net 30 terms, meaning you get paid 30 days after delivery. For highly perishable items, Net 15 is sometimes used. Some distributors also offer 2/10 Net 30 terms, where you receive a small discount (usually 2 percent) if the invoice is paid within 10 days.
Late payments may carry monthly penalties of 1 to 2 percent. Using automated ACH payments can help streamline cash flow for both sides.
Most distributors require proof of general and product liability insurance, typically in the range of 1 to 2 million US dollars in combined coverage. You may also need additional policies such as auto liability, workers' compensation, and sometimes a product recall or umbrella rider.
Distributors will usually ask to be listed as an additional insured party on your insurance certificate.
Small farms can stand out by offering high-demand, niche products such as microgreens, heirloom tomatoes, or organic salad mixes. Distributors also value farms that are responsive, have flexible packing options, and maintain strong food safety certifications.
Even if your volumes are modest, strong communication and reliable delivery can make a big impression.
If you are moving large volumes of produce each week, working with two or three distributors can help spread your risk and reach different market segments. For smaller farms, it is often best to start with one trusted distributor and grow from there. This allows you to build reliability without overcommitting your supply.
Yes, you can. Organic products often retain a price premium of 20 to 30 percent in wholesale markets. To protect that margin, make sure the organic surcharge is clearly listed on your price sheet and that you provide your current organic certification. This helps the distributor pass the claim through to their buyers confidently.
Start by calculating your break-even cost per case, then factor in your pallet configurations and delivery logistics. Based on that, set a minimum order quantity (MOQ) that protects your time and costs, often the equivalent of a full pallet.
Include this MOQ in your vendor packet to discourage inefficient, small-volume orders that strain your operations.
