Characterizing optimal business conditions for commerce between farmers and SYSCO – Phase II

As part of the Value Chain Partnerships for a Sustainable Agriculture (VCPSA), Food Alliance Midwest collaborated with VCPSA and its Regional Food Systems Working Group (RFSWG) to complete a study that was designed to examine actual business transactions between SYSCO (a national distributor to the food service industry) and three small-to-midsize food enterprises in Iowa. Through a series of interviews and analysis of data, Food Alliance Midwest documented the economic impacts of these transactions and identified the essential elements and the challenges for successful regional and community-based food enterprises.

The interviews revealed several critical success factors for small-to-midsize enterprises including: 1) A thorough understanding of the target customers needs (customers defined as restaurants, colleges, corporate accounts, and healthcare facilities); 2) An understanding of the needs of the distributors (product and packaging requirements, sales education and training, sales presentations, sales materials, and hot prospect list); 3) A well-developed food story (able to tell the farm story with romance and authenticity) that also explains the unique features and benefits of the product (clearly differentiating it from its competitors); 4) A pricing strategy that includes the expectations of the distributor (such as sales education, sampling program, sales presentations, and promotion program); and 5) Sufficient supply and timely communication of product availability.

Of the three enterprises analyzed, two actually developed business relationships with SYSCO. The report explores the major challenges facing these enterprises. This project was funded by the Regional Food Systems Working Group as part of the Value Chain Partnerships for Sustainable Agriculture (VCPSA) project, with additional support from the ALCES Foundation.

James F. Ennis
Food Alliance Midwest (a program of Cooperative Development Services)
Phone: 651.265.3684
Email: jim@foodalliance.org