8 Tips for Buying at the Produce Auction

Produce auctions are staples of Pennsylvania’s produce marketplace and can be a win/win for farmers and buyers alike. Auctions let buyers tap into the beauty and abundance of locally-grown food and flowers throughout the season, from specialty items to staple seasonal crops like corn and tomatoes. The live-bidding format puts buyers in the driver’s seat, letting them see products (and judge quality) for themselves and determine the price and volume that suits their needs. Auctions are good for growers, because they let farmers spend less time marketing and coordinating wholesale orders and more time doing what they do best--growing food.

Participating in the auction can seem daunting to a first-timer, but with these tips, wholesale buyers can plan ahead and be ready to jump into the bidding.

Tips

1. Register as a buyer

Find the auction office and register as a buyer. Depending on the auction, buyers may be able to register for one day or set up a permanent account. Buyers will need to provide contact information, identification, and the name of the person responsible for payment.

2. Know your needs

Auctions sell produce in “lots" containing multiple cases per lot. Before arriving at the auction, think about your volume needs and the price range that works for you. If the lot size exceeds your volume needs but the price is still within your budget, think about ways to sell or use extra produce you might bring home. Can you partner with other businesses to split the lot?

3. Shop in Season

When building your auction shopping list, it helps to understand crop seasonality (the times of year specific crops are typically harvested). Unlike shopping in the grocery store or from large produce distributors, where all products are available year-round, locally grown produce is at the mercy of the local weather and climate. If a crop on your list is not currently in season, ask auction growers it may be ready.

4. Know your farmer

All produce is traceable back to the farmer, with a tag on each lot indicating the farmer’s seller number (which is constant through their growing career). Office staff can provide the corresponding farm name. Farmers often linger at the auction to see their product sold, giving buyers the opportunity to build relationships with farmers in the auctions’ social environment.

5. Place your bid

A bid is a commitment to purchase, so be sure to know what and how much product you’re bidding on as well as how pricing works. Often, prices are per unit (box, bunch, etc.), not per lot. Final price will be the bid price multiplied by the number of units in the lot. (If you are unsure, ask.) The auctioneer will open the bidding process with a price, and buyers who are interested in the product at that price will bid by raising their hand. The auctioneer will continue to increase the price with each counter-bid until only one bidder remains unchallenged.

6. Spy before you buy

Because auctions are highly social and relationship-based, farmers take quality (and their reputation) seriously. Buyers can and should observe product quality before bidding so there are no surprises. Produce that is “seconds quality" should be labeled as such. In the event of a quality dispute, the auction may help mediate between buyer and seller before the produce is removed from the auction.

7. Keep an open mind

When products are limited or pricing fluctuates, it helps to remain flexible. Budgeting by month or season rather than by week or crop can help buyers ride the wave, when prices are high on one crop but low on another. Product substitutions may also help. Food service buyers and box builders: can recipes or box contents be adjusted?

8. Take it away

If you win product at the auction, you will need to pay for and take it with you same day. Bring a vehicle with the capacity to carry your purchased product or have a third-party hauler on standby. Cash and check are preferred by many auctions; some may take credit cards or offer credit terms.

Need more info? Check out 4 Benefits of Buying at the Produce Auction. 

This work is supported by a Specialty Crop Block Grant from the Pennsylvania Department of Agriculture.