9 Tips for Selling and Succeeding at Produce Auctions

Marketing is an important consideration in vegetable production. Unlike grain or meat production, fruits and vegetables do not currently have an outlet that allows the grower to go to the field, load up their crop, deliver it somewhere in bulk to be weighed, and get paid a decent price for it. Produce needs to be sorted according to quality grades, maturities, and sizes. Then it may need to be cleaned and packed in attractive boxes, often in varying sizes for different crops. Produce auctions, like other market outlets, reward growers who understand and respond to buyers’ needs for quality, product selection, communication, certifications, and a variety of other factors.

The following tips provide guidance for growers looking to get started selling at produce auctions.

1. Get an A in produce grading. Top-quality ("number 1") produce can earn top prices, if it is properly sorted (free of "number 2" or "seconds" product). Grade your produce honestly and appropriately. This may require doing some homework. Go to the auction and see how the successful growers are packing their produce. What characteristics make a tomato or a cucumber a number 2? Talk to buyers at the auction. Tomatoes that are sorted and packed separately as number 1s and number 2s, will bring better prices than unsorted tomatoes, which will sell for a number 2 (lower) price. A grower’s reputation rests on quality and consistency and follows them through their auction career. It pays to spend the time sorting and grading.
2. Extend the season. Although growers don’t need to grow a variety of crops to be successful at the auction (many growers only grow one or two crops), it is important to maximize the length of your season to avoid flooding the auction with your complete harvest at the same time as other growers. If you plant all your sweet corn in early May and harvest it all during the one week in August when everyone has sweet corn, you will be disappointed in the price. Try staggering your plantings or use high tunnels to get a head start on the season. Buyers like to buy from growers they know that have a reputation for quality produce. To get the attention of buyers, bring produce to the auction early in the season, before the volume picks up. As the season goes on, buyers will learn about your quality and will look for your produce when the crop becomes plentiful, and they may be willing to pay a little more for known quality than take a chance on a new grower during the supply glut of the season. Season extension will also help you the weather the highs and lows of the weekly price variations.
3. Quantity counts. Although growers of all sizes can sell at auction, most produce auctions (17 in Pennsylvania) are wholesale auctions and expect wholesale lots. The size of the lot will vary depending on the crop. Cantaloupes should be sold by the bin with 120-140 cantaloupes per bin. Sweet corn is sold in bin lots of at least 30 dozen per bin. Okra and zucchini are sold in half-bushel boxes, and growers should expect to have at least two to four boxes of each (all of the same grade and size). Do your research at the auction. Ask buyers what size box they like to see each item packed in.
4. Packaging matters. It may be tempting to pack produce in assorted boxes you have lying around the farm. At best, this will look unprofessional and like a beginner’s mistake. At worst, it could result in buyer criticism, damaged product, low prices, or a food safety violation. The Food Safety Modernization Act (FSMA – sometimes pronounced "fisma") requires that produce that is likely to be consumed raw (tomatoes, peaches, cucumbers, melons, etc.) is always packed in new cardboard boxes or plastic-lined used boxes. Produce not likely to be consumed raw (eggplants or sweet corn) may be packed in clean used boxes. Tomatoes should be packed in specific 10lb or 25lb boxes for tomatoes which can be bought at the auctions. Some crops are packed in 1/2 bushel boxes; others are packed in 1 1/9 bushel boxes. These industry standards are based on typical product weight, box strength, and quality protection. If in doubt, visit the auction before delivering your first crop to learn how it should be packed.
5. (Food) safety first. Food safety is important for all produce, regardless of where it is sold, and the auction is no different. Packaging should be clean inside and out. Produce boxes should never be set directly on the floor. Boxes or bins should not be stacked unless there are lids for the bottom boxes. Produce should be transported to the auction in clean vehicles (i.e. free of pet hair). At a minimum, folks handling produce should have clean hands, clean shoes, and clean clothes. Learn more about Food Safety, Food Safety Modernization Act and Good Agricultural Practices.
6. Know your buyer. Pay attention to who bought your produce. When you get a chance, ask the buyer what they liked about the produce and what they are looking for. Many buyers choose to source produce through produce auctions because it gives them an opportunity to socialize and connect directly with farmers. Knowing what your buyers are looking for will help you tailor your pack to your buyers and help you stand out from the crowd. Marketing slogans such as "Buy fresh, buy local" and "Know your farmer, know your food" have encouraged consumers, chefs, and wholesale buyers alike to understand where and who their food comes from. Farmers who take the time to build relationships with frequent auction buyers may be rewarded with loyalty, consistency, feedback about your products or new ideas, and higher prices.
7. Varieties are the spice of life. Understand what varieties buyers are looking for. Varieties that you like for your family or even your roadside stand may not have the qualities the buyers want for their business. This is more important with some crops than others. For example, cantaloupe and sweet corn buyers have distinct variety preferences. Understand what types of sweet corn local auction buyers are looking for before you plant. Some auction buyers like white corn; others prefer bi-color. Some auctions do well with heirloom tomatoes (while others don’t), and these types need to be packed in 10lb boxes rather than 25lb boxes.
8. Mind the GAP (certification). Third-party audits, like Good Agricultural Practices (GAP), are required for many large chain stores, wholesalers, and institutions. If you want these buyers to purchase your produce at auction, you may want to consider paying for a third-party food safety audit. The buyers that require these audits are often the bigger buyers. While they might not be able to pay the highest prices of the season, they do have the capacity to buy large amounts of produce, which may be a significant help when the market is saturated mid-season. Having GAP certification will unlock access to those buyers that other growers without the audit won’t have. If you grow in large volume, it would be worth your time to have it GAP certified. Make sure your GAP-certified produce is labeled as such at the auction. (Check with the auction to see if they have a special label.)
9. Your first day at the auction. You may be tired of hearing it, but we’ll say it again: visit the auction before you are ready to sell your goods. Learn what packaging is most appropriate for your products, and learn what qualities buyers are looking for in #1 and #2 products. Make note of labeling and product placement so that on your first day, you’re prepared and ready to start selling. On the big day, arrive early – at least a half hour before the sale starts – and find a grower or manager to explain the process to you or Inquire at the auction office. In order to be eligible to sell, you will need to get a grower number from the office. You will also need to learn where to put your produce. Smaller lots (boxes) are usually grouped together on carts and sold later in the auction. If you are bringing large lots in bins, find out where the unloading areas are and how they manage that process. Each auction has its own system of record-keeping. Typically, each box or bin must be labeled with the grower number and date of pack on it. Carts containing box lots are also typically labeled with a tag for each lot that lists the grower number and a description of the lot (e.g. "4 boxes # 1 large tomatoes"). Auctions may also ask growers to complete a seller sheet, listing all the produce you brought that day. After your product is placed, be sure to open a box or two so buyers can inspect the contents while they browse and bid.

These tips will get you started on the right foot, but the learning doesn’t end here. Each season (and even each auction day) brings new opportunities to gather feedback on your strengths and areas for improvement.  The greatest success is not necessarily achieved in one season; it is grown steadily through relationships and trust over time, perhaps years.

To find a produce auction near you, consult the directory on the Pennsylvania Vegetable Marketing and Research Program website.

To learn about buying at produce actions, read 8 Tips for Buying at the Produce Auction or view our Produce Auction Virtual Tour and Info Session webinar recording.