Wholesalers

One way to access the public procurement market can be to develop a relationship with a wholesaler who already has contracts with public buyers.

Advantages of working with a Wholesaler:

Simplicity of dealing with one customer.
May offer storage.
May collect directly – no transport costs.
They will be doing all the marketing.
They can smooth out peaks and troughs in supply and demand – they may be able take any surpluses you may have on the one hand, and meet any shortfalls you have from their wider supplier network on the other.
Generally larger orders.
Provide a consistent income.
You can plan your business better, knowing that a longer-term, larger contract is in place.
The public sector market allows your products to be consumed by a wider audience.

Disadvantages of working with a Wholesaler:

Lower profit margin
Less control. While you can provide guidance, wholesale customers have ultimate control over how they sell your products.
Relationship-building is critical and takes time.
They may have specifications, for example minimum sizes or volumes which can differ from your retail markets or might be challenging
to meet.

Welsh Veg Into Schools

During the 2024 growing season, 8 small veg growers worked with the wholesaler Castell Howell to deliver veg to schools across 6 local authorities in Wales. Castell Howell has been a committed and essential link in the local supply chain, providing many of the advantages listed above.

Find out more about the Welsh Veg Into Schools project and read the full or summary report on the Food Sense Wales website.