Colorado Fresh Produce Club

	Project Leader: Colin Henderson, El Sagrado Farm, LaJara, CO Technical Advisor: Marvin Reynolds, CSU Area Extension Agent, Del Norte, CO Project Year: 2005

Project Summary

Specialty crop growers in Colorado face increased pressure as more opportunities for marketing fresh, local produce are closing. Farmers are forced to use wholesalers and brokers who set the price the farmer will receive, leaving distributors and brokers with the bulk of the consumer dollar.

This project will result in the demonstration of a new model for marketing specialty crops in Colorado called the Colorado Fresh Produce Club. The project plans to sell $100,000 in Colorado specialty crops directly to consumers at a higher price than farmers receive from brokers.

The basic outline of the Produce Club concept is as follows. Consumers join the club for about $500 and receive about twenty weeks of produce. Every Thursday over the season, consumers pick up their produce at a convenient location on their way home from work. They have the option of buying additional items while picking up their weekly produce. The produce for the club comes from a variety of small farms. By spreading the crops among several farms, the consumer assumes no risk of crop failure. The farmer gets 65-70% of the retail dollar, with the remaining going to trucking, personnel, advertising, etc.

The plan for this project will focus on two main areas: production, planning among participating farms; and the sales, marketing, and distribution of a variety of Colorado specialty crops.

This project creates a new market for direct-to-consumer sales of specialty crops that will serve as a powerful model to other Colorado growers.

Results

In April and May of 2005, the organic producers were contacted and asked to sign up for the weekly production list. This included selling produce wholesale to a number of healthfood stores in addition to the members of the Fresh Produce Club, who received eight varieties of produce weekly. Six farms signed up for this project. 45 members signed up between Durango and Pagosa Springs. The reaction to the produce club from its members was very positive, with a general appreciation for the variety of fruit and vegetables.

To make all of the pick-ups and deliveries, a truck route was established. Pick-ups from the farms were on Tuesday and Wednesday and the pick-up for the members was Wednesday afternoon. The same day, all of the wholesale deliveries were made.

This project was successful by generating revenue for family farms, but there were some unforseen challenges. The dramatic increases in fuel prices was one of the largest challenges. Another challenge was not having enough producers. For this project to be finacially viable, there needs to be an increase of Produce Club producers and members.

Click here for a link to the full text of the 2005 Annual Report (Word document).