Selling Through Food Hubs: What You Need to Know

If you're a farmer or food producer looking to reach new customers, simplify logistics, and expand your business, selling through a food hub might be the perfect solution. 

In this guide, I’ll use Siskiyou Farm Co., a food hub in California, as an example to show how food hubs typically operate, what producers need to sell their products through one, and the steps you can take to partner with a food hub in your area. Whether you’re looking to join a food hub near you or just want to learn more about the process, this guide will provide valuable insights to help you along the way.

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What are food hubs?

Food hubs are designed to connect local producers with consumers, restaurants, and retailers who value fresh, sustainably sourced food. While each food hub will have its own specific requirements, understanding the general process can help you prepare to get started.

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How does a food hub work?

Food hubs operate as central coordination points in the local food system, streamlining the process of getting products from farms to consumers. Here's a breakdown of how a typical food hub functions:

1. Sourcing: Food hubs build relationships with local farmers and food producers, creating a diverse network of suppliers.
2. Aggregation: They collect and consolidate products from multiple producers, often small to mid-sized operations that might struggle to meet the volume requirements of larger buyers on their own.
3. Quality control: Food hubs ensure all products meet specific quality and safety standards before distribution.
4. Processing and packaging: Some food hubs offer value-added services like washing, cutting, or packaging to prepare products for sale.
5. Distribution: They handle the logistics of delivering products to various customers, which may include restaurants, schools, hospitals, and retailers.
6. Marketing: Food hubs promote their producers' products, often emphasizing the local and sustainable aspects of the food.
7. Sales and customer service: They manage relationships with buyers, handle orders, and often provide an online platform for purchasing.
8. Producer Support: Many food hubs offer additional services to help producers improve their operations, such as business planning, crop planning, and food safety training.

By centralizing these functions, food hubs create efficiencies that benefit both producers and buyers. They allow small farmers to access larger markets and provide buyers with a convenient way to source a variety of local products. This model supports local food systems, promotes sustainable agriculture, and helps keep more food dollars in the local economy.

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👉 Interested in working with a food hub? We share the top 5 benefits of joining one!

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What to consider when selling through a food hub

1. Eligibility to sell with a food hub

The first thing you’ll want to check is whether your products are eligible to be sold through a food hub. Most food hubs focus on supporting local producers and typically require that products be grown, harvested, or made locally. Eligible products often include:

• Fresh produce like fruits, vegetables, and nuts
• Livestock products such as meat, poultry, and eggs
• Dairy products, mushrooms, honey, and flowers
• Value-added goods like baked goods, jams, and cottage food items

Example of product eligibility when selling through a food hub

At Siskiyou Farm Co., producers can only sell what they personally grow, raise, or produce, ensuring that all products are truly local. This builds consumer trust in the local food system, a key factor for most food hubs.

For your local food hub 

While food hubs differ in the specific types of products they accept, most will require that the products are locally produced. Reach out to your nearest food hub to confirm eligibility before applying.

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2. Meeting food certification and licensing requirements

Selling through a food hub usually means meeting certain certification and licensing requirements. These ensure that your products meet food safety standards and comply with local, state, and federal regulations. Some common certifications and licenses include:

• Certified Producer’s Certificate for fresh produce
• Egg Handler’s License for egg sellers
• USDA Inspection Certification for livestock meat processed in a USDA-inspected facility
• Cottage Food Permit for producers of baked goods and other homemade food items
• Nursery Stock License for plant sellers (if applicable)

Example of required food certifications and licensing requirements when selling through a food hub

Siskiyou Farm Co. requires producers to have appropriate licenses for their products, such as a Certified Producer’s Certificate or Egg Handler’s License. Producers must submit these documents as part of the application process and keep them current.

For your local food hub

While certifications vary by location, most food hubs will require similar documentation to ensure food safety compliance. Before reaching out to your local hub, make sure you have the necessary licenses for your products.

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3. Adhering to product quality and labelling standards

Regardless of which food hub you sell through, maintaining high product quality and adhering to labelling requirements is essential. This ensures that your products are presented professionally and meet the food safety standards expected by consumers.

• Packaging: Your product should be packaged in a way that preserves freshness and quality. For items sold by weight, they should be pre-weighed and packaged properly before delivery.
• Labelling: Clear labelling is required, including information about what the product is, who produced it (contact information), and how much it weighs. For certain products, like cottage foods, additional labelling may be required to comply with local food regulations.

Example of product labelling when selling through a food hub

At Siskiyou Farm Co., all products must have clear and accurate labels, including identity, producer details, and quantity. Cottage food producers must comply with the California Homemade Food Act, ensuring proper labeling for ingredients, allergens, and nutritional facts.

For your local food hub 

Different food hubs may have their own specific labeling requirements, but generally, clear packaging and labeling are essential to meet food safety standards and attract buyers. Check with your local hub to ensure compliance.

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4. Having proper insurance and liability

Many food hubs require producers to carry general and product liability insurance. This helps protect both you and the food hub from any legal or financial risks related to your products. While it may seem like an extra step, insurance is crucial for safeguarding your business.

• Liability insurance: Most food hubs will ask for at least $1 million in general liability insurance. Some may even require that they be listed as an additional insured on your policy.

Example of insurance and liability requirements when selling through a food hub

Siskiyou Farm Co. requires all producers to carry general and product liability insurance. The policy must cover at least $1 million and include Siskiyou Farm Co. as a named insured.

For your local food hub

Be sure to check the insurance requirements for your local food hub. Even if your hub doesn’t specifically require insurance, having it is a good business practice that protects you from potential liability issues.

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5. Pricing your farm products to ensure profitability

Most food hubs allow producers to set their own prices, but it's important to price competitively while ensuring profitability. Hubs will typically take a small commission to cover their operational costs, including marketing, distribution, and staff services.

• Set fair prices: Make sure to price your products in a way that covers your costs while remaining competitive within the hub.
• Understand commission fees: Most food hubs will take a percentage of each sale to support their services, so be sure to factor this into your pricing strategy.

Example of pricing farm products when selling through a food hub

At Siskiyou Farm Co., producers set their own prices, but the hub retains 25% of each order to support marketing, distribution, and other services.

For your local food hub 

Pricing structures and commission fees can vary between food hubs, so it’s important to understand how the hub’s fee structure works and how it might affect your pricing strategy.

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Food hub vendor checklist

Here’s a checklist to ensure you have everything in place before approaching a food hub as a new vendor:

1. Check product eligibility
   • Are your products locally grown, harvested, or produced?
   • Do your products fall within the food categories accepted by the food hub (e.g., fresh produce, eggs, meat, dairy, baked goods)?
2. Gather necessary certifications and licenses
   • Certified Producer’s Certificate (for fresh produce)
   • Egg Handler’s License (for selling eggs)
   • USDA Inspection Certification (for livestock meat)
   • Cottage Food Permit (for value-added goods)
   • Nursery Stock License (for selling plants)
   • Any additional local or state-specific certifications (business license, insurance, etc.)
3. Ensure product quality and prepare labelling
   • Is your packaging sufficient to preserve freshness and quality?
   • Do your labels clearly indicate product identity, producer details, and quantity?
   • If required, have you included ingredients, allergens, and nutritional information?
4. Manage logistics and inventory
   • Do you have a system in place to track your inventory and update it regularly?
   • Are you aware of the delivery schedule and requirements of the food hub?
   • Do you have a reliable method for getting your products to the hub on time?
5. Secure liability insurance
   • Have you obtained general and product liability insurance (at least $1 million coverage)?
   • Does your insurance allow you to list the food hub as an additional insured (if required)?
6. Set profitable pricing
   • Have you calculated your costs and set fair, competitive prices?
   • Are you aware of the food hub’s pricing structure and factored it into your pricing?
7. Leverage marketing and community engagement
   • Are you ready to share your farm’s story, practices, and values with consumers?
   • Have you participated in any marketing or promotional events offered by the hub?
   • Is your farm marketing on social media to further engage with your community?

Selling through a food hub is an excellent way to grow your business, reach new customers, and streamline operations. From obtaining the necessary certifications and ensuring product quality to managing inventory and leveraging marketing support, these steps will prepare you to work with any food hub. So, take this information and start exploring your local food hubs to see how you can expand your business and become part of a thriving local food system.