Local farm produce supplier to restaurants

Restaurants, cafés, caterers, independent grocers and institutional kitchens that want local, fresh supply without dealing with many farms.

You buy at wholesale prices from growers and sell at a markup, plus delivery fees or minimum order values. Margins depend on the product and on how little spoils.

• Negotiating with growers and buyers
• Organizing orders and delivery routes
• Knowing produce quality and seasons
• Basic bookkeeping

• Check with the Canadian Food Inspection Agency and your province whether you need a licence for your products, especially if you trade across provincial borders (for example, a Safe Food for Canadians licence)
• Check food safety, cold chain and traceability record-keeping requirements with your local public health unit
• Commercial general liability and product liability insurance, plus vehicle insurance
• Spoilage risk and slow-paying customers can squeeze cash, so agree payment terms
• Winter reduces local supply in many provinces, so plan for seasonal gaps or storage crops
• Register for GST/HST once you pass the small supplier threshold (many basic farm products are zero-rated, so check with the CRA)

Startup costs are typically around $5,000 to $25,000, depending on whether you rent cold storage or use a refrigerated van. Monthly revenue is estimated at around $3,000 to $15,000, depending on how many buyers you supply and the season.

Check with the Canadian Food Inspection Agency and your province whether you need a licence for your products, especially across provincial borders. Also check food safety, cold chain and traceability record-keeping with your local public health unit, plus insurance and GST/HST registration with the CRA.

Time needed is estimated at a minimum of around 15 hours a week, depending on orders, pickups and delivery routes. Winter reduces local supply in many provinces, so plan for seasonal gaps or storage crops, and agree payment terms with customers.