Grasshoppers Distribution: A Local Advantage

The demand for the diversity of Kentucky Proud farm fresh products has grown across the Commonwealth in the last several years, but getting products from the farm to the markets has remained a challenge for many small farmers.

Out of a shared frustration with distribution options for small farmers, a group of producers came together to create Grasshoppers Distribution, LLC to be that conduit between the farm and the consumer.

A Cooperative Idea

“The idea started three or four years ago when several Community Farm Alliance (CFA) members realized there was a need for the distribution and marketing of more local farm products,” explained Grasshoppers’ Manager, Berea Ernst. “CFA hired a business organizer who began working with the farmers to organize the concept.”

Four farmers joined forces in 2006 to establish Grasshoppers. “The founding principle of Grasshoppers is that we work with local, independently owned stores and restaurants, because they are flexible and responsive; they keep our market diversified and stable, and they circulate money back into our communities,” explained Ernst. “We don’t want to sell our products as commodities, because we don’t think small farmers can live off that.”

A Quality Foundation

Establishing Grasshoppers Distribution has not been as simple as, “build it and they will come”; it has taken commitment, coordination and assistance from farmers and industry leaders alike.

Supported with funding from a USDA Value-Added producer grant, investments from the owners, and CFA, Grasshoppers hired a full-time manager, who worked feverishly with the owners, farmers/growers, and customers in setting up all the systems, accounting, and delivering routes for the business. In tandem, the owners continued to work toward securing additional funding to make the venture sustainable for all involved.

The Kentucky Center for Agriculture and Rural Development (KCARD) supports Grasshoppers by providing business and technical business support Ernst explains: “…KCARD (has) … helped us understand how to structure the business plan and financials.”

Founding Grasshoppers member, Tim Mracek appreciates the guidance provided during the organizing process by KCARD Executive Director, Larry Snell: “He was able to make a distinction in what we are doing and what the cooperative did in our business plan.”

Co-op Looks Ahead

KCARD Business Development Specialist Nathan Routt enjoys working with Grasshopper. “The owners and management remained passionate about the business through the entire start up process, and I’m glad KCARD could assist with drafting budgets and business planning,” explained Routt. “KCARD will continue to support Grasshoppers in the future by providing such services as profitability and break even analysis.”

Grasshopper’s goal is to be a very lean middle man, returning 70 to 80 percent of the sale price back to the producer. As they continue to expand their market they are also working with the Kentucky Proud program to help develop marketing and producer profiles to tell the farm fresh story of the products.

“It has been a long process to get from the idea to the point we are at today,” said John Sharpe, one of Grasshoppers founding producers, “but it has matured into something great!”