Page 31 - Business Basics for Alberta Food Processors

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Some small food processors have used hospitals,
caterers, restaurants or bakeries as co-packers. They
may process the products in off-hours to utilize their
own staff and equipment more efficiently.
The
Alberta Agricultural Processing Industry
Directory
lists companies by product category and is
a good place to start searching for a compatible co-
packer. Co-packers make sense if you want to tap
into the expertise of an established food processor
and utilize its processing and packaging equipment
until you have established a strong market.
For a copy of the directory check Alberta
Agriculture and Rural Development’s website at:
www.agriculture.alberta.ca or call a New Venture
Coach at 310-FARM (3276).
Co-packing: Questions to Ask
Does the co-packer’s facility seem clean and
well run? Can you inspect it whenever you
want?
Does the co-packer seem trustworthy? Has he
had any problems with co-packing relationships
in the past? Has he ever been sued?
Who owns the formulation – you or the
co-packer? Is the co-packer willing to agree
explicitly not to make a competing product and
to leave your customers alone?
How flexible is the co-packer’s operation? If
your product is a success, will the co-packer be
able to increase production to meet demand?