Distribution company streamlines deliveries

MAT-SU -- When Ray Hodge started a distribution section of his already successful business, Ray's Produce, this July, he didn't know exactly how the business would turn out. Now, a month and a half into the delivery season, things are looking good.

"It's a pretty potent business I've got going here," Hodge said.

Now selling around three times as much of his own produce than in years past, Hodge and 14 other farmers are able to deliver to buyers in Anchorage without stepping off their farms. By having a distribution company in place to find buyers and deliver the produce, farmers can now focus on one thing -- farming.

"My goal was to solve my own distribution needs," Hodge said. "I was driving to Anchorage three times a week; that wasn't a good deal for me."

Hodge, who has hired a delivery driver, Dwane Clark from Country Health Foods, now can spend his time farming and finding buyers for the Valley's produce. With farmers such as Wolverine Farms, Bell's Tomatoes and Three Beans Farm counting on Hodge to find outlets for their produce, a little of Hodge's time is spent on the distribution end of the company, but he is still able to spend a lot more time farming than he was able to in the past, when he was making his own deliveries.

Hodge only collects produce from growers when a buyer, such as New Sagaya, Yen's Restaurant, Captain Cook Lodges, and Save-U-More, puts in an order. By not having to store the produce, and by eliminating inventory spoilage, Hodge has been able to cut overhead spending for delivery and pass that savings on to the farmers. Hodge said he pays farmers 10 to 15 percent more for their products, and still sells it to the buyers at a competitive price.

"I am not in business to make money off of distribution," he said. "I want to get the grower the most amount of return."

While Hodge may be running the company, many growers were part of the discussion to start a distribution company in the Valley.

"In February, we had some initial meetings to see if this should and could be done," said Hodge, who thought the distribution company might be set up as a co-op. "We decided that one person should be in charge; I have experience in marketing, so I had the talents to manage the company."

Hodge is willing to continue managing the distribution company, and welcomes other Valley and Eagle River growers to join in.

"This is not inclusive," he said. "I'll work with anyone if they want to work with us."

This also includes the buyers. Hodge is now working as a type of liaison between growers and buyers; if a buyer wants a particular product that isn't already produced in the Valley Hodge said he would work to find a farmer that could grow that product specifically for the buyer. Hodge plans to keep distributing produce at least through Christmas with the abundance of squash, potatoes and carrots that Valley farmers end up having, and is looking at the possibility of running the business throughout the entire winter.

"I'll work through the whole season, until the crop is gone,' he said. "We really don't run out of crop in this state anymore."