How to Find Food Manufacturers for Small Volume Production

We know the feeling: You want to respond to food industry trends quickly, but you're hesitant to make a large investment in the production before validating your concept. The best approach is to start with small-scale production to receive direct feedback from your target consumers.

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The problem is, finding the right food contract manufacturer for your product can be challenging, especially when your initial minimum order quantity (MOQ) is low. At Agilery, we support brands like yours with a mission to accelerate the positive change in our food system.

The food industry can be rigid when it comes to lean innovation and small-batch production. To simplify finding food producers in Europe—especially for brands seeking fast and flexible solutions—we share practical tips for food entrepreneurs and innovators.

Table of Contents

1. Understanding food contract manufacturers
2. Comparing Food Co-Manufacturers, White Label, and Private Label
3. Who needs a low-volume food co-manufacturer?
4. Things to know before choosing small-volume production partner
5. Finding producer for a highly innovative food product
6. How long does it take to find a food manufacturer?
7. Who are artisan food producers and how to find them?
8. Tips to negotiate prices for small-volume production
9. Ensuring quality and compliance in small-scale production

 

Understanding food contract manufacturers

Let's say you are a founder that invested in developing an innovative food recipe, but is reluctant to put funds into building your own production site. That's where food contract manufacturers come into play. 

Food contract manufacturers are third-party companies that produce goods for food brands. They may offer services like recipe development, production, packaging, and distribution, allowing brands to focus on marketing, sales, and other business aspects.

Most contract manufacturers or co-packers, understandably, prefer large order quantities to manage risk and better forecast future occupancy. However there are producers that welcome small productions to make use of their idle equipment.

Small-batch manufacturers often don’t offer their services publicly. They are like small hidden pearls of food innovation. At Agilery, we put in extra effort to find and onboard them into our ecosystem and our database.

Comparing Food Co-Manufacturers, White Label, and Private Label

Many brands consider different production models before starting large production, all-guns-blazing. Private and white label producers are a good alternative to developing product on your own.

If there is a market trend that you want to enter fast and cost effectively it’s a reasonable option. However, you need to also accept certain downsides, and here’s why:

White label manufacturers

White label products are generic with minimal customization, sold to multiple brands. White label manufacturing is a cost-effective way for food brands to quickly expand their product range. However, if you want to launch a unique, innovative product, it may not be suitable, as it relies only on pre-existing formulations and offers zero market differentiation.

Private label manufacturers

On the other hand, private label products offer limited customization. Products are based on existing formulations which is a solution more suitable for retailers rather than for innovative brands. Private label manufacturing may involve lower costs but often results in slower time to market for unique products.

Food co-manufacturers

In contrast, food contract manufacturers produce goods for multiple brands, strictly based on their specifications. Typically, setting up production for an innovative product can take more time and cost compared to white or private label producers.

With a partner like Agilery, you can avoid these downsides. We have streamlined all processes and accelerated implementation of innovative products across all food and beverage categories. As a result, our clients are able to start generating revenue faster.

Who needs low-volume food manufacturing?

That's easy - any innovation. Low-volume food production minimises risk and allows you to pivot before your wrong assumption is massproduced. Large and small businesses in various stages benefit from it:

• Startups, to test new prototypes in the market without committing to large-scale production, saving funds for a validated growth.
• SMEs, to launch innovative products to experiment with innovative formulations and quickly respond to market demands.
• Businesses, to assess the market to gather valuable consumer feedback and make adjustments before scaling.
• Brands, to respond to viral trends to stay relevant and competitive with quick, small-batch production. Seasonal product launches to manage resources effectively while tapping into temporary market opportunities.

Things to know before choosing a partner for low-volume production

In this section, we will explore the basics of food producers, important factors to consider when comparing different food co-manufacturers and key questions to ask co-mans during your research for a more organized approach.

Before your partner search, you need to understand Minimum Order Quantities (MOQs). These vary from partner to partner, based on product type, complexity and existing machinery. The terms may be negotiable; if you communicate your needs and potential for future larger orders. The easiest way to find out MOQs is to talk to co-manufacturers directly.

Likewise, it’s important to know your product specifications. Clearly outline your must-haves and nice-to-haves to attract the right partners. Detailed specifications help you to target the right partners and it also ensures that the manufacturer understands your expectations.

Here's a list of the most important details to include in food product specification: 

• Product Name
• Product Concept/Description
• Key Ingredients
• Nutritional Targets (Per Serving)
• Product Features
• Production Requirements
  • Batch Size
  • Packaging Specifications
  • Shelf Life
  • Storage Conditions
• Quality Standards
  • Certifications Required
  • Allergen Management

Protecting your recipe and processes is vital. Sign a confidentiality agreement or NDA before sharing any sensitive information, even for a small production.

Don’t forget to consider the manufacturer's location and logistics. Producing locally can reduce shipping costs and lead times. Starting with standard packaging formats which fit the contract manufacturer equipment requirements can help reduce costs as well.

Low-volume production may have higher per-unit costs, so discuss pricing upfront. Check also our tips in the section below. 

Important criteria for choosing a contract manufacturer

Volume flexibility

Check and negotiate MOQs, which vary by product type and complexity. See if they can scale production as your business grows and without compromising quality.

Handling innovative products

Check if the manufacturer has the needed production capabilities, can manage new ingredients or specific processing techniques. Also, check if they can adapt to your product's unique requirements. Check if the manufacturer offers support for product development and customization.

Cost

Know the per-unit costs for low-volume production. Explore ways to cut expenses, like buying raw materials or sharing production runs. For example, manufacturers' proximity to the target market affects shipping costs and lead times.

Quality standards and compliance

Confirm that the producer meets all quality standards compliance requirements for your product category and quality measures. In Europe, if you directly want to sell in retail, look ideally for certifications such as IFS, BRC, ISO22000. With that said, many small co-manufacturers usually don’t have such certifications; as it’s costly to get certified; therefore your due diligence is very important.

Reputation

Check reviews from other startups or small businesses. A certification is usually requested by retailers to ensure that they put a safe product on their shelves. But it does not mean that the non-certified co-manufacturers are not quality compliant, they just have a simpler, more pragmatic quality management plan.

When you're starting small, choose artisanal producers who usually have a more pragmatic quality management system in place and work together to ensure that it is well adapted to your product.

Questions to ask when researching food manufacturers

When approaching a food co-manufacturer, consider asking these questions. It helps you to filter out the top match for your unique needs:

• What are your minimum order quantities, MOQs?
• What are your production capabilities and capacity for small batches?
• How quickly can you scale up production if demand increases?
• What certifications and quality standards do you adhere to?
• What kind of packaging formats fit your production lines?
• How do you handle product development and customization?

Finding producer for a highly innovative food product

If you have a highly innovative product, hello mushroom coffee or CBD chocolate, you might come across extra challenges, see below. If you address those proactively you can improve your chances of successfully bringing your innovative products to market.

1. Need for specialised equipment

Manufacturers might not have the necessary equipment to handle new ingredients or processes. Acquiring or developing specialised machinery or customising existing technology may require a significant investment.

For example, if you want to produce frozen gluten free meals, you have to find a co-manufacturer that handles frozen food, but also there’s no gluten contamination in their ongoing production.

DID YOU KNOW: Agilery not only helps you find manufacturers but also sets up custom production tailored to your needs. For example, we built an efficient production set up associated to a compliant quality management plan at existing brewery for our client ProSeed to recycle grain waste into protein flour. The entire process took only six months.

2. Limited Suppliers

Innovative products often require rare or new ingredients that are not widely available, making sourcing difficult and potentially expensive. Maintaining a consistent supply of high-quality ingredients can be a challenge, especially when dealing with new components.

3. Market Uncertainty

There is always a risk that consumers might not accept the new product, just emphasising the importance of a low initial MOQ and a product validation period. Even after market testing, predicting demand for innovative products can be difficult, making it challenging to plan production volumes and secure manufacturing commitments.

OUR TIP: Partner with a flexible manufacturer who can adjust production volumes quickly. This way, you can respond to actual demand more effectively and avoid overcommitting resources.

Our commercialisation service package starts in January 2025 with the aim to help with concept validation and faster time-to-market.

How Long Does It Take to Find a Food Manufacturer?

Our product implementation service that covers manufacturer mapping, suppliers and setting up the first batch production takes between 5-8 months, thanks to our partner network and proven strategies to start small-production collaborations.

In reality, however, this would take anything between 12-18 months, because the process involves several steps that must be executed successfully. Here’s an overview of the steps involved and the approximate time that each step typically takes:

Define Needs and Specifications (5 Days)

Start by clearly defining the needs and specifications for your product. This includes details on ingredients, production processes. Being thorough in this step ensures that potential manufacturers can meet your specific requirements. Calculate Cost Range (1 Day)

Next, determine a cost range for production to ensure it aligns with your budget and achieves a sustainable unit cost. This step is vital for financial planning and feasibility analysis.

Select Locations (2 Days)

Choose the right manufacturing locations by considering logistics, customs regulations, and proximity to suppliers. This decision impacts overall production efficiency and cost-effectiveness.

List Potential Co-Manufacturers (1 Month)

Compile a list of potential co-manufacturers in your chosen areas. This research phase involves identifying manufacturers with the capacity and expertise to produce your product. If you can’t find any small-volume production in your area and product category, you have to go beyond traditional manufacturing companies. See our tips in the last chapter.

Write Compelling Messages (1 Week) Highlight your product’s unique selling points and align with the manufacturer’s capabilities. Explain your plan for scaling up the production to get their attention despite low MOQs. This sets the tone for successful negotiations.

Wait for responses (2 Weeks)

Make a Selection (1 Month)

The selection phase can be time-consuming, involving evaluating proposals, conducting due diligence, and possibly visiting manufacturing sites.

Negotiate Terms (1-2 Months)

This step solidifies the partnership and ensures mutual agreement on all critical aspects. Be ready to compromise, so have clearly defined must-haves and nice-to-haves.

Set Up Production (3-4 Months) Setting up production means running industry trials. It includes finalising schedules, ensuring processes are in place, and starting the initial production run.

Running production (1 Month)

These first operations involve important quality checks of the finished good. 

Tips to negotiate pricing for small-batch production

Food manufacturing pricing usually includes: raw material costs, production processes, packaging, labour, overhead, and profit margins. Manufacturers may price based on volume discounts, contracts, and extra services, like storage and logistics.

Learn more about the black box effect and cost optimisation via supply chain ownership in our guide. 

TIP 1: Do a research

Before negotiating, understand the production process, the cost of ingredients, labour, and overheads. This will give you insights into what drives their pricing.

Also, understand that small-scale producers may have higher per-unit costs compared to large-scale manufacturers. Know the market rates by comparing prices with other producers. Use this information in your negotiations.

TIP 2: Build a Relationship

Trust can lead to more flexibility in negotiations. Producers are often more willing to negotiate if they see that your growth vision would fit a long-term collaboration. Show your motivation to work on improving the product, which can make the producer feel invested in your success.

Be clear about your budget. Producers may be willing to work within your limits if you are transparent and realistic.

Mention that you’re looking for the best value, not just the lowest price. This can shift the focus to quality and other aspects that the producer can offer.

TIP 3. Highlight Mutual Benefits

Make your deal benefit for both sides — a win-win agreement strengthens long-term collaboration and, of course, better prices.

Offer exclusivity for certain ingredients or products in exchange for better pricing. Additionally, if you use similar ingredients, you can discuss the possibility of joint procurement to reduce costs. Offer flexibility in payment terms, such as upfront payments, to negotiate a lower per-unit cost. For example, different pricing tiers based on varying batch sizes.

If the producer can handle packaging and labelling, this could reduce your costs elsewhere.

Who Are Artisan Food Producers and How to Find Them?

Artisan food producers are small-scale manufacturers who craft high-quality, often handmade, food products using traditional m ethods. Unlike standard industrial producers, these artisans focus on unique, small-batch productions that emphasise flavour, quality, and authenticity. Artisan producers can range from canteens and bars to professional kitchens and bakeries. We’ve made a list that can help you in identifying the right partner for you, divided by product category.

 

 

Opportunities for Low-Volume Food Production by Category

Dairy products

Small-scale dairy farms producing artisanal cheeses, yoghurt, and specialty milk products. For example, a local cheesemakers rent their equipment to craft innovative probiotic beverages.

Bakery and confectionery items

Artisan and small local bakeries that produce on-site. For example, bakeries use their premises during off hours to produce a few batches of vegan and/or gluten free cookies.

Frozen foods

Professional kitchens, cantees with freezing equipment. For example, gourmet frozen meals, made by local chefs, get processed and stored in a local professional kitchen.

Snacks, chips, condiments

Catering service or professional kitchens. For example, professional kitchens rent their ovens to produce high protein granola bars. Beverages (Alcoholic and Non-Alcoholic) Craft breweries, distilleries, bars, local fruit farms. For example, local brewery makes kombucha on the side for a beverage brand.

Canned and preserved foods

Local farms that already sell their own canned products. For example, a farm that is selling a range of gourmet jams also produces small batches of fermented foods for a food brand.

Here’s also a practical list of platforms in Europe to assist you in finding the most suitable small-producer for your product, you’re welcome!

Farmers’ Markets and Food Fairs

These venues are treasure troves for discovering artisan producers. Engage with vendors to learn about their production capabilities and potential for collaboration.

Online Platforms and Directories

Websites dedicated to local food artisans. Here are some examples:

• LocalHarvest: Directory for finding local food artisans and farmers.

• Slow Food: Connects consumers with small-scale producers committed to good, clean, and fair food.

• EatWell Guide: Directory of small-scale food producers and sustainable food businesses.

• Farmers Market Online: Provides a list of European farmers' markets and artisan food producers.

• Euro Food Hub: A marketplace connecting local food artisans and buyers across Europe.

• Local Food Nodes: A platform connecting consumers directly with local food producers.
  FarmDrop: An online marketplace for finding and purchasing from local food producers in the UK.

• Crowdfarming: Connects consumers with farmers for direct sales of artisanal and farm products.

• La Ruche Qui Dit Oui!: A European network of local food producers and consumers.

Ensuring quality and compliance in small-scale productiony/a>

Small producers have a focus on high quality, however their experience is often limited to one product category.

Artisan producers have in general established tailor-made and pragmatic quality management systems for their own product portfolio. It is up to you to ensure that their production quality standards are compliant to your product, by imposing additional quality measures if they are not already in place. Common measures are ingredient inspection, monitoring production and testing for contaminants and pathogens.

Whether it’s small or large production it should adhere to Good Manufacturing Practices (GMP), and go through regular audits by regulatory authorities.