Small and local producers should be looking towards the £11 billion foodservice market for new opportunities, claimed Joanne Denney-Finch, chief executive of the Institute of Grocery Distribution.
Speaking at a conference to launch a guide to help suppliers find their way into the sector, she said: "On one hand I often hear farmers concerns about losing out on supplying to retailers, while on the other hand, foodservice companies frequently yearn for suppliers who can deliver what they really need."
She said suppliers need to be more focused on their target markets and differentiate their products from those of competitors: "To be honest, most farmers don't target their products in any particular direction at all. They produce commodities and the market sorts out who buys what."
Chris Cannon, marketing manager with Brakes, told delegates the foodservice sector was fed up of being treated as secondary to retail by suppliers. "It is difficult to supply both and companies that do often treat foodservice as the Friday afternoon customer. Unsurprisingly, that tends to annoy us.
"It's an urban myth that caterers simply want retail products but in bigger packs. Foodservice operators hate this. You need to be offering something different."
Denney-Finch agreed: "Foodservice companies feel they are often second in the queue behind retailers. If domestic products are in short supply, it's often retailers who get served first while foodservice companies are forced to hunt overseas. Clearly that's not a good way to build customer loyalty."
Cannon said they did work with small suppliers, and were keen to work with more: "Being able to offer regional products to regional customers is often a deal clincher. People want to be able to offer customers products from 10 miles down the road."
