Thanks! Us too – it's something that we feel just hasn't been executed in the right way yet.
We're focussing first on creating a platform for local producers & consumers to connect before we tackle distribution. We've got some interesting ideas on the cards though when the time comes. Would be great to hear your thoughts on it.
I like your approach: test the market without taking risks, and learn on how locals handle it themselves.
Can't think on a better way of doing it. Distribution can kill your idea. At the same time, it's the best selling point of it. If users are buying through the website, they expect a quality deliver, which is not always easy to get, and is expensive too.
On a sidenote: let sellers express themselves. I would not buy groceries from a craigslist-sort site. I would if I can see photos, location, and know more about the product and the business ethics of the seller.
http://farmly.net/