Farmers’ Markets and Local Food Production: Is it a growing trend?

Presentation to theSouthern Alberta Council on

Public Affairs (SACPA)

By

Tom JohnstonDept. of Geography

University of Lethbridge

May 26, 2011

Presentation OutlinePresentation OutlineSetting the context

◦ Defining attributes of “Local Food Systems” (LFS)◦ Some recent trends in North America◦ Underlying circumstances -- Motivations of

producers and consumersThree Questions:

1.Just how “local” is locally-produced food?2.Is the growing popularity of locally-produced food

really a “turn toward quality”, or is it simply another example of branding and product differentiation?

3.What is the likely future of the “local food movement”?

Agricultural

Inputs

Consumption

Processing

Production

Distribution

State Farm Policies

International Food Trade

(Exports and Imports)

Credit/Finance Markets

The Bio-physical

Environment

Source: Adapted from Bowler (1992: Figure 1.2)

Mechanisms for Extending Short Supply Chains

Source: Renting et al. (2003).

Local Food in North AmericaLocal Food in North America

Economic Research Service, USDA◦ Direct-to-consumer food sales totalled $1.2 billion

in 2007, up from $551 in 1997◦ Between 1994 and 2009, the number of farmers’

markets went from 1,755 to 5,275, an increase of 3,520

◦ In 1986, there were only 2 community-supported agriculture organizations, by 2010 the number was estimated to exceed 1,400

◦ As of 2005, 14% of school districts participated by “Farm to School” programs and 16 % had guidelines related to purchasing locally-grown food.

Local Food in North AmericaLocal Food in North America

Farmers’ Markets Canada – 2008 Economic Impact Study◦ 3,174 shoppers and 487 vendors interviewed at

70 markets in 10 provinces◦ 28 million shopper visits generated $1.03 billion

in sales ◦ Total economic impact of $3.09 billion◦ Farmers’ markets were 2nd in importance as a

source for household groceries (behind large grocery stores) for nearly 2/3 of shoppers

◦ 42% of vendors derived at least half of their income from market sales

Underlying Underlying CircumstancesCircumstances

Motivations of ProducersMotivations of ProducersEconomically Oriented Producers

Practice is often adopted as a “Farm Survival Strategy”.

These producers may just as readily embrace agro-tourism and/or engage in off-farm work.

Ethically Oriented ProducersAdoption decision typically driven by concerns

over ethical concerns regarding environmental quality or animal welfare.

Lifestyle Oriented ProducersThese producers often place a high value on

social interaction, and/or derive satisfaction from being part of the local community.

1. Just how “local” is locally-produced food.

2. Is the growing popularity of locally-produced food really a “turn toward quality”, or is it simply another example of branding and product differentiation?

3. What is the likely future of local-food systems.

1. Just how “local” is locally-produced food.

2. Is the growing popularity of locally-produced food really a “turn toward quality”, or is it simply another example of branding and product differentiation?

3. What is the likely future of local-food systems.

Many of the concerns we see expressed about the industrialization of food production are exemplified in “Ice Berg Lettuce” and the “Field Grown” (machine harvested) tomato

Source: http://ouichefcook.com/?p=1431

http://www.blogto.com/eat_drink/2009/08/whats_fresh_toronto_tomatoes/

Source: Alberta Beef Producers (http://albertabeef.org/consumers/marketing-campaigns/)

Source: The Hilnore Blog (http://blog.hilncore.com/2011/02/beef-today-%e2%80%93-why-eat-organic-beef-or-no-beef-at-all/)

The “Re-localization” of food often involves embedding in food socially-constructed ideas around food-quality.

Source: Bon Appé(http://www.bonappetit.com/blogsandforums/blogs/badaily/2011/04/salmon-seasonality.html

1. Just how “local” is locally-produced food.

2. Is the growing popularity of locally-produced food really a “turn toward quality”, or is it simply another example of branding and product differentiation?

3. What is the likely future of local-food systems.

Institute of Food TechnologistsFood Trend Comments

Demographically Directed Food preferences vary significantly across age cohorts (18 – 22 cohort consumes 25% of their food in a moving vehicle)

Still CookingPreparation of meals at home reached a 20-year high in 2009; the trend is expected to continue

Regional Cuisine and Comfort Food

Interest in regional cuisine in the US (e.g., southern barbeque) and comfort foods is on the rise

Foodie FocusedTwo-thirds of consumer consider themselves knowledgeable and interested in food

Get Real50% of consumers consciously avoid prepared foods with preservatives

Natural NutrientsA shift is occurring away from fortified foods toward foods with naturally high nutrient values

Specialty Treats Chocolate candy, cookies and wine are the fastest growing categories in terms of sales

Breakfast is ImportantPercentage of Americans who reporting eating three meals a day increased 6% since 2009

Prescriptive EatingBoomers concerned with their cholesterol (68%) and blood pressure levels (66%) are embracing “functional foods”

Home RitualsSixty-seven per cent of US consumer report spending more time at home with their families rather than going out

Innova Market InsightFood Trend Comments

Processed is Out Consumers are growing tired of foods with complicated additives and with overly-long shelf lives

Offering Real ValueConsumers are seeking out products that are perceived to offer value in addition to just low cost

“Proven” The race to generate scientifically-proven nutritional food claims is well underway

Return to Softer Claims Decline in number of new food products launched on an “active health” platform”

Getting “Connected” New product launches using social media

Culinary ExpansionRising interest in quality home cooking and return to traditional kitchen skills (e.g., canning)

New Relaxation Paradigm A reaction to meteoric rise in energy drinks over the last decade

Revival of Fruit and Veg

Return to basics – focus on inherent health benefits

Try a Little RespectConcern over community sustainability and animal welfare informing more food purchase decisions

Selling the Technology Consumers are open to technology so long as the health benefits are explained clearly

http://www.pricenetwork.ca/ddeal/There_s_nothing_like_fresh_food_grown_close_to_home_-291782.html

Lowblaw Companies Ltd. Introduced their “Grown Close to Home” campaign in 2008

http://www.youtube.com/watch?v=kUKSX-zBThg

1. Just how “local” is locally-produced food.

2. Is the growing popularity of locally-produced food really a “turn toward quality”, or is it simply another example of branding and product differentiation?

3. What is the likely future of local-food systems.