pricing comparisons at farmers markets: understanding ......• fmnp coupons • philly food bucks...
TRANSCRIPT
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Pricing Comparisons at Farmers Markets:
Understanding Value and Affordability
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Anthony Flaccavento Founder, SCALE
Sequestering Carbon, Accelerating Local Economies
Nicky Uy Farmers Market Manager
The Food Trust
Philadelphia, PA
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Communicating Value at
Farmers Markets
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Why Farmers Markets? The Food Trust’s Mission:
Ensuring that everyone has
access to affordable, nutritious food.
www.thefoodtrust.org
Farmers markets are valuable to a
community because they:
•Create access to healthy food
• Connect urban and rural
• Revitalize Communities and
become social hubs
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www.thefoodtrust.org
The Food Trust in 2011
• Managed 26 farmers
markets in Philadelphia
• 88% located in low or
mixed-income
communities
• Operated 628 market
days
• Work with over 100
growers and producers
• Collaborate with over
200 community partners
• Over 400,000 customers
served
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www.thefoodtrust.org
• The Food Trust farmers
markets accept:
• EBT
(SNAP/foodstamps)
• FMNP coupons
• Philly Food Bucks
• EBT sales have
increased 300% in past
2 years
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www.thefoodtrust.org
Farmers Market Shoppers We surveyed a set of farmers markets located in communities of high need and found:
• 87% of customers felt prices at farmers markets were about the same or less expensive compared to food stores in their neighborhood
• Among SNAP/foodstamp customers, 70% reported that prices are less expensive
• 52% of shoppers participated in SNAP, WIC, or FMNP program
• 72% of shoppers reported eating a greater variety of fruits and vegetables since coming to market
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www.thefoodtrust.org
Why our customers love Farmers Markets
• Know who is
growing your
food
• Safe and inviting
place to shop
• Community hub
and a place to
meet new and
old neighbors
• A place to
incubate local
food businesses
• Market Manager as a resource
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www.thefoodtrust.org
Hunting Park Farmers’ Market
• Previously
known as a
dangerous park
• Part of a
Healthy Eating,
Active Living
project
• Residents
brought cards
welcoming the
farmer on the
first day
• Farmer also
values the
community
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A look into the affordability of farmers
markets in the Southeast and
Appalachia
Anthony Flaccavento
SCALE, Inc
www.ruralscale.com
Farmers Markets: For the Food
Elite or the Average Person?
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Farmers market’s increasing
• In Virginia, the number of farmers markets
has more than doubled since 2005, from
88 to 186 (VDACS)
• Nationally, farmers markets have
increased from 1,750 to 7,100 in less
than 2 decades
–Why such fast growth?
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050
100150200250300350
1910 1930 1950 1970 1990
Input Farming Marketing
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Cornell University study (2003)
• Farmers markets serve as “incubators”:
newer, younger entrepreneurs test
products with low risk and capitalization –
83% of vendors started with less than
$1000
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Community Revitalization
National survey (Project for Public Spaces):
* More than 60% of FM customers only
come to town on market days
* Of these, nearly 2/3 visit other nearby
shops when in town for farmers market
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Food and Health Expenditures as % of Household Income
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Does local food = Improved
eating and health? • New Orleans farmer market survey: 83% of
customers stated that FM had changed the way
they shop (Union of Concerned Scientists)
• Lower income shoppers who’d come to market
because of incentive programs were more likely
to return to buy fruits and vegetables (Racine), and
continue buying produce at FM after incentives
end (Shumacher)
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Farmers markets are great,
but…
…can ordinary people really
afford to shop there?
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Farmers Market Affordability
• SCALE study in 2011 put all of these
farmers market benefits aside to answer
the question:
On price alone, are farmers markets affordable
for ordinary folks, people on a budget, when
compared with supermarkets?
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Overall Conclusion
• On price alone, the vast majority of
farmers markets in the Southeast and
Appalachian region are at or below the
prices of mainstream supermarkets,
when considering a mix of everyday foods.
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Methodology
• Study (Sept – Oct, 2011) considered:
– 24 farmers markets in 19 communities in six
states:
Virginia, Tennessee, North Carolina, South
Carolina, West Virginia and Kentucky
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Three categories of
communities: • 1. Small towns, e.g Jonesborough, TN,
Abingdon, VA 15,000 or less
• 2. Small cities, e.g. Charleston, WVA,
Asheville, NC 50,000 – 95,000
• 3. Mid-size cities, eg Richmond, VA,
Lexington, KY 100,000 – 500,000
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Local markets – open air or under
roof
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Supermarkets in Study
• Depended upon what was available
nearby, but primarily used mainstream
supermarkets (100 % of time for conventional
produce)
– Kroger, Food Lion, Food City, Ingles
• Secondarily used high-end markets for
comparison
– Whole Foods, Earth Fare
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What we compared
• “Everyday foods”
Produce: potatoes, beans, green bells, red
bells, red tomatoes, cucumbers, zucchini,
leaf lettuce, onions, sweet potatoes,
butternut squash, cantaloupes, eggplant
Protein: eggs, ground beef, whole chicken,
breakfast sausage or link sausage, pot
roasts
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Method of comparison
• Not “item by item”, but overall price of a
week’s worth of everyday foods
– For example: 1lb zucchini, 2 lbs potatoes, 1
dz eggs, 1 whole (4 lb) chicken
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Median rather than mean price
• Every price for a given item was noted,
then the median price calculated:
• $1/lb $1/lb $1.25/lb $2/lb $2.50/lb
(Mean price above would be $1.55/lb)
**Organic prices noted separately, using
same procedure
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Supermarket prices
• Prices on comparable items collected at
two supermarkets (special discounts not
included)
– Supermarket with lowest overall price for all
the items considered was used for
comparison
• Supermarket 1: $32.50
• Supermarket 2: $29.75
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Comparability sought
• Quality
• Weight vs volume or count
• Free range eggs
• Grass-finished or pastured meats
– Comparability of meats was particularly
difficult
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Organic produce
• At farmers markets, included certified
organic, Certified Naturally Grown and self
identified organic
– Vast majority of organic producers in these
markets are not certified
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What we did not consider
• Taste, freshness, health and nutrition, food
miles, improved farmer incomes, etc
• Impact of EBT, WIC, SFMNP or double
matching vouchers
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Other studies have used
broader definition of affordability • Portland, Oregon study (Portland State and
Portland Community Reinvestment Fund)
compared farmers market prices to 3
“tiers” of supermarkets, and included
impacts of SNAP matching funds
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Study Conclusions
• In 74% of communities, farmers market
produce (conventional) was less
expensive than supermarket produce,
on average by 22%
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Study Conclusions
• Where organic produce was available
at both farmers markets and
supermarkets, it was less expensive at
the farmers market 88% of the time
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Study Conclusions - Meats
• Meats as a group were always more
expensive at farmers markets than at
supermarket:
– Comparing grass based @ FM with
conventional @ SM – 47% higher
– Comparing grass based @ FM with
comparable meats/eggs @ SM – 10% higher
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The “chicken effect”
• Most of the farmers market meats –
ground beef, breakfast sausage, link
sausage, beef roasts – were only slightly
more expensive than conventionally raised
meats at supermarkets
• Chickens, however, were far higher @
farmers markets, averaging $16 - $18
each vs $5.25 - $6 each
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Study Conclusions
• Overall cost, including produce, meats
and eggs:
*Farmers markets were the same price or less
expensive than supermarkets 74% of the time,
for comparable items (avg12% less)
*When comparing lowest available price –
including FM grass-finished vs CAFO meats –
farmers markets were more expensive 52% of
time
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Relatively Consistent Trends
• 2010 study of 10 farmers markets in
Vermont (Claro, for Northeast Organic Farming
Association) - an item-by-item produce
comparison with 10 supermarkets:
– 4 of 12 items were cheaper at FMs
– Another 6 of 12 were 10 – 20 % higher
– Organic produce averaged 43% less
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Additional studies
• Leopold Center study in Iowa, University
of Seattle study in Seattle both found
prices comparable or slightly lower,
comparing farmers markets with
supermarkets
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Portland study
• 13 farmers markets in the Greater
Portland area, comparing produce to
discount (tier 1), mainstream (tier 2) and
high end (tier 3) supermarkets:
– 6 of 13 markets had comparable prices to tier
1 and 2 supermarkets
– When $5 SNAP matching benefits were
considered, 8 of 13 were comparable
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Future investigation
• Need studies in other regions, in larger
cities
• Focus some analysis on working, ordinary
folks, ie not the well-off foodies, nor SNAP
beneficiaries, but the large group of people
in between: Do they shop at FMs?
Barriers; potential incentives, etc
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Pricing Comparisons at Farmers Markets: Understanding Value and Affordability
Resources
http://bit.ly/farmersmarketpricing