MILWAUKEE–Whether locally-grown foods become standard at mainstream supermarkets depends on farmers’ ability to meet consumer expectations of quality and price, according to an article to be published in the next issue of the Agricultural & Applied Economics Association’s online magazine Choices.
Consumers are increasingly concerned with knowing where their food is coming from and are demanding more food at the supermarket come from local sources. Large retailers such as Wal-Mart and Whole Foods Market have responded to this demand and have initiated efforts to source and sell local foods. However, researchers fear that local food systems cannot meet the demand at prices low enough for a broad scope of consumers.
“Significant growth in the share of sales for local foods can only be achieved if producers are able to supply competitively priced products with consistent quality in volumes that match supermarket product movement,” said economist Robert King, co-author of the article "Can Local Food Go Mainstream?" “Overcoming [these] challenges will require collaboration among producers and innovative development of localized distribution systems.”
There is evidence, according to King, that local foods can become more readily available in mainstream supermarkets. The article highlights several examples of local food producers who have been successful in marketing and selling their products to a larger consumer base. These producers expanded their consumer base primarily through branding and promotion, creating a sense of connection between farmer and consumer, encouraging consumers to support their local economy, and finding cost-effective means of transportation and distribution. The article details how to apply the successes of these examples to other local food growers, thus expanding the local food system.
King is a professor in the Department of Applied Economics at the University of Minnesota. The article "Can Local Food Go Mainstream?" co-authored with Miguel I. Gómez from Cornell University and Gigi DiGiacomo from the University of Minnesota – will be published in Choices on April 15 and will be available at www.choicesmagazine.org. For advance access to the article, visit http://www.choicesmagazine.org/magazine/article.php?article=111
Choices is an online peer-reviewed magazine published by AAEA for readers interested in the policy and management of agriculture, the food industry, natural resources, rural communities and the environment. Choices is published quarterly and is available free online at www.ChoicesMagazine.org.
The Agricultural & Applied Economics Association is the nation's largest professional association of agricultural and applied economists. AAEA strives to enhance the skills, knowledge and professional contribution of economists who help society solve problems related to agriculture, food, resources and economic development. Members work in various capacities including universities, private industry and government agencies.
Source: Agricultural & Applied Economics Association
