The Future of Farmers Markets and Their Role in Expanding the Local Food Movement

Transcription

1 The Future of Farmers Markets and Their Role in Expanding the Local Food Movement Becca Jablonski PhD Candidate, Cornell University Doctoral Fellow, USDA s National Institute of Food and Agriculture Navigating the Local Food Scene Farmers Market Managers Conference Double Tree by Hilton, Binghamton, NY February 27, 2014

2 Presentation overview Overview of national statistics Demand for farmers markets spatial variations Changing buyer and consumer preferences Future role of farmers markets sources for potential demand

3 Data challenges Most USDA data collected by commodity not market channel USDA AMS Market manager survey ~4 yrs Only of existing markets No farm-level information Many markets have volunteer manager USDA NASS USDA ARMS 3

4 Importance of local food sales Still represents a very small share of national food supply: , farms that engaged in D2C food sales represented 5.5% of all farms, on average 0.3% of total farm sales Year Total Agricultural Sales ($000) D2C Sales of Ag. Products for Human Consumption Ratio of D2C Sales to Total Ag. Sales (%) ,220,491 1,211, Source: U.S. Census of Agriculture 2007

5 Demand? Recent growth in local food has been very rapid: USDA 2007 Census of Agriculture: D2C sales increased 3X from $404M to $1.2B Grew 2X as fast as total ag sales in U.S. (105% vs. 48%) USDA-ERS report (2008 ARMS data): Local food sales including intermediated sales = $4.8B 2012 Census data released soon will help to delineate between local food sales outlets

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7 Value of D2C farm marketing by region Source: USDA AMS 2009

8 Growth of D2C farm marketing by region Source: USDA AMS 2009

9 Top 10 statesd2c food marketing as share of total agricultural sales Source: USDA AMS 2009

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12 Vendor Competition Zones for Markets Listed in 2007 USDA Farmer s Market Directory

13 Demand? Demand Drivers Among Consumers Farmers markets provide shoppers the opportunity to: Obtain food items with superior quality characteristics Freshness, flavor, ripeness, enhanced shelf-life Learn about farming practices which engenders trust (social capital!) amidst a backdrop of food safety concerns Support local ag and small business development Preserve local farmland/open space by supporting economically productive use of land Source: Tropp 2013

14 Demand? Customers willing to shop around for quality perishables

15 Demand? Farmers markets main source of local food Source: Kearney 2013

16 Demand? Farmers markets main source of local food Source: Kearney 2013

17 Demand?

18 Demand?

19 Demand? Despite consumer confidence in farmers markets and farm stands, source of local food demand is shifting towards wholesale channels

20 Farmers local food marketing, 2008 Demand? $4.8 billion in sales 71,200 farms $877 million in sales Farmers markets Roadside stands Farm stores CSA arrangements 22,600 farms $1.2 billion in sales 13,400 farms $2.7 billion in sales Grocers Restaurants Regional Distributors Source: Low and Vogel 2011

21 Demand? One reason for shift = slowdown in farmers market growth: Starting to see decline in pace of net FM growth (National FM Directory) Disparity in FM profitability between urban/less urban markets

22 Demand?

23 Farmers Markets in Madison County, NY (2009) Location Average $ spent per week # of weeks/ market Total $ spent per market/year Hamilton, NY $24, $618,858 Cazenovia, NY $12, $313,848 Canastota, NY $3, $51,631 Oneida, NY $3, $69,600 $1,053,939 Source: Madison County Agricultural Economic Development Program, 2009 *Similar findings in a study of the North Country markets by Schmit and Gomez

24 Customer Competition Zones for Markets Listed in 2007 USDA Farmer s Market Directory

25 Demand? Many D2C outlets, including FMs, are labor-intensive, and not very profitable for farmers: Small farms (>$50,000 in gross annual sales) were more likely to rely exclusively on D2C sales. High price per unit/relatively small volume of sales Farmers markets often most labor intensive market channel (LeRoux et al. 2010, Hardesty and Leff 2010) Source: Low and Vogel 2011

26 Demand? Barriers for small and mid-scale farmers to access larger-volume marketing channels Individual farm operators often lack individual capacity to meet buyer requirements for product volume, quality, consistency, variety or extended availability Farmers continue to be challenged by the lack of distribution, processing, and marketing infrastructure one of the reasons FMs will continue to play important roles as a point of entry for farmers

27 Potential Drivers of Future Demand Likely to hinge on greater accessibility Nutrition Assistance Programs Increases in SNAP participation by farmers markets and farm stands, up from around 900 sites in 2009 to more than 3,200 in 2012 resulting from outreach by USDA Food and Nutrition Service + AMS/FNS grants for EBT installation + rise of NGO-sponsored subsidy programs Preliminary research suggests: Patronage continues after subsidies run out (USDA AMS 2013) Price is not a barrier (Project for Public Spaces 2013) Recent expansion of mobile farm markets to serve people without transportation access

28 Source: USDA AMS 2014

29 Potential Drivers of Future Demand Nutrition Assistance Programs MarketLink, a new way for farmers markets and direct-marketing farmers to get authorized as SNAP vendors and get the equipment they need to accept SNAP benefits

30 Potential Drivers of Future Demand Summary of Additions to Mandatory Funding for Select Local Food, Organic, Healthy Food Access and Rural Development Programs Source: NSAC 2014

31 Potential Drivers of Future Demand Summary of Additions to Mandatory Funding for Select Local Food, Organic, Healthy Food Access and Rural Development Programs Source: NSAC 2014

32 Potential Drivers of Future Demand USDA s Know Your Farmer Initiative projects funded since 2009 Source: USDA KYF 2014

33 Potential Drivers of Future Demand Source: Ahern 2011

34 Potential Drivers of Future Demand Growing number of farmers markets operating at hospitals and health care facilities 115 reported in 2013 USDA National Farmers Market Directory Kaiser Permanente lead in early years Recent campaign to introduce them at Veteran s Health Administration facilities Military bases: New DoD healthy base initiative aims to expand farmers markets on base Source: Tropp 2013

35 Potential Drivers of Future Demand Growing interest in and availability of winter markets The 2012 top 10 states for winter farmers markets: 1. California with New York with Florida with Maryland with Texas with North Carolina with Massachusetts with Pennsylvania with Georgia with Virginia with 53 Source: USDA AMS 2012

36 Potential Drivers of Future Demand Path to take off for farmers looking to scale-up Red Jacket Orchards: 1992: started to sell at NYC Greenmarkets 2012: 25+ markets/week and national distribution

37 Potential Drivers of Future Demand

38 What role will farmers markets play in expanding the local food movement? Continued FM growth in urban locations (regional concentrations) Rural and farm-level impacts? Importance of social capital trust! Rural communities and market managers need to think creatively Farmers markets will be one of multiple outlets used by growers Particularly important for beginning, small and mid-scale farms How can we make markets more profitable for growers (opportunity for collaboration with wholesale purchasers)? 2014 Farm Bill and the USDA KYF initiatives put FMs front and center But, market managers need to think strategically about how to capitalize on opportunity (i.e., integrate low income households in planning efforts)

39 Thank You! Becca B.R. Jablonski 314 W. Sibley Hall Cornell University Ithaca, NY beccajablonski.wordpress.com