Food Business News - December 20, 2011 - (Page 19)

Clearer picture of local food Only small percentage of locally produced foods are sold direct-to-consumer by growers relied on direct-to-consumer market channels more than larger farms ($250,000-plus). “Large farmers that market local foods exclusively through intermediated channels accounted for 92% of these intermediated sales, while small- and mediumsized farms that market local foods exclusively through direct-to-consumer channels accounted for 73% of these sales,” the researchers said. Previous research has indicated direct-to-consumer sales are highest in metropolitan areas, the E.R.S. said. The researchers also identified a major west-east divide in terms of how local food is marketed. “In 2008, 85% of the value of West coast local food sales occurred through intermediated channels,” the authors said. “The dominance of intermediated marketing channels among West coast local food farms is likely because these farms are typically larger and located farther from metro areas than farmers in other regions, necessitating the use of intermediated rather than direct-toconsumer marketing channels. “High levels of local food production on the West coast may also be related to the region’s suitability for fruit and vegetable production. Recognized for its varied climates, long growing season and extensive irrigation networks, the West coast produces 56% of the nation’s vegetables, fruits and nuts and other specialty crops.” By contrast, the researchers said farmers in the Northeast who sell local food tended to be smaller and are located closer to densely populated urban markets. They are more likely to use direct-to-consumer marketing outlets. For farmers who do sell to local customers, the business represents a key source of income, the researchers said. “Almost two thirds of local food producers reported that local food sales accounted for at least 75% of their total farm sales in 2008, suggesting the importance of local food sales to gross sales for these farms,” the researchers said. They said consumers are motivated to buy local by a desire for freshness, to support the local economy and for personal communication with the producer. FBN WASHINGTON — The image of the grower selling produce at a farmers’ market or roadside stand may be the quintessential image of the burgeoning local food movement. According to a study by the Economic Research Service of the U.S. Department of Agriculture, such direct-toconsumer selling accounts for only a small proportion of the U.S. local foods market. The study, “Local foods marketing channels encompass a wide range of producers,” was published in the November issue of Amber Waves. The article was written by Sarah A. Low and Stephen Vogel, economists with the E.R.S. “In addition to buying directly from farmers, consumers also purchase locally grown food through retail channels that enable consumers to purchase local foods with one-stop shopping convenience,” the E.R.S. said. Taking grocers, restaurants and regional distributors into consideration together with direct-to-consumer selling, “a more complete picture of the local food market emerges,” the authors said. All told, annual local food sales in 2008 totaled $4.8 billion. The estimate, based on data from the U.S.D.A. Agricultural Resource Management Survey, is four times larger than figures based on direct-toconsumer sales alone. Of the $4.8 billion, more than half ($2.7 billion) was from farms selling local foods exclusively through intermediated marketing channels, such as supermarkets. Farms using both direct-to-consumer and intermediated marketing channels accounted for a quarter of local food sales, at $1.2 billion. The researchers found small farmers (with gross annual sales beneath $50,000) Marketing Communications Only BEST VANTAGE Inc. can strengthen your B2B marketing and advertising program with integrated nutritional science and food technology consulting. When time is money and speed is essential, outsourcing just may be the best solution We understand your technologies We understand your customers We understand your markets Integrated Approach—Tangible Results nt l ...Since 1995 ce Toll F ree 1-888-284- 6583 - w m December 20, 2011 FOODBUSINESS NEWS ® 19

Table of Contents for the Digital Edition of Food Business News - December 20, 2011

Food Business News - December 20, 2011
Government to decide on B.P.A. ban by March 31
Dairy Business News - Higher prices lead to sluggish fresh milk sales
Commodity, ingredient prices trending lower at year end
Editorial - Food revolution in wake of food truck growth
Food companies alleging egg price fixing from 1999 to 2008
Nestle details progress made on nutrition front
NPD Group: Restaurant traffic flat in 2011
Yum! raises guidance on global strength
Coca-Cola forms partnerships to develop 100% plant-based bottles
Lempert sees economizing as key trend in 2012
Blount buys Cape Cod Chowder Co.
Falconhead Capital acquires Rita’s Water Ice Franchise
Better margins seen in 2012
Sara Lee to buy Dutch cafe store operator
Sara Lee to base North American Meats in Chicago
Clearer picture of local food
Smithfield Foods income falls 16% in second quarter
Earnings filing delay for Diamond Foods
Health and Wellness - Researchers shed light on probiotics benefits
Ingredient Innovations - Oils factor into french fry innovation
Dairy Business News - Dairy Ingredients Symposium to be held in March
Dairy Business News - Cultures increase cottage cheese yield
Dairy Business News - WhiteWave moves ahead on sustainability initiatives
Dairy Business News - Steve Millard to lead Emmi Roth USA
Dairy Business News - October nonfat dry milk output down 12% from year ago
New Product Trends - Local foods, children's nutrition top N.R.A. trends
New Product Trends - Niman Ranch introduces all-natural beef entrees
New Product Trends - Pamela’s Products launches Whenever Bars
New Product Trends - Mission Foods adds Artisan Style Tortillas
New Product Trends - Sunsweet launches Plum Amazins
Food Ingredients Europe
Ingredient Market Trends
Ingredient Markets
Supplier Innovations and News - Cocoa production method wins Fi Europe honor
Supplier Innovations and News - System reduces acrylamide level in coffee
Supplier Innovations and News - Kalsec introduces specialty flavors
Supplier Innovations and News - Vitiva launches Sweet’nVit stevia brand
Supplier Innovations and News - Spicetec hires technical services specialist
Supplier Innovations and News - Ingredient adds shelf life, works in flavor system
Ad Index
Food Business in the News

Food Business News - December 20, 2011