Demand grows for farmers' markets
AUGUST
6, 2014
Farmers' markets are popping up all over America. According to
the U.S. Department of Agriculture (USDA), there are more than 8,200 farmers'
markets operating in the country today, a 76 percent increase since 2008.Growth
of the markets is happening all over the U.S. with every geographic region
seeing an increase. California, with 764 markets, has the greatest number of
any state, followed by New York (638), Michigan (339), Ohio (311), Illinois
(309), Massachusetts (306), Pennsylvania (297), Wisconsin (295), Virginia (249)
and Missouri (245).States seeing the greatest growth in farmers' markets are
Tennessee, Louisiana, Texas, Hawaii, Massachusetts, Arkansas, North Carolina,
Montana, Florida and Nebraska.
Farmers markets are increasingly being viewed as an affordable
option for low-income consumers to get access to more nutritious foods.
According to an article on the Smithsonian Magazine website,
one in four markets accept SNAP (Supplemental Nutrition Assistance Program)
benefits. The 2014 Farm Bill allocated $4 million to be used for farmers'
markets to add equipment needed for accepting SNAP payments.
The New York Times Magazine's lead food
columnist, Mark Bittman, wrote that markets are now participating in programs
like Wholesome Wave, which provides eligible customers a double value coupon
incentive to buy fruits and vegetables. According to the Wholesome Wave
website, the program, which began in California, Connecticut and Massachusetts
in 2008, has since expanded to 350 farmers' markets in 21 states and
Washington, D.C.
INSTANT
POLL:
Many
would say that they shop farmers' markets because of price. And there are some
good deals to be had when there is abundant seasonal supply.Others would state
their reasons as freshness and quality. Farmers' markets are typically local,
so the produce is typically much fresher than that shipped thousands of miles
to grocery stores.I truly believe that the biggest draw to farmers' markets is
the EXPERIENCE. Many of the farmers' markets have done a good job of
merchandising a festival-like environment. In addition to fresh produce, there
are food stands, crafts and events complimenting the produce on sale. Being
able to talk with the farmers who actually grow the produce is a unique
experience that you can't get in-store or from Amazon Prime.
Of
course the farmers' markets are a threat to produce at nearby grocery stores.
Between an increased demand for organic products, an increased demand for using
local products to decrease the carbon footprint, and the popularity of
"buy local" with Millennials and environmentalists, farmers' markets
provide a shopping experience for those needs. Some grocery stores are
promoting locally-grown products to try to compete with farmers' markets.
In a
word: Authenticity. That's hard to find these days.Of course the whole
"local first" movement is gaining momentum too, but really it gets
down to our (life's) most fundamental tethering point—the earth itself.
Creation itself; to be a little dramatic. We don't usually get the same warm
feeling when we think about the "local" used car dealer, for example.
And "Monsanto Fresh Produce" doesn't quite do it either. We want our
natural "roots" re-established, figuratively and literally. We want
to go home.It's rather strange that we immediately attach the concept of
"threat" to what has kept humans alive since the beginning of time.
2. They
give you the feeling that you are doing something healthy.
3. Quality
and freshness of the product.
4. Dealing
with people one on one.
5. Last
but not least (and not always true), price.
Do you need more reasons?
There
was a recent article in the Chicago Tribune that stated that farmers' markets
had become so popular that they were having trouble finding enough farmers to
participate. Some were even offering free space as an enticement. Customers are
seeking fresh, and nothing creates the impression of fresh like buying it
directly from the farmer. Besides, shopping at one can be seen as something
different.Can they impact a local supermarket? Certainly. However, I don't
expect to read any articles that indicate a supermarket went out of business
due to farmers' markets.
The
produce in the grocery stores says fresh, but the farmers' markets ARE fresh.
It is a perception on the part of the shopper that the product is better if
purchased directly from the farmer. The price is better too. Too many grocery
chains have lost their product touch; not many good hands are left in the
industry and the larger the chain, the worst the selection and quality. Profits
seem to have taken the front seat over quality, from what I have seen.
Several
factors have impacted the growth in numbers of farmers' markets around the
U.S.: supporting local growers, perception of healthier food alternatives,
lower prices as compared to supermarkets, live interactions with the farmer and
being able to share a fun experience with like-minded shoppers in the
community.Are they a competitive threat to supermarkets? Yes but not a major
impact—economically they mimic an 8,000 store chain that's only open one or two
days a week for a limited number of hours. But that doesn't mean that in some
neighborhoods the impact isn't felt in the produce departments of the local
supermarkets. Odds are, with the slowing down of the number of new farmers'
markets (a 3.6 percent increase from 2012 to 2013 according to USDA), that
these markets are beginning to compete more and more against each other in
existing cities.
As a
loyal farmers' market customer, let me say it is a combination of quality,
price, some peoples' interest in organic and/or heirloom products, part
"support your local economy" and—oh yes—a high entertainment value.I
think the answer to the second question is "no" for several reasons.
First, many Americans want all fruits and vegetables available all year long,
and that just doesn't happen in farmers' markets. Second, many shoppers like
their food a little less, well, food-like—washed and packaged and displayed
neatly on a shelf or in a cooler.Third, a farmers' market is generally an
additional stop, and lots of folks aren't cooking enough to justify the loss of
time.
The
biggest demand drivers today are go local, farm-to-table and
environmentally-friendly. I'm not sure they are a threat to grocery stores in
the current format, and find it hard to believe that the growth equates to
shoppers and significant revenue loss for grocery stores.Another driver could
be nostalgia. I'm from Massachusetts, one of the states with the greatest
growth of farmers' markets. I remember them as a kid and see them now as an
adult. When folks went years ago it was "Stop at Harper's Farm on the way
home and get corn, tomatoes and zucchini." Not sure that was categorized
as a farmers' market back then. Everyone knew when the harvest was and they
would sell out.
Farmers'
markets satisfy many consumer needs: support of local businesses, fresh
product, perceived as more sustainable and often perceived as organically
produced. In addition, farmers are the number one most respected occupation in
America.The key for neighboring grocery stores is not to fight farmers'
markets. Instead form bases for collaboration. For example, have a produce
display featuring products from the local farm, including farm pictures and a
story. How about inviting farmers and other local artisans to sell their goods
one day a week (non-prime day) in a section of their parking lot?All of the
attributes associated with farmers can extend to grocery stores if the strategy
is properly designed and smartly executed.
Richard J. George, Ph.D., Professor of Food
Marketing, Haub School of Business, Saint Joseph's UniversityDepending upon the volumes of product transacted at these
farmers' market events, local merchants can begin to feel a negative impact.
The more innovative merchants are leveraging these farmers' markets as an
additional outlet of their stores by having a presence at the markets
themselves. I personally feel that these farmers' markets are great
opportunities for small store and large chain operators to leverage the
"local" flavor and create a tighter connection with their shoppers.
There
are quite a few farmers' markets in the Seattle area, however their prices are
generally close to, and sometimes higher than, most stores. Presumably the
produce is picked ripe or closer to ripeness. The definition of local seems to
be broad since anything grown in Washington state is marketed as local.I think
the real draw is the sense of community people get from supporting local
farmers and businesses. Many farmers' markets also have a variety of vendors
selling arts and crafts, kettle corn, and jarred honey and jams you can't get
at stores. There are often musicians playing live music, which helps add to the
festive atmosphere.
'RetailRetell'
Because
prices are usually higher, there is minimal threat to supermarkets. I rarely
see low-income people at a farmers' market. One vendor I work with was recently
expelled from a farmers' market for selling products too low. It was
undermining the other vendors making them look like gougers. They were selling
their excess that supermarkets did not buy from them. Some of these vendors are
well organized. At one farmers' market I know one family that has about 50
percent of the produce stands, placed at various points, appearing to be
competing but they arrive and leave in the same truck. They repeat this every
weekend at several other farmers' markets bringing in over $2 million a year to
be shared with large extended family. The demand is not so much healthy food
but it's a form of entertainment. It's also a good way to be able to negotiate
for your food. I'm still amazed at how many people will actually pay what the
vendors ask. I like to go to farmers' market about 15 minutes before closing
when they are practically giving away perishable products. They can be
affordable if you time your visit and are a good negotiator.
In my area the farmers' market is a source of reasonably-priced
decent fresh produce. I can get red tomatoes that taste like tomatoes instead
of the "cardboard-flavored" ones constantly being sold by the local
chain supermarkets for twice as much. I would hope that the competitive threat
to the chains would encourage them to do a better job of sourcing. While this
is difficult due to GOVERNMENTAL health regulations, many produce items can be
sourced locally with a little effort. I would expect that sourcing locally
would cost much less that operating a "loyalty program" and produce
much more consumer satisfaction.
Ed Dennis, Sales, Dennis Enterprises
My wife and I live in a rural area with a rather large working
farm right next door. In the surrounding area there are two of the largest
farmers' markets in the state. The markets have indoor and outdoor vendors with
the bulk of their trade being done on Thursday, Friday, Saturday and Sunday
throughout the year. The non-food vendors are becoming more and more scarce as
time goes by and we remain in this awful economy. The crowd sizes for the
farmers' market produce, poultry, dairy and meat vendors are increasing, and
their day is often done before noon because they are out of stock for the day.
Local farm food products of all kinds are selling at increasing rates in spite of pressure from the grocers and farm stands. As for the farm next door, customers arrive at daybreak and during the afternoon rush hours in crowd sizes that have continuously increased over these past four-to-five years. The morning crowd comes in trucks and vans, purchasing whole crates, and the afternoon crowd is mostly commuters off of the beaten path on their way home from work or whatever. Our home is positioned as it normally would be in a completely residential neighborhood sitting about 70 feet from the road. We are sometimes mistaken for the farm owners and asked a lot of questions about the fertilizers and insecticides used for the large selection of produce. My listening experience is that the consumers for these products will pay more for these goods that are raised within the guidelines of what is considered to be organic product. It is amazing what these consumers of all ages know about the things used to produce and process food of all categories. I also find that they travel not just to save a few dollars, but to be assured freshness and the qualities they seek. This is also true for the grocers, restaurants, hotels and prepared food supply businesses that come in the morning. So while things could be better for most Americans, it appears that the farmers in this area are seeing a little bit of good times after decades of hard times and harder work.
Local farm food products of all kinds are selling at increasing rates in spite of pressure from the grocers and farm stands. As for the farm next door, customers arrive at daybreak and during the afternoon rush hours in crowd sizes that have continuously increased over these past four-to-five years. The morning crowd comes in trucks and vans, purchasing whole crates, and the afternoon crowd is mostly commuters off of the beaten path on their way home from work or whatever. Our home is positioned as it normally would be in a completely residential neighborhood sitting about 70 feet from the road. We are sometimes mistaken for the farm owners and asked a lot of questions about the fertilizers and insecticides used for the large selection of produce. My listening experience is that the consumers for these products will pay more for these goods that are raised within the guidelines of what is considered to be organic product. It is amazing what these consumers of all ages know about the things used to produce and process food of all categories. I also find that they travel not just to save a few dollars, but to be assured freshness and the qualities they seek. This is also true for the grocers, restaurants, hotels and prepared food supply businesses that come in the morning. So while things could be better for most Americans, it appears that the farmers in this area are seeing a little bit of good times after decades of hard times and harder work.
'gjarnoldjr'
If I'm
looking for the best price, I go to the international market. The farmers'
market is all about the "experience," IMHO. Always a nice way to
spend a Saturday morning when the weather is good. Talk to the farmers, build
loyalty, learn about new things, enjoy the great outdoors!Only time we buy
produce from the local grocery store; when we need it now!In my area, farmers
markets and international markets have posed somewhat of a threat to grocery
for quite a while, but grocery is far more convenient for many. How big a card
is the convenience card? Don't know the answer to that, however I encourage
grocery to make it their business to know.and that's my two cents!
Lee Kent, Brings Retail Executives Together to
Meet.Learn.Profit, RetailConnections
Farmers'
markets are a topic we seem to discuss every summer for obvious reasons. Yes,
they are going to grow and hopefully prosper because we like to stop and shop
there. We know the produce is the freshest we can get. So why not be among the
many shoppers giving their families the best available fruits and vegetables. I
am leaving for Maryland tomorrow, and can't wait to stop for some delicious freshly-picked
white corn and farm-ripe tomatoes. Can't beat that for a summer dinner.
I'm
impressed with the number of farmers' markets and the realization that
consumers are still interested and willing to go out of their way for the
experience and satisfaction of shopping in person. Of course the quality, price
and freshness of the fruits and vegetables are motivation for many, but clearly
whatever the drivers...enough consumers get there to make it worthwhile for the
farmers. So I'm encouraged to believe that retailers have an opportunity to
drive business to their stores if they just figure out how to maximize that
experience and personal satisfaction.
There
is a feeling of authenticity at a farmers market where the producer stands
behind the produce. For a certain demographic, it's also a nostalgic experience
to be able to participate in an open market. But I think the reason so many
farmers' markets are springing up is because of the fair-like atmosphere—kettle
corn vendor, fresh baked goods, unusual crafts, and stalls of fresh-scented
produce. This type of shopping experience is desirable and entertaining and has
many lessons for today's grocery retailers.I don't think the individual
farmers' market is a threat (most are open a few hours once a week or month)
but a retailer that can replicate the market could have some impact on grocery.
Certainly Sprouts is trying and there are a number of local market formats that
are quite effective.
Farmers'
markets are a great shopping experience all around. Easy to shop, good quality,
you know it's fresh, and good value. Talking to the growers who can answer
questions about storage and cooking tips makes it fun to prepare healthier
meals. Beyond this, it's a sense of community and supporting local farmers.
Grocery stores will feel the impact of this growing trend, as the the farmers'
markets increase and offer more.
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