Buying Local: Diverging Consumer Motivations and Concerns

The increased utilization of local direct markets has been dramatic in the last decade, but consumer motivations for buying local are not well understood. This study uses survey data collected at farmers’ markets to compare consumer willingness to pay (WTP) premiums for organic and locally grown produce. Results illustrate a clear division in consumer motivations for purchasing through local direct markets. Demographics such as age and education level, concerns regarding food safety, environmental issues, and product origin, as well as the importance of supporting local growers and production methods differentiate consumers. Study results support the continued need for third-party labeling and certification programs

Direct Marketing Local Food to Chefs: Chef Preferences and Perceived Obstacles

Increasing consumer preferences for locally produced foods, exhibited by the nationwide expansion of farmers markets, is likely to affect food-service establishments. This study used a mail and telephone survey to evaluate chefs’ preferences and attitudes towards purchasing locally produced foods for their restaurants. Results show that chefs are most concerned with food quality, taste, and freshness. Chefs of small gourmet, independently owned restaurants are more likely to purchase local foods. Gourmet chefs are more concerned with food-production practices and thus see the value of purchasing local foods. Lack of information was found to be the largest hurdle to purchasing local products, clearly demonstrating the need for additional information and product samples from local producers

Are Homeowners Willing to Pay for Origin-Certified Plants in Water Conserving Residential Landscaping?

This study investigates the value of local origin-labeling for a nonfood product by evaluating Nevada homeowner purchase propensity for “NevadaGrown” native plants for water-conserving residential landscaping. Homeowner survey results illustrate that homeowners may be willing to pay as much as a 14% premium for origin-certified native plants. WTP estimates are higher when uncertain responses are incorporated into the bidding structure. Preferences for local production and drought resistance in plants are the primary drivers of purchasing decisions in the absence of uncertain responses, while income levels and preferences for natural plant appearance additionally affect purchasing decisions when uncertainty is incorporated

Farmer\u27s Market Consumers: Is Local or Organic Important?

Consumer demand for alternative foods, such as organic and local products, increased dramatically in the last decade in the United States. Sales of organic products in the U.S. reached $21.1 billion in 2008, representing three percent of total food sales, and are projected to climb to$23.0 billion in 2009 (USDA-ERS 2009). Fresh produce –i.e. fresh fruits and vegetables­–have long stood as the top-selling organic products in the U.S. and accounted for 37 percent of organic food sales in 2008 (USDA-ERS 2009), or approximately $7.8 billion. This may be due in part to the fact that the adoption of organic practices has been highest among fruit and vegetable producers (Greene et al. 2009) while production of organic grains–inputs for both processed organic products and organic meats–has been outpaced by demand. Additionally, the Hartman Group estimates that 69 percent of U.S. households purchased one or more organic products in 2008, a figure that showcases the increasingly mainstream nature of organic products (Greene et al. 2009, p.3)

Evaluating Returns to Cool Season Grass Quality Characteristics for Niche Equine Feed Markets

This study examines the impact of cool season grass quality characteristics on pricing and net returns in niche equine feed markets. A hedonic analysis of Timothy grass hay prices in Nevada was performed to determine the implicit values of its quality characteristics. A Monte Carlo simulation was then conducted to estimate the distribution of net returns to improving grass hay quality characteristics. Results show that the presence of foreign matter had the largest impact on grass hay price, followed by seller reputation and hay color. However, for risk-averse producers, enhancing seller reputation and grass hay color are the preferred strategies for increasing net returns