E-BUSINESS APPLICATIONS OF THE MID-ATLANTIC REGIONAL FOOD SYSTEMS WEBSITE

Agribusiness, Research and Development/Tech Change/Emerging Technologies,

THE MID-ATLANTIC REGIONAL FOOD SYSTEM WEB SITE

Agribusiness,

Farmers Markets: Consumer Trends, Preferences, and Characteristics

This study provides an overview of attitudes, preferences and characteristics of consumers who shop at farmers’ markets. Besides demographics, the characteristics examined in this report include consumption trends of fresh fruits and vegetables in terms of quantity and variety, preferences for organic produce, amount spent per visit, frequency of visits, number of farmers’ markets patronized, retail outlets visited by consumers during 1996, factors affecting where to purchase produce and consumers intentions to visit farmers’ markets in 1998. In addition, consumers’ expectations of quality, variety and the prices of farmers’ market produce compared to other retail facilities and a rating of farmers’ market characteristics are also presented. The results, based on a consumer survey of 336 patrons of New Jersey farmers’ markets, revealed that absence in customers’ vicinity, lack of knowledge about market existence and inconvenience in terms of time and location were the main reasons for not patronizing these outlets in 1996. The majority of respondents indicated that they had increased the amount and variety of fresh fruits and vegetables consumed compared to five years ago. On average, consumers spent $16 per visit and the majority had attended between 2 to 4 different farmers’ markets in 1996. The majority visited these facilities either once a week, once every two weeks or once a month. Compared to other retail facilities, consumers generally expected the quality of the produce sold at farmers’ markets to be higher. Additionally, they expected to find a wider variety of produce and lower prices. The majority of respondents indicated that quality and freshness were the most important factors affecting their food purchasing decisions. Survey results showed that peaches, apples, melons and blueberries were the fruits that consumers bought most frequently at New Jersey farmers’ markets, while sweet corn, tomatoes, peppers and snap beans were the most popular vegetables. In addition, baked goods, flowers, jams, jellies and preserves were the most demanded value-added items. Participants used fruits and vegetables for fresh consumption, v canning, freezing and preserving. With regard to methods of recognition, roadside signs, newspapers, passing by, word-of-mouth and flyers were mentioned the most. Consumers who are most likely to patronize farmers’ markets tend to be female, Caucasian, from higher income groups, at least 51 years old and well educated. Almost all respondents reported that they intend to visit farmers’ markets in 1998. On average, survey respondents ranked the quality of products and employee attitude as very good, while appearance of facility, convenience of location, variety of products, cleanliness of facility, parking and prices received a mean score between good and very good. In general, consumers tend to agree that freshness and direct contact with farmers are the main factors that drive people to farmers’ markets; that these facilities help support local agriculture and that by attracting customers to downtown areas, farmers’ markets boost local economies. The insights provided by this project are expected to help producers and managers of farmers’ markets allocate their resources more efficiently to better meet consumers’ needs. Moreover, patrons’ demographic and socio-economic characteristics could aid marketers in the identification of potential target markets.Agribusiness, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing,

Expanding Farm-Fresh Direct-Marketing Opportunities in the 21st Century

Direct-marketing and agri-tourism businesses have recently begun to promote their businesses using stand-alone websites allowing them to tap into a larger customer base. This has created a need for direct farm markets to identify the products and services consumers are demanding from online sources. This project proposes to conduct an online survey of consumer preferences in buying direct from the farmer vs. the types of products consumers are seeking on the Internet. Our hypothesis is that the use of stand-alone web sites limit the number of consumers that farm marketers are reaching due to the time and expense involved in keeping them updated. This online survey will collect information useful in describing how farm marketers can use the Internet to increase their customer base and individual profits.Marketing,

Farmers Markets: Managers’ Characteristics and Factors Affecting Market Organization

The resurgence of farmers’ markets in New Jersey has been welcomed by farmers, consumers and municipalities alike. This form of direct marketing has the potential to benefit all three sectors simultaneously. Farmers’ markets allow growers to capture a greater share of the consumer’s food expenditure thus increasing their profitability. Similarly, consumers’ need for fresh, high quality commodities as well as for farm-based recreational experiences are met. Also, drawing customers to downtown areas can contribute to the revitalization of these areas by boosting the business of local retailers. However, despite their rapid spread throughout the state, no study has been conducted on the efficiency of the farmers’ markets in terms of management and organization. This study provides an overview of various characteristics of managers as well as of the factors that have an effect on the organization and well functioning of these direct marketing outlets. Besides demographics, some of the managers’ characteristics analyzed are: source of employment, years of experience, farming expertise, their presence in the facility during selling hours and methods used to recruit producers. With regard to market organization, some factors explored are: location, market layout, criteria for market’s site, methods of promotion and advertisement (including special events), days of operation and fees charged to vendors. In addition, rivalry among farmers and between farmers and local retailers is considered as well. The results show that farmers’ markets managers are employed by several different entities. These are cities, townships, counties, downtown revitalization and special improvement district organizations, farmers’ markets and business associations among others. The majority of the managers supervise the market’s operations during selling hours, have no farming experience and have been working as managers for less than 2 years. Managers recruit farmers either personally, by contacting Ag Extension offices and/or through the North Jersey Farmers’ Markets Council. The average age of the respondents was 45 and the majority were Caucasian, had at least graduated from college and had an annual household income of $70,000 or over.Agribusiness, Industrial Organization, Marketing,

Farmers Markets: Producers Characteristics and Status of Their Businesses

The purpose of this study was to provide an overview of the attributes of producers who participate in farmers’ markets and to examine different aspects of their operations. In addition to demographics, the characteristics explored in this report include farm size, acreage grown, wholesale and retail activities, location, and personnel employed. Data related to business development, ownership status, days of operation, products sold, marketing and organic production was also collected. The results show that the majority of New Jersey growers who retail through farmers’ markets began this type of activity since 1990 and while their businesses were still in a state of growth. However, the average number of acres planted and workers employed characterized farmers’ markets as small scale operations. The income from these facilities represented, in general, less than 40 percent of the total retail gross sales. Most producers indicated that they were satisfied with the profit margin obtained. Farmers usually attended 1 market per day and traveled an average of 54 miles daily. In particular, farmers chose farmers’ markets as a retail channel because they could obtain higher prices, target a greater volume of people, interact with customers and lower overhead costs. Tomatoes, corn, herbs, peaches, flowers, apples and greens were the most important farm products sold based on dollar value. Although the majority of the farmers sold value-added products, only 23 percent of those surveyed offered organic produce. Prices were usually determined by comparison with chain stores or based on cost accounting, market reports or experience. In general, participants believed that their farmers’ market operations would continue to expand over the next five years. The descriptive results presented in this report help identify the characteristics that contribute towards growers’ participation in the farmers’ markets and the factors that make these operations a viable marketing alternative. These findings may be especially useful for those in charge of the planning and coordination of farmers’ markets.Agribusiness, Marketing,

Demographics and the Marketing of Asian Ethnic Produce in the Mid-Atlantic States

Marketing,

Consumers' Shopping Patterns and Expenditures on Ethnic Produce: A Case Study from the Eastern Coastal U.S.A.

This study was undertaken to examine the possible niche markets which East Coast farmers might be able to use to regain their advantage. Their future economic success could hinge on shifting the focus from traditional fruits and vegetables to high-value specialty ethnic produce for which there might be a growing demand. The study results indicate that there is a strong market demand and interest for ethnic produce in the East Coast. Local producers can benefit by concentrating their efforts in producing ethnic vegetables and fresh produce and making these newer products available in the local and regional markets.Food Consumption/Nutrition/Food Safety,

Characteristics of Consumers Who Are Willing to Buy Certified Organic Produce: An Econometric Analysis

The profitability of farms in the northeastern U.S. is hampered by the high cost of production in the region. Production of high-value crops such as organic produce is one of the solutions to keep these farms viable in the region. However, production challenges and limited information related to marketing are likely to hamper the potential growth of organic agriculture in the northeastern U. S. A logit model was developed to predict who is more likely to buy certified organic produce using 1,100 respondents in the Mid-Atlantic region. About 87% of the consumers were willing to buy certified organic produce, and the remaining 13% were not. While 6% of respondents stated that they would not pay slightly more for organic produce, nearly 43 % of the respondents stated that they would pay more than 10 cents premium for a dollar’s worth of organic produce. The results indicate that those who have a graduate degree, those who are influenced by an eco-friendly label, country of origin label, or pesticide-free label are more likely to purchase certified organic produce. Producers and marketers of certified organic vegetables and fruits can target customers with these specific traits to enhance their sales and profitabilit