WASHINGTON—A new USDA Economic Research Service report reveals increased production and consumer demand are two factors driving the growth of the locally grown foods movement, which is estimated to reach $7 billion this year, up from $4.8 billion in 2008.
Large, small and mid-sized farms are all tapping into the market for local food—food that is produced, processed, distributed and sold within a specific regional hundred miles. Data suggest that the producers are employing more workers than they would be if they weren’t selling into local and regional markets.
The report found 40% of the 110,000 vegetable, fruit and nut farms in the United States sell their products in local and regional markets, and some also sell into national or international markets. On average, the farms reported that local food sales accounted for 61% of their total sales. Almost two-thirds of the producers, regardless of size, reported that local food sales were at least 75% of their total sales.
Direct sales from farms to consumers grew by 215% between 1992 and 2007. The new report also examined “intermediated marketing channels," or sales from a farmer to a regional distributor, grocer, or restaurant, and then on to a consumer. Combined, intermediated and direct local food sales totaled nearly $5 billion in 2008. Intermediated sales were three times larger than direct-to-consumer sales.
The local foods movement has also spilled into the foodservice sector with national restaurant chains sprucing up their menus to include fresh, locally grown ingredients to meet customers’ cravings for innovative indigenous offerings. According to data from a recent Mintel Menu Insights more than 58% of restaurant-goers seeking more locally grown and sustainable products on menus. The number of U.S. restaurants adding the “local" claim on their menus increased 13% in the past year.
