Characterizing Local and Organic Food Consumers Presentation at Ohio Direct Ag. Marketing Conference...

Characterizing Local and Organic Food Consumers

Presentation at Ohio Direct Ag. Marketing Conference

January 20, 2005

Toledo, OH

Contact InformationContact Information

Jeff Sharp, Jeff Sharp, Associate Professor Rural SociologyAssociate Professor Rural Sociology 311 Ag. Admin.311 Ag. Admin. 2120 Fyffe Road,2120 Fyffe Road, Columbus, OH 43202Columbus, OH 43202

E-mail: E-mail: sharp.123@osu.edusharp.123@osu.edu Telephone: 614-292-9410Telephone: 614-292-9410 Website: Ohiosurvey.osu.eduWebsite: Ohiosurvey.osu.edu

Outline of PresentationOutline of Presentation

Introduction: Local and Organic FoodsIntroduction: Local and Organic Foods Profiles of Ohio local and organic food Profiles of Ohio local and organic food

consumersconsumers Data from 2004 OH Survey of Food, Agricultural, Data from 2004 OH Survey of Food, Agricultural,

and Environmental Issuesand Environmental Issues Existing profiles of alternative food consumersExisting profiles of alternative food consumers Typology of Ohio ConsumersTypology of Ohio Consumers

Future Food System Research ActivitesFuture Food System Research Activites

Consumer demand Consumer demand

Changes in consumer demand have been Changes in consumer demand have been impacting various types of commoditiesimpacting various types of commodities Health, diet, and safety are important Health, diet, and safety are important

considerationsconsiderations Some products benefit, some don’t from Some products benefit, some don’t from

changing demandchanging demand Organic attribute has been one beneficiary--USDA Organic attribute has been one beneficiary--USDA

reports that the organic and specialty crops market reports that the organic and specialty crops market is growing by 20 percent each yearis growing by 20 percent each year

Growing interest in localGrowing interest in local

USDA identified 1,755 Farmer’s Markets in USDA identified 1,755 Farmer’s Markets in its 1994 directory by 2004 there were 3,706 its 1994 directory by 2004 there were 3,706 Farmer’s MarketsFarmer’s Markets

Growth of Community supported agriculture, Growth of Community supported agriculture, over 1,000 operating in the U.S. from 0 in the over 1,000 operating in the U.S. from 0 in the 1980s1980s

Growing interest among chefs to utilize locally Growing interest among chefs to utilize locally produced foodstuffsproduced foodstuffs

Mission: To promote the use of local foods in Central Ohio restaurants; increase awareness of local food production; grow partnerships between farmers and chefs; and promote regional sustainable agriculture.

To Join or to Request More Information Please Contact:

PO Box 261062, Columbus, OH 43226

Voice: 614- 439-3132 E-mail: farm2chef2003@yahoo.com

Organic Industrialization & LocalOrganic Industrialization & Local

Growth in organic market has led to some Growth in organic market has led to some “industrialization” of organic production“industrialization” of organic production Large scale production, large-scale processingLarge scale production, large-scale processing Cascadian Farms, store brand organic, etc.Cascadian Farms, store brand organic, etc.

““Industrialization” challenges the traditional Industrialization” challenges the traditional link between organic and local productionlink between organic and local production Emerging question: How do local producers, Emerging question: How do local producers,

particularly organic producers, adapt to market particularly organic producers, adapt to market with lower cost industrial organic products?with lower cost industrial organic products?

Goal of ResearchGoal of Research

Our research endeavor is organized to Our research endeavor is organized to distinguish the factors associated with local distinguish the factors associated with local versus organic food consumptionversus organic food consumption Sociological interest in the role of class and accessSociological interest in the role of class and access Practical interest in providing information to food Practical interest in providing information to food

system stakeholders about consumer interest in system stakeholders about consumer interest in these food itemsthese food items

This research is Part I of a three step sequence This research is Part I of a three step sequence of analysisof analysis

About the OH Survey of FAE IssuesAbout the OH Survey of FAE Issues

Biennial Mail Survey of Rural & Urban Biennial Mail Survey of Rural & Urban OhioansOhioans

Funded from variety of sourcesFunded from variety of sources College of FAES, OSU Extension, OARDC, College of FAES, OSU Extension, OARDC,

variety of faculty and program collaboratorsvariety of faculty and program collaborators Household sample purchased from private Household sample purchased from private

vendor vendor Response rate ~56+ percentResponse rate ~56+ percent

About the 2004 SampleAbout the 2004 Sample

Sample is stratified to ensure representation Sample is stratified to ensure representation from rural and urban areas of Ohiofrom rural and urban areas of Ohio

Characteristics of 2004 parallel characteristics Characteristics of 2004 parallel characteristics of Ohio population as reported in 2000 Censusof Ohio population as reported in 2000 Census Key differences—sample slightly more educated, Key differences—sample slightly more educated,

reported slightly higher home values, and included reported slightly higher home values, and included a modestly smaller proportion of African a modestly smaller proportion of African American respondentsAmerican respondents

Some General, Food related findings from 2004 Survey

Ohioans Concern about Food, Ohioans Concern about Food, Agriculture & Environmental Issues Agriculture & Environmental Issues

(1=Not concerned; 7=Very Concerned)(1=Not concerned; 7=Very Concerned)

IssueIssue MeanMean

Rising Obesity among AmericansRising Obesity among Americans 5.85.8

Pollution of rivers, streams or groundwaterPollution of rivers, streams or groundwater 5.85.8

Loss of family farmsLoss of family farms 5.65.6

Loss of farmland due to urban growthLoss of farmland due to urban growth 5.55.5

Genetic modification of animalsGenetic modification of animals 5.35.3

Mad cow diseaseMad cow disease 4.74.7

Genetic modification of plantsGenetic modification of plants 4.64.6

Large-scale poultry and livestock developmentLarge-scale poultry and livestock development 4.54.5

Global WarmingGlobal Warming 4.44.4

Food Safety Attitudes

Q. Food is not as safe as it was 10 Q. Food is not as safe as it was 10 years agoyears ago

29% Strongly Disagreed or Disagreed 24% Undecided 47% Strongly Agreed or Agreed

Q. Concerns about food safety are Q. Concerns about food safety are exaggeratedexaggerated

47% Strongly Disagreed or Disagreed 25% Undecided 28% Strongly Agreed or Agreed

Food Purchasing Considerations

Importance of factors considered when purchasing Importance of factors considered when purchasing food (% indicating “very important”)food (% indicating “very important”)

TasteTaste 91%91%

Food product availability where shopFood product availability where shop 68%68%

Nutritional valueNutritional value 66%66%

PricePrice 65%65%

Food purchase keeps local farmer in businessFood purchase keeps local farmer in business 55%55%

Added health benefits beyond basic nutritionAdded health benefits beyond basic nutrition 51%51%

Meat, poultry & dairy from humanely treated animalsMeat, poultry & dairy from humanely treated animals 43%43%

Grown in the state of OhioGrown in the state of Ohio 31%31%

Grown locallyGrown locally 27%27%

Labeled organicLabeled organic 17%17%

Grown locally and labeled organicGrown locally and labeled organic 17%17%

Support for local and organic foods

Frequency of purchasing local and Frequency of purchasing local and organic foodsorganic foods

FrequentlyFrequently OccasionallyOccasionally SeldomSeldom NeverNever

LocalLocal 32%32% 57%57% 10%10% 1%1%

OrganicOrganic 7%7% 33%33% 42%42% 18%18%

Frequency of purchasing local and Frequency of purchasing local and organic foods by region organic foods by region

(% indicating frequently)(% indicating frequently)

NWNW SWSW CC SESE NENE

LocalLocal 39%39% 27%27% 31%31% 45%45% 31%31%

Organic*Organic* 9%9% 8%8% 8%8% 9%9% 5%5%

*No significant difference by region

Willingness to pay for local Willingness to pay for local and organic foodsand organic foods

NWTPMNWTPM WTP 10% WTP 10% MoreMore

WTP 25% WTP 25% MoreMore

WTP 50% WTP 50% MoreMore

LocalLocal 41%41% 50%50% 8%8% 1%1%

OrganicOrganic 61%61% 32%32% 6%6% 1%1%

Typology of Consumers

Typology BackgroundTypology Background

Potential benefits of typologies:Potential benefits of typologies: Better understanding of what drives certain Better understanding of what drives certain

consumption patternsconsumption patterns Assist growers and retailers in understanding and Assist growers and retailers in understanding and

developing their marketdeveloping their market May help to increase the consumption or May help to increase the consumption or

purchasing of particular foodspurchasing of particular foods Assist in development of the local foodscapeAssist in development of the local foodscape

Typology Example (Hartman Group)Typology Example (Hartman Group)

True Naturals (7 percent)—express deeply held True Naturals (7 percent)—express deeply held environmental concerns and follow through on environmental concerns and follow through on concerns; regularly consume organic productsconcerns; regularly consume organic products

New Green Mainstream (23 percent)—care about New Green Mainstream (23 percent)—care about environment, but generally only change when environment, but generally only change when convenientconvenient

Affluent Healers (12 percent)—motivated by Affluent Healers (12 percent)—motivated by personal health more than environmentpersonal health more than environment

Young Recyclers (10 percent)—into more solid Young Recyclers (10 percent)—into more solid waste type issues, not focused on food matterswaste type issues, not focused on food matters

Typology Example (cont.)Typology Example (cont.)

Overwhelmed (22 percent)—primarily motivated Overwhelmed (22 percent)—primarily motivated by economicsby economics

Unconcerned (25 percent)—generally not Unconcerned (25 percent)—generally not concerned with environment; do not recognize concerned with environment; do not recognize problems with foodproblems with food

Typology of Local vs. Organic Typology of Local vs. Organic ConsumersConsumers

Many of the factors associated with support Many of the factors associated with support for organic have been substantiated in the for organic have been substantiated in the literature, such as environmental concern and literature, such as environmental concern and health concernhealth concern

Few studies have looked at factors associated Few studies have looked at factors associated with local as a food attribute distinct from with local as a food attribute distinct from organicorganic

Basis for TypologyBasis for Typology

Four cell Four cell typology focusing typology focusing on willingness to on willingness to pay (WTP) more pay (WTP) more for local and/or for local and/or organicorganic

Not WTP Not WTP more for more for organicorganic

WTP more WTP more for organicfor organic

Not WTP Not WTP more for more for locallocal

36 percent36 percent 6 percent6 percent

WTP more WTP more for localfor local 35 percent35 percent 33 percent33 percent

Labeling Consumer TypesLabeling Consumer Types

Disinclined = Those unwilling to pay more for Disinclined = Those unwilling to pay more for either local or organic (36% of sample)either local or organic (36% of sample)

Organically Inclined = Those willing to pay Organically Inclined = Those willing to pay more for organic only (6%)more for organic only (6%)

Locally Inclined = Those willing to pay more Locally Inclined = Those willing to pay more for local only (25%)for local only (25%)

““Super” Inclined = Those willing to pay more Super” Inclined = Those willing to pay more for both local and organic (33%)for both local and organic (33%)

Organically Inclined (6 percent)Organically Inclined (6 percent)

Strong belief that organic foods are healthier Strong belief that organic foods are healthier than conventionally grown foodsthan conventionally grown foods

Often look for health information and most Often look for health information and most likely to indicate the use of food to maintain likely to indicate the use of food to maintain good healthgood health

Express the greatest concern for food safetyExpress the greatest concern for food safety Most likely to have stopped purchasing a Most likely to have stopped purchasing a

product due to a food safety concernproduct due to a food safety concern Express greater concern about mad cow diseaseExpress greater concern about mad cow disease

Organically Inclined (cont.)Organically Inclined (cont.)

70 percent reside in a city or suburb also most 70 percent reside in a city or suburb also most educated, on averageeducated, on average

15 percent are or have been members of a food 15 percent are or have been members of a food co-op; relatively frequent use of natural food co-op; relatively frequent use of natural food grocersgrocers

Less likely to come from a farm background Less likely to come from a farm background and know far few farmers, on average, than and know far few farmers, on average, than other sets of consumersother sets of consumers

Least trusting of farmers to protect the Least trusting of farmers to protect the environmentenvironment

Locally Inclined (25 percent)Locally Inclined (25 percent)

Large proportion of Southeast OhioansLarge proportion of Southeast Ohioans Frequent farmer’s market and roadside stand Frequent farmer’s market and roadside stand

consumersconsumers Know a relatively large number of farmers on Know a relatively large number of farmers on

average, most likely to have grown up on a average, most likely to have grown up on a farm or in the country (30 percent)farm or in the country (30 percent)

Strongest support for agriculture and greatest Strongest support for agriculture and greatest trust of Ohio farmerstrust of Ohio farmers

Locally Inclined (cont.)Locally Inclined (cont.)

Highly value food purchases that will keep a Highly value food purchases that will keep a farmer in businessfarmer in business Relatively high rating of “Grown in Ohio” labelRelatively high rating of “Grown in Ohio” label

Loss of farmland is a serious concernLoss of farmland is a serious concern Least positive view of organicsLeast positive view of organics

Do not think organics are healthierDo not think organics are healthier Very low rating of organic label as a factor in Very low rating of organic label as a factor in

decision makingdecision making

Super Inclined (33 percent)Super Inclined (33 percent)

Consistent with organically inclinedConsistent with organically inclined Strong belief that organically grown is healthierStrong belief that organically grown is healthier Many have stopped buying products for food Many have stopped buying products for food

safety reasonssafety reasons Often look for health informationOften look for health information More frequently shop at natural food grocer/co-opMore frequently shop at natural food grocer/co-op

Super Inclined (cont.)Super Inclined (cont.)

Consistent with locally inclinedConsistent with locally inclined Know quite a few farmers, on averageKnow quite a few farmers, on average Trust Ohio farmers and have positive attitudes Trust Ohio farmers and have positive attitudes

about agriculture’s importance to the stateabout agriculture’s importance to the state Loss of farmland is a concernLoss of farmland is a concern Highly rate grown in Ohio attribute and purchases Highly rate grown in Ohio attribute and purchases

that will keep a farmer in businessthat will keep a farmer in business

Super Inclined (cont.)Super Inclined (cont.)

Members of this group are more likely than Members of this group are more likely than others to belong to some type of others to belong to some type of environmental organization and recycleenvironmental organization and recycle

Most likely to maintain a vegetable gardenMost likely to maintain a vegetable garden More common in NE, Central, and SW OhioMore common in NE, Central, and SW Ohio

Disinclined (36 percent)Disinclined (36 percent)

Second to taste (and related quality attributes), Second to taste (and related quality attributes), price is the most important consideration for price is the most important consideration for these folks in their food purchasesthese folks in their food purchases

Least likely to belong/contribute to an Least likely to belong/contribute to an environmental organizationenvironmental organization

Disinclined (cont.)Disinclined (cont.)

Least interested in knowing how food is grown Least interested in knowing how food is grown and low concern with food safetyand low concern with food safety

Least likely to look for health information Least likely to look for health information when buying food productswhen buying food products

Even though interest is relatively low, Even though interest is relatively low, generally are less interested in “local” generally are less interested in “local” attributes than “organic”attributes than “organic”

ImplicationsImplications

Important to note, super-inclined do not require local Important to note, super-inclined do not require local and organic attribute in same productand organic attribute in same product

While “industrialization” of organic production is While “industrialization” of organic production is occurring, there is still a sizable market out there that occurring, there is still a sizable market out there that values the local attribute and which may be inclined values the local attribute and which may be inclined to pay for that attributeto pay for that attribute

There is also a sizable market out there that supports There is also a sizable market out there that supports local, but is not excited by the organic attributelocal, but is not excited by the organic attribute

ImplicationsImplications

Need to further examine the super inclined and Need to further examine the super inclined and the local subsetsthe local subsets Determine whether there are additional Determine whether there are additional

distinguishing characteristics among those with an distinguishing characteristics among those with an interest in local beyond simply whether it has the interest in local beyond simply whether it has the organic attribute or not.organic attribute or not.

Next steps in the researchNext steps in the research

Continued Refinement of the Local and Continued Refinement of the Local and Organic Consumer Typology Organic Consumer Typology

2005 – Survey of motivated food consumers 2005 – Survey of motivated food consumers (members of a food co-op and environmental (members of a food co-op and environmental organization)organization)

2005 – Series of Focus Groups gauging 2005 – Series of Focus Groups gauging interest in local/organic foods with different interest in local/organic foods with different socio-economic groups socio-economic groups