View
27
Download
0
Category
Tags:
Preview:
Citation preview
Buying Local? An Exploratory Analysis of Barriers to Local
Food Sales from the Perspective of Intermediary Buyers in California and North
CarolinaJuly 28, 2015
James Matson●
Jacob Brimlow
Associate ProfessorCollege of Agriculture
California State University, Chico
Buying Local Growing/continued consumer demand for
local food is reflected in increased local food demand by intermediary buyers such as institutions, restaurants, and retail stores
Intermediary food buyers account for a majority of local food sales revenue
Local food sales in intermediated market channels have been limited due to a number of factors
Understanding the factors driving or inhibiting local food purchases is necessary to understand how policy can help overcome these obstacles
Analysis of Barriers
Northern California (25)
Study Area: 100 mile radius
10 Restaurants/Catering 0 Assisted Living Centers 0 Resorts 8 Institutions 7 Specialty Food/Retail
North Carolina Sandhills (27)
Study Area: Tri-county region
7 restaurants/catering 7 Assisted Living
Centers 6 Resorts 6 Institutions 1 Specialty Food/Retail
Sandhills Annual Average Produce Purchasing Ranges
Assisted Living Facilities $15,600 - $23,400
Restaurants $15,600 - $350,000
Institutions $85,800 - $111,800
Resorts $377,000 - $559,000
Specialty Grocer$1,456,000 -
$1,560,000
Northern CA Total Reported Food Purchasing
< $100k$100k- $250k
> $250kNot
Available
Restaurants/Catering 20% 30% 50% 0%
Institutions 0% 13% 63% 26%
Specialty Food Retail 43% 14% 29% 14%
From which do you purchase food products?
Northern CA %
Sandhills NC %
Total Responses (%; n=47)
Wholesale broker/packer 96% 77% 87%
Grocery Store 68% 0% 36%
Retail food cooperative 40% 0% 21%
Farmer's market 52% 0% 49%
Grower 88% 23% 57%
Other 8% 18% 13%
Intermediary Buyer Purchasing Patterns
Demand for Local Food: Support for Local Foods Purchases
Sandhills, NC Northern CA
"Do you buy local food?"
"Do you have concerns sourcing local food?"
Transaction Costs: Reliability
100% of CA respondents cite vendor reliability as “Important” or “Very Important”
Over 50% of CA respondents cite “inability of vendor to meet quantity requirements” as a barrier
Sandhills respondents cite “consistency” and “ability to meet demand” as important component determining satisfaction
Transaction Costs: Flexible Quantities, Packaging, Processing
Flexible QuantitiesOf Sandhills respondents reporting
problems with suppliers, availability of purchasing in flexible quantities was primary complaint
Of CA respondents, 100% reported quantity flexibility as “Important” or “Very Important”
Transaction Costs: Flexible Quantities, Packaging, Processing
PackagingAll Sandhills respondents reporting
problems with suppliers cited flexible packaging as an area to address
Of CA respondents, 10% reported packaging as a “Major Barrier” to purchase
Transaction Costs: Flexible Quantities, Packaging, Processing
ProcessingNeither survey identified lack of
processing as a significant barrier to purchasing local foods
Transaction Costs: Delivery
“Very Important” to 60% of CA respondents “Very Important” to 100% of schools and
hospitals surveyed
Delivery schedules minimize time between ordering and receiving products
Two-day delivery for items purchased weekly was acceptable to most respondents
Next-day delivery priority for restaurants and caterers
Transaction Costs: One-Stop Convenience
Sandhills respondents reported advantages of traditional sourcesEase of orderingOne-stop shoppingConsistency of supplyYear-round availability
CA respondents reported one-stop shopping 36% “Not Important”28% “Important”36% “Very Important”
Food Safety Requirements Buyers believe food safety is an important consideration
80% of CA respondents surveyed reported documented food safety practices/certification “Very Important”
8% reported “Not Important” 100% of CA schools surveyed reported “Very Important” Sandhill public sector institutions reported
documentation of food safety as main obstacle to sourcing local foods
Few respondents in either region actually required documentation 11% of Sandhill respondents required documentation
from suppliers 32% of California respondents required documentation
from distributors
Recommended