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Economic Issues Related to Local Foods

There is no consensus about how to define "local" or "local food systems" in terms of the geographic distance between production and consumption. But defining "local" based on marketing arrangements—such as farmers selling directly to consumers at regional farmers' markets or to schools—is well recognized.

ERS Research on Local Foods

composite image from cover of report titled Local Food Systems: Concepts, Impacts, and Issues (May 2010)

This comprehensive overview of local food systems explores alternative definitions of local food, estimates market size and reach, describes the characteristics of local consumers and producers, and examines early indications of the economic and health impacts of local food systems. Statistics suggest that local food markets account for a small, but growing, share of U.S. agricultural production. For smaller farms, direct marketing to consumers accounts for a higher percentage of their sales than for larger farms.


composite image from cover of report titled Comparing the Structure, Size, and Performance of Local and Mainstream Food Supply Chains Comparing the Structure, Size, and Performance of Local and Mainstream Food Supply Chains (June 2010)

A series of coordinated case studies compares the structure, size, and performance of local food supply chains with those of mainstream supply chains. Interviews and site visits with farms and businesses, along with secondary data, describe how food moves from farms to consumers in 15 food supply chains. Supply chains are compared by degree of product differentiation, diversification of marketing outlets, and information conveyed to consumers about product origin. The cases highlight differences in prices and the distribution of revenues among supply chain participants, local retention of wages and proprietor income, transportation fuel use, and social capital creation.


screen shot fro Your Food Environemnt Atlas Your Food Environment Atlas

Food environment factors—such as store/restaurant proximity, food prices, food and nutrition assistance programs, and community characteristics—interact to influence food choices and diet quality. The Food Environment Atlas assembles statistics on food environment indicators to stimulate research on the determinants of food choices and diet quality and provides a spatial overview of a community’s ability to access healthy food and its success in doing so. The Atlas currently includes 90 indicators of the food environment in three broad categories—food choices, health and well-being, and community characteristics.



See also:
USDA blog post on Supplying Locally Grown Foods to the Consumer


 

For more information, contact: Steve Martinez

Web administration: webadmin@ers.usda.gov

Updated date: July 9, 2010