Answer:
E Farmers’ markets
Farmers’ markets are a fundamental part of the urban–rural interface, they have continued to grow in popularity, mostly due to the growing consumer interest in obtaining fresh products, especially produce directly from the farm (see also Chapter 11). Farmers’ markets allow consumers to have access to locally grown, farm-fresh produce, enable farmers to develop personal relationships with their customers, and cultivate consumer loyalty with the farmers who grow the produce. Direct marketing of farm products through farmers’ markets continues to be a significant sales outlet for agricultural producers nationwide. In 2006, there were 4385 farmers’ markets operating throughout the nation. The number was an increase of 18% from the number reported in 2004. The growth demonstrates that farmers’ markets are meeting the needs of an increasing number of small- to medium-sized operations (USDA-AMS, 2008).
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Logistics and Postharvest Handling of Locally Grown Produce
Remigio Berruto, Patrizia Busato, in Postharvest Handling (Second Edition), 2009
A Farmers’ markets
Farmers’ markets are defined as fixed locations where several farmers gather to sell their own products at recurring times (Jett and Hendrickson, 2006). These are often located in the middle of cities and towns. Some markets are open seasonally, while others are open on weekends or daily, especially those located in big cities.
Throughout the year, farmers take advantage of a common space, and gather on a regular basis for the convenience of consumers. This distribution channel brings about local economic stability, contributes to a sustainable environment and is a place for information exchange and social gatherings. Farmers’ markets also give consumers an element of control within the food system, and provide them with a unique opportunity to learn where the food comes from and how it is produced.
Markets are classified by different factors, such as their location or structure (open air markets, market halls and market districts) or are defined by what is sold at the market, through terms such as “grower only,”“green,” or “organic.” Farmers’ markets have rules and regulations concerning how the items are sold and who can sell them. Some markets allow vendors to sell only what they have produced on their farm, and others allow for the purchasing and reselling of FFVs (Phillips, 2007). Farmers’ markets require that growers spend a significant amount of time on the marketing of their produce and, for some this may represent an inefficient use of time. Due to the relatively small sales volume, the growers need to differentiate their FFVs in order to increase their volume sold and therefore, do extra work.
In continental Europe street markets, as well as “marketplaces” (covered places where merchants have stands, but not entire stores) are commonplace. Both retailers and producers sell their wares to the public (Wikipedia, 2008). In particular locally-grown produce is sold in these markets by farmers.
Local fruits and vegetable sales in the US occupy only a small percentage of the entire distribution channel. However, over the past 10 years, the number of farmers’ markets has increased by over 100%. In 2006, the directory listed 4385 farmers’ markets. With total sales estimated at about $1 billion for 2005 (Shaffer and Cox, 2006). It is estimated that more than three million consumers shop at these markets, and about 30 000 small farms and food entrepreneurs earn a partial or full income selling their products at farmers’ markets.
In France, 5000 farmers sell locally-grown produce directly to consumers. With €800 million in sales, these markets represent 7% of the FFVs sold (CTIFL, 2007c). Although the markets account for 15–20% of lettuce and small perishable fruits (e.g. strawberries) sales, the share of other less-perishable produce (e.g. potatoes, tomatoes) is negligible (3%). For growers, shorter channels offer an additional outlet and an opportunity to capture the margin traditionally left to the middle-men. Most consumers shop at farmers’ markets for freshness, convenience and proximity to their homes (CTIFL, 2007a). For consumers, the freshness of the produce and the responsiveness of these grower–suppliers are a plus (CTIFL, 2007b).
In Italy, the phenomenon of locally-grown produce sold directly to the consumer in street markets is losing market share to supermarket chains, despite the fact that on average the markets offer FFVs at lower prices. However, in 2005 the share of highly perishable produce was still high, accounting for 34% and 47% for strawberries and nectarines, respectively, compared to 28% and 20% for the same produce sold at supermarkets (Macchi, 2006).