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GOURMET NEWS JULY 2015 www.gourmetnews.com GENERAL NEWS 9 Locavore Trend Continued from PAGE 1 most today, with almost half of them expecting growth in local products over the next three years. " Those who buy local foods are doing it because they want food that's fresher and tastes better, and they want to support their local economy rather than because they're concerned for the environmental impacts of transporting food long distances. In a 2012 study, scientists found that grocery shoppers were more willing to pay extra for food labeled "local" than they were for foods labeled "certified organic," "certified fair trade" or with a note about the food's carbon footprint. Some of those shoppers, particularly those who are white, upper to middle class and convinced that their buy- ing habits can "make a difference," are looking to farmers markets to supply their desires for fresh, local food – mainly produce – driving growth in the number of farmers markets across the country by 180 percent between 2006 and 2014. In 2014, the USDA counted 8,268 in the United States. State and local governments are encouraging the trend too. As of 2014, 26 states had state farmers' market associations designed to provide the markets with technical assistance, and there were 65 state and regional or local Buy Fresh Buy Local chapters in 21 states organizing out- reach events and local food guides to promote locally pro- duced food and farmers. Grocers Respond Grocers have taken notice. Almost three quarters of the re- tailers surveyed by the Specialty Food Association said that "local" is of great interest to consumers today, with more than half of them saying that they expect growth in that segment over the next three years. "Over the past five to six years, the focus on local, natural and organic has really taken hold among food retailers," said Jim Hertel, Manag- ing Partner for food retail consultants Willard Bishop. Natural Markets Food Group has begun contracting di- rectly with local farmers to provide produce to its markets in the Northeastern U.S. "At the peak of the season in the Northeast, we will be 65 or 70 percent local produce. That farmer used to sell produce in farmers markets... It's exactly why we're growing, that we're able to create relationships with local farmers and bring their product in," Brown said. "Other markets are doing the same thing." The Rising Tide Floats All Boats While not necessarily local, sales of organic products are following the consumer preference for fresh, trustworthy products. "That's true both of natural foods retailers as well as more traditional mainstream food retailers, whether it's Walmart, which has significantly ramped up emphasis on organics, especially value-priced organics," said Hertel. "There's been a recognition by retailers that consumers are interested and also that it's an area where the margins are greater, so profits are greater." Sales of organic food in the United States totaled $35.9 billion in 2014, an 11 percent increase from the previous year, according to the latest data from the Organic Trade Association, which reported that total U.S. sales for organic products amounted to more than $39 billion in 2014, breaking previous industry records. Sales research by the OTA shows sales trends for organic products growing at double digit rates for several years, compared to about a 1.5 percent projected growth rate for other foods. "The growth rates of traditional product lines are much smaller," Hertel said. "The Millennial generation is very interested in healthy eating, and to them, that means natural and organic as well as less processed food." The majority of American households in all regions of the country now make organic products a part of their su- permarket and retail purchases, according to the new re- search from the Organic Trade Association. Retailers report that the demand for organic produce that prompted entry into the market by Walmart and Kroger is causing stress on the supply chain and making it harder for smaller retailers who have less buying power to compete for supplies that are limited by the amount of acreage that farmers have dedicated to certified organic growing meth- ods and the length of time it takes to obtain organic certi- fication on new fields. "The supply chain for organic product has become difficult at best because the bigger chains are getting into the market. The demand is causing outages and shortages occasionally," said Brown. "Bigger growers are pleased because it's easier and cost-effective to contract out an entire crop to a large buyer. The buying power of a big company like that impacts those who've been selling prod- uct for a long time." Imports of organic produce from Mexico are helping to ease the shortages and meet the de- mands of American consumers who've been long trained to ex- pect their grocers to supply whatever food they want when- ever they want it. "There's a lot more organic farming in Mexico now than even five years ago," Brown said. "There are gaps in some products, but generally, you can get organic produce year-round now because there's so much organic production in Mexico now." GN

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