Farmers Market 2.0: Next-generation Market Models for Farmers & Market Managers Local Food Summit January 21, 2009 John Hall, Michael Fields Agricultural Institute Erika Janik, Freelance Writer Amy Bruner Zimmerman, Green Link Consulting

Farmers markets are growing rapidly o Up 84% over the last decade, USDA o Fueled by:  Trends toward locally grown foods  Concern for the environment  Growing interest in strengthening communities Farmers markets offer many benefits o Enable growers and shoppers to connect o Create community o Potentially foster appreciation for growing practices o Offer high profit potential Farmers Market Trends & Benefits

For all the benefits, farmers markets also place a strain on farmers and farmers' market managers. Issues:  Time  Low sales volume per customer  Significant sales volatility  Direct connection with customers Farmers Market Challenges

Funded by USDA Farmers Market Promotion Grant Developed to illustrate how many of the benefits of farmers markets can be maintained while generating efficiencies from sales methods. Market selections based on: o Recommendations from farmers' market managers and local food leaders throughout the country o The markets’ ability to save farmers time and provide marketing assistance. o Improved consumer access to local food Seven cases briefly discussed Full report online March, 2010 Farmers Market 2.0

Community Food Bank – Consignment Where: Tucson, Arizona Farmers Served: 68 farmers Customers Served: primarily low-income Tucson area residents The Community Food Bank Established in 1976, the Community Food Bank is dedicated to anticipating and meeting the needs of the hungry in southern Arizona. To support its mission, the Community Food Bank offers a number of food assistance programs that together provide enough food for 48,000 meals every day.

Community Food Bank – Consignment Established: 2005 Market Need: Small growers with not enough produce or enough time to be at the farmers market each week The Program Produce brought to one of two farmers markets before market begins for weighing and pricing Produce sold by Food Bank staff on Consignment table Farmers paid the following week; Community Food Bank takes 10% of profits to cover costs

Community Food Bank – Consignment Consignment vs. Traditional Farmers Market Opportunities Eliminates time spent standing at market table and provides one consistent delivery location Eliminates the need for farmers to market their product themselves Decreases the risk for new or hobby farmers who are not farming full time Gives consumers a wide variety of products at one booth

Community Food Bank – Consignment Consignment vs. Traditional Farmers Market Obstacles Farmers do not have direct connection to their customers Consignment manager controls the pricing A percentage of each sale goes to the Consignment program Unsold product gets donated or returned to the farmer

Detroit Eastern Market – Fresh Food Share Where: Detroit, Michigan Farmers Served: Wholesale growers, 60 urban gardeners Customers Served: Detroit eastside residents Detroit Eastern Market: Built in 1891, Detroit Eastern Market is the oldest, continuously running public market in the country. Covering over five square city blocks and home to over 200 farmers and food businesses, the market is the “pantry to the city.” Offering a wide range of products (fruits, vegetables and flowers, to meats, fish, and processed specialty foods), the market draws 1.5 million visitors annually.

Detroit Eastern Market – Fresh Food Share Established: June, 2009 Market Need: Detroiters have no grocery store within city limits The Program: 25#, CSA Style box; ordered monthly, delivered weekly, to sites serving 10 or more families 90% comes from Market Wholesalers; 10% Urban Gardeners

Detroit Eastern Market – Fresh Food Share

Fresh Food Box vs. Traditional Farmers Market Opportunities Urban gardener product is pre-ordered from the farmer, so that appropriate amounts are harvested Gives farmers access to a customer base they could not have been able to supply alone Saves time, as farmers deliver product to Detroit Eastern Market and do not need to stand at a booth all day Food is delivered to community drop offs each week Obstacles Prices are set by Detroit Eastern Market No direct access to customers, farmers rely upon program managers to share their story and sell their products

Kalona Organics – Buying Club Where: Kalona & Cedar Rapids, Iowa area Farmers Served: Six Small Scale IA producers Customers Served: Cedar Rapids Alternative High School & families Kalona Organics: With the mission of helping “good people bring good products to your table,” Kalona works to help small-scale farmers make a viable living while striving to keep products available locally and at fair stable prices.

Kalona Organics – Buying Club Established: Summer, 2009 Market Need: Iowans with limited access to Iowa grown foods The Program: Weekly online ordering with delivery, offers custom ordering for dairy, egg and produce products. Currently serving 20 families with products from six farms representing about $700 in weekly sales.

Kalona Organics – Buying Club

Fresh Food Box vs. Traditional Farmers Market Opportunities Kalona markets the products, reducing marketing time/cost Product ordering, delivery and payments are all managed by Kalona, thus saving farmers time and reducing risk Local Dirt provides free online presence Delivery saves customers time, gives access to Iowa products Obstacles No direct contact with customers; reliant upon Kalona to market Volumes are currently very small Significant work for the sales manager for relatively low volume

Gorge Grown Food Network – Mobile Farmers Market Where: Hood River, Oregon Farmers Served: 8-12 each week Customers Served: people in four towns ranging from 400 to 1200 people Gorge Grown Food Network (GGFN) Located in Hood River, OR, about 60 miles east of Portland, GGFN connects farmers and producers to consumers in the two-state, five-county, Columbia Gorge region.

Gorge Grown Food Network – Mobile Farmers Market Date Established: July, 2008 Market Need: Consumers and producers located in a large, rural area with most towns too small to support a farmers' market or grocery store Program Weekly market in four small towns set-up around GGFN truck Produce purchased from growers on delivery at 75% of retail price Growers in towns encouraged to set-up alongside GGFN truck

Gorge Grown Food Network – Mobile Farmers Market Mobile Market vs. Traditional Farmers Market Opportunities Product purchased from farmer when product is dropped off, passing all sales risk on to GGFN Saves time as farmers do not need to stand at a booth all day GGFN markets and distributes the mobile market and participating farms at low cost to farmers Provides a market for farmers not ready to take on fulltime farming and direct marketing Farmers do not need to identify channels for unsold product. GGFN holds market insurance allowing farmers to avoid this expense

Gorge Grown Food Network – Mobile Farmers Market Mobile Market vs Traditional Farmers Market Obstacles Farmers are paid prices approximately 25% below retail where they would otherwise receive retail if they sold product themselves No direct access to customers so farms are reliant upon GGFN to share their story and sell their products

Provide support to farmers and save farmers' time Fill market need Create relationships among farms, organizations, and buyers. Strong leadership is critical - entrepreneurial, driven, passion for sustainable food. Keys to Success

Each case provides market background, consumer target, grower opportunity, and tips for starting similar markets in other communities. Available online March, 2010 Visit Local Dirt Booth for draft preview Farmers Market 2.0 Report

Farmers Market 2.0 Funded by USDA Farmers Market Promotion Grant Full Report Available Online March,