Super Walmart or Famers' Market - Part II

This is the second part of an essay/business idea that I wrote while traveling. In this section I get more at why it is so difficult for local foods to get into the hands of consumers. Having lived in two progressive outposts of the American West - Missoula, Montana and Austin, Texas - I have witnessed some innovative solutions to this problem, but nothing that aims at fundamentally altering the existing food distribution system so that local foods can compete with industrially grown foods on a large scale. If anyone does know of such a model, please let me know!

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Limited Access to Local Foods

Currently, access to local food is severely restricted. Most consumers purchase all their food at major grocery stores, which are beginning to offer industrial organic products alongside conventionally produced products, or, as in the case of Whole Foods, offering only organic products, a vast majority of which are produced industrially for national distribution. Due to the fundamentals of how large grocery outlets operate, they only offer food from large producers which are able to guarantee product availability and price. In most locations, there are three alternatives which enable the consumer to bypass the major grocery stores to obtain local food; purchasing a share in a community share agriculture (CSA) scheme, visiting the farmers' market on Saturday mornings, or traveling to individual farms.

All of these alternatives are inconvenient and inefficient for both the consumer and producer. Farmers’ markets are successful in many communities and they are an excellent way to facilitate the producer-consumer connection, but the distribution potential is limited by the short time frame; not all consumers can their weekly shopping on Saturday mornings. Farmers’ markets also require the producer to travel and transport the product each week, which is a burden on some producers who are occupied with the cultivation of the product. Community share agriculture schemes also provide only a limited means of distribution since it requires a sizeable up-front commitment from the consumer and the products provided do not necessarily reflect the consumers’ needs. Traveling to individual farms is obviously time-consuming and inefficient for the consumer, not to mention environmentally hazardous due to the amount of fossil fuels used to travel to each farm on a regular basis.

Since most consumers in the US are continuously busy and over-scheduled, it is unrealistic to hope that they will spend a significant amount of time to acquire local foods, regardless of their personal convictions. It is also unlikely that major grocery outlets will change their business models to accommodate many small, local producers. An innovative business model must fill this new niche in food distribution.

A New Option for Local Food Distribution

Local, organic, sustainable food must be made available to the consumer in a familiar, comfortable, and convenient environment. The retail outlet must resemble a modern grocery store; clean, bright, convenient location, standard opening hours, all payment methods accepted (including EBT), effective marketing, and professional staff. As with all retail outlets, location is critical. In order to obtain a significant share of the grocery market the retail outlet must be centrally located and highly visible.

The outlet must exclusively sell food which meets all three of the previously defined criteria – local, sustainable, and organic – with reasonable exceptions for specific items. The key aspect of the retail outlet is that it acts as a facilitator between the consumer and the producer. All products should be extensively labeled, and information should be available about the farming methods, including the use natural chemical inputs, mechanization and labor; the location of the farm; a message from the farmer regarding their personal history and views on agriculture; and contact information in case additional information is sought by the consumer.

Branding of local producers will occur and should be encouraged, but in a way which differs fundamentally from branding in the corporate marketing sense. Rather than relying on a manufactured image, branding should rely on a reputation that reflects the actual values, standards, and methods that were involved in the production process. Farmers who consistently produce a quality product in an open, innovative, and sustainable manner will build a reputation which functions like a brand in a local market place, but it will not involve spending money on advertising.

The primary focus of the retail space should be produce, but many other products can also be sold. Honey, jams, milk, meats, cheese, fish, wine, bread, and flowers are just some possible products with a wide appeal that can be obtained locally. The retail space is more convenient if it offers a wider variety of goods. Another key to making the store convenient to consumers is through advertising. Due to the seasonal and unpredictable nature of local food production, consumers should be made aware of what is currently available through regular weekly advertisements in newspapers and radio, an optional email/text message subscription, and a continually updated website.