The Evolution of the Local Brand, Policy Initiatives and Role of Direct Markets

Sales of locally branded products have increased over the last 20 years. The USDA 2015 local food marketing survey found that 167,009 U.S. farmers and ranchers sold $8.7 billion of food directly to consumers, retailers, and other businesses and institution. In 2012, 7.8% of U.S. agricultural producers participated in direct or intermediated markets, a notable trend given that the agricultural sector is increasingly defined by its bimodal structure. Since 85% of farms that participated in direct and intermediated markets in 2012 had gross cash farm income under $75,000, federal and local funding for local foods may be indirectly serving as a market and policy initiative to support small farms, but do we know if that support is effective?One trend worth noting for local foods is that growth in some subsectors appears to be maturing, particularly in direct-to-consumer outlets. Despite a 5.5% increase in the number of farms utilizing direct-to-consumer marketing outlets between 2007 and 2012 observed in the Census of Agriculture, there was no change in overall sales as intermediated markets became a more significant channel for those marketing local (Low et al., 2015). Although much of the initial interest in local foods originally revolved around farm-fresh produce, a growing array of local food products that require some level of manufacturing (meats, salsas, baked goods, and fruit-based beverages) is appearing alongside farm products and may represent opportunities for growth since consumers value more convenient or artisanal offerings.