Distribution Channel Choice Of Local Food Marketing Farms In New York State

Abstract

Growing demand for local foods presents opportunities for producers in a variety of marketing channels. However, decisions on channel portfolio are complex. Using data from a sample of producers in New York, we examine influences of farm, manager and marketing characteristics on channel choice. Empirical results suggest that retail competition required more experience or particular production methods to improve success, while formalized business structures were more important in marketing through intermediated channels. For retail channels, larger operations increasingly used farmers' markets at the expense of farm stand/U-pick operations. Education was important to increasing internet sales, while organic products were more effectively marketed through CSAs. For intermediated channels, restaurant sales were directly associated with full-time farmers, organic production, and higher product variety, while grocery sales were associated with more experienced operators. Younger operators increasingly sold to other vendors, as did larger farms and those with more locally targeted marketing strategies.