Buying Local? An exploratory analysis of barriers to local food sales from the perspective of intermediary buyers in California and North Carolina

Proponents of local food system development claim positive economic impacts and improvements in social outcomes, and consumer interest in locally produced foods and agriculture continues to grow. Growing demand for local food is observed in increased local food sales through mid-sized wholesale operations such as institutions, restaurants and grocery stores, which account for a majority of local food sales revenue. However, evidence suggests local food sales in intermediated market channels have been limited by high transactions costs, lack of infrastructure for storage and aggregation, high numbers of producer suppliers, cash flow, inconsistent quality of supply, and variation in demand. Significant attention has been paid to local food production and aggregation/coordination businesses (e.g., food hubs), but relatively few studies have focused on understanding intermediated local food market channels from the perspective of buyers such as restaurants, school districts, and grocery stores. This paper presents an exploratory analysis of barriers to local food purchases from the perspective of intermediary food buyers such as institutions, restaurants, and food retail stores using data generated by surveys in rural Northern California and the Sandhills region of North Carolina. Despite distinct differences in buyer types and access to local foods, there were notable similarities between buyers in the two survey areas. Results provide initial insights and directions for future research, and indicate that intermediary buyer demand for local food is high, but transactions costs and requirements for increased food safety documentation may represent significant barriers to continued growth in local food sales.