Farmers Markets and Location Choice for Value Added Processing
A less examined facet of the local foods movement is the impact of the location of the producer on the feasibility of operating as a local supplier. Obvious variables are labor hours in travel to regional markets and fuel expenditures. The costs these engender is strongly related to the density of customers that are willing or able to deal with smaller scale delivery. Whether supplying produce or a value-added food, the viability of an enterprise which hopes to diversify its markets or products through a local channel is dependent on that density. Furthermore the price received varies greatly depending on whether the customer is a farmers market consumer, a local grocer or restaurant, or-as those markets are exhausted-a distributor. With value-added products (28% of farms engaged in entrepreneurial activities are producing value –added products (Martinez 2010)) the availability of alternative channels and pricing received in them is particularly important due to the capital investment required for equipment.
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