Marketing of Farm Products in Alaska - Our 49th State

Agricultural production is growing rapidly in Alaska, but farmers in our 49th State supply less than 10 percent of the food consumed there. In some areas of the State, it is cheaper to import even perishable products than to produce them locally. Milk, potatoes, eggs, and fresh vegetables are Alaska's principal farm products. Farmers generally market their products jointly through a farmers' cooperative or individually, selling directly to retailers and consumers. There are few assemblers, processors, and other dealers in locally grown farm products. Generally, products are not shipped far from the producing area. Extra shipping costs incurred by all imported foods make retail food prices higher in Alaska than in other States. Locally-produced food products also bring relatively high prices, but Alaskan farmers' costs also are higher than those of farmers in other States. The rate of growth in agricultural production in Alaska and the development of a marketing system will depend mainly on the growth and concentration of population and the proportion of the food market supplied by Alaskan farmers. This article describes the production and marketing of farm products in Alaska and the market for imported foods, and considers prospects for further growth.