Progress 07/01/05 to 06/30/09
Outputs
OUTPUTS: Demonstration plots for various berry species were developed at the Ohio State University South Centers (Piketon). Several Extension workshops and field-day events were presented, exposing farmers and other interested parties to the concepts of season long production and direct marketing. A customer intercept survey was administered to Ohio consumers at 17 shopping locations (6 farm markets, 4 farmers' markets, and 7 retail grocery stores) during the period August 2005-January 2006. A conjoint experiment was administered to determine shoppers' willingness to purchase fresh strawberries produced locally, produced by small family farmers, and/or bearing freshness guarantees. Results suggest consumers are more likely to select (pay a premium for) berries produced in the state. There were not significantly more likely to select berries that were 'produce on a nearby farm", suggesting that for fresh strawberries, "local" and "produced in the state of Ohio" are synonymous. Another consumer intercept study (September-October 2006) focused on baked blackberry pies. Shoppers at grocery stores and bakeries were randomly selected, interviewed, and asked to complete a series of choice experiments focusing on willingness to pay for fresh baked pies with labels that displayed various attributes including the "localness" of production. Consumers were willing to pay additional amounts to insure the most local production, with pies "baked in this store" being significantly more likely to be selected that pies baked in Ohio or in an Ohio town in close proximity to the shopper. A mailed survey of Ohio and Kentucky residents was conducted during October-November 2008. In an economic experiment consumers were asked to state their choice between two blackberry jam products, each with seven product attributes that varied across the sample. Three attributes provide signals of local production. Organic certification, small family farm association labeling, nutritional claims, and price also varied in the experiment. Production within the state was an important determinant of consumer choice of product. However, there was no evidence that consumers were more likely to select foods from their home sub-region of the state. Research was completed to estimate the impacts of increased production of new agricultural products on local communities through primary and secondary income generation, employment, and infrastructure demands. IMPLAN software and personal interviews with local decision makers were used to obtain data and estimate impacts. A Master's thesis for this research was completed in June 2007. Two formal Extension reports describing the methods used and estimated impacts were generated for public consumption in hard copy and electronic (web-based) formats. A number of extension presentations and online reports were made available describing results of the customer experiments relating to local production of fresh strawberries, blackberry pies and blackberry jam. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: This research explores the demand for direct marketed produce and the impact of this business opportunity for rural residents and businesses. Rural residents who value locally produced foods will gain from increased supplies and a wider selection of varieties of local foods. Farmers can realize an opportunity for new enterprises which may be more profitable, especially for small and mid-sized farm operators. There will also be opportunities for other agricultural and food businesses who may realize opportunities to sell these locally produced products. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
Direct marketing of locally produced foods may provide an income opportunity that will especially benefit small farms as well as the rural communities in which they are located. Results of our consumer studies suggest that food shoppers do value locally produced foods. This was true of both direct market shoppers (farm and farmers' markets) and grocery store shoppers. For fresh produced strawberries, "Local" was found to be production within the state of Ohio -- production on nearby farms were not (statistically significant) more likely to be selected that berries produced in Ohio. However, for fresh baked berry pies, "local" was "baked in this store". That is for baked goods, there was a significant difference in willingness to pay for production very near the consumer. Even for processed and storable products (e.g., blackberry jam), consumers were willing to pay a premium for local production. Results suggest that there is potential to implement target marketing or the use of purchase incentive programs to increase sales of locally produced food in groceries. Input/output analysis for three case regions showed increases in both berry production and processing sectors resulted in less than a one percent increase for all study regions. However, considering the relative sizes of the regional economies, this was more significant than a county-level increase in both production and processing.
Publications
- Darby, K.J. 2006. Consumer Preferences for Locally-Grown Berries: A Discrete Choice Model Estimating Willingness-to-Pay. An Unpublished M.S. Thesis, Department of Agricultural, Environmental and Development Economics, The Ohio State University.
- Darby, Kim, Marvin T. Batte, Stan Ernst and Brian Roe. 2008. "Decomposing Local: A Conjoint Analysis of Locally Produced Foods." American Journal of Agricultural Economics, Vol 9, No. 2, 2008: 476-486.
- Davis, G.A., Gray, R.L., Lau, J. L., & Ernst, S. 2008. Estimating the Economic and Fiscal Impacts to Appalachian Ohio Communities Resulting from Adoption of High Tunnel Berry Production Methods. AEDE-RP-0116-08. The Ohio State University, Department of Agricultural, Environmental and Development Economics, December 2008. Retrieved August 11, 2009, from http://aede.osu.edu/resources/docs/pdf/2G62ENMU-Y6HP-ZVQ8-64TIRPP4G0V 7HVAB.pdf
- Ernst, S, Batte, M.T., Darby, K. and Worley,T. 2005. What Matters in Consumer Berry Preferences: Price Source Quality Journal of Food Distribution Research. 37(1):68-71.
- Ernst, Stan; Marvin T. Batte and Julie T. McNaull. 2007. "Pie Potential: Examining Berry Market Expansion Through Baked Goods." Research Update. Journal of Food Distribution Research. v.38 no.1; March 2007.
- McNaull, Julie Ann. 2007. "Consumer Preferences for 'Local' Fresh Baked Pies: Estimating Willingness-to-Pay Using Conjoint Analysis". Unpublished M.S. Thesis, The Ohio State University, Department of Agricultural, Environmental and Development Economics, March 2007.
- Smith, R.L. 2007. "Estimating the Economic and Fiscal Impacts of an Extended Season Berry Growing Season and Expanded Berry Processing Sector on Three Selected Appalachian Ohio Communities." Unpublished M.S. Thesis, The Ohio State University, Department of Agricultural, Environmental and Development Economics, March 2007.
|
Progress 07/01/07 to 06/30/08
Outputs
OUTPUTS: Research was completed this year to address the third objective of our funded project - to estimate the impacts of increased production of new agricultural products on the local communities through primary and secondary income generation, employment, and infrastructure demands. IMPLAN software and personal interviews with local decision-makers were used to obtain data and estimate impacts. A Master's thesis for this research was completed in June 2007. A journal manuscript is being prepared to present this research to peers. An article was published in the American Journal of Agricultural Economics that summarizes the consumer willingness to pay for local berries (objective 2). Economic analyses continues for the season-long berry research and demonstration sites at the South Centers at Piketon (objective 1). PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
Direct marketing of locally produced foods may provide an income opportunity that will especially benefit small farms as well as the rural communities in which they are located. Results of our initial consumer studies suggest that food shoppers do value locally produced foods. This was true of both direct market shoppers (farm and farmers' markets) and grocery store shoppers. "Local" was found to be production within the state of Ohio -- production on nearby farms were not (statistically significant) more likely to be selected that berries produced in Ohio. Ohio berries were much more likely to be selected that berries produced in the US or with identity of production location. Similar research conducted for fresh baked berry pies found similar results, but local production was even more important than for fresh berries. Results suggest that there is potential to implement target marketing or the use of purchase incentive programs to increase sales of locally produced food in groceries. Input/output analysis for three case regions showed increases in both berry production and processing sectors resulted in less than a one percent increase for all study regions. However, considering the relative sizes of the regional economies, this was more significant than a county-level increase in both production and processing.
Publications
- Darby, Kim, Marvin T. Batte, Stan Ernst and Brian Roe. "Decomposing Local: A Conjoint Analysis of Locally Produced Foods." American Journal of Agricultural Economics, Vol 9, No. 2, 2008: 476-486.
|
Progress 07/01/06 to 06/30/07
Outputs
A consumer intercept study was conducted during the period September 2006 - October 2006. Shoppers at grocery stores and bakeries were randomly selected, interviewed, and asked to complete a series of choice experiments. The survey and choice experiments focused on willingness to pay for fresh baked pies with labels that displayed various attributes including the "localness" of production. A Master's thesis was completed in December 2006. A journal manuscript has been completed addressing willingness to pay for locally-produced strawberries (2005 survey). This manuscript has been accepted for publication in the American Journal of Agricultural Economics. Economic analyses of season-long berry research and demonstration sites at the South Centers at Piketon is underway. Preliminary planning for an economic analysis of expanded production on case study rural communities is underway, with analyses to be completed in early 2008.
Impacts
Direct marketing of locally produced foods may provide an income opportunity that will especially benefit small farms as well as the rural communities in which they are located. Results of our initial consumer study suggest that food shoppers do value locally produced foods. This was true of both direct market shoppers (farm and farmers' markets) and grocery store shoppers. "Local" was found to be production within the state of Ohio -- production on nearby farms were not (statistically significant) more likely to be selected that berries produced in Ohio. Ohio berries were much more likely to be selected that berries produced in the US or with identity of production location. Similar research conducted for fresh baked berry pies found similar results, but local production was even more important than for fresh berries. Results suggest that there is potential to implement target marketing or the use of purchase incentive programs to increase sales of locally produced
food in groceries.
Publications
- Ernst, Stan; Marvin T. Batte and Julie T. McNaull. 2007. "Pie Potential: Examining Berry Market Expansion Through Baked Goods." Research Update. Journal of Food Distribution Research. v.38 no.1; March 2007.
|
Progress 07/01/05 to 06/30/06
Outputs
A consumer intercept study was conducted during the period August 2005 - January 2006. Shoppers at farm markets, farmers markets and traditional grocery stores were randomly selected, interviewed, and asked to complete a series of choice experiments. The survey and choice experiments focused on willingness to pay for locally produced fresh produce. A Master's thesis and journal article were completed in June 2006. Two journal manuscripts are in progress. A second consumer intercept study is underway, this one focusing on consumer preference for locally produced processed berries (baked pies). Research and demonstration sites for all studied berry species are underway at the South Centers at Piketon, and economic data are being collected for construction of enterprise-level budgets. Preliminary planning for an economic analysis of expanded production on case study rural communities is underway.
Impacts
Direct marketing of locally produced foods may provide an income opportunity that will especially benefit small farms as well as the rural communities in which they are located. Results of our initial consumer study suggest that food shoppers do value locally produced foods. Grocery store shoppers indicated a willingness to pay about 64 cents per quart additional for fresh strawberries documented to be locally produced, and farmer to consumer direct market shoppers indicated a higher willingness to pay still, at more than one dollar per quart premium. Results differed for several demographic variables, suggesting the potential to implement target marketing or the use of purchase incentive programs to increase sales of locally produced food in groceries.
Publications
- Darby, K.J. 2006. Consumer Preferences for Locally-Grown Berries: A Discrete Choice Model Estimating Willingness-to-Pay. An Unpublished M.S. Thesis, Department of Agricultural, Environmental and Development Economics, The Ohio State University.
- Darby, K.J., Batte, M.T., Ernst, S.C. and Roe, B. 2006. Willingness to pay for locally produced foods: A customer intercept study of direct market and grocery store shoppers. A paper presented to the American Agricultural Economics Association Annual meetings, Long Beach, California, July 23-26, 2006. [http://agecon.lib.umn.edu/cgi-bin/pdf_view.pl?paperid=21962&ftype=.p df]
- Ernst, S, Batte, M.T., Darby, K. and Worley,T. 2005. What Matters in Consumer Berry Preferences: Price? Source? Quality? Journal of Food Distribution Research. 37(1):68-71.
|
|