ASSESSING THE CONSUMER BEHAVIOR, MARKET COORDINATION AND PERFORMANCE OF THE CONSUMER-ORIENTED FRUIT AND VEGETABLE SECTOR

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: COMPLETE
• Funding Source: HATCH
• Reporting Frequency: Annual
• Accession No.: 0224002
• Multistate No.: S-1050
• Project Start Date: Oct 1, 2010
• Project End Date: Sep 30, 2015
• Program Code: [(N/A)]- (N/A)

Recipient Organization
UTAH STATE UNIVERSITY
(N/A)
LOGAN,UT 84322

Performing Department
Applied Economics

Non Technical Summary
Greater concerns with respect to diet and nutrition have led to an increased number of marketing and promotional messages focused on the benefits of eating fresh fruit and vegetables. Both consumers and retailers have responded to the spotlight on fresh produce, resulting in increased purchases, marketing resources and even new legislation to promote Specialty Crop production in the US. Between 1987 and 2000, US per capita consumption of fresh fruits and vegetables rose 15%. Retailers have responded by increasing the size and range of produce sold, with the average number of items in fresh produce departments rising from 173 to 350 items between 1987 and 2001. Additionally, consumer health, environmental, and food safety concerns have led to increased consumer interest in foods produced in unique ways. For example, sales of organically-certified foods have grown by approximately 20% per year over the last decade, now representing $24.8 billion in food sales (organic fruits and vegetables now represent 11.4% of total US fruit and vegetable sales). These individuals and households are also fueling changes in the food system as they seek to purchase their produce through channels as diverse as direct marketing and traditional supermarkets, and with expectations as broad as picking their own produce to highly branded products with third-party certifications. This evolution has led a larger number of farmers to consider new marketing strategies including farmers markets, joining a producer alliance, running a Community Supported Agriculture (CSA) program, beginning their own value-added ventures or producing new crops and cultivars to gain access to specialty niche markets. This project will enhance producer welfare by examining the differences in consumer preferences and types across direct marketing outlets. This will provide producers with target consumer information based upon direct marketing outlet, as well as potential price differences and marketing strategies across outlets. The project will also segment consumers by purchasing, attitudinal, and environmental concerns. This will allow producers to target consumers with the information (such as location, farm story, cooking ideas, etc.), labels (such as local and/or organic), and certifications (such a food safety) needed to meet the concerns of their consumer groups. Finally, the project will measure consumer willingness to pay for differentiated products, such as labeled/certified organic and locally grown produce. This will provide producers with information regarding price premiums across production and product types, and illustrate the potential benefits of participation in labeling programs.

Animal Health Component

(N/A)

Research Effort Categories

Basic

(N/A)

Applied

(N/A)

Developmental

(N/A)

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
604	1460	3010	100%

Knowledge Area
604 - Marketing and Distribution Practices;

Subject Of Investigation
1460 - Tomato;

Field Of Science
3010 - Economics;

Keywords

consumer demand

food labeling

supply chains

Goals / Objectives
1. Develop demand and market valuation models for the produce sector that can be used to evaluate effects of increasingly complex product differentiation schemes (organic, enhanced health claims, biodynamic), trade, commodity marketing programs, labeling programs (local, food miles, Fair Trade), traceability systems, and food safety events in the U.S. produce markets. 2. Analyze the relative benefits and costs, to producers and consumers, of government and industryled marketing and policy programs (certifications, Leafy Greens marketing order, Country of origin labeling, farmers markets) using both theoretical approaches and empirical evidence from multi-state applied research projects. 3. Assess the changing coordination and supply chain management strategies being implemented in the fruit and vegetable sector and identify strategic organizational and marketing implications for a set of firms that are diverse in terms of commodity, marketing approach and size of operation (including small and mid size farms). Expected Outputs: The outcomes we expect to have from this project include a diverse set of publications (journal articles, case studies, industry contract reports, fact sheets), as well as some decision tools and policy briefs. There may also be some nicely integrated data series and market databases which will provide market assessment and coordination tools for stakeholders. In effect, this will be a very applied and integrated research project. As stated earlier in the proposal, there are several joint outputs we plan to do in the near future, as a result of information shared at our annual meetings, networks that have developed among researchers and opportunities to get on programs and in publications as a team of researchers.

Project Methods
Recent advances in discrete choice modeling (e.g., the random-coefficients model) have led to the incorporation of heterogeneity in consumer tastes (Berry, Levisohn and Pakes, 1995; Nevo, 2001) when estimating the demands for differentiated products. Various approaches have been used to examine differentiated markets. Anderson, de Palma, and Thisse (1992) identify three different types of models of demand for differentiated products. They are random utility models, representative agent models, and hedonic price models. The theoretical foundations of discrete choice models lie in the random utility model approach. These models are utilized in many stated preferences approaches to valuation, such as contingent valuation and conjoint analysis. Detailed information on product quality attributes is often missing in traditional sources of food consumption data. Consumer surveys and choice experiments often needed to elicit preferences for new foods, technologies, and policies.

Progress 10/01/10 to 09/30/15

Outputs
Target Audience:Target Audience Small-scale fruit and vegetable producers and value-added food processors in Utah and Nevada. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Opportunities Professional development opportunities resulting from this study include 12 professional presentations at academic conference, two academic journal special editions, one Ph.D. dissertation (J.D. Gumirakiza), and two MS thesis (I. Yeager and M. Shepherd). How have the results been disseminated to communities of interest?Dissemination Study results have been written up for lay audiences in the form of Extension fact sheets and curricula (2 curricula, 21 published fact sheets) which can be downloaded from the USU Extension website at any time. These fact sheets have also been distributed to participants at all Utah Building Farmers events, Utah Farm-Chef-Fork events, the annual Diversified Agriculture Conference, and the annual Urban Farms Conference. Study results have been presented and curricula integrated into all USU Extension Utah Building Farmers courses and Utah Farm-Chef-Fork events, and presented at the annual Diversified Agriculture Conference (2011-2013) and the annual Urban Farms Conference (2013-2014). The audiences at these conferences and Extension courses are often small-scale and beginning farmers and ranchers, who are generally unfamiliar with university and Extension resources. Regional group published a special edition of the JFDR in July 2015. What do you plan to do during the next reporting period to accomplish the goals?Plan of Work Finalize and publish remaining journal articles created from this study. Finalize and publish remaining Extension materials created from this study. Continue to present and distribute outreach materials to target audience

Impacts
What was accomplished under these goals? Accomplishments All original research objectives for this project have been completed. All data have been collected, analyzed and put into publication form. Outreach and dissemination objectives have been implemented and will continue for the next few years. The following activities were competed during the project period: Ten journal articles published. Two additional are currently in working form and will be submitted in 2016. Two Extension curricula and 21 Extension fact sheets published. Twelve professional article presentations at national meetings. Three externally funded grants, totaling $861,000. Major research findings include the following: Consumers in Utah and Nevada attend farmers' markets primarily to purchase fresh produce followed by social interaction. Purchasing ready-to-eat foods or packaged foods, arts, and crafts were not strong motivators. Consumers attending primarily to purchase fresh produce tend to be married individuals at higher income levels, and those with strong diet/health concerns and supportive of local farming and agriculture open space. Those attending for social interaction are more likely to be unmarried or larger families attending music or other events at the market. Farmers' market shoppers exhibited strong preferences for product quality, freshness, and local origin. While they were willing on average to pay premiums for both certified organic and locally-labeled produce at farmers' markets, the premiums for locally-produced products exceeded those of organic produce. This difference became more pronounced as consumers were given information about organic growing methods. Additionally, demand for fresh produce was inelastic, exhibiting small changes in quantity demanded as a result of price changes. Key impacts realized: Agricultural producers attending outreach and Extension programs covering materials created from this study achieved the following changes in knowledge and attitudes. Improved understanding of their target market consumers and the marketing methods and tools which can be used to best reach them. Improved knowledge of potential pricing by product and production process, as well as consumer responses to pricing and pricing changes. Improved understanding of the potential benefits and costs of participating in labeling/certification programs, in terms of revenue generation. Additionally, within one year of program attendance, over two-thirds had completed the following (action and condition): Created customized marketing/communication materials to better access their target consumers. Analyzed the potential costs and benefits of using various labeling/certification programs. Developed a marketing plan customized to their target consumers, etc.

Publications

• Type: Other Status: Published Year Published: 2015 Citation: Refereed Journal Articles Bosworth, R. C., Bailey, D., Curtis, K. (2015). Consumer Willingness to Pay for Local Designations: Brand Effects and Heterogeneity at the Retail Level. Journal of Food Products Marketing, 21(3), 274-292. http://dx.doi.org/10.1080/10454446.2013.843488
• Type: Other Status: Published Year Published: 2015 Citation: Refereed Journal Articles Brain, R., Curtis, K., Hall, K. (2015). Utah Farm-Chef-Fork: Building Sustainable Local Food Connections. Journal of Food Distribution Research, 41(1), 1-10.
• Type: Other Status: Published Year Published: 2015 Citation: Refereed Journal Articles Curtis, K., Allen, K., Ward, R. A. (2015). Food Consumption, Attitude, and Behavioral Change among CSA Members: A Northern Utah Case Study. Journal of Food Distribution Research, 42(2), 3-16.
• Type: Other Status: Published Year Published: 2015 Citation: Refereed Journal Articles Maughan, T., Curtis, K., Black, B. L., Drost, D. T. (2015). Economic Evaluation of Implementing Strawberry Season Extension Production Technologies in the Intermountain West. HortScience, 50(3), 395-401.
• Type: Other Status: Published Year Published: 2015 Citation: Other Curtis, K., Olsen, S. H., Wagner, K. M. (2015). Utah Urban Small-Scale Mixed Vegetable Production Costs and Returns - 5 Acres, 2015 (vol. , AG/Applied Economics/2015-01pr). USU Extension
• Type: Other Status: Published Year Published: 2015 Citation: Other Olsen, S. H., Curtis, K., Wagner, K. M. (2015). Utah Urban Small-Scale Mixed Vegetable Production Costs and Returns - 2 Acres, 2015 (vol. AG/Applied Economics/2015-02pr). USU Extension.

Progress 10/01/13 to 09/30/14

Outputs
Target Audience: Target Audience Small-scale fruit and vegetable producers and value-added food processors in Utah and Nevada. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Opportunities Project results were presented at two academic conferences in 2014. The regional group held its annual meeting in November 2014 in SLC, UT. Mary Shepherd completed her M.S. in June 2014. How have the results been disseminated to communities of interest? Dissemination Study results have been written up for lay audiences in the form of Extension fact sheets and curricula (2 curricula, 19 published and 2 working fact sheets) which can be downloaded from the USU Extension website at any time. These fact sheets have also been distributed to participants at all Utah Building Farmers events, Utah Farm-Chef-Fork events, the annual Diversified Agriculture Conference, and the annual Urban Farms Conference. Study results have been presented and curricula integrated into all USU Extension Utah Building Farmers courses and Utah Farm-Chef-Fork events, and presented at the annual Diversified Agriculture Conference (2011-2013) and the annual Urban Farms Conference (2013-2014). The audiences at these conferences and Extension courses are often small-scale and beginning farmers and ranchers, who are generally unfamiliar with university and Extension resources. What do you plan to do during the next reporting period to accomplish the goals? Plan of Work Two Extension fact sheets will be submitted Two journal articles will be submitted Complete revisions to journal articles under submission upon acceptance Regional group will publish a special edition of the JFDR in early 2015

Impacts
What was accomplished under these goals? Accomplishments All original research objectives for this project have been completed. All data have been collected, analyzed and put into publication form. Outreach and dissemination objectives have been implemented and will continue for the next few years. The following activities were competed during the project period: 1. Eight journal articles published. Another was submitted and three are currently in working form. 2. Two Extension curricula and 19 Extension fact sheets published. Two fact sheets are currently in working form. 3. Ten professional article presentation at national meetings. 4. Three externally funded grants, totaling $861,000. Major research findings include the following: Consumers in Utah and Nevada attend farmers' markets primarily to purchase fresh produce followed by social interaction. Purchasing ready-to-eat foods or packaged foods, arts, and crafts were not strong motivators. Consumers attending primarily to purchase fresh produce tend to be married individuals at higher income levels, and those with strong diet/health concerns and supportive of local farming and agriculture open space. Those attending for social interaction are more likely to be unmarried or larger families attending music or other events at the market. Farmers' market shoppers exhibited strong preferences for product quality, freshness, and local origin. While they were willing on average to pay premiums for both certified organic and locally-labeled produce at farmers' markets, the premiums for locally-produced products exceeded those of organic produce. This difference became more pronounced as consumers were given information about organic growing methods. Additionally, demand for fresh produce was inelastic, exhibiting small changes in quantity demanded as a result of price changes. Key impacts realized: Agricultural producers attending outreach and Extension programs covering materials created from this study achieved the following changes in knowledge and attitudes. 1. Improved understanding of their target market consumers and the marketing methods and tools which can be used to best reach them. 2. Improved knowledge of potential pricing by product and production process, as well as consumer responses to pricing and pricing changes. 3. Improved understanding of the potential benefits and costs of participating in labeling/certification programs, in terms of revenue generation. Additionally, within one year of program attendance, over two-thirds had completed the following (action and condition): 1. Created customized marketing/communication materials to better access their target consumers. 2. Analyzed the potential costs and benefits of using various labeling/certification programs. 3. Developed a marketing plan customized to their target consumers, etc.

Publications

• Type: Journal Articles Status: Published Year Published: 2014 Citation: Curtis, K., Yeager, I., Black, B. L., Drost, D. T., Ward, R. A. (2014). Market and Pricing Potential for Extended Season Produce Sales. Journal of Food Distribution Research, 45(2).
• Type: Journal Articles Status: Published Year Published: 2014 Citation: Curtis, K. (2014). Premium Potential for Geographically Labeled, Differentiated Meat Products. Journal of Agriculture, Food Systems, and Community Development, 4(2).
• Type: Journal Articles Status: Published Year Published: 2014 Citation: Gumirakiza, J. D., Curtis, K., Bosworth, R. C. (2014). Who Attends Farmers Markets and Why? Understanding Consumers and their Motivations. International Food and Agribusiness Management Review, 17(2).
• Type: Journal Articles Status: Published Year Published: 2014 Citation: Gumirakiza, J. D., Curtis, K., Bosworth, R. C. (2014). Consumer Preferences and Willingness to Pay for Multi-Labeled Produce at Farmers Markets. Journal of Food Distribution Research, 45(1).
• Type: Journal Articles Status: Published Year Published: 2014 Citation: Kim, M.-K., Curtis, K., Yeager, I. (2014). An Assessment of Market Strategies for Small-Scale Produce Growers. International Food and Agribusiness Management Review, 17(3).
• Type: Other Status: Other Year Published: 2014 Citation: Curtis, K. (2014). Characterizing the Face and Value of the "Buy Local" Movement (Applied Economics/2014-03pr ed.). USU Extension
• Type: Other Status: Other Year Published: 2014 Citation: Curtis, K., Olsen, S. H., Knudsen, T., Wagner, K. M. (2014). Utah Urban Small-Scale Mixed Vegetable Production Costs and Returns - 5 Acres, 2014 (Applied Economics/2014-01pr ed.). Logan UT: USU Extension.
• Type: Other Status: Other Year Published: 2014 Citation: Maughan, T., Curtis, K., Black, B. L., Drost, D. T. (2014). A comparison of Northern Utah high tunnel strawberry production costs and returns with low tunnels (Horticulture/High Tunnels/2014-08pr ed.). USU Extension. extension.usu.edu/files/publications/publication/Horticulture_HighTunnels_2014-08pr.pdf 0301
• Type: Other Status: Other Year Published: 2014 Citation: Maughan, T., Curtis, K., Black, B. L., Drost, D. T. (2014). A comparison of Northern Utah high tunnel strawberry production costs and returns with low tunnels and supplemental heating (Horticulture/High Tunnels/2014-07pr ed.). USU Extension. extension.usu.edu/files/publications/publication/Horticulture_HighTunnels_2014-07pr.pdf 0301,
• Type: Other Status: Other Year Published: 2014 Citation: Maughan, T., Curtis, K., Black, B. L., Drost, D. T. (2014). Northern Utah High Tunnel Strawberry Production Costs and Returns, 2014 (Horticulture/High Tunnel ed., pp. 2014-06pr). USU Extension. http://extension.usu.edu/files/publications/publication/Horticulture_HighTunnels_2014-06pr.pdf 301
• Type: Other Status: Other Year Published: 2014 Citation: Olsen, S. H., Curtis, K., Wagner, K. M., Knudsen, T. (2014). Utah Urban Small-Scale Mixed Vegetable Production Costs and Returns - 2 Acres, 2014 (Applied Economics/2014-02pr ed.). Logan UT: USU Extension.
• Type: Conference Papers and Presentations Status: Other Year Published: 2014 Citation: Curtis, K. (Presenter & Author), Allen, K. (Author Only), Ward, R. A. (Author Only), WERA-72 Annual Meeting, "Food Consumption, Attitude, and Behavioral Change Among CSA Members," Santa Clara, CA. (June 30, 2014 - July 2, 2014)
• Type: Conference Papers and Presentations Status: Other Year Published: 2014 Citation: Curtis, K. (Presenter & Author), Sherperd, M. (Author Only), Ward, R. A. (Author Only), Western Agricultural Economics Association Annual Meetings, "Contributing Factors to the Success of Small Scale Farms in the Mountain West," Colorado Springs, CO. (June 20, 2014 - June 23, 2014)

Progress 10/01/12 to 09/30/13

Outputs
Target Audience: Small-scale fruit and vegetable producers and value-added food processors in Utah and Nevada. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Professional development opportunities in 2013 included three academic conferences at which study results were presented. How have the results been disseminated to communities of interest? Study results have been written up for lay audiences in the form of Extension fact sheets (12 in total) which can be downloaded from the USU Extension website at any time. These fact sheets have also been distributed to participants at all Utah Building Farmers events, Utah Farm-Chef-Fork events, the annual Diversified Agriculture Conference, and the annual Urban Farms Conference. Study results have been presented and integrated into all USU Extension Utah Building Farmers courses, and presented at the annual Diversified Agriculture Conference (2011-2013) and the annual Urban Farms Conference (2013). Study results were also presented at the Utah Farm Bureau Federation meeting in Layton, UT, November 2013. Presentation entitled “Using "Local" labeling to Improve Product Pricing.” The audiences at these conferences and Extension courses are often small-scale and newer farmers and ranchers, who are generally unfamiliar with university and Extension resources. What do you plan to do during the next reporting period to accomplish the goals? While all of the research objectives have been met, the following dissemination will be completed in 2014. 1. Finalize and publish all journal articles so far created from this study. 2. Continue to present and distribute outreach materials to target audience. 3. Organize S1050 session at FDRS annual meeting November 2014 in Salt Lake City, UT.

Impacts
What was accomplished under these goals? All original research objectives for this project have been met. All data have been collected, analyzed and put into publication form. Outreach and dissemination objectives have been implemented and will continue for the next few years. The following activities were competed in 2013: 1. Finalized and submitted five journal articles. 2. Initiated two other journal articles currently in working form. 3. Finalized, submitted and published seven Extension fact sheets. 4. Conducted farmers’ market consumer survey on preferences for and willingness to pay for organic, eco-friendly, and conventional peaches in August/September 2013. Major research findings include the following: Consumers in Utah and Nevada attend farmers’ markets primarily to purchase fresh produce followed by social interaction. Purchasing ready-to-eat foods or packaged foods, arts, and crafts were not strong motivators. Consumers attending primarily to purchase fresh produce tend to be married individuals at higher income levels, and those with strong diet/health concerns and supportive of local farming and agriculture open space. Those attending for social interaction are more likely to be unmarried or larger families attending music or other events at the market. Farmers’ market shoppers exhibited strong preferences for product quality, freshness, and local origin. While they were willing on average to pay premiums for both certified organic and locally-labeled produce at farmers’ markets, the premiums for locally-produced products exceeded those of organic produce. This difference became more pronounces as consumer were given information about organic growing methods. Additionally, demand for fresh produce was inelastic, exhibiting small changes in demand as a result of price changes. Key impacts realized: Agricultural producers attending outreach and Extension programs covering materials created from this study achieved the following changes in knowledge and attitudes. 1. Improved understanding of their target market consumers and the marketing methods and tools which can be used to best reach them. 2. Improved knowledge of potential pricing by product and production process, as well as consumer responses to pricing and pricing changes. 3. Improved understanding of the potential benefits and costs of participating in labeling/certification programs, in terms of revenue generation. Additionally, within six months of program attendance, over two-thirds had completed the following: 1. Created customized arketing/communication materials to better access their target consumers. 2. Analyzed the potential costs and benefits of using various labeling/certification programs. 3. Developed a marketing plan customized to their target consumers, etc. Medium and long-term impacts will be included in the final project report.

Publications

• Type: Journal Articles Status: Published Year Published: 2013 Citation: Curtis, K., Ward, R. A., Allen, K., Slocum, S. (2013). Impacts of Community Supported Agriculture Program Participation on Consumer Food Purchases and Dietary Choice. Journal of Food Distribution Research, 44(1), 42-51.
• Type: Journal Articles Status: Published Year Published: 2013 Citation: Curtis, K. (2013). Researching Market and Supply-Chain Opportunities for Local Foods Systems: Setting Priorities and Identifying Linkages. Journal of Agriculture, Food Systems, and Community Development, 3(4), 1-7.
• Type: Journal Articles Status: Published Year Published: 2013 Citation: Kim, M.-K., Curtis, K., Yeager, I. A Comparison of Risk and Return Properties for Direct and Wholesale Produce Markets. IFAMR.
• Type: Other Status: Other Year Published: 2013 Citation: Curtis, K., Gumirakiza, J. D. (2013). Consumer Motivations for Attending Utah Farmers Markets (Applied Econ 2013-03 ed.). USU Extension.
• Type: Other Status: Other Year Published: 2013 Citation: Curtis, K., Gumirakiza, J. D. (2013). Farmers Market Customer Priorities (Applied Econ 2013-06 ed.). USU Extension.
• Type: Other Status: Other Year Published: 2013 Citation: Curtis, K., Chakreeyarat, V., Gumirakiza, J. D. (2013). Enhancing Direct Marketing Opportunities for Local Foods (Applied Economics 2013-02 ed.). USU Extension.
• Type: Other Status: Other Year Published: 2013 Citation: Gumirakiza, J. D., Curtis, K. (2013). Exploring Consumer Spending at Farmers Markets: Who Spends More? (Applied Econ 2013-07 ed.). USU Extension.
• Type: Other Status: Other Year Published: 2013 Citation: Gumirakiza, J. D., Curtis, K. (2013). Farmers Market Consumer Preferences & Premium Pricing for Organically Grown & Local Fresh Produce (Applied Econ 2013-08 ed.). USU Extension.
• Type: Other Status: Other Year Published: 2013 Citation: Gumirakiza, J. D., Curtis, K. (2013). Importance of Pricing Fresh Produce in Direct Markets: A Farmers Market Example (Applied Econ 2013-05 ed.). USU Extension.
• Type: Other Status: Other Year Published: 2013 Citation: Gumirakiza, J. D., Curtis, K. (2013). Targeting Specific Consumer Types at Farmers' Markets (Applied Econ 2013-09 ed.). USU Extension.
• Type: Conference Papers and Presentations Status: Other Year Published: 2013 Citation: Curtis, K. (Presenter & Author), Gumirakiza, J. D. (Author Only), Bosworth, R. C. (Author Only), Food Distribution Research Society Annual Meeting, "Consumer Preferences and Willingness to Pay for Multi-Labeled Produce at Farmers Markets," Chicago, IL. (October 5, 2013 - October 9, 2013)
• Type: Conference Papers and Presentations Status: Other Year Published: 2013 Citation: Gumirakiza, J. D. (Presenter & Author), Curtis, K. (Author Only), Bosworth, R. C. (Author Only), Western Agricultural Economics Association Annual Meetings, "Assessment of Farmer's Market Consumer Preferences for Produce Attributes," Monterey, CA. (June 24, 2013)
• Type: Conference Papers and Presentations Status: Other Year Published: 2013 Citation: Curtis, K. (Presenter & Author), Gumirakiza, J. D. (Author Only), Ward, R. A. (Author Only), Agriculture and Applied Economics Association Annual Meetings, "Success Factors For Small-Scale Diversified Farms in the Intermountain West," Washington D.C. (August 5, 2013 - August 7, 2013)
• Type: Conference Papers and Presentations Status: Other Year Published: 2013 Citation: Kim, M.-K. (Author Only), Curtis, K. (Presenter & Author), Yeager, I. (Author Only), WERA-72 Annual Meeting, "A Comparison of Risk and Return Properties for Direct and Wholesale Produce Markets.," Las Vegas, NV. (June 10, 2013)

Progress 01/01/12 to 09/30/12

Outputs
Target Audience: The primary stakeholders, partners and customers of our activities are production and consumption enterprises and households in the fresh produce supply chains. These include trade organizations, individual producers, packers, distributors, shippers and retailers, regulatory agencies, certification organizations and community organizations with a focus on improving the performance, efficacy or fairness of markets in the fresh produce sector. We also have a focus on consumer behavior, which we expect to strengthen given the new focus on direct marketing and local food systems. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals? Continue with my UTAO-1008 project. Group Activities: Apply for group project grant (FSMIP or AFRI Organic) Submit for joint session with FAMPS at AAEA meeting in Washington DC Plan session for October FDRS meeting in Chicago

Impacts
What was accomplished under these goals? Impacts to date: As a result of these workshops the agricultural producers who participated were able to complete business operation plans, expand their markets and customer base, expand their sales season through winter markets, increase the land area under agricultural production, and expand the variety products they offer to consumers. Such results will increase the economic sustainability of these farms, including higher revenues through premium product pricing at farmers’ markets and in community supported agriculture programs, and reduced market and financial risk in community supported agriculture programs. Additionally, the community environment improved for these producers as their network of farming colleagues, mentors, and familiarity with agency and Extension resources greatly increased. Improved access to a network of colleagues, resources, and financial capital will improve the overall quality of life for these farmers and ranchers, as well as build stronger communities and sustain agricultural lands. Workshop Evaluation Data Nine-month follow up evaluation results: The following is the percentage of participants who “agreed” or “strongly agreed” to the statement. •My farming operation is now more economically viable, 55% •The quality of life on my farm has improved, 48% •My farming operations are now more efficient, 53% •My families goals are now easier to achieve, 65% •Employee/employer relations on my farm have improved, 38% •The value of attending this course was more than the cost of attendance (time, travel costs, etc.), 85% •I would recommend this course to other farmers or potential farmers, 100% •I now have a network of farmers I can work with, 83% •I increased my network of farming colleagues and can draw on them for information/resources, 90% •The program has improved our farming community, 85% The following is the percentage of participants who had an increase in the following. •Range of product varieties grown, 58% •Number of farm enterprises (vegetables, livestock, flowers, etc)., 48% •Infrastructure and equipment (irrigation, tractor, greenhouse, etc.), 60% •Land area under production, 50% •Number of employees, 18% •Financing amount/options, 33% •Customer base (number of customers), 58% •Variety of marketing outlets used (CSAs, farmers' markets, etc.), 50% Impact highlights: •One participant was featured in the Edible Wasatch Magazine Issue 6, Fall 2011 edition •Eight participants have started formal CSA programs since attending the workshop, including one who has developed a winter CSA program •One participant is planning a bread and soup CSA program for the 2012-2013 winter season •Seven participants were listed in the CSA directory in the Edible Wasatch Magazine Issue 8, Spring 2012 edition (of 40 total CSA programs in Utah) •One participant added a starter plant nursery operation to an existing fruit and vegetable enterprise •One participant built a fully inspected poultry processing facility on his farm and is now able to process and sell directly to consumers •Two participants began selling local grass-fed beef and poultry products at local farmers’ markets •One participant was able to acquire two more acres for his enterprise through referral from the local county Extension agent

Publications

Progress 01/01/11 to 12/31/11

Outputs
OUTPUTS: S1050 Meeting held in Portland, OR in October. A plan for collaborative work was placed. Organized S1050 special session at WERA-72 meetings in Las Vegas, NV June 2011. Organized S1050 special issue of the Journal of Agribusiness. Outreach/Industry Presentations: Presentation on marketing plans and direct market consumers to Utah Building Farmers Course, November 2011. Presentation on marketing plans and direct market consumers to Nevada Building Farmers Course, September 2011. Presentation on direct market sales and consumer types at Northern Utah Fruit Growers Meeting, January 2011. Presentation on direct market sales and consumer types at Utah Master Gardener conference, September, 2011. Outreach/Industry Publications: Curtis, K.R., (2011). "Direct Marketing Local Foods: Differences in CSA and Farmers' Market Consumers." Utah State University Extension Fact Sheet, Applied Economics/2011-01pr. Curtis, K.R., (2011). "Direct Marketing Local Foods: Differences in CSA and Farmers' Market Consumers (Spanish Version)." Utah State University Extension Fact Sheet, Applied Economics/2011-01pr,sp (Spanish). Curtis, K.R., (2011). "Direct Marketing Local Foods: Food Safety Considerations (Spanish Version)." Utah State University Extension Fact Sheet, Applied Economics/ 2010-01pr,sp (Spanish). Conference Presentations: Curtis, K.R., and M.W. Cowee, "Buying Local: Diverging Consumer Motivations and Concerns" Selected paper presented at the WERA-72 Annual Meeting, Las Vegas, NV, June 2011. Yeager, I., K.R. Curtis, B. Black, and D. Drost, "Potential Benefits of Extended Season Sales through Direct Markets." Selected paper presented at the Food Distribution Research Society Annual Meeting, Portland, OR, October 2011. Journal Articles: Curtis, K.R., and M.W. Cowee, (2011). "Buying Local: Diverging Consumer Motivations and Concerns" Journal of Agribusiness, Spring. Curtis, K.R., (2011). "Are All Direct Market Consumers Created Equal" Journal of Food Distribution Research, 42(1), 26-33. PARTICIPANTS: Group faculty members, USU faculty, USU graduate students, Extension agents, producers, farmers' market/CSA managers and vendors. TARGET AUDIENCES: The primary stakeholders, partners and customers of our activities are production and consumption enterprises and households in the fresh produce supply chains. These include trade organizations, individual producers, packers, distributors, shippers and retailers, regulatory agencies, certification organizations and community organizations with a focus on improving the performance, efficacy or fairness of markets in the fresh produce sector. We also have a focus on consumer behavior, which we expect to strengthen given the new focus on direct marketing and local food systems. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Utah specific include: 16 participants completed a direct marketing plan for their operation 4 participants entered a new farmers' market in summer 2011 6 participants expanded or started their own CSA 2 participants completed an on-farm internship with an experienced farmer

Publications

• UTAO+1036 Curtis, K., (2011). Are All Direct Market Consumers Created Equal: Journal of Food Distribution Research, 42(1): 26-33. (Published).