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The Long-Range Outlook for Local Foods

By Joe Barks | July 1, 2014

Consumers are voting with their dollars to show that the trend promises to be more than a fad and will remain an important consideration when planning ingredients and menus—more so than organics, in fact. But processed and packaged food will still need to play a vital role.

The number of active U.S. farmers markets rose from 1,775 in 1994 to   or 8,144 last year, or more than 350 percent, according to the U.S. Department of Agriculture, reports The Huffington Post in its “Food for Thought” blog. Across the country, farmers markets with local purveyors plying dirt-dusted produce and artisanal cheeses have become a routine and revered part of life during the spring-to-fall growing season. Their regular customers advocate eating food produced closer to home, as it tends to be fresher, healthier, tastier and easier on the environment than the shipped equivalents. And buying this way also makes consumers feel good about supporting producers they know, who in turn invest in the local economy.

The trend has also gone viral, the Post reports, as consumers are voting ‘local’ with their dollars in a way that is having a profound influence on the nation’s food systems. Their enthusiasm has led suppliers, grocers and restaurants to change and adapt by adding locally produced goods to their offerings year-round.

Yet as the local foods movement grows, the Post asks, is it really better for us–and the environment?

A lot of U.S. consumers appear to think so: In a 2012 study by Mintel, 52 percent said buying locally grown produce is more important than buying organics, the Post reports. They’re also willing to pay more for locally grown and produced foods, notes research in Ecological Economics, as reported in Food Navigator.

So retailers are giving consumers what they want, the Post notes. Now placards that once listed produce by price-per-pound boast detailed descriptions of when, where and how the item was grown. Even Wal-Mart, which had food sales of $150 billion last fiscal year and is the nation’s largest fresh-produce retailer, according to CNBC, is also going local. In spring 2013, the retailer committed to double its local produce stock by December 2015, the Post reports.

Restaurants are also subject to the trend, it’s noted. The National Restaurant Association found the lust for local foods dominated its 2014 “Top Food Trends” survey, as “locally sourced meats and seafood” and “locally sourced produce” earned the top two spots on the list. “‘Hyper-local’ food,” including herbs and vegetables garden-grown by restaurants onsite and “farm/estate-branded foods” came in at Nos. 6 and 10 respectively, while “environmental sustainability” and “sustainable seafood” ranked third and eighth respectively. This fits the trend, the Post notes, because food production methodology is part and parcel of the local foods movement. And national chain restaurants, such as Chipotle and Subway, are committing to buying local.

No wonder agri-lending giant Rabobank called the local foods movement a “permanent and mainstream trend” earlier this year, noting that it is “changing the competitive landscape” of the produce industry for the better, the Post reports. There is evidence that buying local can mean healthier and tastier produce, it adds, because most conventional varieties of produce are chosen for their high yield and durability, which a Harvard Medical School analysis says “come at a cost: nutritional quality.”

The Harvard study, the Post reports, cites an Organic Center report, “Still No Free Lunch: Nutrient Levels in U.S. Food Supply Eroded by Pursuit of High Yields,” which notes “farmers producing for a local and direct market…are more likely to prioritize taste and nutritional quality over durability when making varietal decisions.”

But whether eating locally is always the better choice for the environment is debatable on some counts, the Post notes.

First, final transportation to market is only 4 percent of food production’s overall environmental impact, according to “Food Miles and the Relative Climate Impacts of Food Choices in the United States,” a landmark study by two Carnegie Mellon University scientists. They conclude that upstream environmental costs are much higher (83 percent of carbon emissions can be attributed to the production phase), so it’s better to grow food where production needs fewer inputs—such as growing tomatoes in a warm, sunny climate further away, rather than nearby in a heated, lighted greenhouse.

Also, large farms growing crops sustainably, and suited to their region, are better for the environment because they use less energy per item and grow more food on less land, notes University of Toronto professor Pierre Desrochers, co-author with policy analyst Hiroko Shimizu of “The Locavore’s Dilemma: In Praise of the 10,000-Mile Diet,” in USA Today. This also offers consumers the economic benefit of lower prices, he adds.

Feasibility is another point to consider, the Post notes. Sub-optimal conditions, such as soil quality, water availability and climate, can make some locales impractical to farm. “That’s why Iowa is so good at growing corn and Montana [stinks] at it,” says David Swenson, a regional economics researcher at Iowa State University, in USA Today. So it is more economical to grow large quantities of food where the climate is best.

And realistically, it’s not always possible for local foods to be available everywhere year-round, the Post notes. For example, eating strictly local and fresh would mean a monotonous and nutrient-deficient diet for much of the northern U.S. and Canada for at least half the year.

For these reasons, and given the fact that the local foods movement offers consumers so many benefits, sustainably processed and packaged food still has an important role to play in supporting the admirable goals of local food advocates and supplementing their needs, the Post reports. So retailers and producers can learn from the local foods movement and leverage it—especially because sustainable farming practices, available technologies and contemporary packaging now make it possible for processed and packaged foods to deliver on quality, maintain ingredient integrity, preserve food nutrients and accomplish social, environmental and economic good as well.

Example of companies already employing this strategy abound, the Post reports. On its website, Michigan-based, nationally distributed Eden Foods touts the network it has built of over 360 family farms to source its raw materials, which are mostly grown close to home base. The company also notes that it pays farms directly, to get them more cash.

Truitt Brothers, an Oregon-based bean farmer and processor, also understands the tenets of the local foods movement, describing its philosophy as “food manufacturing with a conscience,” the Post reports. The company’s website describes its five bean varieties as “sustainably cultivated on family farms in the Pacific Northwest” … in “earth-friendly Tetra Pak cartons.” Consumers far from the Pacific Northwest can appreciate the sustainable nature of the farms and the care with which the beans are processed and packaged, in close proximity to where they were grown—a clever twist on “local,” the Post notes.

And Oregon-based manufacturer and processor Pacific Foods, founded in 1987 to create healthy, self-stable food-and-beverage products using ingredients grown with integrity, started its own organic farms when the company’s founders realized there weren’t enough local organic producers growing the ingredients needed for Pacific Foods’ products, the Post reports. To date, the company has converted 3,200 acres of conventional farmland to organic and now owns three organic dairies with more than 1,400 cows. And by demonstrating sustainable farming techniques, Pacific Foods has helped other Oregon farmers follow suit, allowing them to develop a local food web, the Post notes.

So by leveraging these technologies and packaging food in sustainable packaging when and where crops are grown, producers can help reduce environmental impacts, lock in fresh flavor and nutrients, extend products’ availability to consumers year-round and still support local growers, the Post’s report concludes. But for the advantages of the local foods movement to develop, mature and benefit all, everyone involved in the food system—from farmers and producers to retailers and consumers, and including the foodservice industry—must all carefully and consistently work toward what’s best for the food system they want to improve and sustain.

About The Author

Joe Barks

Joe Barks is the Editor of Club + Resort Business magazine, working out of Wayne, Pa. (suburban Philadelphia). He has been covering the club and resort industry since the launch of C&RB in April 2005 and during that time has written cover-story profiles of over 150 club and resort properties, as well as many additional articles about specific aspects of club management and profiles of leading club managers. Barks has been a writer and editor for specialized business publications for over 40 years, covering a wide variety of industries and professional disciplines over the course of his career. He is a four-time winner of Jesse H. Neal Awards from the American Business Press, known as the “Pulitzer Prizes” for industry trade publications. He has also been a freelance contributor to many leading national consumer and business publications, and served as Marketing Manager for the Hay Group, a leading worldwide management consulting firm. He is a graduate of the University of Pennsylvania.

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