Local foods study identifies challenges and opportunities for industry

On Tuesday, Jan. 7, the Northern Plains Resource Center and Development Council presented the results from a feasibility study for local foods in northeast North Dakota, and the results weren’t nearly promising as one might think. Even here in farm country, growing and distributing food products can be a daunting challenge.

The study was funded by a Rural Development Grant through the U.S. Department of Agriculture and focused on the northeastern portion of the state, including Rolette, Towner, Cavalier, Pembina, Pierce, Benson, Ramsey, Walsh, Nelson and Eddy counties. The goal of the study was to provide a big picture look at the potential for local foods as an economic development strategy.

The research relied on online survey data collected from local food producers, buyers and public customers. A total of 225 participants completed the survey, yielding insight into the dynamics of a local food economy.

Producers

A total of 44 local food producers from 20 communities conveyed that the local products they most often sell are vegetables, baked goods and canned items, and more often than not they sell at farmers markets or directly from the farm.

Producers also identified challenges they face when trying to expand into new niches by selling to restaurants, schools, grocers and other vendors. Many identified a limited workforce and small rural markets as barriers. One participant said, “When you’re a one person vendor doing all the growing, picking, packaging and marketing, it’s hard to expand much.” Others found it challenging to comply with regulations.

While the producers who participated in the survey were often clear in stating they were not interested in expanding their operation at this time, many did provide insight as to what might make expansion more feasible. Most commonly, they replied that better advertising and consumer education on the value of local food would be helpful. Other, more logistic suggestions included season extension technology, increased commercial kitchen capacity, and improved distribution and storage facilities.

Buyers

A total of 32 institutional buyers responded to the survey, including 11 schools, 11 grocers, five restaurants and five child care centers. Participants stated that the top local items they purchase include vegetables, fruit and eggs as well as locally packaged and distributed dairy and meats directly from the farm or from a food service distribution.

Over 81% of participants agreed that buying local foods promotes a positive relationship with producers who deliver safe, quality products. It also helps them meet customer demand for local food. However, the logistics are far from ideal. Buyers are interested in fresh herbs and fruits, but prefer that products be delivered to them. One respondent explains, “They must be priced right, and delivery must be convenient.”

Above all else, institutional buyers value food safety. In fact, 82% of respondents said that food safety practices were important or extremely important in making the decision to purchase local product. For anyone interested in developing a local food business should make one of their first stops the Food Safety Modernization Act to ensure a food safe operation. In terms of other development opportunities, there remains a need to develop an innovative delivery system as well as a chance to match potential buyers and producers.

Local consumers

The public loves local food. They see is as safe, nutritious, high quality and desirable. Demand is undoubtedly greater than supply, and producers cannot expand fast enough or far enough to meet that demand. In general, the public finds that a convenient time and place is necessary for them to purchase local foods. They also value selection, affordable prices and better quality. The public values saving time and money, and farmers markets are not always the most convenient for buying local.

What that means for economic development?

According to the results of the feasibility study, reducing these obstacles to local foods will provide positive economic benefits to communities in northeastern North Dakota.

Economic development implications

Reducing obstacles to local foods production and delivery will provide positive economic benefits to communities in northeastern North Dakota.

Although there is certainly a lot of work ahead, many resources and opportunities exist.

Paul Overby, president of the Northern Plains Resource Conservation and Development Council, says there is so much to explore when it comes to local foods development.

The issues that producers and buyers face are very different. Producers need to get up to speed for food safety trainings and implementation plans, while buyers could benefit from education on what local products they are allowed to purchase directly from a producer. All the while public customers want more quanity and variety of locally produced foods.

There is no clear answer, nonetheless diligent problem solving and innovation will be key.

Overby also noted that the feasibility study is meant to stir up discussion in the region. To that end, the “New Rockford Transcript” intends to continue the conversation throughout the planning season with a series of articles on local foods. We’ll include perspectives from local producers, retailers and consumers and present some resources available to anyone interested in learning more about the economic development potential of local foods.