Campus Units
Apparel, Events and Hospitality Management
Document Type
Article
Publication Version
Published Version
Publication Date
2012
Journal or Book Title
Journal of Agriculture, Food Systems, and Community Development
Volume
3
Issue
1
First Page
181
Last Page
198
DOI
10.5304/jafscd.2012.031.014
Abstract
The purpose of this study was to conduct a qualitative comparative analysis of growers' costs for inputs related to production, processing, packaging, and distribution of local foods to independent restaurants. Growers have been motivated to sell locally due to the asymmetry in farm-retail price spreads. Yet selling locally direct to restaurants may imply new types of processes, costs, and investments. While local farm-to-retail markets may provide opportunities to reduce these price spreads and maximize benefits for growers, it is unclear whether such efforts are economically viable for growers when all input costs are considered. Interviews with local food producers found that there were clearly higher costs for growers in most of the value chain for directly selling products to restaurants. Specifically, growers expressed a need for increased communication and interaction with restaurant buyers. Such interaction helped growers showcase their products to restaurants, yet required greater time inputs. However, premiums received by growers for these direct market sales were perceived to offset these costs. Local food is gaining popularity as an alternative economic strategy for developing local communities. For it to develop and be adopted progressively, however, clear costs and benefits need to be examined, evaluated, and communicated to producers and consumers.
Copyright Owner
Journal of Agriculture, Food Systems, and Community Development
Copyright Date
2012
Language
en
File Format
application/pdf
Recommended Citation
Sharma, Amit; Strohbehn, Catherine; Radhakrishna, Rama B.; and Ortiz, Allan, "Economic Viability of Selling Locally Grown Produce to Local Restaurants" (2012). Apparel, Events and Hospitality Management Publications. 84.
https://lib.dr.iastate.edu/aeshm_pubs/84
Included in
Agricultural Economics Commons, Food Processing Commons, Food Studies Commons, Growth and Development Commons
Comments
This article is published as Sharma , A., Strohbehn, C.H., Radhakrishna, R.B., & Ortiz, A. Economic viability of selling locally grown produce to local restaurants. Journal of Agriculture, Food Systems, and Community Development, 3 (1) pp. 181–198. (30%) doi:10.5304/jafscd.2012.031.014. Posted with permission.