RED DEER – Canadians are spending more than $1 billion a year on fresh fruits and vegetables at farmers’ markets, says a study.
Most of that revenue is in cash sales to middle aged white women who want to buy fresh produce and to support local farmers, said Brent Warner, who led the study on markets across the country. It was presented at an Alberta farmers’ market annual meeting in Red Deer Feb. 17.
There are 508 farmers’ markets across Canada and 70 were surveyed. Personal interviews with 3,000 shoppers, 487 vendors and 282 market managers revealed the markets’ growing popularity.
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Ethnic groups, new Canadians and young people do not generally shop at farmers’ markets. Warner suggested new enticements are needed to get them there.
Young people do not patronize the markets so discount coupons or special offers should be considered.
Automatic teller machines and electronic payment should be available because young people do not carry cash.
“Those are the future customers. They are the young families,” he said.
People go to farmers’ markets primarily to buy fresh, in season produce and because they believe they are supporting local farmers. Products like jams and jellies are extras and do not entice customers. If a market has a high proportion of artisans rather than food vendors, people are less interested. They do not want to buy from wholesalers.
“They expect the people they are buying their product from are farmers, not resellers.”
Most of the vendors said they are primary producers, but Ontario has a problem with resellers who load up at a wholesale warehouse and sell at the markets. This could damage a market’s reputation.
Quality and food safety must always be front and centre, Warner said.
“Consumers believe that you present better food in farmers’ markets than what is presented in grocery stores.”
Since more meat, cheese and eggs are being offered these days at markets, food safety must be at the highest level. Selling preserves in improperly sealed jars and not refrigerating certain products must end.
“That is yours to lose. One incident and we are in big trouble,” he said.
People spend about $32 per visit to a small market while a large market customer spends $42 per visit.
“The bigger the market, the bigger the basket and you have a higher return,” he said.
The survey found 26 percent of vendors sell $1,000 per day in all markets, while 55 percent sell less than $1,000 per day.
There is also an economic spinoff with customers spending about $18 at other businesses near the market. Most markets are open on Saturdays and nearly half are located in communities of less than 10,000 people. Few are open year round.
All customers use supermarkets but said their second choice was the farmers’ market. Location was often cited as the reason they did not patronize the market. Others said they did not know where the markets were located.
Venue promotion is the respon-sibility of the market managers. About 80 percent of managers report sales are growing and more vendors are appearing. Financial support comes mainly from vendor booth rental and 68 percent of market managers report no government support in the last five years.
“We have not been on government radar for a very long time,” Warner said.
Some government regulatory change could open up sales opportunities so chefs could buy direct for their restaurants. In many regions they cannot buy from farms because the food must come from inspected premises.
Wine producing provinces like British Columbia and Ontario do not permit wine to be sold at the markets, although Alberta recently approved fruit wine sales.
Some markets are allowed to sell imported foods. For example, 90 percent of the garlic sold in grocery stores is grown in China but most people do not know that.
Market managers should be encouraged to get rid of the imported food sales and promote locally grown.
