Consumers want to buy local

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Reading Time: 3 minutes

Published: October 5, 2012

People are appreciating the producer and they’re actually saying so, says market gardener

A recent survey that found growing support for Canadian-grown products is in line with what Ron Erdmann sees in the marketplace.

The Alberta market gardener said he has increased production of potatoes, carrots and cabbages in the past few years, while fielding more customer questions about his farm.

“There is a growing demand and growing consumer awareness, too, about local products,” said Erdmann, president of the Alberta Farm Fresh Producers Association.

“And as far as the price, they will pay more to a point.… If something is out of reason, they know it and they won’t pay it then, but for the most part they will pay slightly higher.”

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A recently published survey from BMO Bank of Montreal said as much: Canadian consumers have an interest in domestic products and are willing to pay a small premium for it, 16 percent more on average for fruits and vegetables and 19 percent for meat products.

The majority of respondents said they would pay a premium of one percent. That percentage, which is more than 80 percent in some provinces, decreases as the premium rises.

“We know that if we’re not even in the ballpark, we’re just going to lose market share and we still need to gain market share,” said Erdmann.

The survey found that residents of Ontario and British Columbia, which have larger vegetable and fruit industries, were more willing to pay higher premiums. The results similarly favoured producers on the Prairies, where consumers were more likely to look for locally produced beef.

“We’ve really felt it. All of the retail customers really felt it. All of the retail customers that we work with are really promoting local,” said Mike Reed, president of B.C. Hot House, which distributes greenhouse grown produce from B.C.

He said a majority of the company’s products are still moving into the United States, but the company’s domestic business has grown in the last few years because of a diverse mix of products and a growing buy-local movement.

“I think we’re hearing that local trend everywhere, whether we’re shipping into Japan, the U.S. or Canada. Everybody is really pushing, if local is available, that’s what they’re supporting first,” he said.

“Outside of that it becomes local — in the case of Canada, product of Canada — and then after that they’ll take product from the U.S. or any stuff that’s being imported in.”

Erdmann said he has significantly increased acreage for some crops — 25 to 30 percent for potatoes in the last five years — and there’s opportunity for more producers.

“I know in talking with other growers and talking to consumers at the farmer’s markets, we still have in our province, we’re still short of certain products,” he said.

“(For example), we have some really good strawberry growers, but I know there’s more demand than product out there for that crop.”

A separate survey, conducted by Farm & Food Care Ontario, found persistent “positive or neutral” attitudes toward Canadian agriculture across the country. That number, 88 percent, is up 15 percent from 2006.

“I would say the value of this study is to show what the silent majority feels. I deal a lot with crisis communications and issues management on issues like animal welfare, environment, biotech,” said Crystal Mackay of Farm & Food Care. “Those are absolutely hot button issues for people that are very opposed to agriculture, so a very small minority can really light a fire to an issue.”

A sample of 1,011 Canadians interviewed May 18-23 were used for the BMO survey, yielding a margin of error plus or minus 3.1 percent, 19 times out of 20.

“In the past, say, three years, we have had more people saying, ‘thank you for growing this great food,’ than we probably had in the 10 years previous to that combined,” said Erdmann.

“It’s kind of nice to be in that situation where people are appreciating the producer and they’re actually saying so.”

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Dan Yates

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