Direct Marketing of Fresh Produce: Understanding Consumer Purchasing Decisions

Direct marketing via farmers' markets, roadside stands, community supported agriculture (CSA) programs, and other outlets, is integral to the prosperity of many small fruit and vegetable farms. 1 Through direct marketing, producers are able to establish a closer relationship with consumers , avoid expenses associated with using a broker or wholesaler, and increase their profits (USDA-AMS, 2002a). Moreover, direct marketing may be one of the most effective marketing system strategies to address emerging demand for more local food systems (Pirog, 2004). Evidence of direct marketing's popularity among producers can be found in the growth of the number of farm-ers' markets countrywide. The United States Department of Agriculture reported that between 1994 and 2006, the number of U.S. farmers' markets more than doubled to over 3,700, and the value of U.S. agricultural products directly sold increased thirty-seven percent from $592 million to $812 million (USDA-AMS, 2002b). Furthermore, the 2002 USDA Ag Census found that the number of farmers using direct marketing channels grew from 110,639 in 1997 to 116,733 in 2002, while the average value of direct marketing per farm rose from $5,349 to $6,958 over the same time period. American consumption trends may be contributing to growth in produce-related direct marketing channels. According to the 2004 USDA Vegetables and Melons Situation and Outlook, U.S. per capita consumption of fresh vegetables and melons increased by 52.6% between 1979 and 2004. Increased demand may have consumers seeking out new sources, including direct marketing channels, to satisfy their desire for fresh produce. Furthermore, a significant number of consumers have expressed a willingness to pay a premium for environmentally friendly (e.g., organic) and locally produced products, both of which are common offerings at many farmers markets and CSA programs (Wimberley et al., 2003). In addition to farmers' markets, producers may choose to develop their own marketing enterprises, including " pick-your-own " farms and on-farm produce stands, as a way to capture consumers who may drive by or be seeking an on-farm experience. Other programs, like the afore-mentioned CSAs, allow producers to spread production risk over a number of shareholders by selling shares of the farm production prior to the growing season. As such, direct marketing strategies may play a role in supporting the financial prosperity of small-and medium-sized farms. This article contributes to the understanding of direct produce marketing by reporting some key results from a national survey that collected data on consumers' fresh …