Economic Importance of Local Food Markets: Evidence from the Literature

In recent years, the demand for local food by consumers has grown significantly. The Direct-to-consumer marketing of local foods grossed $4.8 billion in 2008. Many studies have addressed purchases of local food directly from producers in the southeastern region of the United States. Many of these studies show that consumers of local foods are willing to pay premiums for local foods. Data from the 2012 US Census of Agriculture shows that, on average, direct-to-consumer food sales accounted for 5.5% of all farm sales. The goal of this paper is to enhance awareness of the growing demand for local foods. Specific objective is to discuss the contributions of local food markets to the economy. Secondary data from existing research and the Census of Agriculture were used in summarizing information presented in this paper. Evidence from literature reviewed shows that local markets have positive impacts on the local economy