1. Characterizing Local and Organic Food Consumers Presentation at Ohio Direct Ag. Marketing Conference January 20, 2005 Toledo, OH

2. Contact Information Jeff Sharp, Jeff Sharp, Associate Professor Rural Sociology Associate Professor Rural Sociology 311 Ag. Admin. 311 Ag. Admin. 2120 Fyffe Road, 2120 Fyffe Road, Columbus, OH 43202 Columbus, OH 43202 E-mail: sharp.123@osu.edu E-mail: sharp.123@osu.edusharp.123@osu.edu Telephone: 614-292-9410 Telephone: 614-292-9410 Website: Ohiosurvey.osu.edu Website: Ohiosurvey.osu.edu

3. Outline of Presentation Introduction: Local and Organic Foods Introduction: Local and Organic Foods Profiles of Ohio local and organic food consumers Profiles of Ohio local and organic food consumers Data from 2004 OH Survey of Food, Agricultural, and Environmental Issues Data from 2004 OH Survey of Food, Agricultural, and Environmental Issues Existing profiles of alternative food consumers Existing profiles of alternative food consumers Typology of Ohio Consumers Typology of Ohio Consumers Future Food System Research Activites Future Food System Research Activites

4. Consumer demand Changes in consumer demand have been impacting various types of commodities Changes in consumer demand have been impacting various types of commodities Health, diet, and safety are important considerations Health, diet, and safety are important considerations Some products benefit, some don’t from changing demand Some products benefit, some don’t from changing demand Organic attribute has been one beneficiary--USDA reports that the organic and specialty crops market is growing by 20 percent each year Organic attribute has been one beneficiary--USDA reports that the organic and specialty crops market is growing by 20 percent each year

5. Growing interest in local USDA identified 1,755 Farmer’s Markets in its 1994 directory by 2004 there were 3,706 Farmer’s Markets USDA identified 1,755 Farmer’s Markets in its 1994 directory by 2004 there were 3,706 Farmer’s Markets Growth of Community supported agriculture, over 1,000 operating in the U.S. from 0 in the 1980s Growth of Community supported agriculture, over 1,000 operating in the U.S. from 0 in the 1980s Growing interest among chefs to utilize locally produced foodstuffs Growing interest among chefs to utilize locally produced foodstuffs

6. Mission: To promote the use of local foods in Central Ohio restaurants; increase awareness of local food production; grow partnerships between farmers and chefs; and promote regional sustainable agriculture. To Join or to Request More Information Please Contact: PO Box 261062, Columbus, OH 43226 Voice: 614- 439-3132 E-mail: farm2chef2003@yahoo.com

7. Organic Industrialization & Local Growth in organic market has led to some “industrialization” of organic production Growth in organic market has led to some “industrialization” of organic production Large scale production, large-scale processing Large scale production, large-scale processing Cascadian Farms, store brand organic, etc. Cascadian Farms, store brand organic, etc. “Industrialization” challenges the traditional link between organic and local production “Industrialization” challenges the traditional link between organic and local production Emerging question: How do local producers, particularly organic producers, adapt to market with lower cost industrial organic products? Emerging question: How do local producers, particularly organic producers, adapt to market with lower cost industrial organic products?

8. Goal of Research Our research endeavor is organized to distinguish the factors associated with local versus organic food consumption Our research endeavor is organized to distinguish the factors associated with local versus organic food consumption Sociological interest in the role of class and access Sociological interest in the role of class and access Practical interest in providing information to food system stakeholders about consumer interest in these food items Practical interest in providing information to food system stakeholders about consumer interest in these food items This research is Part I of a three step sequence of analysis This research is Part I of a three step sequence of analysis

9. About the OH Survey of FAE Issues Biennial Mail Survey of Rural & Urban Ohioans Biennial Mail Survey of Rural & Urban Ohioans Funded from variety of sources Funded from variety of sources College of FAES, OSU Extension, OARDC, variety of faculty and program collaborators College of FAES, OSU Extension, OARDC, variety of faculty and program collaborators Household sample purchased from private vendor Household sample purchased from private vendor Response rate ~56+ percent Response rate ~56+ percent

10. About the 2004 Sample Sample is stratified to ensure representation from rural and urban areas of Ohio Sample is stratified to ensure representation from rural and urban areas of Ohio Characteristics of 2004 parallel characteristics of Ohio population as reported in 2000 Census Characteristics of 2004 parallel characteristics of Ohio population as reported in 2000 Census Key differences—sample slightly more educated, reported slightly higher home values, and included a modestly smaller proportion of African American respondents Key differences—sample slightly more educated, reported slightly higher home values, and included a modestly smaller proportion of African American respondents

11. Some General, Food related findings from 2004 Survey

12. Ohioans Concern about Food, Agriculture & Environmental Issues (1=Not concerned; 7=Very Concerned) IssueMean Rising Obesity among Americans 5.8 Pollution of rivers, streams or groundwater 5.8 Loss of family farms 5.6 Loss of farmland due to urban growth 5.5 Genetic modification of animals 5.3 Mad cow disease 4.7 Genetic modification of plants 4.6 Large-scale poultry and livestock development 4.5 Global Warming 4.4

13. Food Safety Attitudes

14. Q. Food is not as safe as it was 10 years ago 29% Strongly Disagreed or Disagreed 24% Undecided 47% Strongly Agreed or Agreed

15. Q. Concerns about food safety are exaggerated 47% Strongly Disagreed or Disagreed 25% Undecided 28% Strongly Agreed or Agreed

16. Food Purchasing Considerations

17. Importance of factors considered when purchasing food (% indicating “very important”) Taste91% Food product availability where shop 68% Nutritional value 66% Price65% Food purchase keeps local farmer in business 55% Added health benefits beyond basic nutrition 51% Meat, poultry & dairy from humanely treated animals 43% Grown in the state of Ohio 31% Grown locally 27% Labeled organic 17% Grown locally and labeled organic 17%

18. Support for local and organic foods

19. Frequency of purchasing local and organic foods FrequentlyOccasionallySeldomNever Local32%57%10%1% Organic7%33%42%18%

20. Frequency of purchasing local and organic foods by region (% indicating frequently) NWSWCSENE Local39%27%31%45%31% Organic*9%8%8%9%5% *No significant difference by region

21. Willingness to pay for local and organic foods NWTPM WTP 10% More WTP 25% More WTP 50% More Local41%50%8%1% Organic61%32%6%1%

22. Typology of Consumers

23. Typology Background Potential benefits of typologies: Potential benefits of typologies: Better understanding of what drives certain consumption patterns Better understanding of what drives certain consumption patterns Assist growers and retailers in understanding and developing their market Assist growers and retailers in understanding and developing their market May help to increase the consumption or purchasing of particular foods May help to increase the consumption or purchasing of particular foods Assist in development of the local foodscape Assist in development of the local foodscape

24. Typology Example (Hartman Group) True Naturals (7 percent)—express deeply held environmental concerns and follow through on concerns; regularly consume organic products True Naturals (7 percent)—express deeply held environmental concerns and follow through on concerns; regularly consume organic products New Green Mainstream (23 percent)—care about environment, but generally only change when convenient New Green Mainstream (23 percent)—care about environment, but generally only change when convenient Affluent Healers (12 percent)—motivated by personal health more than environment Affluent Healers (12 percent)—motivated by personal health more than environment Young Recyclers (10 percent)—into more solid waste type issues, not focused on food matters Young Recyclers (10 percent)—into more solid waste type issues, not focused on food matters

25. Typology Example (cont.) Overwhelmed (22 percent)—primarily motivated by economics Overwhelmed (22 percent)—primarily motivated by economics Unconcerned (25 percent)—generally not concerned with environment; do not recognize problems with food Unconcerned (25 percent)—generally not concerned with environment; do not recognize problems with food

26. Typology of Local vs. Organic Consumers Many of the factors associated with support for organic have been substantiated in the literature, such as environmental concern and health concern Many of the factors associated with support for organic have been substantiated in the literature, such as environmental concern and health concern Few studies have looked at factors associated with local as a food attribute distinct from organic Few studies have looked at factors associated with local as a food attribute distinct from organic

27. Basis for Typology Four cell typology focusing on willingness to pay (WTP) more for local and/or organic Four cell typology focusing on willingness to pay (WTP) more for local and/or organic Not WTP more for organic WTP more for organic Not WTP more for local 36 percent 6 percent WTP more for local 35 percent 33 percent

28. Labeling Consumer Types Disinclined = Those unwilling to pay more for either local or organic (36% of sample) Disinclined = Those unwilling to pay more for either local or organic (36% of sample) Organically Inclined = Those willing to pay more for organic only (6%) Organically Inclined = Those willing to pay more for organic only (6%) Locally Inclined = Those willing to pay more for local only (25%) Locally Inclined = Those willing to pay more for local only (25%) “Super” Inclined = Those willing to pay more for both local and organic (33%) “Super” Inclined = Those willing to pay more for both local and organic (33%)

29. Organically Inclined (6 percent) Strong belief that organic foods are healthier than conventionally grown foods Strong belief that organic foods are healthier than conventionally grown foods Often look for health information and most likely to indicate the use of food to maintain good health Often look for health information and most likely to indicate the use of food to maintain good health Express the greatest concern for food safety Express the greatest concern for food safety Most likely to have stopped purchasing a product due to a food safety concern Most likely to have stopped purchasing a product due to a food safety concern Express greater concern about mad cow disease Express greater concern about mad cow disease

30. Organically Inclined (cont.) 70 percent reside in a city or suburb also most educated, on average 70 percent reside in a city or suburb also most educated, on average 15 percent are or have been members of a food co-op; relatively frequent use of natural food grocers 15 percent are or have been members of a food co-op; relatively frequent use of natural food grocers Less likely to come from a farm background and know far few farmers, on average, than other sets of consumers Less likely to come from a farm background and know far few farmers, on average, than other sets of consumers Least trusting of farmers to protect the environment Least trusting of farmers to protect the environment

31. Locally Inclined (25 percent) Large proportion of Southeast Ohioans Large proportion of Southeast Ohioans Frequent farmer’s market and roadside stand consumers Frequent farmer’s market and roadside stand consumers Know a relatively large number of farmers on average, most likely to have grown up on a farm or in the country (30 percent) Know a relatively large number of farmers on average, most likely to have grown up on a farm or in the country (30 percent) Strongest support for agriculture and greatest trust of Ohio farmers Strongest support for agriculture and greatest trust of Ohio farmers

32. Locally Inclined (cont.) Highly value food purchases that will keep a farmer in business Highly value food purchases that will keep a farmer in business Relatively high rating of “Grown in Ohio” label Relatively high rating of “Grown in Ohio” label Loss of farmland is a serious concern Loss of farmland is a serious concern Least positive view of organics Least positive view of organics Do not think organics are healthier Do not think organics are healthier Very low rating of organic label as a factor in decision making Very low rating of organic label as a factor in decision making

33. Super Inclined (33 percent) Consistent with organically inclined Consistent with organically inclined Strong belief that organically grown is healthier Strong belief that organically grown is healthier Many have stopped buying products for food safety reasons Many have stopped buying products for food safety reasons Often look for health information Often look for health information More frequently shop at natural food grocer/co-op More frequently shop at natural food grocer/co-op

34. Super Inclined (cont.) Consistent with locally inclined Consistent with locally inclined Know quite a few farmers, on average Know quite a few farmers, on average Trust Ohio farmers and have positive attitudes about agriculture’s importance to the state Trust Ohio farmers and have positive attitudes about agriculture’s importance to the state Loss of farmland is a concern Loss of farmland is a concern Highly rate grown in Ohio attribute and purchases that will keep a farmer in business Highly rate grown in Ohio attribute and purchases that will keep a farmer in business

35. Super Inclined (cont.) Members of this group are more likely than others to belong to some type of environmental organization and recycle Members of this group are more likely than others to belong to some type of environmental organization and recycle Most likely to maintain a vegetable garden Most likely to maintain a vegetable garden More common in NE, Central, and SW Ohio More common in NE, Central, and SW Ohio

36. Disinclined (36 percent) Second to taste (and related quality attributes), price is the most important consideration for these folks in their food purchases Second to taste (and related quality attributes), price is the most important consideration for these folks in their food purchases Least likely to belong/contribute to an environmental organization Least likely to belong/contribute to an environmental organization

37. Disinclined (cont.) Least interested in knowing how food is grown and low concern with food safety Least interested in knowing how food is grown and low concern with food safety Least likely to look for health information when buying food products Least likely to look for health information when buying food products Even though interest is relatively low, generally are less interested in “local” attributes than “organic” Even though interest is relatively low, generally are less interested in “local” attributes than “organic”

38. Implications Important to note, super-inclined do not require local and organic attribute in same product Important to note, super-inclined do not require local and organic attribute in same product While “industrialization” of organic production is occurring, there is still a sizable market out there that values the local attribute and which may be inclined to pay for that attribute While “industrialization” of organic production is occurring, there is still a sizable market out there that values the local attribute and which may be inclined to pay for that attribute There is also a sizable market out there that supports local, but is not excited by the organic attribute There is also a sizable market out there that supports local, but is not excited by the organic attribute

39. Implications Need to further examine the super inclined and the local subsets Need to further examine the super inclined and the local subsets Determine whether there are additional distinguishing characteristics among those with an interest in local beyond simply whether it has the organic attribute or not. Determine whether there are additional distinguishing characteristics among those with an interest in local beyond simply whether it has the organic attribute or not.

40. Next steps in the research Continued Refinement of the Local and Organic Consumer Typology Continued Refinement of the Local and Organic Consumer Typology 2005 – Survey of motivated food consumers (members of a food co-op and environmental organization) 2005 – Survey of motivated food consumers (members of a food co-op and environmental organization) 2005 – Series of Focus Groups gauging interest in local/organic foods with different socio-economic groups 2005 – Series of Focus Groups gauging interest in local/organic foods with different socio-economic groups