Analysis of Food-Chain Demand for Differentiated Farm Commodities: Implications for the Farm Sector

摘要

Overall, a survey of the literature on food-chain demand for differentiated farm commodities demonstrates growth in demand for food with various characteristics, including locally produced, organic or otherwise differentiated farm products (DFP). However, desired core food characteristics, such as fresh, tasty, safe and healthy, must be present before consumers will consider additional characteristics like production practices or the food source. Strong growth in farmers' markets and direct-to-consumer marketing, such as the community supported agriculture (CSA) model, show that consumers are willing to spend time and money to support local food production. In general, however, only a small segment of consumers surveyed were willing ti pay a premium higher than 10 percent for DFP.