Consumers say they want increased access to local food, so why are local products still struggling to reach store shelves? It is not as easy for farmers to get their stuff in store as you may think and even for those that can surmount all the regulations, garnering sales against competition can prove more challenging- despite the seemingly ever-present demand. Behind every local item on a retail shelf is a farmer navigating confusing contracts, pricing pressure, insurance requirements, production hurdles, and more.
Retailers are constantly on the lookout for new, enticing products for their establishments, but issues for smaller producers lie in stores’ expansive lists of options and strict selection criteria. Most retailers have long lists of potential vendors and consistent product placement requests. Both up-and-coming and national brands are constantly attempting to get more products on more shelves, and competing against larger companies for shelf space is extremely difficult for small-scale, local producers. Especially when stores expect proof of large sales volume, extremely unique product propositions, and perfectly ‘retail-ready’ products. Unfortunately for farmers, the barriers to even being considered are quite high.
Those that can get a foot in the door are met with a new set of overwhelming requirements. Issues in packaging or labeling compliance may arise. Wholesale prices must be low enough for the retailer to make a considerable profit, but still high enough to cover costs and make the deal sustainable for the farmers. Stores often require rigorous levels of insurance and safety standards, further straining producers’ ability to keep products on shelves. Then compound the desire for “pretty produce” - the perfect looking vegetables that customers expect - with the stores’ need for consistently large supply drops and it’s not hard to see why many retailer-producer contracts fall through.
When local products do make it onto store shelves, the next challenge awaits. The consumer. The average shopper may claim to want local options, but don’t always understand exactly what costs and hurdles are associated with making it in store. Therefore, when faced with actually purchasing products, usually the less expensive, more eye-catching items from big brands win out. Unfortunately, most small farms simply don’t have access to the resources that larger corporations do. They don’t have the fancy equipment, hundreds of workers, professional marketing teams, or mass amounts of capital on their side like the big guys. This, along with higher quality inputs can equal a price point that shoppers aren’t able or aren’t willing to commit to.
For local farms to make it onto store shelves, it’s an all-out fight. From the consideration stage, all the way to actually making it in, producers must surmount hurdle after hurdle to secure and keep retail contracts. Even if small farms make it through the long and arduous process, there’s no guarantee that consumers will support their products in store. This means most of your retail options come from miles and miles away. So, if you see a local product being featured at your grocery store, remember how much effort it took for that item to be there and as always, support local as much as you can!
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