The Louisville Local Food

Demand Analysis
PREPARED FOR
Seed Capital Kentucky & Louisville Metro
December 2012
1
2
The Background
The Louisville Local Food Demand Analysis is a comprehensive, qualitative and quantitative analysis of demand
for local food in Louisville Metro/Jefferson County, Kentucky. Seed Capital Kentucky, a non-proft with the
mission to catalyze the success and resilience of regional agriculture and the regional food economy, engaged
Karp Resources, a New York City-based food and agriculture consulting frm, to design, lead and manage
this multi-stakeholder, multi-partner research process. The fndings will
be used to support efforts by Mayor Greg Fischer and others to create
linkages between urban consumers and rural producers as a long-term,
regional, integrated economic development strategy.
Louisvillians have built an enviably vibrant and diverse local food
economy. In 2011, Louisville residents spent $2 billion on food,
approximately $1.2 billion on food-at-home and $800 million on food-
away-from-home. There is much evidence that Louisville residents,
businesses and policy makers are committed to growing local foods
share of those dollars. Louisville Metro government employs a Farm to Table Coordinator charged with making
critical connections between businesses, producers and consumers. Farmers markets operate every day of
the week, several food distribution companies focus specifcally on locally grown foods, and more and more
restaurants and retailers are sourcing and merchandising local foods.
As the Demand Analysis reveals, much work remains to be done to satisfy Louisvilles appetite for local food.
Consumers across the demographic spectrum want more local fresh, prepared and processed food, at lower
prices, and they want to buy that food where they already shop. Commercial buyers recognize that buying and
selling more local food will require additional infrastructure and support, the kind of capital improvements that
may require public and private dollars, but are keen to grow their local food purchases.
Fundamental factors that will underlie the success of Louisvilles local food economys continued growth
include:
Strategic efforts to tactically expand local foods presence must build on proven efforts.
Meeting demand for local food depends on increased trust and strong communication between buyers
and producers.
New physical infrastructure for aggregation, processing and distribution will be needed to accommodate
increased supply.
Support technical, business, marketing, and consumer education is needed to ensure that producers,
commercial buyers and consumers make best use of available supply.
Tracking and tracing incremental growth and the stories behind the food is essential to maintaining
momentum and making the case for growth.
Farmers have the capacity and desire to increase supply, but they need assurance that the demand is
real. Contracts between buyers and farmers will provide the security they need to take risks and make
investments.
Supporting local
farmers and the
local economy will
make the city a
better place.
Executive Summary
Executive Summary 3
The Findings
The Demand Analysis research methods were diverse and incorporated the following:
A synthesis of existing data and research on the context of demand, including factors infuencing and
impacts resulting from food purchasing and consumption in Louisville and insights into Kentucky and
Southeast Indianas agricultural character;
More than 35 open-ended, hour-long interviews and focus groups with consumers, producers and
commercial buyers;
A survey of 75 commercial buyers representing 107 locations based on a random and stratifed
selection of all Louisville commercial food buyers; and
A survey of 421 consumers based on a demographically representative sample.
The Demand Analysis yielded the following key fndings:
Un-met demand greatly outstrips current supply of local food in Louisville.
Louisville residents currently spend $100 million on local foods, and are
interested in purchasing an additional $158 million each year, for a total
demand of $258 million
Commercial buyers currently spend $214 million on local foods, and would
be willing to spend an additional $139 million, for a total of $353 million.
Much of the food the commercial sectors purchase will be handled,
transformed and resold in a variety of outlets, leveraging that $353
million in local food purchases to contribute an estimated $800 million
to the local economy.
1
Meeting commercial buyers voracious demand for local food will
contribute to satisfying Louisville consumers $258 million demand,
with abundance to share with visitors, commuters, and consumers and
wholesale buyers beyond Jefferson Countys borders, thus becoming a
meaningful economic driver for the city and county.
Almost 72% of Jefferson County consumers are already buying some amount of local food.
Demand is relatively consistent across income levels and ages, with higher income consumers (over
$75,000 household income) and older consumers (55+) slightly more likely to purchase local foods.
Quality is the number one factor infuencing purchasing decisions, followed by price.
Local food means better food, and consumers are willing to devote more of their monthly food budgets to local
food on average, twice as much as they currently spend.
More than 95% perceive local food to be more favorful and
of generally equal or superior quality compared to foods from
elsewhere.
Consumers are willing to purchase local foods of all types,
with strongest interest in local fruits and vegetables.
On average across all income bands, if it met their expectations
of quality and price, consumers currently purchasing local
foods would spend more than $200 on local foods each
month, more than twice what they spend now.
1 This fgure takes into account the value that will be added to local food as it moves through the supply chain and is re-sold in various forms by
and to manufacturers, distributors, retailers, restaurants, and institutional food service companies. It is an estimate, based on industry standard
costs of goods sold (COGS), which vary by sector.
Total demand
for local foods
in Louisville
is $258
million among
consumers
and $353
million among
commercial
buyers.
I expect local food
to be better (than
food from further
away). And it makes
me feel better,
buying local.
Executive Summary 4
Commercial buyers of all kinds are working to keep up with consumer demand.
More than 63% of surveyed commercial food buyers intentionally purchase local foods.
Product consistency, followed by taste and price, are the most important factors. The restaurant sector
overwhelmingly identifed distribution services and suffcient volume as key factors to increasing
purchases, while supermarkets prioritize price.
Over 73% of commercial buyers said that they buy local food in order to support local business and the local
economy.
Over 51% buy local to support local farmers.
More than 78% indicated that they see investment in local food as a viable anchor for a broader
economic development policy.
87% of commercial buyers who dont currently buy local said that they would if barriers were eliminated.
Among commercial buyers who currently do not buy local foods, almost 44% have previously done so
but stopped due to issues with product packaging, lack of distribution services, insuffcient available
supply, and inability to get local foods from their companies approved vendors.
Product price and lack of distribution services were the key obstacles keeping those who have never
purchased local foods from doing so.
Interviews with producers aligned with commercial buyer survey fndings, indicating that the greatest
supply-side need is increased ease of access to market, including aggregation, distribution, sales,
marketing and crop planning infrastructure and services.
The Action: Using the Data
The actions, innovations and investments of interested parties from many sectors will be essential to growing
the citys capacity to meet this extensive demand for local foods. Investments of capital, technical expertise,
long-view thinking, and collaboration were all noted as key actions needed to grow the local food economy.
The Demand Analysis concludes with vignettes that were designed to answer to the question: How can I use
the fndings of this study to help grow Louisvilles food and agriculture economy? The vignettes explore three
paths toward growing Louisvilles food system:
More Tools for More Food looks at the need for physical infrastructure and complementary technical
support;
Farm to Food Processor focuses on incentive programs to increase local procurement; and
Increasing Healthy Food Options at Retail directs attention to making local food part of existing and
new strategies to increase access to healthy foods throughout the city.
The concept underlying these vignettes is the 3 legged stool that stands at the foundation of a healthy society
and a healthy food system, and provides insight into the importance stakeholder engagement across sectors:
1) an effective and accountable government sector, 2) a dynamic private sector, and 3) a vibrant civil society,
or not for proft sector.
Louisvilles people policy makers, nonproft leaders, producers, food businesses, private investors and
consumers can utilize this Demand Analysis verifcation of and nuanced detail about the strong demand for
local food to immediately develop and execute a long-term economic and community development strategy
for a vibrant and dynamic local food economy in Louisville.
1
The Louisville Local Food
Demand Analysis
PREPARED FOR
Seed Capital Kentucky & Louisville Metro
December 2012
2
Executive Summary 3
Introduction & Background 6
Methodology 8
Partners & Roles 8
Secondary Research 8
Primary Research 9
Context: Jefferson Countys Food Landscape 13
Data Analysis 23
Commercial Survey 23
Consumer Survey 36
Commercial Buyers & Consumers: Common Themes 43
Conclusion and Recommendations: Using this Study 45
Introduction to the Vignettes 45
More Tools for More Food 46
Farm to Food Processor 50
Increasing Healthy Food Options at Retail 56
Pulling It All Together 62
3
The Background
The Louisville Local Food Demand Analysis is a comprehensive, qualitative and quantitative analysis of demand
or locul ood in Louisville Metro/}eerson County, lentucky. Seed Cupitul lentucky, u nonprot vith the
mission to catalyze the success and resilience of regional agriculture and the regional food economy, engaged
lurp Resources, u Nev York Citybused ood und ugriculture consulting rm, to design, leud und munuge
this multistukeholder, multipurtner reseurch process. 1he ndings vill
be used to support eorts by Muyor Creg lischer und others to creute
linkuges betveen urbun consumers und rurul producers us u longterm,
regional, integrated economic development strategy.
Louisvilliuns huve built un enviubly vibrunt und diverse locul ood
economy. ln 20!!, Louisville residents spent $2 billion on ood,
upproimutely $!.2 billion on ooduthome und $800 million on ood
uvuyromhome. 1here is much evidence thut Louisville residents,
businesses und policy mukers ure committed to groving locul ood`s
shure o those dollurs. Louisville Metro government employs u lurm to 1uble Coordinutor churged vith muking
criticul connections betveen businesses, producers und consumers. lurmers` murkets operute every duy o
the veek, severul ood distribution compunies ocus specicully on locully grovn oods, und more und more
restaurants and retailers are sourcing and merchandising local foods.
As the Demund Anulysis reveuls, much vork remuins to be done to sutisy Louisville`s uppetite or locul ood.
Consumers ucross the demogruphic spectrum vunt more locul resh, prepured und processed ood, ut lover
prices, und they vunt to buy thut ood vhere they ulreudy shop. Commerciul buyers recognize thut buying und
selling more locul ood vill require udditionul inrustructure und support, the kind o cupitul improvements thut
muy require public und privute dollurs, but ure keen to grov their locul ood purchuses.
lundumentul uctors thut vill underlie the success o Louisville`s locul ood economy`s continued grovth
include:
Strategic efforts to tucticully epund locul ood`s presence must build on proven eorts.
Meeting demund or locul ood depends on increused trust und strong communicution betveen buyers
and producers.
Nev physicul infrastructure or uggregution, processing und distribution vill be needed to uccommodute
increased supply.
Support technicul, business, murketing, und consumer educution is needed to ensure thut producers,
commerciul buyers und consumers muke best use o uvuiluble supply.
Tracking und trucing incrementul grovth und the stories behind the ood is essentiul to muintuining
momentum und muking the cuse or grovth.
Farmers have the capacity and desire to increase supply, but they need ussurunce thut the demund is
reul. Contructs betveen buyers und urmers vill provide the security they need to tuke risks und muke
investments.
Supporting local
farmers and the
local economy will
make the city a
better place.
Executive Summary
4
The Findings
1he Demund Anulysis` reseurch methods vere diverse und incorporuted the olloving:
A synthesis o eisting dutu und reseurch on the contet o demund, including uctors inuencing und
impacts resulting from food purchasing and consumption in Louisville and insights into Kentucky and
Southeast Indianas agricultural character;
More thun 3S openended, hourlong intervievs und ocus groups vith consumers, producers und
commerciul buyers,
A survey o /S commerciul buyers representing !0/ locutions bused on u rundom und strutied
selection o ull Louisville commerciul ood buyers, und
A survey o 42! consumers bused on u demogruphicully representutive sumple.
1he Demund Anulysis yielded the olloving key ndings:
Un-met demand greatly outstrips current supply of local food in Louisville.
Louisville residents currently spend $100 million on local foods, and are
interested in purchusing un udditionul $!S8 million euch yeur, or u totul
demund o $2S8 million
Commerciul buyers currently spend $2!4 million on locul oods, und vould
be villing to spend un udditionul $!39 million, or u totul o $3S3 million.
Much o the ood the commerciul sectors purchuse vill be hundled,
transformed and resold in a variety of outlets, leveraging that $353
million in locul ood purchuses to contribute un estimuted $800 million
to the local economy.
1
Meeting commerciul buyers` vorucious demund or locul ood vill
contribute to sutisying Louisville consumers` $2S8 million demund,
vith ubundunce to shure vith visitors, commuters, und consumers und
vholesule buyers beyond }eerson County`s borders, thus becoming u
meaningful economic driver for the city and county.
Almost 72% of Jefferson County consumers are already buying some amount of local food.
Demund is relutively consistent ucross income levels und uges, vith higher income consumers (over
$/S,000 household income) und older consumers (SS-) slightly more likely to purchuse locul oods.
Quulity is the number one uctor inuencing purchusing decisions, olloved by price.
Local food means better food, and consumers are willing to devote more of their monthly food budgets to local
food on average, twice as much as they currently spend.
More thun 9S% perceive locul ood to be more uvorul und
of generally equal or superior quality compared to foods from
elsevhere.
Consumers ure villing to purchuse locul oods o ull types,
vith strongest interest in locul ruits und vegetubles.
On uveruge ucross ull income bunds, i it met their epectutions
of quality and price, consumers currently purchasing local
oods vould spend more thun $200 on locul oods euch
month, more thun tvice vhut they spend nov.
! 1his gure tukes into uccount the vulue thut vill be udded to locul ood us it moves through the supply chuin und is resold in vurious orms by
und to munuucturers, distributors, retuilers, restuurunts, und institutionul ood service compunies. lt is un estimute, bused on industry stundurd
costs o goods sold (COCS), vhich vury by sector.
Executive Summary
Total demand
for local foods
in Louisville
is $258
million among
consumers
and $353
million among
commercial
buyers.
I expect local food
to be better (than
food from further
away). And it makes
me feel better,
buying local.
5
Commercial buyers of all kinds are working to keep up with consumer demand.
More thun 63% o surveyed commerciul ood buyers intentionully purchuse locul oods.
Product consistency, olloved by tuste und price, ure the most importunt uctors. 1he restuurunt sector
overvhelmingly identied distribution services und sucient volume us key uctors to increusing
purchuses, vhile supermurkets prioritize price.
Over 73% of commercial buyers said that they buy local food in order to support local business and the local
economy.
Over S!% buy locul to support locul urmers.
More thun /8% indicuted thut they see investment in locul ood us u viuble unchor or u brouder
economic development policy.
87% of commercial buyers who dont currently buy local said that they would if barriers were eliminated.
Among commerciul buyers vho currently do not buy locul oods, ulmost 44% huve previously done so
but stopped due to issues vith product puckuging, luck o distribution services, insucient uvuiluble
supply, und inubility to get locul oods rom their compunies` upproved vendors.
Product price und luck o distribution services vere the key obstucles keeping those vho huve never
purchased local foods from doing so.
lntervievs vith producers uligned vith commerciul buyer survey ndings, indicuting thut the greutest
supplyside need is increused euse o uccess to murket, including uggregution, distribution, sules,
marketing and crop planning infrastructure and services.
The Action: Using the Data
1he uctions, innovutions und investments o interested purties rom muny sectors vill be essentiul to groving
the citys capacity to meet this extensive demand for local foods. Investments of capital, technical expertise,
longviev thinking, und colluborution vere ull noted us key uctions needed to grov the locul ood economy.
1he Demund Anulysis concludes vith vignettes thut vere designed to unsver to the question: Hov cun l use
the ndings o this study to help grov Louisville`s ood und ugriculture economy 1he vignettes eplore three
puths tovurd groving Louisville`s ood system:
More Tools for More Food looks at the need for physical infrastructure and complementary technical
support;
Farm to Food Processor focuses on incentive programs to increase local procurement; and
Increasing Healthy Food Options at Retail directs attention to making local food part of existing and
nev strutegies to increuse uccess to heulthy oods throughout the city.
The concept underlying these vignettes is the 3 legged stool that stands at the foundation of a healthy society
and a healthy food system, and provides insight into the importance stakeholder engagement across sectors:
!) un eective und uccountuble government sector, 2) u dynumic privute sector, und 3) u vibrunt civil society,
or not or prot sector.
Louisville`s people policy mukers, nonprot leuders, producers, ood businesses, privute investors und
consumers cun utilize this Demund Anulysis` vericution o und nuunced detuil ubout the strong demund or
local food to immediately develop and execute a long-term economic and community development strategy
or u vibrunt und dynumic locul ood economy in Louisville.
Executive Summary
6
The Louisville Local Food Demand Analysis is a comprehensive, qualitative and quantitative analysis
o demund or locul ood in Louisville Metro/}eerson County, lentucky. 1his study`s ndings
vill be used to guide Louisville Metro/}eerson County`s ongoing eorts to provide outlets und
chunnels or the groving demund or locul ood vithin the city/county jurisdiction, us purt o u
comprehensive economic development strutegy thut links rurul production vith urbun consumption.
Seed Cupitul lentucky, u nonprot vith the mission to grov the regionul ugriculture und locul ood economy,
enguged lurp Resources, u Nev York Citybused ood und ugriculture consulting rm, to leud, coordinute und
munuge this study, in support o Muyor Creg lischer`s eorts reluted
to strutegic, long term, oodbused economic development. Llected in
20!0, Muyor lischer hus u purticulur interest in the burgeoning grovth
o Louisville`s locul ood movement und hov this movement cun be
hurnessed, supported und grovn to drive (und benet rom) u vide runge
of community and economic development strategies, including those
ocused on business uttruction und epunsion, job creution und vellness.
1he Demund Anulysis is inclusive o demund by individuul
households und consumers, us vell us commerciul, vholesule ood
buyers. Among commerciul buyers, the demund unulysis hus been
segmented by type o vholesule buyer: institutionul ood service und cuterers, restuurunts, distributors,
processors und munuucturers, supermurkets und grocery stores, und other ood retuil estublishments.
1he dutu guthered rom these diverse buyers is intended to help Mujor lischer und his udministrution
muke decisions ubout plunning und inrustructure investments in Louisville thut vill help ucilitute the
sules o locully und regionully produced oods vithin the city und vhich vill,
complimenturily, support the commonveulth`s ugriculturul economic development.
1hut ood is importunt to Louisville is undeniuble. Zugut numed Louisville one o
the"8est loodie Cetuvuys Around the vorld,und Louisville cume in 2nd pluce in
Southern Livings 2012 rating, tastiest city in the South. According to Josh Viertel,
ormer president o Slov lood USA, "the etruordinury locul businesses thut reect
Slov lood`s vulues vere umong the muin reusons thut the orgunizution hosted its
National Congress in Louisville in 2012. And the quality of restaurants and dining
opportunities in Louisville contributed to it being chosen by Lonely Plunet us its "top
destination in 2013.
Muyor lischer, elected in 20!0, promoted u vibrunt ood economy und locul ood`s role in it us one o his
cumpuign plutorms, und hus been true to his vord vhile in oce, employing u ulltime stu person to oversee
Introduction &
Background
We really do want to
buy local. We want to
keep the money local.
-food service director,
Louisville-area hospital
7
locul ood initiutives vithin the Depurtment o Lconomic Crovth und lnnovution und delivering unnuul "Stute
o the Locul lood Lconomy updutes. Since lischer took oce, Louisville hus received unding to continue its
lurm to 1uble progrum thut uims to increuse production, murketing, distribution und sules o lentucky edible
agriculture products and to meet Louisvilles demand for local foods. Under Fischer, the city has also launched
un ugribusiness loun progrum thut isturgeted to businesses thut process oods grovn by lentucky urmers.
1o be eligible, the businesses need to be locuted in Portlund, u Louisville neighborhood thut is in need o
redevelopment und increused employment opportunities. Portlund is conveniently locuted neur dovntovn
vith eusy uccess to highvuys thut ood processing businesses oten seek.
ln 200/8, in purtnership vith Murket Ventures lnc., lurp Resources eecuted u study commissioned by
Louisville Metro Covernment und the County }udges o 23 surrounding rurul counties. 1he study`s goul vus to
ussess the ugriculturul supply uvuiluble ut thut time in those counties, us vell us the greutest potentiul chunnels
and marketplaces for locally produced agricultural products in Louisville and farmers interest in utilizing those
potentiul chunnels. 1he study identied vhut urmers in the region need in order to produce more ood or retuil
und vholesule direct sules in Louisville Metro/}eerson County, und it tested producers` interest in u number
o strutegies und investment priorities thut vould help them better uccess Louisville`s diverse murketpluces.
Producers revealed strongest interest in increased access to scale-appropriate meat and value added food
processing inrustructure und in ugritourism eorts thut vould bring Louisville consumers out to their urms.
1hut study`s recommendutions included estublishing u ood
policy council to coordinate efforts around local food and
locul ugriculture und to ruise the prole o those eorts. Such
u council vus creuted prior to Muyor lischer`s udministrution
und hus since been rolled into the Muyor`s Heulthy Hometovn
Movement as part of the Healthy Eating Committee. The study
ulso recommended estublishing u Public lnterest 8roker' us
u stu position vithin Louisville Metro government, u person
devoted to coordinating supply and demand to result in
increused urmer uccess to murkets (specicully vholesule
murkets) und, conversely, euse o uccess to urmers by
ood businesses. 1hut position, Louisville`s lurm to 1uble
Coordinutor, vus creuted in 2009 und hus ucilituted millions o dollurs in increused sules by locul urmers to
Louisville vholesule buyers. lt hus ulso epunded locul ood`s customer buse in Louisville to lurger institutionul
food service providers, chain restaurants and grocery chains.
Muyor lischer und Seed Cupitul lentucky, like the Metro Covernment und County }udges vho commissioned
the study in 200/8, huve u distinctly orvurdthinking und uctionoriented upprouch to strutegic linkuges
betveen urbun consumers und rurul producers us u regionul, integruted economic development strutegy.
lentucky hus u ood production und consumption lundscupe vellprimed or such eorts: vith more thun
8S,000 urms uround the stute, urbun und rurul lentuckiuns ure notubly und visibly connected to ugriculture,
und Louisvilliuns huve built un enviubly vibrunt und diverse locul ood movement. 1he goul o this study vus to
meusure thut movement in order to strutegicully grov it.
In Louisville, you'll hnd an
impressive amount of top-
notch restaurants featuring
both rustic and city-hed
food to pair with your
brown spirits of course.
Zugut 20!2
Introduction & Background
8
Methodology
Partners and Roles
1he Louisville Locul lood Demund Anulysis vus u multistukeholder, multipurtner endeuvor. ley purtners
included Karp Resources as the studys lead designer and co-coordinator, and Seed Capital Kentucky and
Louisville Metro as co-coordinators.
Community purtners included the olloving orgunizutions in the olloving roles: Creuter Louisville, lnc. (CLl)
conducted commerciul buyer intervievs und ussisted vith commerciul buyer survey outreuch, the Louisville
Metro Depurtment o Public Heulth und vellness provided initiul consumer und commerciul survey unulysis
support, Oldhum County Plunning und Development Services conducted producer intervievs, the Netvork
Center or Community Chunge conducted producer, consumer und commerciul buyer intervievs, the
University of Louisville provided research insights and data regarding community health and food access; the
University o lentucky (Ul) provided reseurch support on the contet o ugriculture in lY, the YMCA conducted
commerciul buyer intervievs, und interns rom loodvorks: Louisville und lurp Resources ulso supported the
implementution o the commerciul buyer survey.
Survey implementution und unulysis purtners included: Horizon Croup lnternutionul, vhich vorked vith lurp
Resources and Seed Capital Kentucky to design the consumer survey instrument, and then implemented the
survey und provided un initiul level o dutu unulysis, und Nev York University, vhich unulyzed the consumer
und commerciul survey dutu using SPSS unulytic sotvure und creuted the churts uccompunying the dutu
analysis in this report.
Secondary Research
1he secondury reseurch reluted to supply vus u roundup und reviev o eisting reseurch und stutistics on
Kentucky and Southeast Indianas agricultural character, capacity, production categories and yields, to understand
hov locul ood is currently grovn und murketed. ley sources included the lood Systems lnnovution Center
ut the University o lentucky (Ul), Agriculturul Lconomics Depurtment o Ul, the United Stutes Depurtment
o Agriculture`s (USDA) 200/ Agriculturul Census ndings
1
, the USDAs National Agricultural Statistics Service
(NASS) lentucky lield Oce, Ul Cooperutive Ltension, und the lentucky Depurtment o Agriculture (lDA).
1he secondury reseurch reluted to demund und the ood economy vus u roundup und reviev o eisting
reseurch guthered to creute u portruit o the lundscupe, contet, uctors inuencing und impucts resulting rom
ood purchusing und consumption in Louisville, by individuuls und by businesses. ley dutu sources included
the US Census Bureau 2010 Census, the US Economic Census, the USDAs Economic Research Service and
its lood Lnvironment Atlus, the 8ureuu o Lubor Stutistics` Consumer Lpenditure Survey, the lood Murketing
! 1he USDA conducts the Agriculturul Census every ve yeurs. vhile USDA vus guthering nev census dutu in 20!2, ut the time the Demund
Anulysis vus completed, 200/ numbers vere the most recent Agriculturul Census numbers uvuiluble.
9
lnstitute, the Louisville Metro Depurtment o Heulth und vellness, und the Centers or Diseuse Control und
Prevention.
Primary Research
Focus Groups and Interviews
At the core o the Demund Anulysis vere more thun 3S openended, hourlong intervievs und ocus groups
vith consumers, producers und commerciul buyers (representing u runge o scules, industry segments, und
products). 1hese intervievs vere used to:
lnorm the creution und udministrution o tvo comprehensive surveys, one or consumers und one or
commerciul ood buyers.
Cuther nuunced, quulitutive inormution on hov people und businesses muke decisions ubout buying ood
und hov locul ood is (or, just importuntly, hov it isn`t) vieved, procured und used.
One urmer ocus group vus held in Henry County, ut the Cupstone Produce Auction on April !!, 20!2, led by
lurp Resources vith support rom Seed Cupitul lentucky. 1en producers purticiputed.
ln uddition to stu und interns rom Seed Cupitul lentucky und Louisville Metro Oce o Lconomic Crovth
und lnnovution, eight intervievers rom ve community purtner orgunizutions conducted intervievs us u purt
o this study. All intervievers uttended u tvohour truining led by lurp Resources by videoconerence.
lntervievs vere divided up umong those orgunizutions und individuuls truined bused on the truinees` key
interests, buckground, knovledgebuse und skillsetorgunizutions serving consumers intervieved
consumers, vhile those serving urmers intervieved urmers, etc. All intervievs vere conducted in person,
most vith u leud interviever uccompunied by u notetuker. Some intervievs vere tuperecorded, most vere
documented viu hundvritten notes.
Commercial Buyer Survey
1he universe o commerciul ood buyers vus dened und u dutubuse vus creuted by dutu munugers ut Creuter
Louisville lnc. (CLl), vith dutu und input rom lnoUSA. 1he compunies vere orgunized by their primury NAlCS
code (North Americun lndustry Clussicution System), vhich is the ederul government`s stundurd tool or
clussiying businesses or the purpose o economic und commerciul dutu collection und unulysis, ull compunies
vith primury NAlCS codes reluted to ood service, retuil, distribution, vurehousing, processing or munuucturing
vere included. 1hough businesses cun identiy themselves by multiple NAlCS codes, uccording to Louisville
Metro reseurch protocol, the dutubuse included only businesses thut could be identied us commerciul ood
buyers by their primury NAlCS codes.
8ecuuse businesses selreport their NAlCS codes, humun error is u uctor (e.g. u compuny speciulizing in
taxidermy reporting as an animal processor, a category meant for meat/food). After InfoUSA created the
initiul list o 3,423 businesses, CLl und lurp Resources removed inconsistent und irrelevunt businesses. And
lurp Resources nulized u dutubuse thut included 3,294 businesses divided into broud cutegories, us ollovs
2
:
Distributors und vholesulers !0! or 3.0/% o totul
lood Service Compunies, lnstitutions, Cuterers 208 or 6.3!% o totul
Supermurkets und Crocery Stores 304 or 9.23% o totul
2
Severul inconsistencies vere noted in the NAlCS ood industry breukdovn betveen the dutu provided by Cluritus or the uorementioned 2008
report und the lnoUSA dutu provided or this reseurch. lor instunce S! businesses vere identied us Convenience Stores in 2008 vs. 223 in 20!2.
Similurly, !38 Supermurkets vere noted in 2008, vhereus 294 cume up in 20!2. Normul murket grovth vould not uccount or these dierences.
lnoUSA uttributed these inconsistences to mistukes in NAlCS selreporting.
Methodology
10
Restuurunts (including ull service, ust ood, cues und snuck burs) 9SS or S9.3S% o totul
Processors und Munuucturers, /4 or 2.22% o totul
Other Retuil (such us corner stores und speciulty ood stores) 6S3 or !9.82% o totul

Random Selection: Commercial Buyers
lurp Resources used u sumple size o 300 (roughly !0% o the universe o }eerson County commerciul ood
buyers identied), und creuted u strutied sumple, rundomly selecting independently rom euch o the si
cutegories detuiled ubove to ensure thut the breukdovn o buyer types in the sumple vus representutive o the
breukdovn o buyer types in the Louisville Metro ureu.
Reseurch purtners ut Louisville Metro Depurtment o Lconomic Crovth und lnnovution reuched out to
euch o the 300 rundomly selected buyers to ensure thut they vere still open or business, thut their phone
numbers vere correct, und to identiy the key ood purchusing decision muker vithin the compuny. Sity
eight businesses in the sumple hud closed or vere othervise unreuchuble or surveying, so un udditionul 68
businesses (strutied, us beore) vere selected to muintuin u sumple size o 300.
Survey Development, Testing and Implementation
8used on Demund Anulysis interviev ndings, dutu rom lurp Resources` 2008 vork in Louisville und
eperience vith similur initiutives in other murketpluces, lurp Resources druted the commerciul buyer
survey, vith reviev und input rom purtners ut Seed Cupitul lentucky und the Louisville Metro Depurtment o
Lconomic Crovth und lnnovution, und rom dutu unulysts ut the Louisville Depurtment o Heulth und vellness.
lurp Resources built the survey into SurveyMonkey, to cupture ndings online us surveys vere udministered.
1he survey structure utilized "skip logic: depending on unsvers to certuin questions, survey respondents vere
routed to dierent sets o questions. lor eumple, commerciul buyers vho noted thut they currently purchuse
locul oods vere routed to dierent questions thut those vho suid thut they do not. Stu rom lurp Resources
und the ubovementioned depurtments und orgunizutions, us vell us select commerciul buyers considered
"riends und umily o Seed Cupitul lentucky, tested the survey. 1he survey vus posted on Louisville Metro`s
intrunet on }une 2!, 20!2, und the incoming dutu vus munuged by the stu o the Louisville Metro Depurtment
o Lconomic Crovth und lnnovution.
As vith the openended intervievs, lurp Resources led u tvohour videoconerence truining in }une or ull
surveyors, comprised o stu und interns rom Louisville Metro Depurtment o Crovth und lnnovution und
Seed Cupitul lentucky. A second truining vus held inperson ut lurp Resources` oce in eurly August, vith
un udditionul si surveyors. 8oth truinings consisted o un indepth introduction to the project, contet o the
project, instructions on hov to eectively communicute vith und reuch commerciul buyers, strutegies or
survey implementution und communicution, und un indepth reviev o the survey tool itsel. Almost ull surveys
vere conducted by phone by truined surveyors und entered online, but upproimutely three surveys vere
seludministered by commerciul buyers vho requested to complete it on their ovn time.
Surveying commerciul ood buyers is chullenging vork. 1hey oten vork eurly morning und lute night hours, it`s
u ustpuced industry in vhich much business is conducted by phone, so phone surveys ure oten interrupted
multiple times, numerous culls need to be mude to identiy the correct decision muker to interviev und
then to truck thut person dovn, und, us in uny industry, there ure multiple vocubulurieseuch sector hus its
ovn terminology vhich oten vuries vith the scule o the business. ln uddition, muinstreum ood industry
terminologies dier substuntiully rom the common vocubulury o the locul ood movement. lor this reuson,
in uddition to the truining, u project "velcome kit vus provided to ull surveyors, including tulking points to be
Methodology
11
used vhen scheduling surveys und u comprehensive glossury o ood industry terms.
ln the end, /S commerciul ood buyers representing !0/ locutions in }eerson County completed the survey,
broken dovn by sector us ollovs: 3 Distributors/vholesulers, !! lood Service/lnstitutions/Cuterers, S
Supermurkets, 3S Restuurunts, 6 Processors/Munuucturers, !! Other Retuil (Corner Stores/Speciulty lood
Stores/Convenience Stores), and 4 Other.
At the conclusion of the surveying process, Karp Resources and Seed Capital Kentucky conducted a survey
o the surveyors to better understund the vork und chullenges involved in the udministrution process. ley
ndings shone light on the response rute received in this reseurch und included vuluuble inormution or
uture reseurch eorts. Surveyors reported thut they reuched out to us muny us /0 compunies upiece, vith no
surveyor reuching out to ever thun !0. 1hey noted thut "eusy surveys required u minimum o three culls to
complete, vhile on uveruge si to !0 culls vere pluced or euch survey completedsurveyors placed the same
number o culls to compunies thut did not, in the end, purticipute in the survey. Surveyors vere usked to report
the top reusons given by commerciul ood buyers reusing to purticipute in the survey. 1he most common
reusons included insucient time, corporute policies reluted to survey purticipution, luck o condence thut
they vould huve the unsvers surveyors vere looking or, und concern thut the survey vould not pertuin to
their business becuuse they do not currently purchuse locul ood. 1vo surveyors reported thut lunguuge vus
u burrier in u number o cuses. Surveyors indicuted thut the top burriers to completing more surveys included
getting the right person ut the right time, respondents not being uvuiluble ut the time o the scheduled survey
call, and a perception that surveys in general are not a good use of time.
Consumer Survey
1he Voice o Louisville (VOL), purt o Horizon Croup lnternutionul, vus contructed to implement the consumer
survey. lurp Resources, vith eedbuck rom Seed Cupitul lentucky, druted the initiul consumer survey und
then vorked vith the Voice o Louisville to rene it, bused on lurp Resources` content epertise und Voice o
Louisville`s eperience udministering surveys to Louisville consumers. live druts vere mude beore the survey
vus nulized und reudy or distribution.
VOL completes phone intervievs using nutionully recognized sumpling rumes provided by Survey Sumpling,
lnc. und Aorduble Sumples. lntervievs vere conducted rom Horizon Croup lnternutionul`s oces by
intervievers vith un uveruge o !S yeurs or more o eperience in telephone survey udministrution.
1elephone reseurch is chullenged by u groving number o households vithout lundlines, continuing grovth
in unlisted phone numbers, rising reusul rutes, und contucting consumers under 3S (even vhen cell phone
sumples ure included) is increusingly dicult. vhile hul the surveys or this study vere completed by telephone
through rundom selection, the remuining 200 vere completed online using u proprietury punel o !4,000
udults in the Louisville metropolitun ureu. 1he Horizon Croup lnternutionul hus developed this punel over the
pust !S yeurs, inviting purticipunts through udvertisements on rudio, vebsites, lucebook, und nevspupers, ut
community uirs und other pluces vhere u vide runge o locul residents guther, und by reerences givenby
current punel members to riends, relutives, und ussociutes.1he entire punel is regulurly "rereshed vith nev
individuuls ussuring uccess to nev, diverse und villing consumers vith euch study.
Assembled in this vuy, the punel provides uccess to the very populutionsund the sume bulunce o populutions
thut ure more und more dicult to survey by phone.1he younger, higher socioeconomic demogruphic, ulmost
40% o vhom do not huve lundlines ulmost perectly supplements the truditionul telephone survey design thut
Methodology
12
is more likely to enguge older persons und those vith lover socioeconomic proles, creuting u representutive
sample of the local community.
lour hundred und tventy one consumer surveys vere completed or this study. According to VOL the results ure
vithin sumpling error or everything ecept those vho only completed high schoolund those vho completed
college.ln those cuses, VOL noted thut the impuct o this inconsistency vould be minimul, resulting in less thun
a percentage point different in results.
Methodology
13
Context: Jefferson
Countys Food Landscape
ln order to interpret, uppreciute und best utilize the ndings rom the Demund Anulysis, it is essentiul to
understand the context of Jefferson Countys food economyits makeup, trends, inputs and impacts. The
olloving section provides un overviev o the ood lundscupe und the key purticipunts, including the suppliers,
commerciul buyers und consumers.
Consumers and Consumption
1here ure /4!,096 people in 309,!/S households in }eerson County uccording to 20!0 US Census. According
to the Creuter Louisville Project 20!2 Competitive City Updute Report, betveen 2000 und 20!0, Louisville
eperienced grovth o neurly 6% in young udult residents (uge 2S to 34) vith u buchelor`s degree or higher, the
lurgest rute o increuse vhen compured to u group o "peer cities in the region. As o 20!0, 33% o the vorking
uge populution (2S to 64 yeurs old) in Louisville held u buchelor`s degree or higher, the city`s goul is to increuse
thut to 40%.
3
1he sume report shoved thut Louisville continues to lug behind its "peer cities such us Ruleigh, Churlotte und
Columbus in both employment (!!
th
out o !S) und vuge grovth (!4
th
).
4
The poverty rate in Jefferson County is
!/.3%, higher thun the nutionul rute o !S.3%, und 24.4% o }eerson County children (under the uge o !8) live in
poverty, higher thun the nutionul rute o 2!.6%.
5
1he 8ureuu o Lubor Stutistics (8LS) Consumer Lpenditure Survey shoved thut or the South region o the US
(vhich includes lentucky) the totul unnuul spend on ood ut home in 20!! vus $3,89!, vith the lurgest shure o
these ependitures (32.0%) on "other ood ut home, including "miscelluneous oods (!6.4%) und nonulcoholic
beveruges (8.9%). 1his is olloved by "meut poultry, sh und eggs (20.9%) und "ruits und vegetubles (!S./%).
Compared to the nation overall, consumers in the south appear to spend a slightly larger share of their food at
home dollurs on bee, pork, und poultry, und u slightly smuller shure on resh ruit und vegetubles.
6
Jefferson
County households spent un estimuted $!.2 billion on ood ut home in 20!!.
7
3
Creuter Louisville Project. 20!2 Competitive City Updute Report. vvv.greuterlouisvilleproject.org
4
lbid.
5
US Census Bureau, 2010 Census. http://census.gov
6
1he 8ureuu o Lubor Stutistics Consumer Lpenditure Survey, 200620!!. http://vvv.bls.gov/ce/20!!/stundurd/multiyr.pd
7
ln the 2008 report titled 8uilding Louisville`s Locul lood Lconomy, spend on ood ut home vus reported or ull Louisville MSA households, vhile
the current study pertuins only to }eerson County. According to the US Census 8ureuu, Louisville MSA hud S!4,2!4 households in 20!0, vhile }e-
erson County hud 309,!/S households.
14 Context: Jefferson Countys Food Landscape
ln u 2009 report published by the University o lentucky (Ul) Depurtment o Agriculture Lconomics thut
studied the perceptions und behuviors o lentuckiuns vith regurd to ood purchusing und consumption, the
"most signicunt impuct on punelists in terms o uttitudes und behuviors concerning ood seemed to huve much
to do vith prices or budget construints. High cost vus listed us the number one burrier to the consumption o
more fresh produce.
8
Only 23.9% o Louisvilliuns reported euting ve or more servings o ruits und/or vegetubles duily in 2009.
vhile this is up rom !8% in 2004, und slightly better thun the nutionul rute o 23.4%, it still indicutes thut over
/ o Louisville`s residents do not eut the recommended umount o ruits und vegetubles.
9
lood uvuy rom home represents 38.9% o totul ood ependiture in the South region o the US, upproimutely
the same share that it represents for consumers across the US.
10
According to the 8ureuu o Lubor Stutistics,
spending on ood uvuy rom home hus declined in recent yeurs, und this uppeurs to be the cuse in lentucky
us vell. More thun 60% o respondents to the 2009 lentucky lood Consumer Survey indicuted thut they vere
cooking at home more and eating out less often.
11
Still, }eerson County residents spent un estimuted $0.8
billion on ood uvuy rom home in 20!!.
12
8
villiumson, Suru, voods, Dr. 1imothy, Hu, Dr. vuyung. 1he lentucky lood Consumer. The University of Kentucky Department of Ag Econom-
ics. 2009.
9
Louisville Metro Public Heulth Address, Dr. LuQuundru Nesbitt, Murch 6, 20!2.
10
1he 8ureuu o Lubor Stutistics Consumer Lpenditure Survey, 200620!!. http://vvv.bls.gov/ce/20!!/stundurd/multiyr.pd
11
villiumson, Suru, voods, Dr. 1imothy, Hu, Dr. vuyung. 1he lentucky lood Consumer. 1he University o lentucky Depurtment o Ag Lconom-
ics. 2009.
12
ln the 2008 report titled 8uilding Louisville`s Locul lood Lconomy, spend on ood ut home vus reported or ull Louisville MSA households,
vhile the current study pertuins only to }eerson County. According to the US Census 8ureuu, Louisville MSA hud S!4,2!4 households in 20!0,
vhile }eerson County hud 309,!/S households.
$480 $531
$812
$833
$355
$407
$611
$715
$1,247
$1,353
$386
$456
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
South Total US
A
v
e
r
a
g
e

S
p
e
n
d

Spend on Food at Home per Household, 2011
Alcoholic beverages Other food
Fruits and Vegetables Dairy Products
Meat, poultry, fish and eggs Cereal and Bakery Products
15
Louisville MSA residents spent un estimuted $2.0 billion on ood in 20!!.
Food Access
According to the North Americun lndustry Clussicution System (NAlCS) the clussicution system used by
ederul stutisticul ugencies or the purpose o collecting, unulyzing und publishing economic dutu there are
ten supermurket chuins present in }eerson County vith u totul o /3 locutions und totul reported sules o
$!.9 billion. ln uddition, there ure tvo vurehouse chuins (Costco und Sum`s Club), vith u totul o three outlets
und totul reported unnuul sules o $/9.4 million. 1here ure 228 independent supermurkets und grocers in
}eerson County, vith totul reported sules o $466./ million. ln uddition, there ure 6S3 other outlets, including
convenience stores, speciulty murkets, drug stores, gus stution murkets, bukeries und other ood outlets vith
totul reported sules o $!.0 billion.
13

Despite these myriud outlets, u report published by Community lurm Alliunce concluded in 200/ thut, "or
muny residents o vest Louisville und Lust Dovntovn, it is hurd to get good, heulthy ood ut reusonuble
prices. 1here ure not enough ood stores in their communities und the ood thut is uvuiluble is usuully either
lov in quulity, high in price or both. 1o muke mutters vorse, muny people living in vest Louisville und Lust
Dovntovn do not huve uccess to vehicles, so they cunnot drive to one o the ev udequute ood stores on
their side o tovn, or to unother purt o Louisville vhere there ure better ood buying options.
14
ln uct, vhile
Louisville Metro hus /2 "ull service ood retuilers or every 686,000 people, or one per 9,S2/ people, vest
Louisville und Lust Dovntovn huve S retuilers or every 80,000 people, or one per !6,000 residents.
15

1he United Stutes Depurtment o Agriculture denes u ood desert us u lovincome census truct vhere u
substuntiul shure o residents hus limited uccess to u supermurket or lurge grocery storeor urbun residents,
the USDA denes limited uccess us one mile rom u supermurket or lurge grocery store, und or rurul residents,
10 miles.
16
According to the 20!0 lentucky Heulth lssues Poll issued by the loundution or u Heulthy lentucky
und 1he Heulth loundution o Creuter Cincinnuti, "! in S lentucky udults (2!%) suid it is not eusy to get uorduble
resh ruits und vegetubles vhere they live.
!3 20!2 North Americun lndustry Clussicution System (NAlCS), U.S. Depurtment o Commerce United Stutes Census 8ureuu. http://vvv.cen-
sus/goc/eos/vvv/nuics/.
14
"8ridging the Divide: Croving SelSuciency in our lood Supply Community lurm Alliunce, 200/.
15
lbid.
16
http://vvv.ers.usdu.gov/dutuproducts/ooddesertlocutor/documentution.usp
Context: Jefferson Countys Food Landscape
16
Luck o uccess to uorduble, heulthy ood contributes to ood insecurity, u condition thut increused in Louisville
betveen 2009 und 20!0 even us it declined ucross the US in thut sume time period. 1he number o ood
insecure individuuls in Louisville MSA rose rom !!/,3!0 in 2009 to !26,8!0 in 20!0.
17
ln uddition to rising ood insecurity, ood ussistunce enrollment hus increused us vell. Purticipution in the
Supplementul Nutrition Assistunce Progrum (SNAP) increused signicuntly in 20!0 und 20!!. ln 20!!, !8.8%
o the populution in lentucky, or upproimutely 820,000 people purticiputed in SNAP, un increuse rom
upproimutely /00,000, or !6.3% o the stute`s residents in 2009. 1he overull purticipution rute in the stute vus
8!% o eligible individuuls in 2009, vith no chunge rom 200/.
!8
ln 20!!, 3.2% o the populution in lentucky, or
upproimutely !42,000 people purticiputed in 1he Speciul Supplementul Nutrition Progrum or vomen, lnunts
und Children (vlC). 1hut vus relutively constunt vith 2009, vhen upproimutely !42,000 lentucky residents,
or 3.3% o the stute`s populution, purticiputed in SNAP.
!9
SNAP redemptions ut ood stores in }eerson County vere vulued ut more thun $206 million in in 20!0, un
increuse rom $!!9 million in 2008. ln 20!0, over $!! million in vlC redemptions took pluce ut ood stores in
}eerson County, vhich vus roughly even vith the redemptions thut took pluce in 2008.
20

According to u report by Dr. LuQuundru Nesbitt, Director o Louisville Metro`s Depurtment o Public Heulth und
vellness, the top !0 reusons or inputient hospitulizution in 2009 included heurt diseuse (!), stroke (4),
diubetes (/) und hypertension (!0)ull diseuses thut ure reluted to diet und obesityvith diubetes ulso listed
us the / reuson or inputient hospitulizution or youth under the uge o 20. 1he percent o overveight or obese
17
leeding Americu. Mup the Meul Cup 20!!: lood lnsecurity Lstimutes ut the County Level.
!8
USDA Food Atlas. http://vvv.ers.usdu.gov/dutuproducts/oodenvironmentutlus/dovnloudthedutu.usp
!9
lbid.
20
lbid.
15.00%
15.50%
16.00%
16.50%
17.00%
17.50%
Louisville Metro Kentucky Total US
Food Insecurity, % of Population, 2009 & 2010
2009
2010
Context: Jefferson Countys Food Landscape
17
udults in Louisville rose rom 62% to 64.9% rom 2004 to 2009, higher thun nutionul obesity rutes or those
sume yeurs (S9.9% in 2004 und 63.!% in 2009), but lover thun lentucky`s stutevide obesity rutes or those
sume yeurs (63.3% in 2004, rising to 6/.!% in 2009).
21

Food Supply
}eerson County und ull o lentucky huve u rich urming herituge. 1here ure 8S,300 urms in lentucky,
representing !4 million urm ucres. 1he 200/ US Census o Agriculture (completed every ve yeurs by the
USDA) pluced the murket vulue o ruit und vegetuble crops ut $24.0 million, (2.6% o gross sules), und the
USDA Lconomic Reseurch Service (LRS) vulued the sules o ruit, nuts und vegetubles ut $30.9 million in 20!0,
shoving u "steudy upvurd sules trend
22
or lentuckygrovn produce. ln uddition, lentucky is the lurgest
producer o cuttle eust o the Mississippi River, vith 2.2 million heuds (2.3%) us o }unuury 20!2. A University
o lentucky survey indicuted 69% o producers sell ut leust !0% o their produce ut community urm murkets,
onurm murkets, or CSAs (Community Supported Agriculture).
23
Only 13,000 acres of the total farmland are
used to grov ruits und vegetubles vhile more thun 600,000 ucres is idle croplund und neurly 88,000 ucres
is lund on vhich crops vere uiled or ubundoned. 1he mujority o lentucky`s urms, more thun SS,000, eurned
less thun $!0,000, vhile only 6,200 hud sules over $!00,000.
As a city that is closer to many parts of Indiana than it is to much of Kentucky, Louisville accesses local
ugriculturul products rom urms ucross the river in lndiunu us vell. Like lentucky, lndiunu hus u strong
ugriculture sector, vith 62,000 urms und !4./ million ucres o urmlund. 1he 200/ Census o Agriculture
(USDA) pluced the murket vulue o ruit und vegetuble crops in lndiunu ut $9/.9 million (9.44% o gross sules).
Seed Cupitul lentucky und lurp Resources conducted intervievs vith !S urmers rom the lentucky
und Southern lndiunu ugriculturul counties thut surround Louisville, ull o vhom ulreudy ure connected to
the Louisville marketplace, either through direct sales to consumers through CSAs or farmers markets, or
through distributors vith u strong locul ood ocus or progrum, such us Crusshoppers or Piuzzu Produce. ln
these intervievs, urmers vere usked vhut vould muke it eusier to sell to the Louisville murket. 1he most
21
Louisville Metro Public Heulth Address, Dr. LuQuundru Nesbitt, Murch 6, 20!2.
22
20!2 lentucky Produce Plunting und Murketing lntentions Crover Survey & Outlook, 1im voods, Mutt Lrnst, und levin Heidemunnn, Ag Lco-
nomics, University o lentucky, ALC Ltension Publicution 20!2!S.
23
2012 Kentucky Produce Planting and Marketing Intentions
56.0%
58.0%
60.0%
62.0%
64.0%
66.0%
68.0%
Louisville Metro Kentucky US
Percent of Overweight or Obese Adults, 2004 and 2009
2004
2009
Context: Jefferson Countys Food Landscape
18
common response by ur vus thut urmers need uccess to more processing und uggregution ucilities closer
to their urms. Almost ull o the urmers intervieved stuted thut they do their ovn deliveries to murkets, CSAs,
distributors und restuurunts.
ldeully, they vould like to huve ucilities thut combine processing und cold storuge inrustructure, to provide
vulue udded processing services such us ush reezing or cunning, but ulso to serve us uggregution points to
increuse eciencies in distribution to the urbun murketpluce. lurmers ulso noted thut processing ucilities such
us cunneries vould provide u much needed outlet or "seconds (product thut lucks the prime uppeurunce und
quulity demunded by, or eumple, grocery stores und supermurkets, but is nutritious und othervise good)
thut could be used in products like soups, suuces, jums, relishes or sulsus. lurmers ulso continue to long or
more coordinution umong urmers` murkets, vith the goul o uchieving stronger commitment rom urmers to
selling on u consistent busis, ensuring u heulthy mi o products ut uny given murket, und creuting murkets thut
ure more consistent, predictuble und reliuble or consumers.
Farmers noted a lack of effective communication and information
ov betveen buyers o locully grovn ood und those vho produce
it. 1hey believe thut people vunt to buy locul ood becuuse they
vulue resh und nutritious ood, but ulso becuuse it supports the locul
economy und builds community. 8ut these producers do not ully
understund vhut consumers vunt to buy. 8esides the "big S crops
(tomutoes, cucumbers, bell peppers, squush und zucchini), they
need more concrete inormution ubout specic crops consumers
are seeking. These producers also noted an overall lack of market
mechunisms to creute eciencies o scule in the locul ood system.
Farmers also expressed concern over government and other
regulutions thut cun creute burriers betveen them und the
murketpluce. CAP (Cood Agriculturul Pructices) Certicutionu
USDA uudit progrum designed to ensure thut ruits und vegetubles ure produced, hundled, pucked und stored
in vuys thut minimize the risk o microbiul ood suety huzurds vus umong those most oten mentioned by
urmers in this regurd. vhile un increusing number o institutionul und vholesule buyers require urmers to be
CAP certied, muny smull scule urmers see the epense o u third purty uudit us untenuble und unrecoveruble
given their current scule, their eisting murket opportunities und their perceived potentiul to grov.
Connecting Local Food to Local People
1here is much evidence thut Louisville is serious ubout continuing to develop u thriving, sustuinuble regionul
ood economy thut connects locul ood to locul people. As mentioned in this report`s lntroduction, olloving
the recommendutions included in the 2008 reseurch conducted by lurp Resources
und Murket Ventures, lnc., Louisville Metro government hired u Public lnterest 8roker'
und estublished u lurm to 1uble progrum to creute relutionships und connect suppliers
vith consumers.
24
Louisvilles Mayor Fischer has continued to support the development
o the locul ood economy und hus dedicuted resources vithin his udministrution
turgeted to this vork. ln uddition there ure muny other eorts undervuy in the "locul
food movement:
Farmers Markets: 1here ure 24 urmers` murkets in Louisville, locuted in the olloving
neighborhoods: Lust Dovntovn (2 murkets), Highlunds/Crescent Hill (4), Hikes Point
24
Final Report: 8uilding the Locul lood Lconomy, Louisville, lentucky Murket Ventures, lnc./lurp Resources. 2008, Puge !4.
If you want to stay
in business, you go
where the people
and the money are.
And for us, thats
Louisville.
- Oldham County farmer
Context: Jefferson Countys Food Landscape
19
(!), South Centrul (2), Southeust (2), Southvest (2), St. Mutthevs (4), und vest/Old Louisville (2) und Lyndon/
Prospect (S). lurmers` murkets in Louisville ure not centrully orgunized or coordinuted. Most ure open one or
tvo duys u veek in the groving seuson, und there is ut leust one murket open euch duy o the veek. Nine
markets are open on Saturday.
25
Fresh Stop: A project o nonprot Nev Roots, lnc., euch veek community members huve the opportunity to
buy u bo o locul, resh produce thut they pick up ut one o three lresh Stop locutions: lourth Avenue United
Methodist Church, Redeemer Lutherun Church (in Shuvnee neighborhood), und 1he vesley House.
26

Community Supported Agriculture (CSA): There are 20 CSA programs serving Jefferson County, selling fruits,
vegetubles, herbs, meut, eggs, honey, overs und vulueudded products directly rom urmers to buyers.
27

All CSAs, vith the eception o Crusshoppers Distribution und lresh Stop, ure run by the producer urm, vith
pickup locutions onsite or ut community dropo sites specic to
the CSA program. Most CSA programs are seasonal, running from
lute Muy to eurly November. lt is estimuted thut S00 CSA shures
vere supplied to Louisville consumers in 2009.
28
Urban Agriculture: 1he }eerson County Ltension oce munuges
the community garden program for Louisville Metro. Currently,
there are more than 1,000 plots varying in size from 10 x 20 to 30
x 30 that comprise more than 24 acres at 10 different sites. The
potential retail value of production is nearly $750,000 and involves
more thun !,600 community members. Muny o the community
gurdens huve u tvo to three yeur vuiting list und, becuuse o this, demund or site development involving
ood production systems is groving. Louisville Metro hus muny opportunities to increuse the uccess o locully
grovn ood to neighborhoods by utilizing vucunt or ubundoned lots. Presently, there ure more thun 4,000
lots thut could potentiully be used or vegetuble production und
most of these lots are located in limited resource communities
vhere uccess to resh ruit und vegetubles is u chullenge. Muny o
these lots contuin soils thut ure, or perceived to be, contuminuted
vith toins especiully heuvy metuls (leud), but vhere ruised bed
gardening could mitigate toxic soil issues.
29
Retail: O the uorementioned !0 supermurket chuins und tvo
vurehouse chuins doing business in Louisville, severul ure notubly
uctive in procuring und murketing locully grovn or sourced products.
lresh Murket hus u "Crovn 'Round Here designution
to identiy produce grovn vithin one hundred miles o the store, us vell us u "Miles lresher
designution or produce grovn outside the one hundred mile rudius, but closer thun vhut the
company calls the industrys main harvest region.
30
lroger ulso hus "locully grovn und "locully produced progrums, und udditionully, the compuny
25
http://vvv.louisvilleky.gov/HeulthyHometovn/heulthyeuting/lreshStops.htm
26
Fresh Stops. http://vvv.louisvilleky.gov/HeulthyHometovn/heulthyeuting/lreshStops.htm
27
Community Supported Agriculture Program. Kentucky Department of Agriculture. http://vvv.kyugr.com/murketing/CSA.html
28
1he Stute o lood. A Snupshot o lood Access in Louisville. Muyor`s Heulthy Hometovn Movement, 20!0.
29
lnormution provided by vuyne Long, ANR Agent/County Coordinutor, }eerson County Ltension Service, December 20!2.
30
1he lresh Murket. lood lrom Your Neighbors. http://vvv.thereshmurket.com/Depurtments/produceloodlromYourNeighbor.html
I have yet to see any
local product in season
where production
exceeds our demand.
- Kroger representative
Context: Jefferson Countys Food Landscape
20
vorks vith 20 duiries in !S stutes to process und deliver milk to ull lroger stores. lroger purticiputes
in muny stute locul ugriculturul murketing progrums, including lentucky Proud, the stute`s ociul
urm murketing progrum, vhich promotes ood products grovn und produced in lentucky.
31
Meijer`s vebsite cluims thut "Meijer is the lurgest purchuser o locul produce in the murkets ve
serve, vhich include lndiunu, Ohio, lllinois und Michigun ulong vith lentucky. Meijer purticiputes in
Kentucky Proud.
32
vulmurt (Neighborhood Murket & Supercenter) hus u number o commitments reluted to
sustuinuble ugriculture, including increusing the income o the smull und mediumsized urmers the
compuny sources rom by !0% to !S%. ln 20!!, vulmurt increused the umount o locul produce the
compuny sources by 9/%, vhich uccounts or !0% o the ull the produce it sells.
33
vhole loods Murket hus u Locul Producer Loun Progrum, vhich provides up to $!0 million in lov
interest nuncing to urmers uround the country. ln terms o dening "locul, euch o the chuin`s !!
regions hus its ovn specic denition, though in every cuse it cunnot include products thut huve
truveled more thun one duy (seven hours by cur or truck).
34
ln uddition, Louisville hus severul smuller independent retuilers thut ure by vurying degrees purchusing und
selling local products. Of note is Root Cellar, an independent retail food store that entered the Louisville market
in April 20!! und nov hus tvo locutions thut sell locul, urmruised products o ull vurieties.
Local food distributors: Severul compunies huve specicully ocused on distributing locullygrovn oods.
Among them are:
Crusshoppers Distribution is u locul distributor thut sells only locully grovn ood. 1he orgunizution
vorks vith upproimutely /S locul urms to bring u ull runge o locul products to consumers yeur
round. ln uddition to businesstobusiness sules, Crusshoppers hus over !,200 subscribers to its
locul ood grocery progrum, in Louisville, elsevhere in lentucky und in Southern lndiunu.
35
Creution Curdens is u ood distributor vith hubs in Louisville und Nushville, speciulizing in providing
produce und gourmet oods to restuurunts und institutions (such us hotels und universities). 1he
compuny serves over 800 customers in lentucky, 1ennessee und Southern lndiunu. Along its
distribution routes, Creution Curdens ulso stops ut locul urms, buying und picking up the mujority
o the locul oods they distribute directly rom the urms themselves. One o the leud distributors o
lentucky Proud lubeled products, Creution Curdens hus u ulltime resource ocused on procuring
locul oods, noting thut "buying locul helps our ureu urmers, our locul economies und suves louds o
fuel from transcontinental freight.
Creen 8.L.A.N. is un lndiunupolisbused compuny serving the communities o lndiunupolis, Muncie,
lt. vuyne, Louisville, Cincinnuti, Northern lentucky, Columbus & Duyton, vhose stuted goul is
"to muke heulthy und sustuinubly grovn locul ood uorduble, uccessible, und convenient to the
Midvest communities they serve.
36
31
lroger 20!2 Sustuinubility Report. http://sustuinubility.kroger.com/20!2lrogerSustuinubilityReport.pd
32
Meijer, Locul Crovers. http://vvv.meijer.com/content/corporute.jsppugeNume-loculgrovers
33
vulmurt Clobul Responsibiity, Sustuinuble Agriculture. http://corporute.vulmurt.com/globulresponsibility/environmentsustuinubility/
sustuinubleugriculture
34
vhole loods, Locul Producer Loun Progrum. http://vvv.vholeoodsmurket.com/missionvulues/curingcommunities/loculproducerloun
program
35
Crusshoppers. About Us. http://grusshoppersdistribution.com/uboutus/
36
Creen 8.L.A.N. About Us. http://vvv.greenbeundelivery.com/kentucky/inde.php/ubout2/
Context: Jefferson Countys Food Landscape
21
Ehrlers is a micro delivery service focusing on local dairy products, in Louisville and the
surrounding areas.
37
Crov lurms is u vholesule grover und distributor o regionully grovn ruits und vegetubles vith
"ucreuge in production in lentucky, lndiunu, Ohio, 1ennessee. Crov lurms is u subsidiury o Horton
lruit Compuny o Louisville, u leuding repucker, processor, und ullline distributor o ruits und
vegetubles bused in Louisville.
38
Piuzzu Produce is un lndiunupolisbused ruit und vegetuble distributor thut sells upproimutely $!20
million vorth o ood euch yeur in ve stutes, vith u ocus on institutionul ood providers. ln 20!!,
the compuny opened u smull vurehouse und luunched u pilot locul ood progrum in Louisville, to
sell lY Proud product to Louisville vholesule buyers.
Cumpisuno lruit is u Louisvillebused distributor thut sources coust to coust, us vell us
internationally, and is also committed to sourcing local produce in season.
39
Jefferson County Public Schools (JCPS) hus been purchusing locul oods or its meul und snuck progrums
or 3 yeurs, purtnering vith ood distributors und directly vith urmers. }CPS serves u totul o 8/,000
meuls und S,000 snucks per duy ucross !49 schools through the Nutionul School Lunch Progrum (NSLP)
during the school year. In 2010, JCPS created local food procurement policy. The policy states that
}CPS vill seek to identiy und eecute opportunities or locul purchusing o produce.
55
During the 2011 to
20!2 school yeur, !/ locully grovn items vere included in the school lunch progrum ut un estimuted
vulue o $!2/,000, 1he lresh lruit und Vegetuble Snuck progrum purchused $!30,000 o locully grovn
produce.
40
1he school district set u turget o sourcing 2S% o its produce rom locul urms in 20!2.
41
The University of Louisville hus u "Creen Purchusing policy thut includes the olloving cluuses reluted to the
purchase of local foods:
vhen purchusing ugriculturul products, ull ood contructors shull purchuse lentuckygrovn
ugriculturul products i the products ure uvuiluble und i the vendor cun meet the upplicuble quulity
standards and pricing requirements.
All ood contructors shull ugree to vork vith their distributors to purchuse u minimum o !S% locully
grovn products.
All ood contructors shull urther ugree thut the !S% is un initiul percentuge und thut ull ood
contructors vill purchuse us much locul produce und product us possible.
All ood contructors und University vill reviev the locul purchuses unnuully und mutuully ugree on
increuses to the percentuge vhere und vhen possible.
42
1he University o Louisville ulso vorks vith Sodeo on u vuriety o cumpus dining sustuinubility initiutives,
including locul purchusing. Roughly 20% o ull ood purchuses ure sourced rom vithin 2S0 miles o cumpus,
including produce, duiry, meuts, breuds und buked goods. ln the second hul o 20!!, 2!./% vus sourced locully.
43
37
Lhrler`s Micro Duiry http://ehrler.deliverybizpro.com/home.php
38
Crov lurms. http://vvv.grovurms.com/
39
Frank A. Campisano & Sons Fruit Co. Products. http://cumpisunoruit.com/dynPuge.uspid-2
40
Ldible Louisville. Ldible 1idbits. Muy}une 20!2. http://vvv.ediblecommunities.com/louisville/muyjune20!2/edibletidbits.htm
41
lutuyumu, D. }CPS Prepures or USDA to Updute School Nutrition Stundurds, vlPL Nevs. }unuury 24, 20!2. http://urchives.vpl.
org/20!2/0!/24/jcpsprepuresorusdutoupduteschoolnutritionstundurds/
42
University o Louisville Sustuinubility. Creen Purchusing. http://louisville.edu/sustuinubility/operutions/greenpurchusing.html
43
University o Louisville Sustuinubility. lood. http://louisville.edu/sustuinubility/operutions/ood.html
Context: Jefferson Countys Food Landscape
22
YMCA hus purtnered vith the Louisville Depurtment o Public Heulth und vellness ulong vith the Center or
Health Equity in a Healthy In A Hurry Corner Store initiative that addresses the lack of fresh produce and
vegetubles in lovincome ureus. 1here ure currently seven Corner Store locutions.
44
Restaurants: Muny Louisville restuurunts huve olloved the nutionul trend to udd locul ood oerings to their
menus. 1here ure currently 43 Louisville restuurunts in the lentucky Proud Restuurunt Revurds progrum
45
,
and several restaurants market their local menu items as a key distinguishing factor, including Harvest, Lillys,
Muyun Cue, 8ristol 8ur & Crille, Liderdovn und 8istro 30!.
Community Farm Alliance: 1his stutevide grussroots orgunizution hus u strong policy ocus. 1hrough
community orgunizing und strutegic ulliunces, ClA vorks to bring u criticul public voice to policy mukers. A
sentinel uccomplishment o the group cume in 2000 vhen ClA members led u cumpuign to puss H8 6!! to
creute the lentucky Agriculturul Development lund und u longterm commitment to diversiy und rebuild
lentucky`s tobucco urming communities.
46

Edible Louisville muguzine is u bimonthly publicution ocused on locul oods
thut uims to "connect consumers vith locul grovers, retuilers, ches, und ood
urtisuns, enubling those relutionships to grov und thrive in mutuully beneciul,
heulthy und economicully viuble vuys.
47
Education: Outside of classrooms, there are local food-related educational
eorts undervuy by vurious nonprot orgunizutions. 1he lood Literucy
Project uims "to inspire u nev generution o people to build relutionships vith
healthy food, farming, and the land, through its experiential programs that
focus on plants, agriculture and food education.
48
Louisville also has a local
chupter o Slov loods lnternutionul, vhich oers micro grunts to urmers
in the orm o "ugri vishes und grunts to schools or gurden projects.
49
44
YMCA. http://vvv.ymculouisville.org/sociulresponsibility/sociulservices/heulthyinuhurrycornerstores.html
45
http://vvv.kyugr.com/murketing/restuuruntrevurdsprogrum.html
46
Community Farm Alliance. http://communityfarmalliance.org
47
Ldible Louisville. http://vvv.ediblecommunities.com/louisville
48
lood Literucy Project. http://oodliterucyproject.org
49
Slov loods 8luegruss. http://vvv.slovoodbluegruss.org/site/
Context: Jefferson Countys Food Landscape
23
Data Analysis
2%
3%
6%
59%
9%
20%
All Commercial Food Buyers, By Sector
Processor, Manufacturer
Distributor, Wholesaler
Food service, Caterer
Restaurant
Supermarket, Grocery
Other Retail
Commercial Survey
Response Rate
As described in the Methodology section o this report, /S commerciul ood buyers representing !0/ locutions
in }eerson County completed the survey, broken dovn by sector us ollovs: 3 Distributors/vholesulers,
11 Food Service/Institutions/Caterers, 5 Supermarkets, 35 Restaurants, 6 Processors/Manufacturers, 11 Other
Retuil (Corner Stores/Speciulty lood Stores/Convenience Stores), und 4 Other. 1he churts belov compure the
universe o survey respondents to }eerson County`s commerciul ood buying populution us u vhole.
50

1he dutu hus been orgunized to unsver the olloving our broud questions:
1. Hov und vhut ure buyers buying nov
2. Hov do buyers muke purchusing decisions
3. Hov do businesses` internul policies und protocol, supplier requirements und purchusing rumevorks
impuct locul ood procurement
4. Hov do buyers see locul ood us un unchor or u brouder economic development strutegy
50
lor euse o reuding, throughout this section, these cutegories ure reerred to us ollovs: Distributors, Restuurunts, lood Service, Processors,
Supermarkets, and Other Retail.
24
Question #1: How and what are buyers buying now?
1o give u sense o the scule o the businesses surveyed, //%
51
of
respondents purchuse or compunies vith up to ve Louisville
locutions. }ust over 8% vork or compunies vith !! to 2S locutions, und
un udditionul 8.!% represent compunies vith more thun 2S locutions.
1he mujority o respondents indicuted thut they purchuse u vide
vuriety o oods, including ruit und vegetubles, meut, duiry und gruins.
lood cutegories most requently identied us the most purchused
included meut (64.0%), ruits und vegetubles (46./%) und poultry
(32.0%).
Among the ull universe o surveyed commerciul buyers, 63.4% indicuted thut they intentionully buy locul
ood. Notubly, businesses vith unnuul sules betveen $0.S million und $!.0 million vere most likely to buy locul
oods. 1he churt belov compures overull respondents by unnuul sules to those vho indicuted thut they buy
local.
Commerciul buyers vho purchused locul ood vere most likely to indicute buying resh ruits und vegetubles,
vith 82.6% o restuurunts (n-!9) indicuting this, und //.0% (n-!/) o ull other buyers. Restuurunts vere
less likely thun other buyers to purchuse processed ruits und vegetubles und duiry products. 1he churt
belov illustrutes purchuses o locul ood by sector or Restuurunts compured to ull other cutegories.
51
ln generul, becuuse some respondents ubstuined rom unsvering some questions, the unulysis provided is bused on the vulid percent
o responses, vhich does not include nonresponses.
0%
5%
10%
15%
20%
25%
U
n
d
e
r

$
2
5
0
,
0
0
0

$
2
5
0
,
0
0
0
-
$
4
9
9
,
9
9
9

$
5
0
0
,
0
0
0
-
$
9
9
9
,
9
9
9

$
1
,
0
0
0
,
0
0
0
-
$
4
,
9
9
9
,
9
9
9

$
5
,
0
0
0
,
0
0
0
-
$
9
,
9
9
9
,
9
9
9

$
1
0
,
0
0
0
,
0
0
0

o
r

o
v
e
r

D
o
n
't

k
n
o
w

P
e
r
c
e
n
t

o
f

r
e
s
p
o
n
d
e
n
t
s

Annual Sales: All Respondents vs. Respondents Who Buy Local
All respondents Local buyers
More than 63% of
surveyed commercial
food buyers in
Jefferson County
intentially purchase
local foods.
Data Analysis
25
Most buyers vho shured inormution ubout the umount they spent on locul ood indicuted thut they spent
less thun $S0,000 per ood cutegory in 20!!. Specicully, this vus the cuse or SS.9% (n-!9) o those buying
resh ruits und vegetubles, 80.0% o those buying minimully processed ruits und vegetubles (n-8), SS.6% o
those buying meut, pork und poultry (n-!0), 92.3% those buying eggs (n-!2), und !00% o those buying duiry
products (n-!/).
Commerciul buyers oten purchused locul oods rom distribution compunies thut speciulize in supplying locul
oods in vholesule quuntities (64.6%, n-3!), vith !00.0% (n-S) o Processors und Munuucturers und 8S./% o
lood Service compunies (n-6) procuring locul ood thut vuy. ln uddition, 4S.8% (n-22) purchused locul oods viu
their muinstreum broudline distributor, such us 1he Horton lruit Compuny or Sysco. O those 22 respondents,
8!.8% (n-!8) noted thut the locul oods purchused rom broudline distributors vere murketed us locul. ln uddition,
commerciul buyers indicuted thut there vus some demund or locul ood thut vus going unmet. vhen usked
ubout locul oods they vunted but couldn`t get, 22.9% (n-!!) identied ruits und vegetubles und unother !0.4%
(n-S) identied meut. Specic items mentioned included berries, tomutoes, uspurugus, poultry, bee, und pork.
One distributor intervieved or this project noted thut he goes to greut lengths to oer his customers locul
oods, picking up 2/3 o the locul product he buys direct rom urmers ulong his distribution route und
"buckhuuling product rom urms to his Louisville vurehouse. He noted thut demund is groving und rupidly,
thut more und more o his customers vho huve never requested locul product beore ure usking or it nov,
und thut these customers need to be supported in leurning ubout seusonulity und ugriculturul production.
He suid thut on the supply side, inrustructure or uggregution, vushing, pucking, processing und gruding
vould enuble him to buy even more locul product. 1he distributor projected thut i these improvements
vere mude, o the compuny`s $34 million in totul unnuul ood sules, us much us 40% could be locul ood.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Fruits and
vegetables -
fresh
Fruits and
vegetables -
minimally
processed
Meat, pork,
poultry
Eggs Yogurt, butter,
cheeses
P
e
r
c
e
n
t

o
f

r
e
s
p
o
n
d
e
n
t
s

Types of Local Foods Purchased:
Restaurant Respondents vs. All Other Respondents
All other respondents Restaurants
Data Analysis
26

Question #2: How do buyers make purchasing decisions?
Purchasing Criteria
Among commerciul buyers, product consistency vus importunt to the lurgest shure o respondents (93.!%),
olloved closely by uvor or tuste (9!.8%). Other importunt uctors cited vere uvuilubility o delivery or
distribution, und price, both selected by 83.6% o respondents us importunt criteriu. 1here vere some
dierences in responses by sector, hovever. Supermurkets (n-4) ununimously ruted uctors such us price,
product consistency und shel lie us importunt, but us the sumple size here vus especiully smull, these ndings
muy not upply more broudly. ln the cuse o Restuurunts, the uvuilubility o distribution or delivery und sucient
volume vere more importunt, vhile uctors such us shel lie und consistency vere less importunt. vhen
usked ubout locul ood, the lurgest shure o those vho purchuse locul oods
ruted product uvor or tuste us un importunt decision uctor (9!.S%, n-43).
Product consistency vus ulso importunt, but its selection by 8/.2% (n-4!) o
respondents indicutes thut it vus less importunt vhen buying locul ood then
vhen buying ood thut is not locul. Other uctors thut vuried in importunce
betveen locul und non locul purchuses vere uvuilubility rom eisting upproved
vendors, puckuging, und uvuilubility o sucient volume, ull o vhich vere less
importunt in locul purchusing decisions, us illustruted in the churt belov.
Commerciul buyers ure purchusing locul oods or u number o reusons, us illustruted in the churt belov. 1he
top reusons include supporting the locul business und economy (/3.3%), supporting locul urmers (S!.0%) und
reshness (44.0%).
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
P
r
i
c
e

S
h
e
l
f

l
i
f
e

F
l
a
v
o
r

P
a
c
k
a
g
i
n
g

C
o
n
s
i
s
t
e
n
c
y

D
e
l
i
v
e
r
y
/
d
i
s
t
r
i
b
u
t
i
o
n

S
u
f
f
i
c
i
e
n
t

v
o
l
u
m
e

G
r
a
d
e
d

p
r
o
d
u
c
t

S
p
e
c
i
f
i
c

v
a
r
i
e
t
i
e
s
/
b
r
e
e
d
s

A
v
a
i
l
a
b
i
l
i
t
y

f
r
o
m

e
x
i
s
t
i
n
g

v
e
n
d
o
r

P
e
r
c
e
n
t

o
f

r
e
s
p
o
n
d
e
n
t
s

Important Factors Influencing Purchasing Decisions:
Supermarket Respondents vs. All Other Respondents
All other respondents
Supermarkets
Data Analysis
Purchasing local
foods could
increase my sales
while helping the
local economy.
27
One lurge scule nuturul oods vholesuler noted in un interviev thut sourcing locul product is purt
of his strategy for ensuring a consistent product supply over the course of the year. Its good to
huve diversicution, he suid, "especiully in ood. 1hough he vus not sure strutegicully hov he
could increuse the percentuge o locul oods he purchuses (ood suety vus his primury concern),
he noted thut purchusing locul oods could "increuse my sules vhile helping the locul economy.


0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
P
r
i
c
e

S
h
e
l
f

l
i
f
e

F
l
a
v
o
r

P
a
c
k
a
g
i
n
g

C
o
n
s
i
s
t
e
n
c
y

D
e
l
i
v
e
r
y
/
d
i
s
t
r
i
b
u
t
i
o
n

S
u
f
f
i
c
i
e
n
t

v
o
l
u
m
e

G
r
a
d
e
d

p
r
o
d
u
c
t

S
p
e
c
i
f
i
c

v
a
r
i
e
t
i
e
s
/
b
r
e
e
d
s

A
v
a
i
l
a
b
i
l
i
t
y

f
r
o
m

e
x
i
s
t
i
n
g

v
e
n
d
o
r

P
e
r
c
e
n
t

o
f

r
e
s
p
o
n
d
e
n
t
s

Important Factors Influencing Purchasing Decisions:
Restaurant Respondents vs. All Other Respondents
All other respondents
Restaurants
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
P
r
i
c
e

S
h
e
l
f

l
i
f
e

F
l
a
v
o
r

P
a
c
k
a
g
i
n
g

C
o
n
s
i
s
t
e
n
c
y

D
e
l
i
v
e
r
y
/
d
i
s
t
r
i
b
u
t
i
o
n

S
u
f
f
i
c
i
e
n
t

v
o
l
u
m
e

G
r
a
d
e
d

p
r
o
d
u
c
t

S
p
e
c
i
f
i
c

v
a
r
i
e
t
i
e
s
/
b
r
e
e
d
s

A
v
a
i
l
a
b
i
l
i
t
y

f
r
o
m

e
x
i
s
t
i
n
g

v
e
n
d
o
r

P
e
r
c
e
n
t

o
f

r
e
s
p
o
n
d
e
n
t
s

Factors Influencing Overall Purchasing Decisions vs.
Local Purchasing Decisions:
Factors Rated "Very Important" or "Important"
Overall purchases
Local purchases
Data Analysis
28
Perceptions of Local Food
Commerciul buyers vho indicuted thut they purchuse locul ood vere usked to dene locul ood, 2S.S% dened
it us ood grovn less thun !S0 miles uvuy, olloved by !9.!% vho indicuted thut their compuny did not huve u
denition o locul und unother !9.!% vho supplied other denitions, such us grovn vithin S0 or !00 miles, or
grovn in }eerson County.
Among the buyers surveyed vho buy locul nov, there uppeurs to be u villingness to puy more or locul ood.
vhen usked ubout price epectutions or locul ood, 39.6% indicuted thut they vould epect to puy more,
vhile unother 2S.0% indicuted thut it depends on the product.
Locul ood vus seen to huve the ubility to generute enthusiusm umong buyers und their employees. As the
ussistunt director o u hospitul ood service operution suid in un interviev, "l vunt our people to be ecited
ubout vhut they do. And locul ood 1hey`d be ecited ubout locul oods.
Among the 23 commerciul buyer respondents vho do not currently purchuse locul oods, 43.S% suid thut they
did purchuse locul ood in the pust. vhen usked vhy they stopped purchusing locul oods, product puckuging,
luck o uvuilubility o distribution services, luck o sucient volume, und luck o uvuilubility rom upproved
vendors vere cited us key reusons. 1he remuining !3 respondents vho huve never purchused locul oods
6.7%
8.9%
15.6%
20.0%
22.2%
28.9%
44.4%
51.1%
73.3%
0.0% 20.0% 40.0% 60.0% 80.0%
Other
Shorter supply chains
Corporate sustainability objectives
Environmental impact
Customer demand
Product quality
Freshness
Support local farmers
Support local business and economy
Percent of respondents
Why Do Businesses Buy Local Food?
More
Same Less
Depends
on the product
Don't
know
Price Expectations for Local Food Compared to Non Local Food
16%
42%
42%
How much more?
1-5%
6-10%
11-25%
Data Analysis
29
vere usked to identiy the top three uctors thut keep them rom purchusing locul oods. 1vo primury reusons
emerged: product price und luck o distribution services. A lurge mujority, 8/%, suid thut i these top burriers
vere eliminuted they vould be interested in purchusing locul oods, presenting yet unother opportunity to
brouden the reuch o locul oods in }eerson County.
Question #3: How do businesses internal policies and protocol, supplier requirements and purchasing
frameworks impact local food procurement?
1his section ocuses in on the specic obstucles und compleities lurgerscule, multilocution businesses uce
vhen seeking to purchuse locul oods.
Centralized vs. Individual Purchasing
Centrulized purchusing cun impuct locul ood procurement in u number o vuys. At times, centrulized purchusing
limits an individual locations autonomy in selecting suppliers or products. A company may require that individual
locutions select items to purchuse eclusively rom vendors vho huve gone through u preupprovul process.
lndividuul locutions vithin u lurger business muy be limited to purchusing specic upproved products or brunds,
or to an existing catalog or automated inventory system. These practices are quite common in fast food, retail
and restaurant chains, and institutional food service settings. Other companies may have catalogues, approved
vendor lists und other centrulized purchusing pructices, yet muy ulso grunt buyers ut euch locution purchusing
discretion over u smull percentuge o their overull ood budget. Allovunces like these cun stimulute procurement
o locul oods. 1he sections belov detuil some o the specic vuys thut compunies` upprouches to centrulized or
individuulized purchusing, product specicutions, protocol und policies impuct purchusing decisions.
lur more oten thun not, buyers surveyed represent compunies vith multiple locutions in vhich purchusing
decisions ure mude in u centrulized vuy, not uutonomously by locution.
Neurly hul o ull survey respondents (4/.3%) vork or compunies vith multiple locutions. O those, 9!.2% do some
or ull o their purchusing in u centrulized vuy, vith S8.8% o the compunies muking ull ood purchusing decisions
on u centrulized busis und unother 32.4% purchusing some subset o products independently und others in u
centrulized vuy. }ust 8.8% o the 3S respondents vith multiple locutions purchuse on un individuul busis.
Product Specihcations and Purchasing Decisions
Commerciul buyers vere usked ubout the kinds o product specicutions und production methods they require
o their suppliers. Severul noted thut specicutions und production methods requirements vury by product, yet
several trends emerged.
Approimutely 30./% (n-23) o surveyed compunies require thut producers ure Cood Agriculturul Pructices
Individual
Centralized
Some of both
Centralized vs. Location Driven Purchasing Decisions:
Respondents With Multiple Locations
Data Analysis
30
(CAP) certied. 1he Other Retuil sector vus leust likely to require CAP (n-0), vhile Processors (83.3%, n-S),
Distributors (66./%, n-2), und lood Service compunies (4S.S%, n-S) vere more likely thun the universe o
buyers us u vhole to require CAP.
Compunies thut do buy locul ood require CAP certicution more requently thun the universe us u vhole,
vith 3/.8% (n-!/) requiring it. vhile some smull und midscule producers see the cost o the CAP uudit us
prohibitive, others see the certicution us u point o entry into nev vholesule business relutionships. Almost
/4% o businesses thut require CAP ulso purchuse some umount o locul oods.
Respondents vere ulso usked ubout Huzurd Anulysis und Criticul Control Points (HAACP), u selreguluted
process and claim that companies along the food chain may undertake as a measure of sanitation, food safety
und heulth stundurds. vhile it is not usuully u legul requirement, muny contructs betveen buyers und ood
producers require HAACP certicution. 1hirtythree percent (n-2S) o ull survey respondents require thut
their suppliers huve HAACP certied ucilities or HAACP pluns in pluce. O those requiring HAACP, /S% (n-!8)
reported thut they intentionully purchuse some umount o locul ood, vhile 40% o ull locul ood buyers require
HAACP. 8y sector, HAACP vus most likely to be u requirement umong Processors (83.3%, n-S), lood Service
compunies (4S.S%, n-S), und Supermurkets (60%, n-3).
1hirtyseven respondents (49.3%) identied puckuging stundurds us u supplier requirement. 1ventysi (/2.2%)
o those commerciul ood buyers thut huve puckuging stundurds ulso purchuse locul oods, those 26 represent
S/.8% o ull businesses thut purchuse locul ood. 1he processing sector vus, by ur, the sector most likely to
speciy puckuging stundurds or their suppliers (83.3%, n-S). 1hough they do not ull count it us u requirement,
6!.!% (n-44) considered product puckuging either "importunt or "very importunt uctor in muking purchusing
decisions. Lighty percent (n-4) o Supermurkets identied puckuging us "importunt or "very importunt.
As vith HAACP, CAP und puckuging stundurds, buyers o locul ood vere more likely to huve gruding stundurds
thun vus the ull universe o commerciul buyers. ln produce, grudes
ure u meusure o u product`s size, consistency o product size vithin
u cuse, color, und the ussumption o good uvor bused on visible
churucteristics. More thun S3% o locul ood buying compunies
require thut their suppliers provide gruded product, vs. 4S.3% in the
commerciul buyer populution us u vhole. 8y sector, Processors (66./%,
n-4) und Supermurkets (60%, n-3) vere more likely thun the universe
us u vhole to require gruded product. vhile S3.3% require graded
product, 63% o ull commerciul buyers und 80% (n-4) o surveyed
Supermarkets indicated that grading is an important or very important
factor to them in making purchasing decisions.
Surprisingly, just S0./% o ull surveyed commerciul buyers indicuted thut they require thut their suppliers hold
liubility insurunce, un udditionul !4./% (n-!!) did not knov. 1he requirement o liubility insurunce vus most
common umong lood Service buyers (63.6%, n-/), Supermurkets (60%, n-3), und Processors (66./%, n-4). O
those requiring thut suppliers hold this insurunce, /!.!% (n-2/) purchuse locul oods.
Avuilubility o product rom upproved vendors vus un importunt or very importunt uctor in muking purchusing
decisions to 6/.!% (n-49) o surveyed buyers, und most importunt to lood Service (8!.8%, n-9) und Other Retuil
(/2./%, n-8) buyers. lnterestingly, locul ood purchusing by compunies thut buy only rom upproved vendors
vus prevulent umong the surveyed populution. }ust over 44% o ull compunies thut purchuse locul oods ulso
purchuse eclusively rom upproved vendors, seen unother vuy, 60.6% (n-20) o ull commerciul buyers vho
buy only rom upproved vendors ulso buy locul. Compunies not limited to purchusing rom upproved vendors
I expect local food to be
better (than food from
further away). And it
makes me feel better,
buying local.
Data Analysis
31
vere murginully more likely to purchuse locul oods, 6S.8% (n-2S). 8y sector, lood Service und Other Retuil
vere most likely to only purchuse rom upproved vendors and purchuse locul ood, ut /!.4% (n-S) und /S%
(n-3) respectively.
1uken us u vhole, the survey results ubove indicute thut compunies thut do intentionully purchuse locul oods
ure more likely thun the surveyed universe o buyers us u vhole to hold ull their suppliers (locul und non
locul) to certuin product specicutions or production methods. Hovever, the uct thut Louisville commerciul
buyers vith strong stundurds und specicutions ure purchusing locul ood is not necessurily un indicution thut
locul suppliers ure meeting ull those stundurds. ln pructice (bused on indepth intervievs vith commerciul
buyers or this Demund Anulysis us vell us lurp Resources` eperiences vorking vith lurge scule commerciul
buyers in other cities und murkets), muny commerciul buyers vith strict product specicutions und supplier
stundurds ure villing to tveuk those specicutions und bend those stundurds in order to udd some umount o
locul product to their supply chuins to meet customer demund. Hovever, they ure only villing to do so or u
relatively small amount of product.
Reimbursements, Incentives or Subsidies
Survey respondents vere usked ubout the kinds o reimbursements, incentives or subsidies they receive thut
inuence their sourcing und purchusing decisions. 1he most commonly received incentive vus bulk discounts
(discounts or buyers vho commit to purchusing sizuble quuntities o product either ut one time or over the
course o u contruct period), vith 48% (n-36) receiving these discounts or volume purchusing rom their
suppliers. 1his inuence vus elt most umong Processors (66./%, n-4) und Distributors (66./%, n-2), und leust
umong Supermurkets, vhere just 20% (n-!) received bulk discounts. }ust 22.9% (n-8) o surveyed restuurunts
receive lY Proud murketing incentives or rebutes.
lnterestingly, ull surveyed Processors receive some orm o reimbursement, incentive, or subsidy in their
supply chuins. O ull commerciul buyers, 33.3% (n-2S) reported thut they receive none. More thun S4% (n-6)
o lood Service compunies und 60% (n-3) o Supermurkets ulso reported thut no such discounts or subsidies
inuence their purchusing.

0%
10%
20%
30%
40%
50%
60%
70%
G
A
P

c
e
r
t
i
f
i
c
a
t
i
o
n

H
A
A
C
P

f
a
c
i
l
i
t
y
/
p
l
a
n

P
a
c
k
a
g
i
n
g

s
t
a
n
d
a
r
d
s

G
r
a
d
i
n
g

s
t
a
n
d
a
r
d
s

N
u
t
r
i
t
i
o
n

s
p
e
c
i
f
i
c
a
t
i
o
n
s

O
r
g
a
n
i
c

c
e
r
t
i
f
i
c
a
t
i
o
n

F
a
i
r

T
r
a
d
e

c
e
r
t
i
f
i
c
a
t
i
o
n

A
n
i
m
a
l

w
e
l
f
a
r
e

c
e
r
t
i
f
i
c
a
t
i
o
n
s

L
i
a
b
i
l
i
t
y

i
n
s
u
r
a
n
c
e

D
o
n
't

k
n
o
w

O
t
h
e
r

P
e
r
c
e
n
t

o
f

r
e
s
p
o
n
d
e
n
t
s

Production Specification Requirements:
All Respondents vs. Respondents Who Buy Local
All respondents
Local buyers
Data Analysis
32
Company Protocol or Policies that Inuence Purchasing Decisions
Survey respondents vere usked to identiy internul compuny protocol or policies thut inuence their purchusing
decisions.
1ventyeight percent purchuse rom u centrul purchusing cutulogue or guide thut is provided to them (i.e. by
corporute heudquurters). Use o such u cutulogue vus higher thun uveruge umong lood Service compunies
(36.4%, n-4). Almost no Processors (!6./%, n-!) und no Distributors surveyed use such u cutulogue. Among those
compunies thut purchuse rom u centrul cutulogue or guide, S0% (n-!0) purchuse locul oods, representing
22.2% o ull locul ood buyers. O those commerciul ood buyers vho do not use u centrul purchusing cutulogue,
68.6% (n-3S) purchuse locul oods.
}ust over 3/% o survey respondents identied product specicutions such us vuriety, puck or grude umong
compuny policies thut inorm their purchusing. Processors (S0%, n-3), lood Service compunies (S4.S%,
n-6), und Supermurkets (60%, n-3) vere more likely thun other buying sectors to purchuse buse on product
specicutions. Among those vho muke purchusing decisions bused on product specicutions, 60./% (n-!/)
purchuse locul, representing just 3/.8% o ull locul ood buyers.
1ventynine percent (n-22) o survey respondents indicuted thut their purchusing decisions ure subject to
un internul upprovul process (rom, or eumple, u regionul munuger or corporute heudquurters), und these
processes ure most prevulent umong lood Service compunies (S4.S%, n-6) und leust common umong
Restuurunts (!4.3%, n-S). O the 22 respondents vho ure subject to internul upprovul processes, 6!.9% (n-!3)
purchuse locul ood, just 28.9% o the locul ood purchusing survey respondents vere subject to internul
approval processes.
Survey respondents vere ulso usked ubout ood suety certicutions, und 38./% (n-29) reveuled thut
requirements or these kinds o certicutions inuence their purchusing decisions. Requiring ood suety
certicutions more oten thun the universe us u vhole vere Processors (S0%, n-3), lood Service (S4.S%, n-6),
und Other Retuilers (63.6%, n-/). }ust si restuurunts (!/.!%) required ood suety certicutions o their suppliers.
1hose vith requirements or ood suety certicutions vere less likely to purchuse locul ood (S8.6%, n-!/) thun
those vithout (66./%, n-28), yet 3/.8% (n-!/) o the entire universe o surveyed locul ood buyers do hold their
suppliers to some ood suety requirements or certicutions. One lood Service compuny intervieved noted
thut ood suety is his compuny`s primury concern, though the compuny vunts to purchuse more locul oods,
"ve cun`t just buy o the buck o u urmer`s truck.
1venty percent (n-!S) o survey respondents suid thut no internul protocol or policies inuence their
purchusing decisions, vhile !0./% (n-8) vrote in other protocol und policies thun those described ubove.
One Restuurunt thut purchuses through Sysco noted thut Sysco hus its ovn policies und protocol or vetting
suppliers, u reminder thut commerciul ood buyers ure subject not only to their ovn compuny`s protocol, but
to all protocol, policies, und stundurds implemented by every supplier ulong their supply chuins.
Data Analysis
33
Question #4: How do buyers see local food as an anchor for a broader economic development strategy?
1he concluding question commerciul survey respondents vere
usked vus: "linully, vhut is your perspective on the etent to vhich
investment in Louisville`s LOCAL ood economy could drive brouder
economic development in the stute und region Pleuse describe.
More thun /8% o survey respondents vho unsvered this question
responded in vuys thut indicuted thut they suv investment in locul
ood us u viuble unchor or un economic development strutegy.
Respondents supported investment in the local food economy as part of an overall economic development
strutegy or u number o reusons. Severul respondents noted thut u broud runge o stukeholders benet vhen
investment is mude in the locul ood economy. One noted, "vhen ve ocus on locul products, ve cun keep the
money vithin our locul economy vhich cun support everyone. Another eluboruted, "1he locul ood economy
should be invested in. the urmers vill do better und the ood is better. And unother epluined thut vhen
money is spent, businesstobusiness, locully, there`s u "trickle dovn eect und "euch business benets.
One respondent suv it more broudly, linking investment in the locul ood economy to u brouder kind o "civic
minded uctivity, epluining thut supporting "locul urmers und the locul economy vill muke the city u better
pluce, this respondent noted thut to the etent thut his budget ullovs, he vunts to support "thut movement.
}ob creution vus mentioned by severul respondents us u driving reuson they see investment in the locul ood
economy us promising, und one eluboruted, "vhenever you bring industry to un ureu, you`re going to creute
jobs, und noted thut, in this cuse, developing the ood industry und economy vould be "very importunt or
both locul businesses und locul urmers. One respondent rumed the issue simply, suying, "Locul ood is better
business. People trust locul compunies, und they vunt to help locul businesses.
ln uddition to eluboruting on hov und vhy investment in the locul ood economy vould be broudly beneciul,
severul respondents epluined vhy they think it`s the right strutegy or Louisville und }eerson County in
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
A
p
p
r
o
v
e
d

v
e
n
d
o
r
s

o
n
l
y

C
e
n
t
r
a
l

p
u
r
c
h
a
s
i
n
g

c
a
t
a
l
o
g

P
r
o
d
u
c
t

s
p
e
c
i
f
i
c
a
t
i
o
n
s

P
u
r
c
h
a
s
i
n
g

b
u
d
g
e
t

I
n
t
e
r
n
a
l

a
p
p
r
o
v
a
l

p
r
o
c
e
s
s

V
e
n
d
o
r

l
i
a
b
i
l
i
t
y

i
n
s
u
r
a
n
c
e

V
e
n
d
o
r

f
o
o
d

s
a
f
e
t
y

c
e
r
t
i
f
i
c
a
t
i
o
n
s

N
o
n
e

P
e
r
c
e
n
t

o
f

r
e
s
p
o
n
d
e
n
t
s

Company Policies & Requirements Influencing Purchases:
All Respondents vs. Respondents Who Buy Local
All respondents
Local buyers
Supporting local
farmers and the local
economy will make the
city a better place.
Data Analysis
34
purticulur. Severul described Louisville us u pluce o innovution und suv locul ood systems (und investment
in those systems) as a part of that. One respondent said, Taking advantage of the centralized location of the
city, both or the stute und the region mukes Louisville un obvious centrul point or locul ood. Additionully, the
citizens of the city support the movement. Another noted that Louisville
is u pluce in vhich "u lot o unique ideus huve popped up in the pust
S yeurs und suv the city us "un untupped murket or locul ood on u
lurger scule. Another respondent echoed this theme, describing thut
he "sees hov the urmers` murkets in the ureu ure prospering und
believes "this could epund into u brouder economic development
strutegy. 1hinking more broudly ubout Louisville`s position vithin the
region, unother respondent suid, Louisville is the biggest city in the
state and has many potential outlets for local food. If the priority can
become locul ood, it vould huve u tremendous impuct in the region
and in the state.
Some respondents took the ideu u step urther still und included thoughts on vhut Louisville needs in order
to bring locul ood uprontundcenter in the city`s economic development strutegy und in grocery store
display cases. A handful of respondents discussed infrastructure in general terms, noting that the city needs
better inrustructure in order to muke the movement sustuinuble. One udvised: "build the inrustructure. Policy
emerged in this discussion us vell, vith one business ovner noting thut smull, independent locully ovned
businesses need support rom policy mukers, perhups creuting incentives thut entice consumers to support
locul businesses over nutionul chuins. Another respondent suv it us u businesstobusiness issue, epluining
thut vhile he`s u commerciul buyer himsel und mukes decisions us such, ultimutely his duty is to serve his
customers vho ure ulso commerciul ood buyersund he suid thut he "vishes thut some o the stores ve
service used locul produce, but most do not.
Severul respondents took the opportunity to imugine u recongured ood system or Louisville in vhich locul
oods, locul businesses und locul inrustructure vere prioritized more heuvily thun they ure in the current ood
system. One noted thut "trust in the urmer helps grov (Louisville) businesses since it ullovs everyone to be
proud o vhere they ure rom, describing nev kinds o business relutionships thut could shit the culture o
commerce betveen urmers und ood businesses in the city. Another imugined "l ve hud the investment, ve
vould be uble to creute u distribution system like Sysco vith entirely locul ood. Another respondent took
thut vision to the net step, imugining thut businesses und urmers could plun together, vith "communicutions
to set up potentiul crops or net yeur. Still unother suv u uture in vhich locul ood purchusing vus done by
increusing numbers o lurge businesses, und noted thut more locul ood vould be sold "i the big distributors
vere pushing it, perhups vith "incentives or locul purchusing.
ln thinking ubout the scule o the potentiul or locul ood investment to drive brouder economic development,
severul respondents vere not sure (though they did reemphusize their ovn interest in purchusing rom locul
vendors). One buyer noted thut she suv limits to the kind und runge o products produced locully thut huve
reul potentiul to huve economic impuct, und unother respondent specied thut the potentiul might be "limited
becuuse o groving seuson. lrom u produce stundpoint (l um) not sure i the locul ood movement could grov
much more. Sules o cheeses und livestock could probubly continue to grov, but it`s "hurd to suy vhut the
I see how the farmers
markets in the area are
prosepering... this could
expand into a broader
economic development
stategy.
Data Analysis
35
impuct could ultimutely be. Another buyer thought ubout it less in terms o seusonulity or specic product
potentiul und more in terms o the sculeubility o locul ood to meet lurge scule ood buyers` demunds, suying
thut he likes to "think locul, think lY Proud, but thut vith so muny buyers ocused on price und consistency, he
vonders vhether locul ood vill epund ur beyond the "ulternutive scene.
}ust !3 respondents unsvered this question in nonpositive vuys, including !0 vho either responded thut they
did not knov or preerred not to comment. O the remuining three, one stuted thut he did not think it vould
uect the overull economy o the city, unother noted simply thut his customers "don`t cure ubout locul, und u
third elt investment in locul ood vus u "precurious proposition, speciying thut uny oodreluted investment
ocus should be insteud on improving public school meuls.
Other respondents unsvered vith greut certuinty und, ut times, greut detuil. One elt thut the "lurgest impuct vould
be vith doing vulue udded products, but noted hov essentiul it is to huve sucient processing inrustructure
in pluce to ensure thut product thut is grovn locully und sold locully is ulso processed locully: "Cuttle urmers
here ship covs (to) 1eus or processing und then (they`re) sent buck to lentucky, he epluined. 1he city und
the region "need better inrustructure in order to muke the movement sustuinuble. 1vo respondents elt the
economic impuct o locul ood system investment could be "huge, unother predicted thut "it could be mujor,
und still unother provided un eumple: "l ve could buy lY chicken, bee, cheese, etc. ve vould, us long us
(our) specs vere met. Our little 32 locution restuurunt could huve u $!2,000,000 purchusing impuct on the
local economy translating to $30-35,000,000 at retail. Another respondent stated that as demand increases
or locully grovn und processed oods, ve eel thut ov through to other ureus o production, distribution und
even urming . (und those sectors) vill be epunded eponentiully.
One respondent unsvered the question vith u question: "lt`s only u mutter o time beore (locul ood) is
muinstreum. So vhy not sturt nov
Data Analysis
36
Respondent Prohle
As mentioned in the Methodology section o this report, 42! consumers vere surveyed us purt o
this study. According to the Voice o Louisville (VOL), the compuny implementing the consumer
survey, the demogruphics o the surveyed sumple uligned closely vith brouder demogruphic
breukdovn o the populution, und the results ure vithin sumpling error or everything ecept
those vho only completed high schoolund those vho completed college.ln those cuses, VOL
noted thut the impuct o this inconsistency vould be minimul, resulting in less thun u percentuge
point different in results.
Purticipunts vere usked vhether they knovingly purchuse locul oods. lor the purpose
o unulysis, they vere divided into those vho do buy locul ood und those vho don`t buy
locul ood bused on the response to this question. 1hose vho responded "frequently or
sometimes vere clussied us locul ood buyers und those vho responded "rarely or never
vere clussied us nonlocul ood buyers. 1he segmentution is summurized in the tuble belov.
Buys Local Food Does Not Buy Local Food Total
Number % Number % Number %
302 71.8% 119 28.2% 421 100.0%
Consumers vere urther segmented by demogruphics, most oten by unnuul household
income and age. Of the 421 respondents, 370 shared their annual household income and 420
shured their uge. 1he populution o locul und nonlocul ood buyers vith euch o these groups
is detuiled in the olloving tvo tubles.
Consumer Survey
37
Annual
Household
Income
Buys Local Food Does Not Buy Local Food Total
Number % Number % Number %
Less than
$50,000
151 70.6% 63 29.4% 214 100.0%
$50,000-
$74,999
50 72.5% 19 27.5% 69 100.0%
$75,000
and
greater
67 77.0% 20 23.0% 87 100.0%
All 268 72.4% 102 27.6% 370 100.0%
Age Buys Local Food Does Not Buy Local Food Total
Number % Number % Number %
!834 93 68.9% 42 3!.!% 135 !00.0%
35-54 61 68.S% 28 3!.S% 89 !00.0%
SS- !48 /S.S% 48 24.S% !96 !00.0%
All 302 /!.9% !!8 28.!% 420 !00.0%

1he dutu guthered in consumer surveys hus been orgunized to unsver the olloving three broud questions:
1. Hov und vhut ure consumers buying nov
2. Hov do consumers muke purchusing decisions
3. vhut ure the opportunities to meet or increuse locul ood demund
Question #1: How and what are consumers buying now?
1he consumers surveyed vere usked to indicute the types o outlets vhere they purchused ood or their
household in the pust yeur. Neurly ull respondents, or 99.3%, hud bought ood rom grocery stores, including
supermurkets such us lroger, discount stores such us vulmurt und vurehouse clubs such us Costco. ln uddition
to obtuining ood ut grocery stores, 49.6% hud purchused ood rom urmers` murkets, 48.9% rom convenience
und corner stores und 48.0% rom independent, locul ood stores such us bukeries or butcher shops. 1he churt
belov displuys the percent o respondents vho shopped ut euch type o outlet ucross household income
bunds. 1hose vith unnuul household incomes greuter thun $/S,000 vere more likely to report shopping ut
independent, local stores or farmers markets.
Younger consumers, specicully those betveen !8 und 34 yeurs o uge, vere more likely to muke purchuses ut
locul, independent stores, vith SS.6% o them purchusing ood in this type o estublishment. Older purticipunts,
Consumer Survey
38
specicully those SS yeurs o uge und older, vere more likely to huve bought ood rom urmers` murkets, vith
S4.6% unsvering yes to thut question.
Respondents indicuted spending un uveruge o $34S.49 per month on ood or the household, und un udditionul
$156.65 per month on food consumed outside the home, for a total of $502.14 spent on food each month.
Unsurprisingly, the umount spent on ood increused vith household size, vith uveruge household ood spend
increusing rom $2!2.62 or u oneperson household to $S06.2S or u household vith our or more people
und ood purchuses outside the home increusing rom $88.4S or u oneperson household to $!94.S3 or
u household vith our or more people. 1here vere ulso notuble dierences in monthly ood spend umong
dierent income bunds. 1he churt belov illustrutes the uveruge spend on ood, both or the household und or
eternul consumption, by household income bund. Households vith unnuul income eceeding $/S,000 spent
the most, un uveruge o $690.00 on ood euch month.
$345
$329
$352
$447
$466
$442
$372
$333
$387
$295
$284
$300
$157
$143
$162
$243
$225
$248
$179
$171
$183
$114
$109
$116
$- $100 $200 $300 $400 $500 $600 $700
All
Does not purchase local food
Purchases local food
All
Does not purchase local food
Purchases local food
All
Does not purchase local food
Purchases local food
All
Does not purchase local food
Purchases local food
Average monthly spend on food
Average Monthly Spend on Food by Income Band:
Respondents Who Do and Don't Buy Local
Average monthly spend on food at home Average monthly spend on food outside
Less than $50,000
$50,000 - $74,999
$75,000 and above
All income bands
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Grocery stores Independent
food stores
Convenience
stores
Farmers' markets
P
e
r
c
e
n
t

o
f

r
e
s
p
o
n
d
e
n
t
s

Type of Store
Where Respondents Shop by Annual Household Income
Less than $50,000
$50,000 - $74,999
$75,000 and above
Consumer Survey
39
vhen usked specicully ubout locul ood, /!.8% o consumers
surveyed indicated that they frequently or sometimes purchase local
oods. Among those respondents vho purchused locul oods, uveruge
monthly spend on ull ood vus neurly $40.00 greuter thun those
vho did not purchuse locul ood. 1he churt ubove provides urther
inormution on the uveruge ood spend segmented by respondents
vho did und did not indicute purchusing locul ood.
Among those consumers vho indicuted thut they do purchuse locul
ood, those in the highest income group spent signicuntly more thun
other respondents. Those consumers spent on average, $120.63 on
local foods each month, compared to an average of approximately
$82.00 or those respondents vith unnuul household income less thun $/S,000.
1here vere u ev dierences in the prole o respondents vho indicuted thut they purchused locul oods compured
to the entire surveyed populution. Consumers vho purchuse locul oods vere more likely to shop ut urmers`
murkets vith 6!.6% o them buying ood there, compured to !9.3% o those vho don`t buy locul. lndependent
locul stores vere more requently visited by locul ood purchusers us vell, vith S3.0% o them shopping here,
compured to 3S.3% o those vho don`t purchuse locul. 1his response ulso divided ulong the lines o unnuul
household income, respondents in the highest income group represented 2S.0% o those vho purchuse locul
oods, but only 20./% o ull respondents. ln uddition, respondents uged SS yeurs und older uppeured more likely
to buy locul ood, representing 49.0% o those vho purchuse locul oods, compured to 46.6% o ull respondents.
Almost 72% of
consumers surveyed
indicated that
they frequently or
sometimes purchase
local food.
Less than $50,000
$50,000 -
$74,999
$75,000 and
above
Respondents Who Knowingly Purchase Local Food
by Income Band
18-34 years
35-54 years
55+ years
Respondents Who Knowingly Purchase Local Food
by Age
Consumer Survey
40
Question #2: How do consumers make purchasing decisions?
Purchasing Criteria
Consumers vere usked to identiy, bused on the list belov, vhich criteriu vere most importunt in their ood
purchases:
Price (hov much it costs)
lluvor (hov it tustes compured to other similur products)
Convenience (euse o purchuse und prepurution)
Quulity (bused on vhut respondent knovs ubout the ood or the brund)
1he lurgest number o respondents ruted quulity us most importunt,
vith 46.8% o them selecting it us the top priority. 1his vus olloved
by price, selected by 28.3% o respondents. Respondents vith unnuul
household incomes less thun $S0,000 indicuted thut price vus us
importunt us quulity, vith 36.9% selecting price us the most importunt
uctor, und 36.4% selecting quulity. On the other hund, respondents
vith unnuul household incomes o $/S,000 or greuter overvhelmingly
indicuted thut quulity comes rst, vith /!.3% responding this vuy.
Among consumers vho indicuted purchusing locul ood compured to
those thut did not, there vere some dierences in priorities, us illustruted in the churt belov. lor instunce,
S0.3% o respondents vho indicuted thut they purchuse locul ood runk quulity us their primury concern, vhile
thut drops to 3/.8% umong those vho do not buy locul. On the other hund, convenience vus more importunt
to respondents vho don`t buy locul, vith !3.4% o them selecting it us the rst priority, compured to only 6.3%
umong consumers vho do buy locul.

Local food is
homegrown, freshly
grown and not
imported... and its
better for you.
27%
31%
28%
16%
18%
17%
6%
13%
8%
50%
38%
47%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Purchases local food Does not purchase
local food
All
P
e
r
c
e
n
t

o
f

r
e
s
p
o
n
d
e
n
t
s

Most Important Food Purchasing Criteria:
Respondents Who Do and Don't Buy Local
Price Taste Convenience Quality
Consumer Survey
41
Perceptions of Local Food
1here vere generully positive perceptions o locul ood ucross the entire universe o consumer respondents,
vith 9S.2% o respondents ugreeing vith the stutement, "1he quulity o locul oods is probubly just us good
or better thun nutionul brunds. Similurly, 96./% ugreed vith the stutement, "Locul oods ure probubly more
uvorul thun oods rom ur uvuy. vhile u mujority o consumers ugreed vith the stutement, "Locul oods
probubly cost more thun nutionul brunds (69.4%), u greuter shure o nonlocul ood purchusers (/6.S%) ugreed
vith this stutement compured to locul ood purchusers (66.6%). Most respondents ussociuted locul oods vith
higher prices.
Locul ood vus ulso ussociuted vith reshness und heulthulness, u theme thut vus evident during the !4 in
depth consumer intervievs conducted us purt o this study. lntervievees shured the olloving thoughts:
Local food is homegrown, freshly grown and not importedand its better for you.
J/ yeot o|d womoo |o o veetsoo |oose|o|d tece|v|oq SNAP ood vlC, w|o somet|mes
shops at farmers markets
.lts jtes|et, |osts |ooqet. l doot t|tow os moc| owoy.
- 51 year old woman, lives alone, subscribes to Grasshoppers local food grocery program,
and spends approximately $50 per week on food
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Flavor is not as
good
Costs more
than other
food
Quality as
good or better
than other
food
More flavorful
P
e
r
c
e
n
t

o
f

r
e
s
p
o
n
d
e
n
t
s

a
g
r
e
e
i
n
g

Local Food Perceptions: Respondents Who Do and Don't Buy Local
Purchases local food Does not purchase local food All
Consumer Survey
42
Question #3: What are the opportunities to meet or increase local food demand?
8used on the responses rom consumers, there uppeurs to be signicunt opportunity to epund oerings
o locul ood. A mujority o respondents, regurdless o vhether they ure ulreudy purchusing locul ood,
epressed villingness to purchuse locul oods o ull types, vith the strongest interest rom both segments
in locul ruits und vegetubles. Among locul ood buyers, 99.0% vould consider purchusing locul ruits und
vegetubles, vhile umong nonlocul ood buyers, the rute vus neurly us high ut 9S.8%. vhen usked ubout
duiry products, 89.S% o ull respondents indicuted interest in purchusing locul, und 88.!% vould consider
purchusing locul gruins such us breud or pustu. 1hese responses vere relutively consistent ucross consumers
vho do und don`t buy locul ut present. lt uppeurs thut they elt somevhut dierently ubout meut, poultry und
sh, 8/.!% o respondents vho purchuse locul ood vould purchuse these products, vhile thut rute dropped
to /6.S% umong respondents vho do not currently purchuse locul ood.
One chullenge ucing locul ood is the epense, specicully the perception umong consumers thut locul ood
costs more thun the ulternutive. As noted eurlier, u mujority o survey respondents believe thut locul ood is
more epensive thun nutionul brunds. Similur concerns vere ruised during the intervievs, vhere purticipunts
shured the olloving:
".Price is (the) muin obstucle to buying locul oods.
6J yeot o|d d|obet|c womoo to|s|oq two teeooqe qtooddooq|tets ||v|oq |o t|e Pott|ood
oe|q|bot|ood, ott|c|otes |o SNAP, ot|||zes o |oco| jood ootty, eots o|| meo|s ot |ome
"8etter uvuilubility und reusonuble prices ure key obstucles to euting more locul.
- 30 year old woman, three-person household, spends $300 per month on food and dines out
multiple times per week
vhile locul ood is perceived to be more epensive, it ulso uppeurs thut those vho ulreudy purchuse locul
oods muy be villing to puy more, us evidenced by the uveruge monthly spend on ood ut home und outside
the home o $S0S.SS umong locul ood purchusers, compured to $468.!3 umong non locul ood purchusers.
Consumers ure villing to increuse their monthly spend on locul oods. vhen usked hov much they vould
spend on locul ood i it vere more eusily identiuble und uccessible, 2/./% o locul ood buyers responded
vith u gure thut implied u !0% to 20% increuse, vhile unother !/./% indicuted u gure thut implied u 20% to
30% increuse. 1he churt belov summurizes the udditionul umount thut locul ood buyers might contribute to
locul ood, epressed us u shure o their totul reported monthly ood budgets.
0
10
20
30
40
50
60
70
80
0.0% 1.0% -
10.0%
10.1% -
20.0%
20.1% -
30.0%
30.1% -
40.0%
40.1% -
50.0%
50.1% -
60.0%
60.1% -
70.0%
> 70.0%
N
u
m
b
e
r

o
f

r
e
s
p
o
n
d
e
n
t
s

Percent of total monthly spend
Potential to Increase Monthly Spend on Local Foods
Consumer Survey
43
linully, respondents ucross ull income bunds indicuted thut they
could spend an average of $203.76 on local foods each month,
over tvice the uveruge o $9!.S2 thut locul buyers indicuted us their
current level o spend. 1he uveruge potentiul spend rose signicuntly
or respondents vith unnuul household incomes o $/S,000 or more
(n-84), vho indicuted thut they could purchuse un uveruge o $2/6.49
in local foods each month.
Commercial Buyers & Consumers: Common Themes
1here vere some visible similurities in the vuys thut commerciul buyers und consumers dened the term
locul. Approimutely 2S% o commerciul buyers dened locul us ood grovn less thun !S0 miles uvuy, vhile
others dened it us ood grovn und produced vithin shorter distunces, such us !00 miles or even S0 miles.
ln indepth consumer intervievs, consumers vere usked to dene locul, und their responses epressed
similur sentiments. "lt is ood thut doesn`t huve to truvel urther thun S0 miles. lt doesn`t huve to be stored in
vurehouses, or go through customs or urrive rom overseus. l see smuller urms, not big conglomerutions.
vhile commerciul buyers vulued uvor und product consistency most vhen purchusing locul ood, consumers
sought quulity. 1hese criteriu muy in uct represent similur priorities, vith product consistency und uvor
serving us more specic indicutors o quulity thut ure especiully relevunt to commerciul buyers (vhose survey
did not include the more generul "quulity us u possible criteriu).

0
10
20
30
40
50
60
70
80
0.0% 1.0% -
10.0%
10.1% -
20.0%
20.1% -
30.0%
30.1% -
40.0%
40.1% -
50.0%
50.1% -
60.0%
60.1% -
70.0%
> 70.0%
N
u
m
b
e
r

o
f

r
e
s
p
o
n
d
e
n
t
s

Percent of total monthly spend
Potential to Increase Monthly Spend on Local Foods
Consumers indicated
that they could spend
over $200 per month
on local foods, more
than twice the amount
spent at present.
Consumer Survey
44
8oth consumers und commerciul buyers vere most likely to identiy ruits und vegetubles ubove other ood
cutegories vhen speciying locul oods they huve purchused. 1his is not surprising us ruits und vegetubles cun
be delivered vhole und unprocessed (us opposed to meut und duiry or eumple). lurthermore, both groups`
responses suggest thut there is udditionul demund or locul ood beyond vhut is sold ut present. A number o
commerciul buyers noted thut they vere sometimes unuble to obtuin desired locul oods, especiully ruits und
vegetubles including berries, tomutoes und uspurugus, us vell us meut. Among consumers, more thun 9S%
o respondents indicuted u villingness to purchuse locul ruits und vegetubles, regurdless o vhether they ure
already purchasing local food today.
vhen discussing obstucles to locul ood procurement, price vus identied by both groups o customers.
Commerciul buyers vho huve never purchused locul indicuted price us u primury reuson or not buying locul
oods, und neurly /0% o consumers surveyed believe thut locul oods ure more epensive thun nutionul
brunds. ln indepth intervievs, muny consumers cited price us u signicunt burrier to buying locul ood.
vhile some respondents identied price us un obstucle, others vere hungry or more locul ood in Louisville.
1here is evidence thut customers, both commerciul und consumer, ure villing to puy u premium or locul ood,
und believe thut locul ood oers superior quulity und uvor. Among commerciul buyers, neurly 40% reveuled
thut they vould be villing to puy more or locul ood, un udditionul 2S% epressed villingness to puy more on
u productbyproduct busis. Consumer responses indicuted thut locul ood buyers ulreudy spend un uveruge
o $40 more per month on ood (or consumption ut home und uvuy) compured to those vho don`t buy locul
food. And these consumers reported that they could increase their local food purchases even further: nearly
30% o locul ood buyers vould spend un udditionul !0% to 20% on locul oods.
Summary of Demand
Based on the survey responses, Louisville residents currently spend $100 million on local foods, and are
interested in purchusing un udditionul $!S8 million euch yeur, or u totul demund o $2S8 million. Commerciul
buyers currently spend $2!4 million on locul oods, und vould be villing to spend un udditionul $!39 million, or
a total of $353 million.
52
Much o the ood the commerciul sectors purchuse vill be hundled, trunsormed und
resold in u vuriety o outlets, leveruging thut $3S3 million in locul ood purchuses to contribute un estimuted $800
million to the local economy.
53
Meeting commerciul buyers` vorucious demund or locul ood vill contribute to
sutisying Louisville consumers` $2S8 million demund, vith ubundunce to shure vith visitors, commuters, und
consumers und vholesule buyers beyond }eerson County`s borders, thus becoming u meuningul economic
driver for the city and county.


52
Lstimutes o current und projected spend on locul ood ure bused on the responses to the consumer und commerciul buyer surveys,
specicully those respondents vho indicuted thut they do buy locul, und those thut suid they vould buy locul, us vell us the mediun cur-
rent spend und mediun potentiul spend culculuted rom the relevunt responses. 1he numbers initiully culculuted vere unnuulized, und
thereore required udjustment to reect the reulities o Louisville`s seusonul ugriculture, purticulurly in the cuse o resh und minimully
processed oods, vhich ure not uvuiluble yeurround. 1he numbers presented here ussume thut the ull runge o locul oods is uvuiluble
for approximately six months out of the year.
53
1his gure tukes into uccount the vulue thut vill be udded to locul ood us it moves through the supply chuin und is resold in vurious
orms by und to munuucturers, distributors, retuilers, restuurunts, und institutionul ood service compunies. lt is un estimute, bused on
industry stundurd costs o goods sold (COCS), vhich vury by sector.
Consumer Survey
45
Introduction to the Vignettes
ln order to best ussess the demund or locul ood in Louisville, the contet o thut demund und its purumeters und
conditions, the Locul lood Demund Anulysis looked ut u broud buse o kinds o buyershouseholds und indi-
viduul consumers, restuurunts und ood distributors, institutionul ood providers und the ood service compunies
thut serve them, processors und munuucturers, und ood retuil estublishments o ull scules. Like its subjects, the
uudience unticiputed or this reseurch, the runge o stukeholders involved und the breudth/runge o their interests
is complex and diverse.
1he olloving vignettes vere composed vith thut diversity o perspective in
mind. 1he goul o this section is to illustrute the unsver to the question: Hov
cun l use the ndings o this study to help grov Louisville`s ood und ugricul-
ture economy Specicully, this section o the report seeks to uddress thut
question or numerous stukeholders, including (but not limited to) produc-
ers, government leuders ut the city, county und stute level concerned vith
agriculture, planning, food access, health and economic development; non-
prot orgunizutions vorking on those sume issues, university reseurchers und
etension ugents, und ood business ovners o ull scules, ulong euch step o ood supply chuins.
1hree vignettes ollov:
1. More Tools for More Food
2. Farm to Food Processor
3. Increasing Healthy Food Options at Retail
The concept underlying these vignettes is the 3 legged stool that stands at the foundation of a healthy society
und, similurly, u heulthy ood system: !) u government sector thut is eective und uccountuble, 2) u dynumic pri-
vute sector thut generutes economic opportunity, und 3) u vibrunt civil society, or not or prot sector, thut vorks
vith government und business to improve people`s lives.
Luch o the three vignettes thut ollovs shovs pluyers rom ucross these sectors vorking together to tuke udvun-
tuge o un opportunity to creute u more vibrunt locul ood system in Louisville, but in euch vignette, u dierent
sector or stakeholder plays the role of convener or facilitator. Each vignette also includes a metric. Just as the
nurrutive o the vignette is meunt to illustrute one puth tovurd groving Louisville`s ood system, the metrics ure
provided not us pluns, but us simple muth meunt to describe potentiul returns on ood system investment und
potential impacts on the farm and food economy.
Conclusion and
Recommendations:
Using this study
How can I use this
study to help grow
Louisvilles local
food and agriculture
economy?
46
More Tools for More Food
The Headlines
Among commerciul buyers vho don`t currently buy locul, 43% did so in the pust und cited
insucient und inconsistent supply (including seusonul shits in supply) us key reusons they
stopped.
Louisville`s commerciul buyers vunt to support locul urmersit vus the third most populur reuson
they identied or purchusing locul oods.
Numerous commerciul buyers intervieved vished or u longer groving seuson, und closer to yeur
round uccess to u brouder runge o locul oods.
The Opportunity
Kentuckians and others around the country are increasingly seeking
nev vuys to uddress u undumentul problem in locul ood: Agriculture
vues und vunes vith the seusons, but people eut ull yeur round.
lurther, the vholesule businesses thut serve consumers ut home und
uvuy seek suppliers vho cun provide high quulity und consistent
quantities of fresh food year round.
lncreusingly, there ure relutively lovcost, environmentully ecient
technologies und methods or etending the groving seuson into the
vinter. Prime umong these ure high tunnels, or hoop houses. 1hese
ure greenhouses, usuully unheuted, und built rom lovtech, videly
uvuiluble muteriuls, such us PVC plustic piping und thick commerciul grude plustic sheeting. 1hese simple
structures enuble urmers to muintuin temperutures vurm enough to grov u runge o ruits und vegetubles yeur
round, helping them meet commerciul buyers` demund or yeur
round uccess to locully grovn ruits und vegetublesgetting more
locul ood to more buyers und euters more o the yeur.
A ev yeurs ugo, the USDA`s Nuturul Resource Conservution Ser-
vice (NRCS) begun u pilot progrum thut provides nunciul und
technical support to farmers for on-farm high tunnel installations.
The program has resulted in the creation of more than 4,000 high
tunnel instullutions nutionvide. ln 20!2, NRCS in lentucky oered
this support to lY urmers or the rst time.
The Story
ln 20!2, through the Lnvironmentul Quulity lncentives Progrum (LQlP), NRCS`s
lentucky oce begun oering grunts to producers to build und instull high tunnels.
1o spreud the vord ubout this nev resource, the orgunizution vorked vith purtners
ut University o lentucky (Ul) Ltension und the stute`s Conservution Districts to
speuk ut ugriculturul conerences, pluce urticles in locul nevspupers, und promote
the progrum in their ovn publicutions. 1hey ulso relied heuvily on vord o mouth in
the agriculture community. NRCS received approximately $700,000 from the federal
government, but since demund umong lY urmers ur eceeded thut number, the
NRCS lY eld oce chose to und ull interested und eligible urmers, und contributed
u mutch rom their normul unnuul progrum budget, vhich brought the progrum`s
Conclusion and Recommendations: Using this study
47
unding totul to $!.3 million or 20!2. 1his resulted in upproimutely 22S contructs vith urmers to build high
tunnels. ln this rst pilot yeur, NRCS did not guther dutu on purticiputing urmers, so u generul prole o hoop
house contructed urmers (scule o operution, vhut they grov, etc.) is not uvuiluble. NRCS did report thut
urmers rom /2 lentucky counties vere unded in this initiul yeur, und thut there vus u concentrution o
upplicutions rom south centrul lentucky, un ureu rich in vegetuble production.
NRCS contributes $2.S/ per squure oot o hoop house, up to 2,!/8 squure eet, or S% o un ucre, resulting in
contructs o up to (und oten euctly) $S,S9/. About S0 tunnels huve been instulled in lY to dute, representing
ubout $284,000 in contructs puid out by NRCS. lor muny urmers in lY, the deudline or instulling their high
tunnels vill come in the summer o 20!3, uter vhich they vill not be uble to receive reimbursement or high
tunnel instullution. NRCS representutives noted thut vhile not ull contructs vill be seen through (due to, or
eumple, u urmer`s personul heulth concerns), most vill be.
8ecuuse it vus the progrum`s rst yeur in lY, NRCS provided severul truinings or urmers. NRCS`s eld stu
vorked vith urmers to ensure thut hoop houses vere sited vell (on velldruining soils, in pluces vhere they
von`t be uttened by prevuiling vinds, etc.), und ull urms receiving unding ulso received u NRCS visit.
NRCS`s vork is generully restricted to nuturul resource conservution. vhile NRCS sees high tunnel instullution
us reluted (i.e. urms thut thrive economicully keep urming und thus preserve urmlund), the progrum vus u
depurture or them. 8ecuuse o this, NRCS does not huve inhouse technicul support cupucity or this project,
und hus purtnered vith Ul to provide the technicul support urmers need to operute their hoop houses eec-
tively. 1ruinings vere held in the ull o 20!2, und severul velluttended NRCS eld duys (urm tours orgunized
to euture good conservution pructices) vere dedicuted to high tunnels. Ul und NRCS together vill be truining
Ltension ugents on technicul production issues this vinter.
1hough these technicul support opportunities vere uvuiluble to urmers, they vere not mundutory, und us u
result, some producers ure struggling operutionully vith their nev high tunnels. 1hough technologicully und ur-
chitecturally simple, farmers note that theres a steep learning curve involved in using high tunnels achieving
optimul ventilution cun be complicuted, temperuture munugement requires detuiled uttention und knovledge,
und plunts vithin (though protected rom most pests und unimuls) ure susceptible to ungi.
Murketing und sules supports or urmers entering nev seusons vith nev products vere beyond NRCS`s cu-
pucity or scope. Recognizing hov essentiul this kind o support vould be, NRCS stu huve been presenting
information on the high tunnels program to assorted fruit and
vegetuble ussociutions stutevide, in hopes thut they vill pro-
mote the progrum to their members und tuke u leud in provid-
ing marketing support and producer education.
vhile NRCS is vorking to provide these supports, purticiputing
producers und some o the vholesule businesses thut buy rom
them huve recognized opportunities to build up the technicul
support component of the program. For example, in support of
the urmers thut supply them, Crusshoppers Distribution hus
taken an active role in providing support services to comple-
ment those o NRCS ensuring thut urmers knev ubout the op-
portunity, that they took advantage of it, and that they are making the most of it.
Crusshoppers begun by spreuding the vord ubout the uvuilubility o unding to producers, Ltension ugents,
und ull others vorking in support o producers. 1he compuny then supported eligible interested urmers
One commercial buyer
feared that the economic
development potential of
local food investment might
be limited because of the
growing season... (and for
season extension) capital
costs are so high up front.
Conclusion and Recommendations: Using this study
48
through the upplicution process und ussociuted pupervork.
8ecuuse crop plunning und nev vinter murket development supports huve been minimul or this stillnev
progrum, producers ure plunting vith some uncertuinty, unsure o vhut murkets they vill serve or vhich they
vunt to serve. lntervievees vithin the USDA, Ul und locul ood distribution compunies noted thut becuuse o
this, the 20!3 vinter murket muy be oversuturuted vith lettuce, leuy greens und tomutoes, crops thut urmers
huve plunted vithout buyers securely lined up.
The Metric
1hough Crusshoppers hus the truck und vurehouse cupucity to drumuticully increuse their distribution vol-
umes, the compuny lucks sucient stu to sell the lurge umounts o product currently groving in their sup-
pliers` nev high tunnels. l $60,000
54
(less thun S% o the $!.3 million LQlP high tunnel progrum budget) vus
ruised rom privute sources to complement to NRCS`s inrustructure investment, und vus used to hire u ull
time sules person ut u locul ood distribution compuny dedicuted to selling product or NRCS`s contructed high
tunnel urmers, thut investment could result in secure sules or urmers in u seuson in vhich income is usuully
very limited.
As urmers leurn hov to muke best use o this nev inrustructure in yeur one, product consistency und produc-
tion eciencies ure likely to be lover thun they vill be in uture yeurs, und product prices muy, us u result, be
higher. Utilizing u mi o murketing upprouches, including CSAs, restuurunts und schools (thut could oset the
premium price vith lY Proud Restuurunt Revurds Rebutes), grocery stores (vhich cun oten ubsorb u price
premium o up to 20%), und select institutions (those uble to puy u smull premium), u sules person ocused
on selling locully grovn vinter product could sell ubout $S00,000 in locul produce betveen November und
Muy (prime high tunnel seuson). ln uture yeurs, such u sules person could ocus on strutegic crop plunning
vith high tunnel grovers to ensure u strong und bulunced product mi. And us product consistency increuses
in proportion to urmer eperience vith the tunnels, more institutionul und high volume buyers could be tur-
geted, increusing sules to up to $2,000,000 und increusing the reuch o vinter locul ood in Louisville to more
consumers.
High tunnel production costs und revenue potentiul vury tremendously by type o crop, by the number o
pluntings u producer cun do over the course o the vinter, by type o veuther unticiputed, und by vurying lev-
els o reseurcher optimism. Ul mude sumple budgets or leuy greens und herb production in high tunnels, in
vhich they ound thut production costs vould totul $0./0 per high tunnel squure oot per seuson.
55
Research-
ers noted thut they vere being very conservutive in estimuting potentiul gross revenue to uveruge $!.30 per
squure oot. lovu Stute University Ltension ound thut u greens high tunnel business could generute upproi-
mutely $3.22 per squure oot in income, vhile u Cornell study ound thut successive pluntings o greens plunted
in high tunnels in the vinter months could generute gross income o $!.6/ per squure oot, though one grover
included in the study earned $2.43 per square foot. The Cornell study noted that several of the more productive
urmers grev ur more thun they could sell.
1he lurgest und most common size o lY NRCSunded high tunnels is 2,!/8 squure eet. l 9S% o NRCS`s con-
tructs ure ullled ut the muimum contruct size, lentucky could reulize more thun 4SS,000 squure eet in high
tunnel production cupucity by summer 20!3, vith investment rom NRCS o $!,!96,3S8./S.
1his udditionul indoor groving cupucity hus the potentiul to generute urmgute income or purticiputing
54
$3S,000 buse sulury, plus commission or bonuses, plus epenses.
55
1his culculution includes vuriuble und ed costs o production, hurvest, und murketing costs, 20 hours o contributed lubor by ovner
operutor und $9/hour or ull other required lubor.
Conclusion and Recommendations: Using this study
49
producers runging rom $S92,/!!
56
to $98!,!9/
57
in yeur one (the vust runge is bused on the uctors described
ubove). A dedicuted sulesperson housed vithin u compuny vith eisting strong distribution inrustructure und
a proven commitment to local produce funded as a complement to the infrastructure NRCS has made and
vill continue to muke in coming yeurs vould ensure millions o dollurs in sules o high tunnel grovn product
over the course of the programs initial years, generating more income for farmers and that much more local
ood uvuiluble to Louisville consumers.
Conclusion
A suite o toolsincluding nunciul products like grunts, sturtup und vorking cupitul through louns, us vell
us educution, technicul support und other uncillury servicesure essentiul to groving the locul ood supply
und to meeting the locul ood demund. Any one o these missing links cun greutly limit the ecucy o uny
other component, or of any single
investment und vill discouruge
producers from engaging in
eperimentution. As nev physicul
inrustructure is developed, best
use of existing infrastructure
should be considered (in this
case, existing marketing and
sales infrastructure in the form
o distribution compunies
dedicated to local foods). And
complementury inrustructure (i.e.
the sot costs described herein,
such as technical assistance and
sales support) required for its
success must ulso be creuted,
identied or muimized. 1he NRCS
high tunnel unding is un invuluuble
resource or urmers und u boon
or buyers looking or yeur round
access to local produce. NRCS
predicts that farmer interest and
upplicutions vill remuin high, us
vill the ugency`s commitment
to providing nunciul support to
those urmers. 1he rst yeur o
implementation in Kentucky has revealed opportunities that exist for increased investmentin education,
technicul support, sules epertisethut vill ensure thut this nev inrustructure is muimized, productive,
lucrative and sustained.
56
8used on the uorementioned Ul projections.
57
8used on the uveruge o the uorementioned studies` income projections: $2.!6/s.
More Tools for More Local Food
Opportunity: Commerciul buyers und consumers vunt
u consistent supply o locul ood, yeur round i possible
Convener: Finance sector, and local food marketing
and education organizations
Players: NRCS, Seed Capital Kentucky, UK, KDA, local
ood distribution compunies
Approach: Scuold nev USDA/NRCS investments
in seuson etension inrustructure vith murketing
supports and resources
Investment: $!,!96,3S8 in high tunnel instullution
contracts. $60,000 in local food sales staff
enehts: Up to $98!,!9/ vorth o product could be
grovn in the progrum`s rst vinter. About $S00,000
could be sold in yeur !, up to $2 million by yeur 3
Conclusion and Recommendations: Using this study
50
Farm to Food Processor
The Headlines
!00% o Processors surveyed receive subsidies, rebutes or bulk discounts thut inuence their
purchusing choices (compured to 66./% o the surveyed universe us u vhole).
/8./% o commerciul buyers surveyed purchuse processed und prepured oods, yet just 29.2% ure
currently buying locully processed oods.
More thun 88% o consumers suid they vere interested in purchusing locully processed oods.
The Opportunity
Consumers around the country are increasingly pressed for time and are, as a result, eating out more often
vhile seeking vuys to muke cooking ut home more convenient und less time consuming, und Louisville`s
consumers ure no eception. Louisville`s commerciul ood buyers, ucross sectors, purchuse lurge umounts o
processed oods, rom vushed und chopped resh vegetubles to rozen meuls to prepeeled und cut currots.
8ut u very smull portion o the processed oods commerciul buyers
are currently purchasing is locally sourced. Opportunities exist for
locul munuucturers to grov their businesses by udding nev products
euturing locul ingredients, und in doing so, udding nev murkets, in und
beyond Louisville. At the sume time, urmers intervieved indicuted
thut they ure interested in selling to processors, ussuming ugreeuble
terms und pricing could be urrunged. Muny urmers viev uccess to
ureu processors us u missing strutegy thut could support urm viubility
through stuble urm product sules.
ln recent yeurs, }eerson County Public Schools (}CPS) hus tuken u leud on locul ood procurement in Louisville,
both vhole resh items und minimully processed ruits und vegetubles (vushed, chopped, peeled, rozen,
or diced, for example). They and other institutional food service providers rely heavily on these minimally
processed products to eed lurge groups o consumers eciently und nutritiously, und ure increusingly looking
or vuys to ulign the logistics und economics vith producers und ood processors to receive the oods they
need in the orm they need. }CPS hus hud greut success in increusing their locul ood procurement by issuing
direct contructs vith ureu urmers, vhich cun serve us u model or other institutions or processing compunies
interested in olloving suit.
At the same time, as more and more consumers are requesting local foods from the institutions serving their
meuls, und us locul ood increusingly pluys u role in orgunizutions` sustuinubility objectives, institutionul meul
providers ure increusingly ocusing their produce specicutions on quulities other thun price or, or eumple,
the size o the upples it vunts und the number o upples thut should come in euch bo. 1hey ure including in
the product specicutions they send to their ood service, ood processing, und ood distribution compuny
partners statements of preference for local foods. In addition to these, target local food purchasing percentages
ure sometimes set (e.g. u goul o procuring !0% o the upples un institution uses rom locul producers over
the course o the yeur). An opportunity eists to support institutions interested in creuting specicutions or
preferences that include local foods in making those goals transparent to their suppliers; and to support their
suppliers in meeting their institutionul (und other) customers` demund or locul ood.
Locul ood purchusing (by ureu munuucturers) creutes distinct opportunities or pluyers ulong ood supply
chuins: consistent, truced und knovn ingredient sources provide processors vith the opportunity to tell u
story ubout the products they creute, the high ood suety stundurds required by ood processors cun drive
The largest (economic)
impact would be with
doing value added
products.
u commerciul ood buyer
Conclusion and Recommendations: Using this study
51
increused cupucity on ureu urms in order to enter these supply chuins, vhile the relutively lurge quuntities o
product thut enter ood munuucturing chuins cun boost production ut the urm level, perhups creuting econo-
mies o scule thut result in more sules to other commerciul buying sectors. Consumers uced vith u super
ubundunce o ood options, lubels und cluims to muke sense oure increusingly interested in not just locul
oods but oods thut come rom u business they cun trust. lncreused locul sourcing by the processing sector
could yield benets or ull these stukeholders.
The Story
Creuter Louisville lnc. (CLl), the Louisville Metro Chumber o Commerce, is very enguged vith Louisville ood
processors und munuucturers, ucts us u spurk und resource or the sector on ood business und product
development, vorks to ensure thut their member businesses trend vith vhut
consumers vunt, und understunds the economic development potentiul o
increasing the amount of local foods utilized as ingredients in the processed
food sector. They are poised and open to strategies to promote local ingredients.
CLl hus u strong role to pluy in supporting u vide vuriety o ood processing und
munuucturing compunies to gure out vhere und hov locul ood ts in, hov it
udds vulue to their product, und hov best to tell the story. 8ecuuse o the costs
of production, development, and equipment and the importance of producing
in volume, processors und munuucturers cunnot reusonubly be construined
to serving one geogruphic murket. lor instunce, CLl represents u tortillu
munuucturer thut strutegicully sources ingredients globully, munuuctures
only in Louisville, und ships their product nutionully. Since vhut`s locul to u consumer in lY isn`t locul to u
Culiorniun, the story, pover und vulue o locul procurement vould lie, not in the consumer getting u product
locul to them, but in supporting u compuny thut supports its home region`s ugriculture. 1his is not the most
common locul ood story told, but it mutches u nding o this Demund Anulysis: 1he most commonly selected
reuson commerciul buyers surveyed provided or vhy they buy locul oods is to support the locul economy.
lor unother kind o compuny, it could be one product or one purt o their compuny portolio thut enguges locul.
CLl cun help druv out those opportunities. 1hey knov their purticiputing businesses "in und out und cun go
into thut level o business plunning, product development und supporting members in building nev brunds
and product lines.
vhile locul ood uppeurs in industry report uter industry report us "trending und demund is groving, muny
processors argue that demand for local still represents a very small percentage of overall demand for food. For
this sector ubove ull others, product churucteristics like product puck size und
consistency rise to the top.
One approach to increasing the amount of food that travels from regional farms
to Louisville processors (und then on to consumers) vould be to creute u per-
ormuncebused incentive progrum or processors interested in introducing lo-
cul oods to their supply chuins, in keeping vith the successul model o the
lY Proud Restuurunt Revurds progrum. vith unding rom the lY Agriculturul
Development 8ourd, the Restuurunt Revurds progrum provides u rebute o up
to 20% on money restuurunts, cuterers und institutionul ood service providers
like school districts spend purchusing oods rom lY Proud businesses, vith un
unnuul ceiling o $!2,000 in rebutes per purticiputing business. One restuuruteur
Conclusion and Recommendations: Using this study
52
intervieved or this study noted thut vhile $!2,000 is u smull percentuge o her totul purchuses, the rebute
does impuct her purchusing decisions und meuns u lot to her cupucity to source locully, vhich she does ubove
und beyond the umount o product rebuted by the progrum. lurther she notes thut the process und the puper-
vork involved in Restuurunt Revurds purticipution is simple und cleur.
lY Proud is u strong eisting toolu knovn und understood progrum, nume und
brund. lt mukes sense to leveruge thut success und brund recognition, und to
etend und udupt the progrum to more ood buying sectors. 8ecuuse the pro-
cessor progrum like the Restuurunt Revurds vould be trunspurent und peror-
munce bused, not promisebused, risk undertuken by the unding ugency vould
be minimul: l purticiputing ood processing compunies purchuse locul oods,
they receive u rebute. l they do not purchuse locul oods, the money remuins in
u pool thut cun be reullocuted to other businesses.
Leuders ut CLl noted thut u progrum like this should be rigorous, thut compu-
nies should huve to vork to receive rebutes, und thut economic impuct on the
stute thut results rom investment in Louisvillebused ood processing business-
es should be meusured und ussessed, including urther business opportunities thut emerge us outgrovths o
the progrum us the lentucky Depurtment o Agriculture, Ul und other criticul ugencies vorking in support o
the stute`s ugriculturul build stronger relutionships vith the ood processing industry. lurther, vhile urmto
munuucturer progrums huve been piloted on smull scules elsevhere uround the country, u perormunce bused
incentive progrum such us this could potentiully become u nutionul model us Restuurunt Revurds recently did
vhen the Alusku Depurtment o Agriculture modeled u locul ood rebute progrum uter lY Proud`s progrum.
Lssentiul to muking un incentive progrum like this vork vill be un uvuiluble "subject epert to mutch the busi-
nesses to strong suppliers, purticulurly considering the volumes thut could be ut pluy. 1his is u very specic body
o content knovledge und vill require dedicuted stu ut CLl, elsevhere in city government, or rom beyond
the public sector thut understund ood processors` needs, the chullenges und opportunities producers uce
in meeting those needs, und vho knov ood supply chuins und ull the issues thut urise ulong them. 1he lurm
to 1uble Coordinutor (housed nov ut Metro Lconomic Development und lnnovution) vill be u key technicul
support resource: connecting processors vith vellmutched producers, muking uccessing locul ood eusy or
processors, ensuring thut distribution compunies thut huve the inrustructure und locul ood knovhov to serve
the processing sector ure brought on to do so.
vith support rom the Agriculture Development 8ourd, CLl could tuke the leud in promoting und eecuting
this progrum. As some leudership shits ure occurring vithin CLl ut the end o 20!2, it vill be essentiul thut the
ugency vork rst internully to ensure thut orgunizutionul leudership there is uligned in support o this progrum,
to ensure thut the progrum vill be long term und stuble, creuting strong opportunities or ood businesses und
stuble selling opportunities or producers. CLl could then vork in purtnership vith lDA, Ul, und other govern-
ment ugencies, ussociutions und nonprots thut vork in support o urmers to ensure thut us muny producers us
possible ure reudy to serve u nev high volume murket.
Like consumers, processors need to trust in reliuble, consistent suppliers. 1hose suppliers could be locul suppli-
ers. ln uddition to u possible nunciul incentive, other benets ood processors yield could include proimity und
thus improved communicution vith suppliers, increused product truceubility und vith it the ubility to increuse
storytelling und brund building uround ingredient provenunce, und codevelopment o suppliers, such us vork-
ing vith grovers to triul nev vurieties thut might enhunce u nev processed product.
Conclusion and Recommendations: Using this study
53
The Metrics
According to the lentucky Depurtment o Agriculture, the lentucky Proud Restuurunt Revurds Progrum "reim-
bursed more thun $!29,000 to !/0 purticiputing restuurunts in 20!!, umounting to u urm impuct o more thun
$88S,000.
S8
l these businesses on uveruge received u rebute or ubout !4.6% o their lY Proud purchuses, then
on uveruge euch business received u rebute o ubout $/S9 und spent ubout $S,206 on locul ood or vhich they
submitted rebute pupervork. Currently, !/2 restuurunts, school districts, und other institutionul dining services
ure listed us purticiputing in the Restuurunts Revurds progrum.
S9
If each of these 172 participating commercial
buyers received the muimum rebute uvuiluble ($!2,000), the Restuurunt Revurds rebute budget or 20!3
vould be $2,064,000. And i thut budget represented !4.6% o the lY Proud purchuses mude by progrum pur-
ticipunts, the progrum could result in ut leust $!4.!6 million in sules o lY Proud oods.
A lurger peryeur rebute ceiling might be required or u processor revurds progrum becuuse the processing
sector purchuses, trunsorms, und sells tremendous volumes o ood in compurison vith the restuurunt und
ood service sectorprocessors surveyed or this Demund Anulysis spent ulmost ve times more on ood euch
yeur thun surveyed restuurunts. Detuiled murket reseurch vould be required to determine vhut un eective
incentive ceiling vould be. l hul o the potentiul Restuurunt Rebute budget (not currently being received
by businesses, $!,032,000) vere diverted to creute u pilot lY Proud Processor Revurds progrum, vith un
unnuul rebute ceiling o $24,000 per purticipunt (u lurger ceiling since the uveruge processing compuny hus u
substuntiully lurger ood purchusing budget und thus the incentive vould need to be higher) und processors
vere oered up to 20% in rebutes on purchuses o lY Proud oods, 43 processing businesses stutevide could
purticipute. l they ull received, us Restuurunt Revurds purticipunts huve, un uveruge rebute o !4.6%, Processor
Revurds vould drive ut leust $/,080,6!8 in sules o locully produced oods by urmers und lY Proud businesses
in its rst yeur.
Locul ood procurement hus the potentiul to leud to job creution vithin the ood processing sector: nev
positions or preprocessing ingredients thut might be received in u more ruv or vhole stute, sourcing locul
ingredients requires udditionul time und skills resulting in udditionul purchusing stu positions or hours, brund
etensions or nev product lines could be creuted to promote the locul sourcing vhich could uplit compuny
sules overull, und storytelling visvis hov ingredients vere sourced or the signicunce o pluce/origin to
u ood product could generute nev murketing, communicutions, und public relutions stu needs vithin u
compuny. Nutionully, $!,000,000 in sules in the ood processing industry is estimuted to generute nine nev
ull time jobs.
60
1he Louisvillebused nonprot Community lood Alliunce (ClA) hus cited un employment
multiplier of 1.5
61
, meuning thut i locul ood procurement in the processing sector, stimuluted by un incentive
progrum, vere to generute $!,000,000 in nev sules or those businesses in the progrum`s rst yeur, us muny
us !4 ulltime jobs could be creuted.
1he metrics o success und impuct vith u progrum like this etend buck rom the processing compuny through
the food supply chain and have the potential to positively impact farm expansion, farm-gate income, and
stuble onurm employment, uctors vhich severul urmers intervieved or this project noted restruined their
potentiul or grovth to serve lurger murkets. According to u 20!! USDA study, every $! million u producer sells
into regionul murkets generutes !3 ull time operutor jobs (plus purt time und seusonul jobs), compured vith 3
S8
http://vvv.kyugr.com/pr/nevscenter/AluskuputternsRestuuruntRevurdsprogrumuterpopulurlentuckyProudinitiutive.htm
S9
http://vvv.kyugr.com/murketing/restuuruntrevurdsprogrum.html
60
http://blogs.ed.org/restorutionundresilience/20!0/02/24/economicrutiosundemploymentmultipliersleungthroughthelingo/
61
Bringing Kentuckys Farm and Food Economy Back Home. CFA, 2003.
Conclusion and Recommendations: Using this study
54
jobs creuted by the sume urm sules mude outside the region.
62
Seven million dollars in local food purchases
driven by u Processor Revurds progrum could generute 9! ull time urm operutor jobs. lurther, ClA hus cited
employment multipliers or lentucky ugriculturul production ut !.3, meuning thut those nev 9! urm operutor
jobs could generute un udditionul 2/ urm service sector jobs or lentuckiuns.
vhile investment vould need to be mude in incentives or processors, supports or urmers vishing to uccess
these nev murkets vould ulso need to be put in pluce. lor the purposes o this cuse study, severul urmers
vere usked to imugine thut there vus potentiul to plunt un ucre o tomutoes or u processing compuny
vhut vould need to huppen to
muke the deul vork und muke it
u deul vorth vorking or One
urmer noted thut he vould
need a contract that stated that
i quulity stundurds vere met,
the processor vould purchuse
u specied volume o prod-
uct at an agreed upon price. A
good price, he thought, vould
be ubout /S cents per pound,
enough to support him if yields
ended up being quite lov.
This farmer already has the on-
farm staff in place to take on a
customer in this vuy. He esti-
mated that his operational costs
vould include un estimuted
400 munhours (costing ubout
$5,000) per acre of staked to-
muto plunts, plus ubout $8,640
in seed, inputs, packing, storing,
etc. In considering capital costs
he vould uce, he noted thut he
vould ulso need to invest in u
gruding und pucking line, vhich
depending on the size und uge o the equipment, vould be $2,0008,000. A good yield rom thut ucre vould be
ubout !S tons, resulting in $22,S00 in gross income, resulting in $8,860 in prot per ucre (not counting the cupitul
machinery investment).
He noted the importunce o strong relutionships betveen urmers und buyers, in vhich urmers communicute
und buyers understund hov perishuble produce is ut peuk ripeness, in vhich buyers ure prepured to tuke
product vhen it`s reudy und best, in vhich buyers ure very cleur ubout stundurds und puyment schedules. 1he
urmer vus enthusiustic ubout this kind o relutionship, noting thut it vould "ullov u urmer to muke the cupitul
investment necessury to produce und deliver u desired product to u stuble buyer und could result in "more
stuble urm income.
62
lnov Your lurmer lnov Your lood Compuss. United Stutes Depurtment o Agriculture, 20!2
More Local Foods From Farm to Processor
Opportunity: 8uyers vunt to purchuse locully processed
oods, but ev do so nov.
Approach: Ltend the successul und proven lY Proud
Restuurunt Revurds progrum to incentivize locul
procurement by processors.
Convener: Covernment sector: CLl, in support o the
private sector.
Players: KDA, The Agricultural Development Board, food
processing businesses, producers.
Investment: $!,032,000 in locul ood rebutes.
Results: $/,080,6!8 in sules o locully produced oods
resulting in !!8 urm sector jobs. Nev product und
brund development opportunities or ood processors.
lourteen ood processing sector jobs creuted per million
of sales generated.
Conclusion and Recommendations: Using this study
55
Conclusion
As vith uny nev initiutive, un essentiul element o u Processor Revurds progrum vould be trucking o the
programs success. Such evaluation is essential to demonstrate the value of investments in local food system
inrustructure, be it physicul inrustructure (like pucking or reezing lines), humun/stu cupucity (such us the
lurm to 1uble Coordinutor), murketing inrustructure (such us brunds thut processors muy creute or the lY
Proud brund itsel), or inrustructure o unother kind. vhile depending upon thut inrustructure or its suc-
cess, u Processor Revurds progrumund evuluution o thut progrum should demonstrute the vulue o thut
inrustructure to drive continued investment und grovth. Such evuluutions, trucking locul ood purchuses by
commerciul buyers in Louisville or instunce, could be curried out unnuully by un interested third purty such
as Seed Capital Kentucky.
CLl hus u series o tools uvuiluble vhen vorking vith ood processing compunies, some reluted to murket
development, others to product development, still others reluted to cost suving. A progrum like this vould
be unother tool in their toolkit, u tool specic to locul ood und u puthvuy into u conversution ubout locul
procurement thut remuins u rurity in the ood processing sector. Assuming such u progrum vus seen to ulign
vith the stute`s und }eerson County`s plunning priorities, CLl believes they could sell it.
Conclusion and Recommendations: Using this study
56
Increasing Healthy Food Options at Retail
The Headlines
About S0% o surveyed consumers shop ut speciulty ood stores und ut corner stores.
Survey respondents coming from households of less than $50,000 in annual household income
are more dependent on convenience stores and corner stores than are higher income survey
respondents: S4./% (9/) o households vith income less thun $S0,000 shop ut these stores vs.
44.8% (48) o those vith income over $/S,000.
}ust 23.9% o Louisville Metro udults eut ve or more servings o ruits und vegetubles euch duy.
The Opportunity
1he Locul lood Demund Anulysis survey results reveuled thut ulmost /2% o Louisville consumers ure ul-
reudy buying some umount o locul ood (29.S% o ull surveyed consumers reporting thut they do so "re-
quently). Muny more vould be interested in purchusing locul
ood i it vere uvuiluble to them vhere they ulreudy shop. Con-
sumers of all income levels depend on farmers markets and
other direct rom urmtotuble upprouches more und more,
und some umount o locul ood is uvuiluble in muinstreum ood
retuil estublishments. Still, un opportunity remuins to increuse
the prevalence of local food in all kinds of food retail venues,
specicully the smull grocery und corner stores thut Louisvil-
liunspurticulurly those vith lover household unnuul incomesdepend on or their ood.
This case study explores the opportunity to reposition local food as a normalized, rather than specialized, part
o Louisville`s brouder ood supply. And vhereus other sections o this report ocus on increusing uccess to lo-
cully grovn oods or buyers o ull kinds, this cuse study epunds thut ocus und thut goul und usks: How can
occess to ojjotdob|e |eo|t|y joods be |octeosed |o o|| veooes w|ete coosomets s|o? Aod w|eo oss|b|e,
|ow coo mote oj t|e |eo|t|y jood |||oq t|ese estob||s|meots be tocoted |oco||y?
A portion o the ood dollurs thut lovincome Louisville residents spend come rom the Supplementul Nutrition
Assistunce Progrum (SNAP), ormerly knovn us ood stumps. Almost $2!/,000,000
63
SNAP dollars are spent
in }eerson County every yeur, und the progrum is groving. ln 20!!, !8.8S% o }eerson County`s residents
vere SNAP purticipunts, up rom !6.2/% in 2009.
64
Since 2008, }eerson County hus hud u 96% purticipution
in SNAP, meuning thut 96% o households thut ure eligible or the benet receive it. 1his is umong the highest
SNAP purticipution rutes in the nution. Still, in 20!!, vith benets uveruging $2/2.!S per recipient cuse, un-
cluimed SNAP benets (thut remuining 4%) represented $9,039,/34 thut could huve been circuluting through
the Louisville ood economy, but vere not.
65

SNAP redemption ut urmers` murkets in lentucky is not currently trucked ut the county level, but stutevide, in
20!! just 0.004% (-$8,S00) o ull SNAP dollurs vere spent ut urmers` murkets, compured vith 0.0!6% nution-
ully. Yet SNAP redemptions ut lY urmers` murkets increused by //.6% rom 20!0 to 20!!
66
, us mobile electronic
63
http://chs.ky.gov/NR/rdonlyres/!/3SC8/0040D4!A/8A2DS8DC/96/00/C/0/Combined.pd
64
USDA lood Atlus (}eerson County Dutu)
65
"SNAP Access in Urbun Americu: A CitybyCity Snupshot. }unuury 20!!, 1he lood Reseurch und Action Center (lRAC), vushington DC. lRAC
uses 2008 dutu becuuse ut the time o publicution, thut vus the most recent yeur or vhich census dutu is uvuiluble to culculute the number o
people potentiully eligible or SNAP/lood Stumps.
66
USDA lood und Nutrition Services 8enets Redemption Division (dutu or ull o lentucky or lurmers` Murkets)
A healthy choice should be
an easy choice.
-Steve Tarver, President and CEO,
YMCA o Creuter Louisville
Conclusion and Recommendations: Using this study
57 Conclusion and Recommendations: Using this study
benet trunser (L81) inrustructure hus been mude increusingly uvuiluble to enuble those sules.
67
This arena is
groving in lentucky und in Louisville, und un opportunity eists to increuse the puce o thut grovth, enubling
more SNAP dollurs to be spent ut urmers` murkets on heulthy, locul oods.
8ut like ull dollurs, most SNAP dollurs ure spent not ut urmers` murkets, but ut brick und mortur retuil estublish-
ments: supermurkets, grocery stores, corner und convenience stores. More dollurs (including but not limited
to SNAP) cun be spent on heulthy oods ut retuilund un increusing umount o heulthy ood could come rom
locul urm und ood businesses. lt vill tuke more resources ocused on ensuring thut more vho ure eligible
ure receiving benets, on mutching retuilers seeking heulthy und/or locul oods vith suppliers o those oods,
und on muimizing inrustructure thut supports locul oods` entry into supply chuins thut ulreudy ll retuilers`
shelves.
The Story
One of Louisvilles premiere programs focused on increasing healthy food
uccess or lover income consumers is Heulthy in u Hurry. Operuted us u
purtnership betveen the }eerson County Depurtment o Heulth und vell-
ness`s Center or Heulth Lquity und the YMCA, the progrum supports corner
stores in Louisville neighborhoods thut huve been identied us ood deserts
(dened in the Contet section o this report) vith inrustructure, technicul
assistance and merchandising supports to expand the fresh produce selec-
tion in their stores. lunded in purt by u Heulth und Humun Services` Com-
munities Putting Prevention to vork (CPPv) grunt, the progrum luunched
in 2009, und is nov up und running in seven Louisville corner stores.
68
For
stores thut huve previously not sold resh und highly perishuble oods like
ruits und vegetubles, the obstucles und risks ussociuted vith currying these
products are numerous: lack of experience handling and selecting produce,
luck o resources or promoting it, luck o inrustructure like vulkin coolers
in the buckothehouse und instore rerigeruted displuy cuses. 1hrough
the program, stores receive grant funds for program signage, marketing, display refrigeration, community out-
reuch support, technicul ussistunce und more, the kind o physicul und inormution inrustructure thut enubles
u smull business ovner to tuke try something nev thut builds their business und, in this cuse, benets the com-
munity ut lurge. vith these supports in pluce, the seven purticiputing stores euch sell $8,0009,000 vorth o
produce every month.
Around the country, u number o successul progrums ure
ourishing some run by nonprots, others by city ugen-
ciesthut provide consumers (some o them SNAP bene-
ciuries) vith udditionul dollurs to spend on resh oods pur-
chused ut urmers` murkets. Purticipunts in the Nev York City
Depurtment o Heulth und Mentul Hygiene`s (DOHMH) Heulth
Bucks program receive an additional $2 in Health Bucks for
every $5 in SNAP that they spend on fresh fruits and veg-
etubles ut NYC urmers` murkets. NYC`s is the lurgest cityop-
erated SNAP incentive program in the country. Like Louisville,
67
E81 (Llectronic 8enets 1runser) is u system thut enubles the ederul government to distribute benets such us SNAP to progrum purticipunts
on u puyment curd thut unctions like u debit curd.
68
http://vvv.louisvilleky.gov/Heulth/equity/HeulthyinuHurry.htm
58
NYC receives ederul unding through CPPv, und in 20!0!!, DOHMH used u portion o this unding to grov
the urmers` murkets` cupucity to uccept L81 curds. Heulth 8ucks ure distributed onsite ut urmers` murkets,
through community orgunizutions (to increuse outreuch to SNAP recipients not yet shopping ut urmers` mur-
kets) und by other meuns, und DOHMH distributed $260,000 in Heulth 8ucks in 20!!. Combined vith ederul
SNAP dollurs spent ut murkets through the progrum, the progrum vus estimuted to huve generuted more thun
$642,000 in regional economic activity.
69
Civing SNAP shoppers u 40% bonus on vhut they`re ulreudy spend-
ing or locul produce hus hud big impucts: one purticiputing murket reported $340.6/ in uveruge duily L81 sules
prior to luunching Heulth 8ucks und $!,60/.88 utervurds, un increuse o 4/2%. lurther, u progrum evuluution
reveuled thut /!% o consumers ute more produce und /2% o urmers sold more us u result o the progrum.
1he nonprot vholesome vuve operutes un innovutive pilot progrum culled the lruit und Vegetuble Prescrip-
tion Progrum (lVR) thut, like Heulth 8ucks, provides udditionul money or resh produce bought ut urmers`
markets. But rather than linking those dollars to SNAP, Veggie Rx provides them in the form of a prescription
or one serving o produce euch duy (vulued ut $!) per household member. Ruther thun SNAP beneciuries, lVR
turget purticipunts ure overveight und obese children und pregnunt vomen und their umilies. 1he progrum cre-
utes und depends on strong, integruted purtnerships betveen community members, their heulth cure providers
und their neighborhood urmers` murkets to chunge purticipunts` ood consumption hubits, to meusure those
changes and then to assess their impact on participants overall health and community health. The program,
operuted ut !2 sites nutionully in 20!2, is eective: in 20!!, it reuched !,222 people vho, on uveruge, suv u 38%
decreuse in 8Ml in our months o progrum purticipution. 1he progrum ulso resulted in ulmost $S0,000 in nev
farmers market sales.
70

lt is importunt to note thut or incentives to be linked vith SNAP
dollurs ut urmers` murkets or unyvhere else, USDA vuivers must
be obtuined. 1he USDA is supportive o SNAP urmers` murket
incentive progrums und vith lurm 8ill unding hus recently un-
dertuken the Heulthy lncentives Pilot (HlP), through vhich con-
sumers receive SNAP incentive dollars to spend on fruits and
vegetubles in retuil estublishments (including upproved grocery
stores and corner stores). An in-depth evaluation of the incen-
tives impact on healthy food consumption is expected in 2013.
Still, vhile HlP is in pilot und testing phuses, u progrum like Veggie
R thut does not link incentives to SNAP or other ederul money, though more complicuted in other vuys, could
involve ever regulutory hurdles.
1here is not currently u stute or nonprot operuted progrum thut incentivizes locul ood or resh ood pur-
chuses vith (or vithout) SNAP money in Louisville, }eerson County, or elsevhere in lentucky. Louisville vould
muke u strong Veggie R pilot city, u urmers` murket progrum like Heulth 8ucks could be creuted, or u hybrid o
the progrums described ubove could be creuted or Louisville. 8uilt on the success o the strong eisting purt-
nership betveen the city`s Depurtment o Heulth und vellness und the YMCA through Heulthy in u Hurry, und
enguging other nonprot leuders ocused on heulth und ood uccess, u SNAP incentive progrum could be de-
veloped vhich vould enuble SNAP shoppers to spend incentive dollurs ut urmers` murkets, Heulthy in u Hurry
corner stores, und ull retuil estublishments vhere SNAP is uccepted. 1o keep the progrum simple or consumers
und or purticiputing retuilers in its initiul yeurs, the progrum`s eligible oods could be limited to vhole, resh ruits
69
http://vvv.nyc.gov/html/doh/html/cdp/cdppunheulthbucks.shtml
70
http://vholesomevuve.org/vr/
Conclusion and Recommendations: Using this study
59
und vegetubles, locul or not locul.
vork ulreudy being undertuken through CPPv to meusure Louisvilliuns` ood consumption hubits could be e-
punded to evuluute hov much more produce is being sold und euten us u result o the progrum.
1he city`s nonprot sector vould huve u key role to pluy in communicuting the demund or locul und heulthy
foods to existing retailers; providing merchandising supports, culinary education or nutrition information on-site
or consumers, leuding the churge on increusing SNAP outreuch to ensure thut ull consumers eligible or benets
ure receiving them und thut us muny o those us possible ure ulso purticiputing in the city`s SNAP incentive pro-
grum, und creuting u mup und guide or progrum purticipunts thut cleurly demonstrutes vhere incentive dollurs
cun be used und or vhut kinds o oods.
Dure to Cure is u strong potentiul purtner or this vork. 1he orgunizution distributes more thun S,000,000
pounds of fresh produce each year, including some donations from farmers and a pilot Farm to Food Bank pro-
gram through Capstone Auctions that resulted in 200,000 pounds of local food sent to emergency food provid-
ers in Louisville last year. Further, the organizations educational programming, Kids Caf and Cooking Matters
71
,
could be epunded to serve SNAP incentive progrum purticipunts.
As Heulthy in u Hurry hus done, there is un opportunity to purtner more vith eisting distributors vho ocus on
locul oods to get more resh ood, locul vhen possible, into venues thut muy not huve previously curried those
foods. A SNAP/healthy food incentive program could also drive expansion of Healthy in a Hurry into more cor-
ner stores in the neighborhoods vhere resh ood uccess is most limited.
Metro government`s Depurtment o Lconomic Crovth und lnnovution, und specicully the lurm to 1uble Co-
ordinutor, vould huve key roles to pluy us vell, vorking vith retuil estublishments to ensure thut their oerings
vere locul vhenever possible und ensuring thut those retuilers huve the educutionul und murketing muteriuls
to promote locul product vhen it lS uvuiluble, urticuluting nev supply chuins thut serve grocers/merchunts o
vurious scules vith heulthy locul oods, und investing in inrustructure like rerigerution thut better enubles resh
ood und locul ood to move through these chunnels. vhile the primury goul vould be increusing uccess to all
resh ruits und vegetubles, locul oods und the eperiences people huve vith locul oods ure celebruted nution-
vide us u gutevuy to creuting nev relutionships betveen people und produce, vith the intention o broudening
the vuy consumers think ubout ood.
vhen inrustructure und supply chuins ure built thut support locul ood`s entry into more murketpluces, thut
inrustructure vill broudly support u more vibrunt und heulthy ood system. 1he result vill be increused utilizu-
tion o SNAP benets und ussociuted multiplier eects oving through Louisville`s economy, nev business op-
portunities or ood retuilers o ull scules, more heulthy oods purchused und consumed by Louisville residents,
und in some cuses, nev murketpluces or the region`s urmers.
71
1hese ure locul progrums o nutionul initiutives designed by Shure our Strength (vvv.strength.org)
Conclusion and Recommendations: Using this study
60
The Metrics
1he highest SNAP purticipution rutes nutionvide ure 98%. SNAP purticipution in Louisville is ulreudy very high,
but increusing it to mutch the highest in the nution vould bring un udditionul $4,S!9,S9S unnuully into circulu-
tion in Louisville`s ood economy, or u totul o ubout $22!.S million SNAP. Approimutely !9.6% o SNAP dollurs
nutionvide ure spent on ruits und vegetubles.
72
vith increused purticipution, Louisville`s SNAP shoppers could
be reusonubly epected to spend $4.S million on resh produce euch yeur.
l $S00,000 vere invested in
incentives and those incentives
drove an increase in SNAP par-
ticipution und u S% increuse in
the amount of fruits and vege-
tuble SNAP shoppers purchuse
vith their benets, un uddition-
ul $2.6/ million vorth o ruits
und vegetubles vould be pur-
chased each year.
Beyond the potential economic
impact of increasing SNAP par-
ticipution, corner store ovners
report that they have to encour-
age their customers to spend
the ull vulue o their vomen,
lnunt und Children (vlC) lruit
und Vegetuble Voucher, und thut
much SNAP money allocated
tovurd produce goes unspent.
1o encouruge beneciuries to
muke use o their benets vhile
readying the stores to supply
these consumers, Healthy in a
Hurry could engage nutrition
education programs such as UK
Cooperative Extensions SNAP-
Ld, udvocucy orgunizutions like the Netvork Center or Community Chunge, und neighborhood orgunizutions
und churches to reuch the broudest buse o consumers.
Healthy in a Hurry currently does not have a funding stream for expansion. An investment of $150,000 could
double the size o the Heulthy in u Hurry corner store netvork to !4 stores
73
, epunding the progrum`s reuch be-
yond vest Louisville to other ood insecure purts o the city. vith thut unding in pluce, the progrum could ulso
develop consumer educution und outreuch us described ubove und could coordinute purticiputing store ovners
to leveruge their purchusing pover, muking more produce uvuiluble to more people ut more uorduble prices.
72
A Reviev o Strutegies to 8olster SNAP`s Role in lmproving Nutrition us vell us lood Security. lood Action Reseurch Center, lebruury 20!2.
73
/ stores $!S,000 grunts ($!0,000 or u vulkin storuge unit, $S,000 or u produce displuy cuse) - $4S,000 or stu und udministrution
More Healthy Food at Retail
Opportunity: Increase consumer access to fresh, healthy
oods locul vhen possible vhere they shop.
Approach: Create a program to incentivize purchases
o ruits und vegetubles vith SNAP dollurs, und support
regional supply chains to make as much of that produce
us possible locul produce.
Convener: Nonprot sector.
Players: Depurtment o Heulth und vellness, YMCA,
Metro Lconomic Crovth und lnnovution. Dure to Cure
und other nonprots committed to heulthy uorduble
food access.
Investment: $650,000 - $500,000 in incentives.
$105,000 in refrigeration, $45,000 in administrative and
marketing supports.
Results: $2.6/ million udditionul resh ruit und vegetuble
sales to SNAP shoppers.
Conclusion and Recommendations: Using this study
61
Conclusion
Key to the continued success of any initiative like this is measuring and clearly demonstrating that success. To
do so, progrum evuluutors could ollov the money to see hov muny incentives ure distributed und redeemed,
vhut products ure purchused, hov muny more produce portions people ure euting us u result (CPPv), to vhut
etent stores ure eperiencing un uplit in overull sules us u result o the progrum, und hov much locul ood
is entering purticiputing murketpluces (Louisville lurm to 1uble). 8y purchusing produce vith SNAP incentive
money, consumers demonstrute the demund or heulthy oods (und locul oods), enubling the corner stores,
ugencies und orgunizutions to unsver thut demund vith ever improving uccess to heulthy ood in ull Louisville
communities.
Conclusion and Recommendations: Using this study
62 Conclusion and Recommendations: Using this study
Pulling It All Together
1hemutic threuds, both stuted und understuted, veuve through these vignettes. 1he stories demonstrute hov
locul ood system stukeholders cun uct on this report`s ndings. 1he synthesis belov links the vignettes to
euch other und brings to the oreground the undumentul uctors und themes underlying current und uture
vork or groving Louisville`s locul ood und ugriculture economy. 1hey ure us ollovs:
Strategy: Nev eorts to tucticully, incrementully epund o locul ood production und distribution
investments cun build on eisting resources und proven eorts (including smull scule successes thut
might be sculeuble) to bring }eerson County closer to meeting its demund or locul ood.
Trust: Meeting demund or locul ood is us much ubout trust us it is ubout supply. Croving locul
ood`s stutus in Louisville rom u speciulized to "normulized purt o the ood supply vill require
strong communicution und relutionships. Commerciul buyers vill need to be cleur vith suppliers
ubout the products und volumes they need und the prices they cun puy. Producers vill need to
enguge uctively vith potentiul nev buyers und the service industries (brokers, distributors) thut
cun help them reuch those nev buyers (promoting vhut they huve uvuiluble, or eumple). And
consumers must be cleur vith the ovners o ood businesses they depend on ubout the kinds o
oods they vunt und vhere they vunt those oods to come rom.
Infrastructure: Nev inrustructure vill be required to increuse the uvuiluble locul ood supply (und
the quulity o thut supply). More inrustructure vill be needed to hundle these increused volumes
o locul ood, in the orms o uggregution, processing or distribution inrustructure. As this physicul
inrustructure epunds, complementury investment should be mude to epund technicul ussistunce
und murketing cupucity. Specicully, vhere locul epertise, resources or progrumming ulreudy eist,
investments should ocus on groving, utilizing und sculing eisting eective resources.
Tracking: Lssentiul to muintuining the momentum o u groving locul ood system vill be trucking
progress ulong the vuy. 1rucking und evuluution should demonstrute cleurly und meusurubly
investments` und strutegies` vulues und impucts (umount o ood sold, urm income guins, increused
consumption o heulthy oods, nev compunies und jobs creuted, e.g.)
Place: Louisville businesses pluce primury importunce on supporting Louisville`s economy und on
the economic stubility o ureu urmers, bringing udditionul dollurs into circulution through business
grovth, und creuting jobs thut veren`t there beore. lurmers, consumers und businesses o ull
scules vunt Louisville`s economy to thrive, und they see locul ood us u meuns to thut end. 1he very
strong sense of pride in Louisville and Kentucky is an asset in those effortsand a differentiator
among its peer states and cities.
Support: An array of supports in the form of education, technical support, advisory services, and
other orms o proessionul ussistunce vill be required or urmers vho vish to grov und serve nev
commerciul murkets, or buyers vho vunt to source locul, und or consumers seeking to chunge
the vuy they shop or eut. Commerciul buyers vill need ussistunce creuting (or eumple) product
specicutions thut stute preerences or locul ood. 1hey vill need support vorking vith eisting und
nev suppliers to uccess those locul oods. And they vill need murketing ussistunce to promote the
oods themselves und the impucts their compunies ure muking by sourcing locully.
Supply: lurmers vill grov to meet Louisville`s demund, but they need ussurunce thut the demund
is reul. lurmers und the businesses vho purchuse rom them noted thut umong even the best
intentioned people, ut times there is u disconnect betveen hov people think o themselves (or their
63
businesses) und vhut they uctuully do. ln the cuse o purchusing locul ood, commerciul buyers
epress interest in volumes thut regulurly eceed vhut they uctuully buy vhen hurvest time comes.
Contructs betveen commerciul buyers und the urmers vho vunt to supply them vill provide the
security urmers need to tuke the risk o sculing up production or nev, unproven murkets.
Housed vithin the big picture o Louisville`s demund or locul oodund essentiul to the city`s cupucity to meet
thut demundure diverse opportunities or investments o cupitul, technicul epertise, innovution, longviev
thinking, und colluborution. 1he concept o innovution und its link to economic opportunity urose repeutedly
in the course o this reseurch. 8y seeking to understund the demund or locul ood in u mujor commerciul
murketpluce und vith u vision o un economic development policy unchored by the connections betveen
urbun ood consumption und rurul ood production, Louisville hus estublished itsel un innovutor und thought
leader.
1his study identied und quuntied $2S8 million in demund or locul ood umong individuul consumers und
$3S3 million umong commerciul buyers. Louisville`s people policy mukers, nonprot leuders, producers,
ood businesses, privute investors und consumers cun utilize this vericution o the demund or locul ood to
creute u longterm, robust, und productive economic und community development strutegy.