Local Food's 15% Dilemma: Why We Can't Go Higher (Yet) - And How to Change That

Local food is healthier, more sustainable, and more supportive of local economies than the conventional, highly processed food produced by the industrial food system. However, despite these benefits, local food still only makes up about 12-15% of the food consumed in the United States.

There are a number of reasons for this.

1. Consumer Habits and Price Sensitivity: The allure of convenience and low prices offered by supermarkets often overshadows the benefits of local produce.

2. Limited Visibility and Accessibility: Local food systems frequently lack the presence and convenience that large retailers provide, making them less accessible to the average consumer.

3. Marketing Disparities: The industrial food sector's marketing prowess significantly influences consumer preferences, overshadowing local food narratives.

4. Supply Chain Complexities: The industrial food system's sophisticated supply chains deliver a variety and consistency that local systems struggle to match.

5. Systemic Fragmentation: Beyond these consumer-facing issues, the local food sector is inherently fragmented. Small-scale producers and distributors operate independently, lacking the cohesion and collective strategy that could elevate their market presence.

The most significant of these is fragmentation because it is the root cause of the other reasons. The specific challenges that fragmentation creates for local food:

• Lack of coordination and economies of scale. Small, independent businesses often have difficulty coordinating with each other and achieving economies of scale. This makes it difficult for them to offer competitive prices and to distribute their products to a wide range of consumers.

• High marketing and distribution costs. Local food businesses often have to spend more on marketing and distribution than conventional food companies. This is because they are typically smaller and have less brand recognition.

• Limited access to capital. Local food businesses often have difficulty accessing capital to invest in their businesses. This can make it difficult for them to grow and expand.

Solving Fragmentation Through Local Food Unity

KC Foodways™ is working to build a more resilient and equitable local food system in Kansas City. It is addressing the fragmentation problem through four strategic pillars:

The Four-Step Path to Local Food System Resilience

1. National Advocacy: Establishing a national local food trade group to champion the collective interests of local food producers.

2. Local Promotion: Initiating local advocacy, particularly in Kansas City, to bolster demand through education and promotion.

3. Advice and Guidance: Providing small food entities with the tools and knowledge to operate on par with large-scale industrial food companies.

4. Shared Platforms: Creating a communal marketplace for consumers and producers to connect, transact, and arrange logistics at a fraction of the cost of the current credit card system.

An Optimistic Outlook for Local Food

Despite the challenges that local food faces, there are reasons to be optimistic about the future. The demand for local food is growing, and more and more people are recognizing the benefits of eating locally. Additionally, organizations like KC Foodways are working to address the fragmentation problem and to make local food more accessible and affordable.

With continued effort and support, local food can play a larger role in our food system. This would benefit our health, our environment, and our local economies.