Frequently Asked Questions About Local Foods
1. What Counts as 'Local'?
There is no universally accepted or statutory definition of 'local food'. Therefore, organisations (farmers markets for example) apply their own definitions for their own purposes. 'Local', 'regional' 'speciality' and Scottish are all commonly used generic terms, with the same food changing status depending on where it is sold. There is no evidence that the absence of a single definition is a commercial constraint in expanding sales, but this leaves open the risk of the 'local' descriptor being misused and devalued, and confusing consumers. A common definition would also make it easier to measure the scale of the sector.
2. Isn't the Market for Local Foods Small and Peripheral?
We don't think so. Current sales estimates of local, regional and speciality foods in Scotland range from £400 million to £500 million per annum, through all sales channels. A multiplier effect of 2.5 has been found in research carried out in England. This would suggest that local foods make a significant contribution to the Scotland's economy, if applied here. However, limited research on the size and potential size (in £ sales) of the local food market in Scotland has been carried out. There is a need to develop measures to determine and monitor over time, the size of the market, and the contribution to the Scottish economy (employment, multiplier effect, etc). Such measures could also be used to evaluate the effect of changes to policy and support.
3. What's The Evidence of Much Greater Demand?
Our evidence is drawn from a wide range of previously published research reports from across the UK. The potential to expand sales of local foods is based on the following factors, but the potential growth in sales attributable to each factor has not been evaluated.
- The level of sales and demand growth reported by current local foods producers and retailers
- Market research reports highlighting customer preference for local, and citing lack of availability or opportunity to purchase as key constraints
- Market research reports finding that the current marketing strategy of many local food producers is fairly narrow and reaching only a small group of consumers
- Suggestions that further use of assurance schemes and provenance indicators (PGI, etc) would strengthen marketing propositions and extend the market through segmentation
- Increasing interest by schools and other public sector buyers in purchasing local foods
- Increasing awareness that freshness is a factor in the nutritional value of foods
- Increasing recognition of food as an element of local or regional culture, heritage, experience and identity
- Increasing concern about 'food miles' and the environmental cost of importing foods, and about 'food ethics'.
4. Where Can I Buy Local Foods?
It's getting to be hard to avoid them. Your local supermarket is an obvious place to start, or alternatively your local farmers' market (Scottish Farmers' Markets). You will see farm shops advertised in local papers and in the Yellow Pages. Speciality food shops are on many high streets and at some garden centres, and advertise in local papers and magazines and don't forget your local butcher. An internet search will also reveal sources.
5. What's The Public Sector Interest in Local Foods?
There is considerable public sector policy support for the expansion of local foods' production and consumption in Scotland. This crosses all political parties. Local food can contribute to:
- Farm diversification and differentiation of farm produce, adding value
- Rural development, employment and skills capacity building
- Potentially, fresher, more nutritious food for schools, prisons and hospitals
- Education on healthy diet choices and sources of food
- Encouragement to exercise and grow food
- Reduction in food miles and potentially to food carbon footprints and food production sustainability
- Scotland's distinct cultural attractions for tourists and other visitors.
6. Is Anything Constraining Development and Expansion?
Production capacity and distribution capability are constraining growth to meet higher levels of demand, unless established food processors increasingly include a 'local' product proposition in their marketing.
The key roles of collaboration and co-operation, require further promotion and development. Small-scale (relatively young) local food producer-retailer businesses invariably must grow to be sustainable over the longer term. Achieving a viable business model requires collaboration with other producers, or others in the marketing chain, to create cost effective processing, and to extend marketing and distribution.
Common business development constraints amongst small-scale producers are:
- Awareness and research of consumer and other opportunities
- Market (and marketing) development
- Access to manufacturing expertise to improve cost efficiency
- Availability of cost effective local distribution
- Complying with diverse regulation and legislation
- Knowledge and skills development relative to their diverse range of activities.
We believe a more joined-up (strategic) approach amongst public sector interests could readily deliver the resources to overcome all the constraints.
7. Where Can I Get Advice?
Always begin by calling SAOS to benefit from our specialist experience in local foods' development.
A variety of organisations provide assistance to local food processors, including government agencies (SEERAD, HIE, Business Gateway, LECS, Councils), consultants (SAC, SAOS and others), trade bodies (Scottish Association of Farmers' Markets, and potentially a range of others), and local joint stakeholder initiatives such as Food Forums and Food Links.