As the number of farmers’ markets in the Capital District has continued to increase, many of us have started to wonder how economically viable the growth is long-term. There are certainly enough potential consumers to support the markets, but are they really going to shop at farmers’ markets rather than going to the grocery store? If they are, what are they going to buy?

The Applied Economics and Management staff and Cornell Cooperative Extension of Franklin County recently teamed up to study 27 markets in a six-county area. They studied the managers, customers and vendors that participate in farmers’ markets, and learned just what customers and buying and what really makes vendors happy (and unhappy).

According to the study, 57% of farmers’ market vendors sell fruits and vegetables, but live plants (33%), processed foods and beverages (29%), and arts/crafts (28%) are all also significant areas of sales. Meats and eggs (18%) and dairy (2%) were far less prominent at the markets, though the average dollar amount per sale of these items was higher. Along with varied products, vendors bring varied goals to the market. The study noted that “The success of any [farmers’ market] is predicated on the satisfaction of its vendors and evaluating performance in terms of just ‘dollars and cents,’ may miss important factors and give misleading implications and recommendations.” Vendor satisfaction was of course tied to profit, but other factors included the number of amenities at the market and the number of vendors at the market (more was better). As a group, vendors who sold meats and dairy were the least satisfied.

The study’s summary of the effects of market, vendor and customer factors on vendor performance is excerpted below:

Ø      Sales experience led to higher sales per customer, but lower satisfaction.

Ø      Both sales per customer and vendor satisfaction decreased with number of markets attended.

Ø      Vendors selling meats & dairy products were less satisfied, even though sales per customer were lower for fruit &vegetables, processed food & beverage, and plants & nursery vendors.

Ø      Vendors selling more exclusively at FMs tended to be more satisfied, but sold less per customer than those more diversified. 

Ø      Vendor satisfaction increased with market size (number of vendors), even though sales per customer were the same (total sales were higher).

Ø      While not affecting customer sales, vendor satisfaction increased with the number of market amenities.

Ø      Older markets tended to have lower sales and lower vendor satisfaction.

Ø      Markets with more organic vendors had higher vendor satisfaction, even though markets with more non-certified organic vendors had lower average sales.

Ø      Markets with management’s employment status at less than half-time had more satisfied vendors on average.

Ø      Neither average consumer purchase amount nor travel distance affected vendor performance or satisfaction.

A final remark from the article summed up the best strategy for the future: “Overall vendor performance would appear to be enhanced by considering FMs within a broader marketing strategy, and concentrating on a limited number of larger markets, with higher numbers of amenities, and a variety of production-based vendors. Finally, growth in new FMs in the region may be having a competitive effect on established markets, emphasizing the need for effective market advertising and consideration of new market features or activities to maintain and improve market attendance.”