Fruits, Vegetables and Specialty Crops: Increasing Demand and Local Markets

In the last decade greater public concern regarding obesity, diet, and nutrition issues has led the USDA to adapt dietary recommendations to include more fresh produce. Consumers have responded: U.S. per capita consumption of fresh vegetables and melons grew steadily between 1979 and 2007 for a total gain of 54.6%. This increase in consumption occurred during a time that the same USDA study reported prices for a representative fresh vegetable selection increased 292% (or 190% in real dollars).

For Colorado, this translates to total demand of over $2.6 billion for fresh fruits and vegetables, and although many of these products cannot be grown (or available year round), even a share of these sales would represent a significant part of the state's agriculture and growth in the $310 million currently sold in Colorado. At the same time, the way some consumers shop for fresh produce is changing.

In recent years, a small segment of consumers have shown increased interest in foods produced in their local community. This has been motivated by a variety of issues including support for local farmers and economies, concern about food miles and perceptions of improved quality These individuals and households interested in supporting local farmers are also fueling changes in the food system as they seek to purchase their produce via direct marketing channels rather than traditional supermarket sales. As one example, the number of farmers markets has grown significantly across the US (from 1,755 in 1994 to 4,685 in 2008) the growth is even greater in Colorado.

In Colorado, producers currently sell about 5% of their fruits and vegetables directly to consumers (far greater than the 0.4% nationwide), and this number is as great as 50% in Boulder county. But, CSU studies suggest that the demand for local fruits and vegetables could be as much as 10 times greater, if supplies were available. So, some of the new Farm Bill programs targeting the development of specialty crop enterprises could be at an opportune time.

Some issues to consider include:

Are there opportunities for existing farms, with existing family and employees, or in partnership with beginning and young farmers to transition more production to fruits and vegetables? Marketing them direct?

What are the tradeoffs between land, water and labor resources for fresh produce enterprises relative to field crops?

Is Colorado's climate and agronomic base a good fit for more fruit and vegetable production? What technical resources would be needed if these markets offer sufficient opportunities for current farms to consider?