[FMC] Effect of gas prices

[Stacy Miller]

John and group:

I've had this question from reporters as well and I think it's fascinating.
On the one hand, vendors are paying more for gas to get to the market, and
presumably more for some of their inputs (does anyone know about increases
in the cost of black plastic this year?), a cost they can choose to pass on
to their customers or let eat into whatever retained earnings they may have
had at the end of the week. Any raises in farmers market prices are parallel
with raises prices for similar food products available at other retail
outlets, and the good news is that farmers market products are only going to
continue to seem like a bargain for many shoppers. I do wonder, given the
finite size of our wallets these days, how and where the price-flinching and
cutting back will occur for the average farmers market shopper, even those
who are financially stable.  Will it change the purchase quantities of fresh
products or the likelihood that they'll try a new value-added product? I
expect we will find people's loyalties to local peaches, Farmer Joe's hot
sauce, and artisan goat cheese will to prevail over their loyalties to DVD
rentals and frivolous trips to the mall, neither of which offer a fraction
of the "feel good" element that people crave in tough financial times.

Below is a story from WKOW 27 in Wisconsin yesterday on this issue:

*Rising food prices felt at the Farmers'
Market*<http://www.wkowtv.com/Global/story.asp?S=8573608&nav=menu1362_2>

Posted: June 28, 2008 05:56 PM

The rising price of oil is causing a domino effect. It costs you more to
travel, more to repair your home, and more to eat.

At the Dane County Farmers' Market Saturday morining, vendors and shoppers
alike say the effect has trickled down to Capitol Square.

"Materials become more expensive and people sometimes aren't willing to pay
the extra prices," said vendor Gretchen Kruse. "You have to charge to
compensate for the higher materials you need to process your items."

"(It's) not just a lot harder, it's just the idea that you have to raise the
price to make ends meet," said fellow vendor Sylan Disch. Disch said he has
had to raise his prices about a quarter across the board.

At Tom Priske's booth, it'll cost you four dollars for a pound of asparagus.
That's up a full dollar up from last year.

Many vendors said not only does it cost more to run their farm equipment,
but the materials they have to buy such as plastics to ship food and feed
have also gone up.

Nonetheless, regular shoppers like Gregory Humphrey say people will keep
buying local. "There has been some increases but I don't think that has
detered, and I think I can speak pretty correctly about this, that the
number of people that come to the market hasn't waned in the last year
because of the increase of prices."

Humphery said he has been coming to the downtown farmers' market for more
than 20 years.  He said people aren't just paying for the locally grown
food, but also for the atmosphere.

None of the vendors we spoke with said they were affected by the recent
flooding. That could change when it comes to the food you buy in a
traditional grocery store.

According to the Iowa Farm Bureau, more than a million acres of corn and two
million acres of soybean were lost due to the recent severe flooding. The
news has already caused corn prices to jump 11-percent last week.
Good luck, John!

Stacy

-------------------------------------
Stacy M. Miller
Executive Secretary
Farmers Market Coalition
stacy at farmersmarketcoalition.org
304-263-6396
www.farmersmarketcoalition.org

Farmers markets are good for everyone. Join us to make them even better.


On Sun, Jun 29, 2008 at 5:48 AM, <JoUlla5 at aol.com> wrote:

>    I have had a request from the media on the effect of high gas prices on
> Farmers' Market venders and their customers. Any observations?  Comments we
> can pass along?
>
> John       President  Minnesota Farmers' Market Association
>
>
>
> ------------------------------
> Gas prices getting you down? Search AOL Autos for fuel-efficient used cars<http://autos.aol.com/used?ncid=aolaut00050000000007>
> .
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-- 
-------------------------------------
Stacy M. Miller
Executive Secretary
Farmers Market Coalition
stacy at farmersmarketcoalition.org
304-263-6396
www.farmersmarketcoalition.org

Farmers markets are good for everyone. Join us to make them even better.
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