Local Businesses Benefit From Farmers' Markets

In economics, it's called the agglomeration principle. The principle implies that the more thriving businesses there are in one area, especially if they sell similar goods, the more they all prosper. Small businesses usually think vendors take away their business, but that's not always true.  Farmers' markets do contribute to the livelihood of local business centers.  Here are some Oregon community testimonies.

From Karen Tillou,
People's Farmer's Market, Portland

"I manage the very small but 13 years old People's farmers market in SE Portland. Our market is unique in Oregon (and much of the USA) in that we are run by and sited on the property of a food store/co-op. I am an employee of people's food co-op, and I run the market as well as doing other jobs at the co-op.

When this market was started 13 years ago, many board members, staff and customers were concerned that the market would ruin store sales, especially of the produce department. What became very obvious as one season turned into two, then three, etc, was that the increase in foot traffic outside the store at the market, impacted the store in an incredibly positive way. Drinks, snacks, bananas, out of season produce that farmers didn't have, ad infinitum. Our Wednesday market day has proved itself even in the depths of winter, when Wednesday is still our highest sales day of the week, despite no farmers outside. I think that it might take some creative dialog with your shop owners, and perhaps creative layout that encourages foot traffic past the shops and the market vendors both, but in the end, any event that encourages people with bags walking around who want to spend money, time and have fun is going to create a positive business atmosphere for both permanent businesses (especially local ones!) and market vendors of all kinds."

Larry Lev and Garry Stephenson at Oregon State University have data strongly supporting the hypothesis that farmers markets bring additional dollars to surrounding shopping districts. The following data are extracted from technical reports posted to the OSU Extension Small Farms website. Access the full report by double clicking on the link.

<http://smallfarms.oregonstate.edu/techreports/techreport10.pdf>
Technical report 10 summarizes the RMA of the Grants Pass Growers Market, 9/22/01. Shoppers were asked whether and how much they expected to spend outside the market in the downtown shopping district on that day.  Sixty-five percent of the respondents reported that they expected to spend an average of $14.76 per shopping group, for total expected spill over sales of over $22,000 on that date.

<http://smallfarms.oregonstate.edu/techreports/techreport12.pdf>
Technical report 12 summarizes the RMA of the Beaverton Farmers' Market, 8/10/02. Thirty three percent of respondents reported expecting to spend an average of $22.69 in nearby restaurants and shops, for a total of $38,400 in expected spill over sales.

<http://smallfarms.oregonstate.edu/techreports/techreport13.pdf>
Technical report 13 addresses the RMA of the Hillsdale Farmers' Market, 8/11/02. Of the shoppers responding to our questions, 40% reported more frequent trade with neighborhood shops and restaurants as a result of shopping at this market. This was during the first market season.

<http://smallfarms.oregonstate.edu/techreports/techreport3.pdf>
Technical report 3 covers assessments of markets in Portland downtown (Thursday), Eugene, Hood River, Ashland and Hollywood (Portland) Oregon. In Portland downtown, 24% and in Eugene 45% of shoppers reported that the market was their principal reason for coming downtown. In 2000, 47% of the shoppers attending the Hollywood district market, when asked, expected to spend an additional $19 in the district, but outside the market. In 1998, in Corvallis 63% of shoppers anticipated spending an additional $16 downtown, and in Albany the same year, 38% anticipated spending an additional $12.