Harry Cummings

Galin Kora

Don Murray

SCHOOL OF RURAL PLANNING & DEVELOPMENT

UNIVERSITY OF GUELPH

With the support of:

FARMERS’ MARKETS ONTARIO

May 1999.

The researchers gratefully acknowledge the following organizations for funding the Farmers’ Markets Ontario Economic Impact study:

Farmers’ Markets Ontario

Canada Agricultural Adaptation Council (Can-Adapt)

The nineteen participating Farmers’ Markets across the province:

Brantford Farmers’ MarketBurlington Mall Nelson Lions Farmers’ Market

Cambridge Farmers’ MarketCampbellford Farmers’ Market

Carp Farmers’ MarketCobourg Farmers’ Market

Hamilton Farmers’ MarketClover Valley Farmers’ Market (Fort Frances)

Lindsay Farmers’ MarketFlesherton and District Farmers’ Market

Milton Farmers’ MarketOttawa By-Ward Market

Ottawa Parkdale Farmers’ MarketPembroke Farmers’ Market

St. Marys Farmers’ MarketStreetsville Farmers’ Market

Sudbury Farmers’ MarketTillsonburg Farmers’ Market

Timmins Country Market.

The researchers also wish to thank the vendors, customers and local business representatives who generously donated their time to participate in the study.

The researchers especially wish to thank all of the volunteers and Market staff members who conducted customer surveys.

Thank you very much.

Sincerely,

Harry Cummings

Galin Kora

Don Murray

Graph 3.1.Number of vendors per Market in Ontario.14

Table3.6.1.Seasonal Markets divided by zone.17

Table3.6.2.Year round Markets divided by zone.17

Graph 4.1.Distribution of customer base by gender.24

Graph 4.2.Age of customers.25

Graph 4.3.Average travel time to the Market for customers.26

Graph 4.4.Travel time to Market (provincial average).26

Graph 4.5.Average number of people in a shopping party.27

Graph 4.6.Proportion of customers attending the Market —

Graph 4.7.Average number of months that customers come to

Graph 4.8Average number of visits to the Market in a month.30

Graph 4.9.Percentage of customers who are attracted to the

Graph 4.10.Percentage of customers who are attracted to the Market to

Graph 4.11.Percentage of customers who believe it is important to

Graph 4.12.Percentage of customers who make purchases from the

Graph 4.13.Percentage of customers who are first time visitors. 35

Graph 4.14.Percentage of customers who learned of the Market

Graph 4.15.Percentage of customers who learned of the Market

Graph 4.20.Percentage of customers who are satisfied with the

Graph 4.22.Percentage of customers who have no food

Graph 4.23.Percentage of customers that purchase vegetables.46

Graph 4.24.Percentage of customers that purchase fruit.47

Graph 4.25.Percentage of customers that purchase baked goods.47

Graph 4.26.Percentage of customers that purchase meat.48

Graph 4.27.Percentage of customers that purchase fish.48

Graph 4.29.Percentage of customers that purchase flowers.49

Graph 4.30.Percentage of customers that purchase eggs.50

Graph 4.32.Percentage of customers that purchase honey.51

Graph 4.35.Average amount of dollars spent at the Market / customer. 53

Graph 4.36.Dollars spent by customers (provincial average).54

Graph 4.37.Estimated annual sales for the participating Markets.55

Graph 4.38.Estimated dollars generated outside the Market.57

Graph 4.39.Estimated number of jobs at the Markets.58

Harry Cummings, Galin Kora, Don Murray

School of Rural Planning and Development

University of Guelph

(519) 824 4120 ext 3637

Farmers’ Markets in Ontario have a long history. The first Market in Ontario was established in Kingston in 1780. In general they expanded with the expansion of the settlement frontier in Canada and Ontario. However, in the 1970s, Markets fell into decline as the communities where they were situated faced a variety of crises in their retailing. Downtown shopping was losing out to the mall and the number of Markets diminished to about 60.

In Ontario, a resurgence of Farmers’ Markets began in the late 1980s through initiatives of the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA). In early 1991, Farmers’ Markets Ontario (FMO), the provincial association of Ontario’s Farmers’ Markets was established with moral and financial assistance from OMAFRA. Since that time, FMO has forged ahead in a most enthusiastic and positive fashion. By 1998 there were 127 Farmers’ Markets across the province. (FMO Directory,1998). The resurgence is also associated with the desire of community residents to have a shopping experience closer to the food producer and the community–a more personal approach. New Markets were established, older Markets revitalized, and a new customer base was introduced to the Farmers’ Market experience.

As the Markets reestablished and broadened their role, there was an expressed desire to measure the community and economic impact of the Markets. It was also hoped that lessons could be learned from the existing Markets that could assist in establishing new Markets. In 1998, Farmers’ Markets Ontario received a grant from the Canada Agricultural Adaptation Council to complete a study of the impact of Farmers’ Markets. Farmers’ Markets across the province also felt this research was important and 19 Markets provided financial support. The 19 participating Markets included Brantford Farmers’ Market, Burlington Mall Nelson Lions Farmers’ Market, Cambridge Farmers’ Market, Campbellford Farmers’ Market, Carp Farmers’ Market, Cobourg Farmers’ Market, Clover Valley Farmers’ Market (Fort Frances), Flesherton and District Farmers’ Market, Hamilton Farmers’ Market, Lindsay Farmers’ Market, Milton Farmers’ Market, Ottawa By-Ward Market, Ottawa Parkdale Farmers’ Market, Pembroke Farmers’ Market, St. Mary’s Farmers’ Market, Streetsville Farmers’ Market, Sudbury Farmers’ Market, Tillsonburg Farmers’ Market, Timmins Country Market (Appendix 1).

The University of Guelph, School of Rural Planning and Development was approached to carry out the study on behalf of FMO. For the purpose of this study, an attempt was made to measure the economic impact in terms of:

Community impact was assessed through interviews with Market managers, customers, and vendors and referred to the general feelings about the contribution of the Market to community social and economic life. Additionally, the researchers interviewed businesses operating near Farmers’ Markets in order to gain a fuller understanding of the economic and social impacts of Farmers’ Markets.

The directory of 127 Farmers’ Markets (FMO, 1998) was used to select the Markets for the study. A representative set of 19 Markets was selected from across Ontario. An attempt was made to represent seasonal and year round, north and south, rural and urban, small and big and older & newer. Each Market contributed a small amount to the cost of the study and in return was provided with a Market survey report.

In order to meet the objectives of the study data were collected from five main sources. These included 1) customers, 2) vendors, 3) local business owners, 4) Market managers and 5) direct observation. A separate questionnaire was developed for each of the first four sources and pre-tested. Each questionnaire featured both closed and open-ended questions. (Appendix 2,3,4,5). The questionnaires were administered on site at the Market. The field coordinator from the University of Guelph trained volunteers, or municipal employees, from the Market area to administer the customer questionnaires. The field coordinator was responsible for surveying the vendors, local business owners and the Market Manager.

In order to estimate the required sample size for each Market surveyed, the size of the customer base for each Market was estimated with the assistance of the Market Manager. This number constituted the basis for establishing the number of customers to be interviewed in order to reach a confidence level of 95%. A separate target was set for each Market, since estimates of impact were being prepared for both the individual Market and the Province as a whole. For each Market, a field coordinator from Guelph trained a team of volunteers or employees. The interviewers carried out surveys in their Market on a representative set of days from May 1998 to October 1998. The Guelph coordinator participated in the training session and the first day of surveys. The completed surveys were returned to Guelph for coding, data entry and analysis. Data entry was done using a spreadsheet (Excel) and then statistical analysis was done using the Statistical Package for the Social Sciences (SPSS).

In assessing the impact of Farmers’ Markets, economic multipliers were applied to the sales and employment data. In basic terms, multiplier effects are the summation of the direct, indirect and induced impacts of economic activity presented in a single number (Lewis et al., 1979, p1). Direct employment and production in the agriculture sector will have an impact on the rest of the economy by supporting employment in related industries as well as in the retail sector. In this way, "a multiplication of transactions occurs in the economy by people re-spending money." (Van Hoeve, 1995, p.66)

Volunteers and/or municipal employees from each of the 19 Markets completed a total of 4603 customer interviews. These serve as the basis for this report. This provides a high level of statistical (+\- 99%) and fundamental confidence in the results.

In order to capture some of the views and opinions from the local business community, it was decided to interview between five and ten business owners that operated in the area of each of the Markets. Finally, the Market Manager in each Market was interviewed using standard guidelines.