AESI Student day November 5 th , 2009 ‘Effective structures for farmers’ markets in ireland ’

1. AESI Student dayNovember 5th, 2009‘Effective structures for farmers’ markets in ireland’ AislingMoroney Dept. Food Business & Development, UCC

2. PhD ‘Housekeeping’ • Part of a research team based in the Department of Food Business and Development and Centre for Cooperative Studies, UCC • Research began in October 2006 • Anticipated completion date: May 2010 • Research funded by the Department of Agriculture, Fisheries and Food under the Research Stimulus Fund

3. Background and Context • Growth of farmers’ markets one of the most significant and visible developments in the Irish agri-food sector in last decade • Approx. 120 currently running, with reasonable geographic spread • Play an increasing role in • providing direct outlets for farmers and small producers to sell their produce, build their income and develop their overall businesses • providing consumers with access to fresh local produce and a forum in which to build relationships with the people who grow or make their food • urban regeneration, helping build community interaction in suburban areas, reviving local shopping in towns and villages

4. Background and Context • Structural forms adopted include farmer/producer led markets, privately-run markets, and participatory markets • But have developed in quite an ad-hoc fashion, with minimal regulation + significant issues with some of the structures which have emerged • Research motivated by a desire to establish which structure or model of organisation can maximise benefits to farmers and small producers, is most sustainable in the long-term and creates the best markets for consumers and other stakeholders • Particular emphasis has been placed on examining the potential of more co-operative structures

5. Overall Research Objective • To explore how farmers’ markets in Ireland can best be structured to increase the income and sustainability of small farmers and producers and to strengthen their influence and control in the marketplace. • …with a particular emphasis on examining the potential of more co-operative structures

6. Three Key Sub-Questions • In the context a changing agri-food environment, what is the current and potential future role of farmers’ markets in increasing • the income and sustainability of small farmers and producers • & their influence and control in the marketplace • What are the benefits and limitations of the various organisational forms/structures adopted in farmers’ markets in Ireland to date? • What role could more cooperative structures have in maximising producer benefits from farmers’ markets?

7. Research Methodology - Survey Postal/email survey to all 120+ farmers’ markets in Ireland, covering: • the basic biography and characteristics of each farmers’ market • the structure, organization and management of each market Progress to Date: • Questionnaire distributed and returned • 55 Returned (approx. 45%) • Superficial analysis complete • Awaiting detailed analysis

8. Research Methodology – Case Studies 22 in-depth case studies of FMs’ in Ireland • chosen to achieve as representative a sample as possible • comprising visits to each market; semi-structured interviews with a sample of farmers/other vendors; semi-structured interviews with organisers, managers, support bodies, etc. as appropriate Progress to Date: • Case studies complete • Superficial analysis complete • Awaiting detailed analysis

9. Research Methodology - Interviews Interviews with key informants in support bodies, farmer organizations, etc. Progress to Date: • Interviews complete • Superficial analysis complete • Awaiting detailed analysis

10. Research Methodology Comparative research on farmers’ markets in the UK and US + interviews with key informants in sector in US and UK Progress to Date: • Research trips to US and UK complete • Analysis complete • Main Outputs: • Moroney et al. The Potential of the Cooperative Form for Farmers’ Markets in Ireland – Some Lessons from the USA and UK, Journal of Cooperative Studies, Vol. 42, No. 1 (125) April 2009, pp. 4-12 • Presentation entitled ‘Putting the Cooperative Approach at the Centre of Local Food Economies – The Case of Farmers’ Markets in Ireland, the USA and UK’ to the International Co-operative Alliance Research Conference, Queens College, Oxford Sept. 2009

11. Preliminary Findings: Sub-Question 1 Farmers’ Markets do have an increasing role to play in: • Providing a low-risk entry point into direct sales, new product development for those willing to go down this route • Improving cash-flow • Encouraging diversification away from unprofitable farm enterprises • Providing a spur to further entrepreneurialism • Encouraging more environmentally benign agricultural practices • Stimulating next generation involvement and interest in the enterprise • Fostering greater appreciation of food and farming • Restoring enjoyment and pride in work and building a sense of confidence in the future of farming and artisanal food

12. Preliminary Findings: Sub-Question 1 Farmers Markets also have an increasing role to play in: • Allowing participants to become price setters instead of price takers • Freeing participants from some of the other pressures and rigours of the conventional food system (standardisation, volume, etc.) • Developing supportive local clusters/networks of artisanal and small producers • Providing opportunities for farmers and small producers to work together to pool resources and overcome individual resource constraints

13. Preliminary Findings: Sub-Question 1 But…. • It remains a small segment of the overall food market • Returns from markets vary widely • FMs appear to have a relatively high failure rate • There are limiting factors in terms of the participation of many conventional farmers • Can be difficult for smaller, newer entrants to ‘break in’ • Increased consumer questioning of the integrity of FMs • Will prevailing economic conditions adversely affect FMs?

14. Preliminary Findings: Sub-Question 2 The farmer/producer–led market widely considered the optimum model: • most closely reflects the essential purpose of markets • gives participants greatest control over all aspects of the market + freedom from the ‘middle-man’ • maximises financial returns to stallholders • helps build and reinforce interdependence, cooperation and a sense of ownership • greatest potential for long-term sustainability? But: makes greatest demands on busy stallholders, potential for cliques, protectionism, ‘death by committee’

15. Preliminary Findings: Sub-Question 2 Private market model: • can free stallholders to focus on growing, making, selling • can bring a professional and objective perspective to market mgt. • can help obviate some of the problems stall-holder led markets might have with anti-competitive and protectionist behaviour But, • operators essentially in the business of selling space • long-term sustainability dependent on return to operator • model least likely to inspire loyalty of stallholders or customers • degree of power returns to the ‘middle-man’

16. Preliminary Findings: Sub-Question 2 The participatory model: • Similar advantages as private market model • + markets can benefit hugely from the financial and other supports of a range of stakeholders • Support of some, e.g. local authorities, might be vital But, • other stakeholders do not necessarily have the same agenda as stallholders – potential for conflicts of interest , mission drift, etc. • long-term sustainability will always remain questionable where the organisation or management is by people outside of those whose livelihood is concerned.

17. Preliminary Findings: Sub-Question 3 • Some degree of interdependence and cooperation inherent to all markets • But the more cooperative/producer-led markets • recognise the essential purpose of markets (to provide a forum for farmers and producers to sell directly to consumers) • strengthen farmer/producer control in the marketplace • build and reinforce interdependence, cooperation and a sense of ownership • are typically more of a long-term proposition • can navigate potential ‘landmines’ by putting in place clear, fair, fully-enforced and locally appropriate rules and systems for the operation and governance of each market

18. Preliminary Findings: Sub-Question 3 Another option? • Regional/local associations or cooperatives of markets have significant potential to • allow markets to be essentially producer-led but not overly burdensome to busy stallholders • while offering the benefits of professional management and organisation. • At a minimum, significant potential for markets to work together informally at local level • sharing the costs of advertising, materials and equipment • collectively building the farmers’ market brand • benefiting from one another’s experience

19. To Summarise There is a growing – if occasionally grudging – recognition by many of the stallholder participants in this research that if they wish to have genuine, fairly run, high quality, and busy farmers’ markets at which to sell their produce, then they will have to invest more of their own time, money and energy in building them. In other words….. “Democracy is the worst form of government, except for all those other forms that have been tried from time to time.” Winston Churchill, 1947