EUGENE, Ore. - (Oct. 8, 2010) - A new study on the economic development potential of locally-grown food products indicates that farmers in Lane County - despite barriers in processing, storage, distribution and regulation - have plenty of room to increase their share of the county's $1.17 billion annual food market.

Local food producers probably account for less than 5 percent of the annual food market, but $11.7 million will be generated for every percentage point their share increases, according to the study prepared by the University of Oregon's Community Planning Workshop. The study was undertaken in partnership with the Lane County Economic Development Department, the City of Eugene, the Eugene Water & Electric Board and the UO Economic Development Administration.

"This study provides specific actions that local governments, businesses and nonprofits can take to help create a more complete local food system," said Bob Parker, director of the UO's Community Service Center. "It helps all of us understand food prices, local and non-local, and what actions we can take as a community to help change those costs."

The 170-page study focuses on the economic development potential of local food production, but acknowledges other benefits of "re-localizing" agriculture in Lane County, including environmental sustainability and food security.

Lane County's agricultural sales - from farming, forestry, nurseries and livestock operations - increased by 31 percent from 2002 to a high point of $140 million in 2008, according to the UO study. The national economic downturn, a saturated grass seed market and a collapsing housing market resulted in a drop of 18 percent in agricultural sales for 2009. But the food industry - including production, distribution, transportation, processing and grocery sales - still accounted for 6 percent of the county's jobs last year.

The county had 55 food manufacturing businesses that employed 1,498 people in 2009. Many of the processors - typically niche industries - expressed a willingness to use local ingredients, even if they do not do so now, the study found.

But the study also found barriers to increased local production, including "a disconnect" between farmers and buyers, a lack of the processing and storage facilities that might lead to year-around markets, and difficulties meeting the insurance and certification requirements of some institutional customers and large grocery chains.

The Community Planning Workshop study recommends several strategies to be undertaken by Lane County, the City of Eugene and EWEB - with most of them needing only incremental funding, much of which may be available through U.S. Department of Agriculture grants. For instance, it suggested the creation of a county "local food coordinator" position, and joint county-university research into the on-farm processing needs of local mid-sized farms. EWEB should develop a "proof of concept" for local food production at its demonstration farm and should support food safety certification, the study found. And the city should work with the UO to create a "How to do Business with Lane County Grocery Stores" manual for use by area food producers.

"We are looking forward to implementing the (Community Planning Workshop's) recommendations, as we believe they will encourage investment, growth and employment in the local agriculture and food products industry," said Mike McKenzie-Bahr, Lane County's community and economic development coordinator.

The project manager for the study, "Lane County Local Food Market Analysis," was graduate research fellow Kate MacFarland of the Community Planning Workshop. Researchers in charge of the study were Parker and Tom Osdoba, managing director of the Center of Sustainable Business in the UO's Lundquist College of Business.

The Community Planning Workshop provides opportunities for students to address planning and public policy problems for clients throughout Oregon. It is part of the university's Department of Planning, Public Policy and Management.

About the University of Oregon
The University of Oregon is a world-class teaching and research institution and Oregon's flagship public university. The UO is a member of the Association of American Universities (AAU), an organization made up of the 63 leading public and private research institutions in the United States and Canada. The University of Oregon is one of only two AAU members in the Pacific Northwest.

MEDIA CONTACT: Joe Mosley, media relations, 541-346-3606, jmosley@uoregon.edu

SOURCE: Bob Parker, director of UO Community Service Center, 541-346-3801, rgp@uoregon.edu