Examining U.S. Food Retailers' Decisions to Procure Local and Organic Produce From Farmer Direct-to-Retail Supply Chains

U.S. food retailing is a competitive sector that has undergone rapid changes. The U.S. market for organic products has expanded rapidly over the last decade, while local foods have become a more visible marketing strategy. Studies focusing on the marketing of these products by retailers are sparse and generally qualitative. This article is the first quantitative examination of the connection between the local and organic retailing. A sample selection model is used with data from a 2008 national survey of organic retailers to study supplier interactions and company characteristics that influence a retailer's decision to procure local organic produce directly from farmers, and the rate at which they procure these products. The results show that the number of years a store has sold organic products and the size of the company, as well as aspects prioritized in choosing suppliers and past problems interacting with local suppliers, affect the outcomes.