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Abstract

There are scant studies that examine farm-retailer dynamics, despite growing interest in local food markets and the fact that most local food is sold to intermediaries (like retailers). To address this gap we conducted a case study in Hawai’i, the state with the highest percentage of farms selling direct to retail in the United States. Results show a statistically significant relationship between the number of farms from which a grocery store purchases product and the grocery store’s average markup for food products, rather than with the store’s gross sales as one might expect.

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