Institutional Healthcare Market for Local Produce: An analysis of the market potential for fresh fruits and vegetables in healthcare institutions based on a survey of food service directors in Becker, Clay, Otter Tail, and Wilkin Counties in Minnesota

Abstract

University of Minnesota Extension conducted a survey of food service directors in Becker, Clay, Otter Tail, and Wilkin Counties to profile the fresh fruit and vegetable purchasing habits of healthcare institutions and estimate the size of the regional market. Respondents vary in size from 100-1,400 meals served daily, yet all purchase many of the same fresh fruits and vegetables, such as cucumbers, tomatoes, and strawberries. Although respondents have processing requirements for select kinds of produce (lettuce especially), many are willing to purchase fresh fruits and vegetable in whole form. Extension identified 54 healthcare facilities that serve meals on site in the four-county area, and we estimate that they purchase 385,140 pounds of fresh produce annually. This represents a market opportunity for local growers, although realistically only at certain times of the year when fresh local produce supply is available. The market potential for local growers ranges between $93,245 and $207,115, based on a standard summer growing season and an extended growing season respectively.