Practice Question

(1) When selecting her ingredients, a chef has a seemingly small—but nonetheless consequential—choice: she can patronize a conventional grocery store, or she can turn to a nearby farm. (2) While a store may provide benefits such as a broad range of options, a local farm can offer major advantages of its own. (3) When chefs and other consumers choose local products rather than goods that have been transported across long distances to chain stores, they can enjoy better prices while supporting the local economy. (4) Shoppers buying locally can often reap the benefits of competitive prices on goods due to reduced transport costs. (5) For example, one researcher found that the ingredients of a common Swedish breakfast—consisting of items like bread, coffee, and orange juice—were probably shipped a distance roughly equivalent to Earth’s circumference, and shipping can be costly. (6) On the other hand, buying ingredients from local farms may reduce transportation costs significantly, thereby increasing savings for the consumer. (7) Research also suggests that small local farms collectively can produce a large quantity of food; a big supply can, in turn, translate into lower prices. (8) Small farms gain these yields in part through efficient land use. (9) One study found that in Brazil, nearly five million small farms—which occupy only about 30 percent of the country's total agricultural land—are able to produce most of the beans the country needs. (10) The law of supply and demand suggests that if local farmers can produce more food than large farms, consumers may pay less. (11) Lower prices are not the only potential advantage of buying locally. (12) When consumers shop nearby, they are helping to ensure that local farms and businesses thrive. (13) The Brazilian bean farmers, for example, can continue to build strong local economies and do not have to migrate to commercial farms to find work. (14) What will our chef choose? (15) Deciding where to shop can be enigmatic, as both the store and the farm have their attractions. (16) The local option often makes the most sense, however. (17) It is good for the chef’s wallet, the neighborhood farmer’s bottom line, and, in the end, the community’s economic vigor.