**2. Food system economics**

**Keywords:** locally produced foods, purchasing patters, food concerns, value deliv‐

Local food production and consumption are topics gaining much attention in both current academic marketing research and marketing practice. Global food systems are being criticized due to environmental, social and economic factors, which can be explained using the concept of local farming and local food culture. This is often referred to as embeddedness. Embedde‐ ness is a core concept in food system research; it has been borrowed from economic sociology, and is widely used to characterize the different types of food systems. At one end, the disembedded globalized system is characterized by "industrial food" and not well-informed food choices. At the other end, the embedded localized system is described as a "human" and social system where food is produced and eaten locally [23]. As consumers express fears and concerns about the global food system, they are beginning to seek food alternatives. This in turn results in the emergence of new production options such as Farmer's Markets, Community Supported Agriculture groups, and community / home gardens. Country of origin used to be key in consumers' purchasing decision, but now food mileage has taken over it. People are beginning to care about the – local - origin of food products and are seeking locally produced foods when making their purchase decisions. For instance, the growing popularity of local food diets, such as the 100 Mile Diet is an indicator of a new trend towards consumption of local products.

As the population gains awareness, expresses concerns about global the system and demands the availability of locally grown food products, an opportunity may exist for farmers to target this market and modify production as necessary. Farmers would benefit from understanding consumer views on locally produced foods, and if market potential exists, then be able to formulate a marketing approach in line with consumer demands. Currently, there is limited research on the topic of consumer perception of alternative foods, and even less on locally produced food. As a matter of fact, from an academic research perspective it is important to understand the evolution of food research. Most of the research cited in the current study is fairly current, indicating that this local food research is an emerging area of study with remarkable potential. While interest in "buy local" food campaigns has grown in recent years, academic research in this area is divided along two distinct disciplinary lines. Rural sociology and rural geography examine food from a production standpoint, whereas marketing research and consumer behavior focus more on consumption [25]. In addition, there is need to consider a new body of research on local food products in relation to the concepts of embeddedness,

This chapter presents a supply-demand marketing model based on the current literature and current market realities. The model integrates several key factors and is built to answer practical questions related to the consumers' lifestyle, awareness of food alternatives, and

ery, food chain

sustainability, and their interconnectedness.

motives to be active societal consumers.

**1. Introduction**

4 Food Production and Industry
