1.

1 Local Food Revenue Multiplier Effect

A study by the New Economics Foundation in London found that every 10 spent at a local food business is worth 25 for the local area, compared with just 14 when the same amount is spent in a supermarket. That is, a pound (or euro) spent locally generates more than twice as much income for the local economy. The farmer buys a drink at the local pub; the pub owner gets a car fixed at the local mechanic; the mechanic brings a shirt to the local tailor; the tailor buys some bread at the local bakery; the baker buys wheat for bread and fruit for muffins from the local farmer. When these businesses are not owned locally, money leaves the community through every transaction. This means that the 472.5 million consumer sales value of output sold locally in Ireland from over 350 small, local and speciality Irish food businesses, results in 1.01 billion in total revenue back into local business communities throughout Ireland. An increased share of the national food grocery and foodservice markets (estimated at 14.5billion in 2008) would serve their growth potential well. Provided these companies increase their share of the local market for food and drink from 3% to 6% their local turnover would rise to 855 million per annum which through the multiplier effect would circulate 2.1 billion in the local economy.