Greenmarket
Business Model
Business Model Overview
| Sector: | Goods: Retail/direct- marketing; Services: Education |
| Ownership Type: | Quasi- governmental nonprofit and partnership with private producers |
| Local Ownership: | Board: Yes; Producers: Regional (170-mile radius) |
| Products: | Produce, dairy, meats, grains, baked goods and processed food items, other goods (varies by market) |
| Market: | Local |
| Customers: | New York City residents and visitors |
| Niche(s): | Producer-only markets, producer-at- market requirements, public-private- nonprofit partnership, predominantly revenue- based (as opposed to grant-funded), food access programs like WIC and SNAP, community education and training programs |
Greenmarket is a program of the Council on the Environment of New York City (CENYC), which was founded in 1970 and is a privately funded nonprofit organization based in the Office of the Mayor. Greenmarket has 24 full time staff and up to twice that number in high season. At the height of harvest season, Greenmarket can run up to 66 market days per week at over 49 locations across New York City. More than a third of their markets continue to operate during the winter.
CENYC was created by Mayor John Lindsay in response to the degradation of the environment in New York, and the need for citizen action to improve it. Subsequent mayors continue to appoint some CENYC board members and the city provides certain in-kind services, but CENYC operating costs are raised privately. In 1976, Barry Benepe began shopping a proposal around to various foundations in the hopes of securing $36,000 to fund an “experimental” weekly farmers market. The America the Beautiful Fund contributed $800—and requested that Barry find a nonprofit organization willing to give the pilot project a home. CENYC’s access to City agencies and its focus on improving New York’s urban environment, such as urban gardening initiatives that transformed vacant lots into green space, made it a natural fit.
Nearly all of Greenmarket’s revenue—approximately 92% in 2008—comes from vendor fees, which are based on a flat percentage. “We charge the equivalent of between one and five percent of farmer income,” says Michael. “We don’t ask them for their sales figures. In many ways I wish we did, since that would help us measure the success of our market and our promotions.”
Some of the Greenmarket budget comes from small grants and private individual donors. A little extra income comes from location fees charged for film shoots or other special programs developed through corporate partnerships. “While we could certainly use the income,” Michael clarifies, “we are extremely cautious and intentional in selecting the types of products and business practices with which we align ourselves.”
Greenmarket strives to make local food equally accessible to all New York City residents, regardless of their neighborhood or income level. It accomplishes this is by placing markets in a variety of sites, from parks to city streets to transportation terminals to private property. The neighborhoods vary too, and Greenmarkets can be found in the City’s wealthiest neighborhoods (such as the Upper West and Upper East Sides) as well as lower- income neighborhoods (such as Poe Park and Washington Heights).
Every time Greenmarket wants to open another market, it must get approval from the local community board and cultivate relationships with neighbors. This process engages more stakeholders. As Michael reflects, “The more ownership or participation communities have, the more successful their markets will be. The community boards help, but I’m talking more on the ground—the local ‘mayor’ that walks by, the neighborhood association, the residents. Farmers markets are more than just places that sell food. They’re about education, creating a sense of social space.”
Greenmarket has distinguished itself by successfully engaging low-income New Yorkers. They have devoted significant resources into implementing a strong EBT (electronic benefits transfer) /food stamp program, and at least 14 Greenmarkets are between 65-85% dependent on food subsidy programs like WIC (the Special Supplemental Nutrition Program for Women, Infants, and Children) and SNAP (Supplemental Nutrition Assistance Program, formerly called food stamps). “These programs are a win- win,” says Michael. “They guarantee that those who are most in need of fresh fruits and vegetables have access to them, and their funds go directly into the hands of small businesses,” Michael says.
CENYC also operates auxiliary programs and projects to boost New York City’s local food system. The New Farmer Development Project provides education, assistance, and mentorship for immigrant farmers. Greenmarket’s robust education program teaches thousands of kids each year about local food. Youthmarket give young people small business training and the opportunity to operate urban farmstands in their communities. Learn It Grow It Eat It provides teenagers with nutrition education and hands- on gardening experience. Greenmarket is also developing stronger relationships with local institutions like hospitals and schools to keep growing the demand for local food in New York City.
Most of Greenmarket’s 190 vendors are recruited by word of mouth, although a consultant has been employed to help with strategic outreach in recent years. To get into the program, farmers first have to make it through a vetting process. Their farms must be located within 250 miles north of the city, 120 miles south, and 170 miles east and west. They must produce everything they intend to sell. They also must be willing to have someone who is “significantly involved with production” available at the market stand at least 25% of the time. These rules are enforced through Greenmarket’s inspection program. Vendors who don’t comply are fined, suspended, or after numerous violations, even expelled.
“We are a producer-at-market farmers market program, with very limited hardship exceptions,” says Michael. “That way the public can feel confident and comfortable with the growing processes. It makes for a different type of environment.”
Once farmers are accepted into the program, Greenmarket does everything it can to help them succeed. It matches vendors with sites most appropriate for their products, and tries to build efficient multi-market schedules that minimize their trips to the City. If they make it through a season, vendors are always invited back. In recent years Greenmarket has accepted 10-20 new farmers annually and has lost only 4-6 per year. For some farmers, direct marketing turns out to not be a good fit, but for most it is a bonanza.
Greenmarket’s environmental initiatives—to make each site, for example, a “center for sustainability”—have also had an impact. The organization is showcasing composting, used textile recycling, and e-waste collections. It’s also offering extensive education programs about local food, health and nutrition, and the environment.


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