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The term locally made is typically applied to locally grown food or locally manufactured goods. Instead of items being centrally grown, manufactured, or outsourced, items are created and grown within a local proximity. The phrase locally made means different things to different retailers. Currently in the United States, there is no official definition of the term from either the Federal Trade Commission or U.S. Department of Agriculture.

Unlike organic standards (entailing specific legal definitions, labels, and inspections), locally made foods (sometimes referred to as locally grown or local) have no overarching regulation. Food defined as locally made depends on where consumers live, the time of year, and the item in question. In different cases, it could stand for items created within the same state, items that have been trucked into stores within one day, or items created within 100 miles. It is not uncommon to see produce, for example, carrying an organic label (indicating adherence to federal standards) as well as a locally grown label (noting the number of miles traveled to deliver the product). In recent years, however, studies have shown consumer preferences for local over organic food.

The new trend toward locally supported lifestyles encompasses not only locally made food, but locally crafted and manufactured goods and products. Some countries that mass-produce consumer products have less stringent safety standards, resulting in toxic or hazardous materials in end products. Recent toy recalls have illustrated this weakness to consumers, resulting in legislation regarding manufacturing, as well as an increase in purchases of locally made or handmade items. Consumers that are tired of the chain store culture and global manufacturing have embraced the market of locally made goods and products to rebel against conformity. Buying locally made items allows consumers to purchase creative, one-of-a-kind goods and products, and to support independent creators.

The benefits to shopping locally are many. Local businesses tend to be more accessible than large corporations, mainly because they are smaller in size and located near the consumers. Independent businesses, choosing products based on their local customers needs and desires, rather than a national sales plan, guarantee a more diverse range of product and service choices. Asking questions about where and how locally made items were produced can help build community. According to sociologists, consumers have 10 times more conversations with vendors in farmers markets than in grocery stores. When buying directly from the producer, consumers establish a relationship that goes beyond exchange of money, creating a sense of trust and mutual respect.

The environmental impact of locally made food and goods is also appealing to today's green consumer. According to a study by the Leopold Center for Sustainable Agriculture, “food miles” (the distance food travels from where it is grown to where it is ultimately purchased or consumed by the end user) for nonlocal items are, on average, 27 times higher than good purchased from local sources. Most of these nonlocal food and goods (often requiring costly refrigeration during shipping) contribute to global warming and air pollution through the burning of irreplaceable fossil fuels.

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