FARMING industry leaders in North Yorkshire have welcomed news that farmers markets have more than doubled in popularity in just two years.

The industry was set up by cash-strapped producers following the BSE crisis and now rakes in £166m a year, according to a study by the National Farmers' Union.

The findings buck a trend in the industry, which has been plagued in recent years with economically damaging crises, including foot and mouth last year.

Peter Woodall, of Cundalls Auctioneers, in Malton, which runs monthly farmers markets in the livestock market, said he was not surprised at the findings.

"They have done extremely well and bring a lot of custom into the town," he said. "It was set up about two years ago and has proved very popular.

"It gives farmers a chance to set up their own stalls and sell any food they produce directly to the consumer.

"We put signs up leading into the town advertising them and this seems to work.

"We have had reports from shop owners that their trade goes up on farmers market days."

Mr Woodall said there was a potential for making the Malton market fortnightly.

"However we don't want to flood the market and its popularity to go down."

The NFU study reveals the number of farmers markets across the UK has increased from 200 to 450 in just two years.

It also shows business confidence is at an all-time high with more than 60pc of existing markets expanding.

There are 15m visits to farmers markets each year and 80pc of neighbouring businesses have seen a boost in trade following the establishment of a market nearby.

An NFU spokesman said: "Farmers markets are becoming more a part of people's shopping habits in many towns and cities.

"They are a runaway success story which is pumping much-needed cash into the rural economy.

"They show farmers have taken an innovative and determined approach to the farming crisis."

The survey of 250 market organisers was carried out in association with the National Association of Farmers' Markets.

"We now need to focus on how farmers can capitalise even further on a phenomenon that is providing them with such a valuable source of income during difficult times."

Updated: 11:10 Wednesday, September 11, 2002