SOME small businesses say their operations have suffered because of the Harvest Launceston Farmers' Market.
Businesses spoken to wanted to remain anonymous, but said they had suffered a decline since the market started.
However, market founder Jenny Edis said hers was a not-for-profit organisation aimed at helping farmers, and small businesses should try to take advantage of any run-on effect.
The Saturday morning market has developed a strong following since it started in the Launceston City Council Cimitiere Street car park in February 2011.
One small family business owner said she did not oppose the local farmer at the market but had problems with others who were on- selling products they had not produced.
"At first we didn't think it would be a problem but we also didn't realise that they were going to allow in stallholders that were not actual producers," she said.
"We're already competing against the big supermarkets, so this has just become another competitor."
Another business owner said he had concerns about food health regulations and why he had to abide by strict regulations in his store yet market stallholders did not with the sale of baked goods.
Ms Edis said she understood many small businesses were finding it hard but so were the farmers whom they were trying to promote.
"We have the strictest governance as we can in regards to our stallholders," she said.
"We have (Australian Farmers' Market Association head) Jane Adams and (chef) Stephanie Alexander coming soon and we really want to promote farmers in Tasmania and showcase what Tasmania does really well."
She said some stallholders were seeing their product more sought-after in stores during the week.
Ms Edis said all stallholders had to attend a council course on food handling and abide by conditions.