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"locally produced" is correct and usable in written English.
You could use it to describe goods or services that were produced in the same area or region. For example: "We source our ingredients from locally produced farms to ensure the highest quality."
Exact(54)
Eating locally produced food helps support local farmers, say proponents of the 100-mile diet.
Local consumers will no doubt favour these relatively cheaper goods over locally produced goods.
All locally produced?
"Nobody trusts locally produced milk," she fumed.
But what about locally produced honey from small-scale beekeepers?
Eating locally produced food has become mainstream in recent years.
Similar(6)
Locally-produced OA journals are a helpful stepping stone for researcher development.
"Let the locally-produced vehicle move forward".
A touchdown or good locally-produced food?
Twelve countries used their locally-produced BCG vaccine strains.
Locally-produced electricity will also play a big part in keeping homes carbon free.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com