building the supply of healthy foods: experiences and tools from

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Building the Supply of Healthy Foods: Experiences and Tools from the Field February 11, 2010 Hosted by Appalachian Sustainable Development Led by Anthony Flaccavento February 11, 2010 Co-hosted by Wallace Center’s National Good Food Network and Central Appalachian Network Research provided by Ford Foundation’s Institute of International Education

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Page 1: Building the Supply of Healthy Foods: Experiences and Tools from

Building the Supply of

Healthy Foods: Experiences

and Tools from the Field

February 11, 2010

Hosted by Appalachian Sustainable

Development

Led by Anthony Flaccavento

February 11, 2010

Co-hosted by

Wallace Center’s National Good Food

Network and Central Appalachian Network

Research provided by Ford Foundation’s

Institute of International Education

Page 2: Building the Supply of Healthy Foods: Experiences and Tools from

And now a word about our

sponsors…

The Good Food Network supports and integrates nonprofit and for-profit work to build needed value chains, or relationships, systems, and infrastructure for bringing more good food to more people.

Appalachian Sustainable Development (ASD) is a nonprofit that focuses on developing healthy, ecologically sound economic opportunities through education and training, and the development of cooperative networks and marketing systems for value-added food and wood products.

CAN is a network of seven nonprofits across five Central Appalachian states working in partnership with communities, businesses, policy makers, and others to develop and deploy new economic strategies that create wealth and reduce poverty while restoring and conserving the region’s environment.

Page 3: Building the Supply of Healthy Foods: Experiences and Tools from

Value Chains

Page 4: Building the Supply of Healthy Foods: Experiences and Tools from

Value Chains

Page 5: Building the Supply of Healthy Foods: Experiences and Tools from

Supply Chains

Page 6: Building the Supply of Healthy Foods: Experiences and Tools from

Value Chains

Page 7: Building the Supply of Healthy Foods: Experiences and Tools from

Survey of Healthy Foods Value Chain

Groups

75 “value chain” groups received survey’s,

21 respondents;

Survey (email, with phone follow up in

some cases) undertaken fall, 2009

Seven questions, focused on building

supply

Page 8: Building the Supply of Healthy Foods: Experiences and Tools from

Survey Questions

1. Is your organization directly or indirectly involved in trying to build a supply of healthy local foods in the region? What types of healthy foods are you focused on? (organic produce?, local produce?, grass finished meats?, processed foods?, etc.)

2. Please briefly describe the ways in which you or the partners with whom you work attempt to build supply of healthy local foods.

3. How many years have you and/or your partners been attempting to build supply of healthy local foods?

4. What are the main challenges or obstacles you have faced (and the farmers and food entrepreneurs with whom you work) to building supply?

5. Are there specific things you have done – outreach methods, training methodologies, incentive programs, etc. – that seem to be effective in building supply?

6. From your experience, what additional resources or elements do you believe would make your efforts to build supply more effective? Why?

7. Any other insights regarding building supply of healthy local food?

Page 9: Building the Supply of Healthy Foods: Experiences and Tools from

1. Description of Survey Respondents

Location

Appalachian Region

(Virginia, Kentucky, Tennessee, West Virginia, Ohio and North Carolina)

66%

Outside of Region

(New York, Massachusetts and Missouri)

34%

Level of Involvement with Value Chains

Directly involved with value chain work 66%

Indirectly involved with value chain work 34%

Value Chain Product Focus

Produce – 71% 71%

Meats/eggs/dairy – 52% 52%

Value added foods – 19% 19%

Multiple product types – 43% 43%

Grains – 4% 4%

Emphasis on organic/sustainably produced foods 57%

Page 10: Building the Supply of Healthy Foods: Experiences and Tools from

2. Services provided (by responding organizations) to build value chains and supply

Marketing, market development

Direct marketing, sales or merchandizing of products 42%

Indirect marketing assistance 14%

Product testing and development 9%

Consumer outreach and education 9%

Processing, aggregation and distribution

Processing, aggregation or distribution 42%

Forming or managing farmer networks, co-ops 14%

Production support

Education, training and technical assistance 19%

Production research, trials 4%

Page 11: Building the Supply of Healthy Foods: Experiences and Tools from

3. Number of years experience in value chains

Direct value chain experience varied from 1 – 12

years;

Most respondents involved in “healthy

food/sustainable agr” for several years or more

Page 12: Building the Supply of Healthy Foods: Experiences and Tools from

4. Main challenges or obstacles faced in building supply

Market 70%

Prices too low, unstable or unpredictable (includes unfair competition

from “Big Ag” or global imports)

38%

Lower prices for wholesale/institutional compared with direct markets 9%

“Chicken or egg”: limited supply restrains market which deters additional

supply (includes building consistency of quality)

19%

Lack of consumer demand for differentiated products other than organic

(eg Fair Trade)

4%

Page 13: Building the Supply of Healthy Foods: Experiences and Tools from

4. Main challenges or obstacles faced in building supply

Infrastructure 56%

General lack of infrastructure or funds to build infrastructure,

including processing, aggregation

28%

Distribution/trucking challenges, lack of access 14%

Lack of cooperative networks of producers 14%

Page 14: Building the Supply of Healthy Foods: Experiences and Tools from

4. Main challenges or obstacles faced in building supply

Production 46%

Inadequate training/TA for farmers transitioning to new crops or

production methods

14%

Lack of funds for farmers to build hoop houses, other farm

infrastructure, or to take risks

14%

Limited access to or high cost of land 9%

General production challenges and poor economics of farming 9%

Page 15: Building the Supply of Healthy Foods: Experiences and Tools from

4. Main challenges or obstacles faced in building supply

Policy 28%

Regulatory hurdles that make small farming and processing

more difficult, expensive or risky

19%

Public subsidies that favor commodities, big ag over small

farmers and community infrastructure

9%

Page 16: Building the Supply of Healthy Foods: Experiences and Tools from

5. Tools, practices and incentives that have helped increase supply

Market 46%

Securing strong and predictable demand from buyers 19%

Securing good and stable prices from buyers 14%

Diversifying products for sale 9%

Presence of permanent farmers markets to build consumer

awareness and demand

4%

Page 17: Building the Supply of Healthy Foods: Experiences and Tools from

5. Tools, practices and incentives that have helped increase

supply

Infrastructure 32%

Providing aggregation and distribution to farmers 14%

Developing producer networks and value chains 14%

Ensuring good communication with farmers 4%

Page 18: Building the Supply of Healthy Foods: Experiences and Tools from

5. Tools, practices and incentives that have helped increase

supply

Production 33%

Practical workshops, training, research and TA 19%

Financial support, cost sharing for farmers 14%

Page 19: Building the Supply of Healthy Foods: Experiences and Tools from

5. Tools, practices and incentives that have helped increase

supply

Policy 18%

Incentives for institutions to buy local/regional 9%

Public financial support for cost sharing, farm

improvements

9%

Page 20: Building the Supply of Healthy Foods: Experiences and Tools from

What additional elements or resources are needed to build supply?

Market 61%

Better consumer (and buyer) understanding of the true costs, and

benefits of healthy local foods; willingness to pay more for these

38%

Making healthy foods available/affordable to lower income

people

14%

Securing partnerships, gaining leverage with larger buyers 9%

Page 21: Building the Supply of Healthy Foods: Experiences and Tools from

What additional elements or resources are needed to build supply?

Infrastructure 41%

Better, more accessible value chain infrastructure including processing,

aggregation, distribution

33%

Need for private sector models of above 4%

Stronger networks of producers 4%

Page 22: Building the Supply of Healthy Foods: Experiences and Tools from

What additional elements or resources are needed to build supply?

Production 32%

More training, TA and mentorship for farmers 19%

Training of trainers to increase local capacity 9%

Increased $ support for farmers to transition to new crops or production

practices

4%

Page 23: Building the Supply of Healthy Foods: Experiences and Tools from

What additional elements or resources are needed to build supply?

Public policy 23%

Public/institutional “buy local” policies 14%

Public policy that does not hurt small farmers 9%

Page 24: Building the Supply of Healthy Foods: Experiences and Tools from

Obstacles and Challenges to Building

Supply – Common Themes

Two most common challenges faced:

low or unpredictable prices for products

inadequate infrastructure for getting

products from farm to market.

Page 25: Building the Supply of Healthy Foods: Experiences and Tools from

Pricing Challenges

Relatively Low Prices:

Keep farmers from participating in value

chains, or reduce the “retention” of growers

Reduce operating margins for value chain

managers/facilitators

Page 26: Building the Supply of Healthy Foods: Experiences and Tools from

A “Good Price” is relative

Page 27: Building the Supply of Healthy Foods: Experiences and Tools from

Price and Volume

Inverse relationship between volume and pricing:

Institutional buyers, colleges, large retail expect “competitive pricing” but offer large demand

Smaller, more direct buyers offer better prices but lower volumes (or more work aggregating them)

*Some value chains better suited to smaller growers*

Page 28: Building the Supply of Healthy Foods: Experiences and Tools from

Grasshoppers Distribution, LLC, Louisville

CSA-based value chain with 100+ farmers and 400+ members

Goal of 800 members in 2010

Wholesale is small component; seeking to add hospitals and public schools

Changes in 2010: Requiring better grower pre-grading, eliminating pick-up from farms

Challenge: Finding the price point – Sufficient for producers, competitive for buyers, adequate to cover costs

Page 29: Building the Supply of Healthy Foods: Experiences and Tools from

Local Food Hub, Charlottesville

Page 30: Building the Supply of Healthy Foods: Experiences and Tools from

Challenge: Inadequate Infrastructure

All respondents who do not own, manage

or have ready access to infrastructure

cited it as a major challenge

Complexity, cost, and intensity of

managing infrastructure or facilitating

necessary links (e.g. among aggregator

and distributor) is common challenge

Page 31: Building the Supply of Healthy Foods: Experiences and Tools from

Appalachian Harvest Infrastructure

Page 32: Building the Supply of Healthy Foods: Experiences and Tools from
Page 33: Building the Supply of Healthy Foods: Experiences and Tools from
Page 34: Building the Supply of Healthy Foods: Experiences and Tools from

Effective Tools and Practices for

Building Supply

Not surprisingly, the two most oft-cited effective practices:

securing large, well paying and reliable markets for regionally produced foods;

creating or accessing infrastructure adequate to meet the needs of small farmers.

Page 35: Building the Supply of Healthy Foods: Experiences and Tools from

Additional Effective Practices

Policy: Procurement; and financial

support for farmers to transition

More and better training and TA

Page 36: Building the Supply of Healthy Foods: Experiences and Tools from

Policy success – Jubilee Project

Page 37: Building the Supply of Healthy Foods: Experiences and Tools from

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF

TENNESSEE:

(6)(A) Require each local school board to submit to the

commissioner a plan:

(B) Such plan for compliance shall:

(i) Require that availability of local agriculture

products, freshness and transportation cost be considered;

(ii) Allow flexible bidding processes to assist

farmers to bid competitively on portions of a given nutrition plan, rather than an entire nutrition plan.

Page 38: Building the Supply of Healthy Foods: Experiences and Tools from

Additional Elements or Resources

Needed to Build Supply

Most common - the need for better consumer (including buyer) understanding of the costs and benefits of local, sustainable foods, leading to a preference for them, including a willingness to pay more..

Other elements cited - improved and more accessible infrastructure, including farmernetworks that make participation in value chains feasible for small farmers;transitioning.

Page 39: Building the Supply of Healthy Foods: Experiences and Tools from
Page 40: Building the Supply of Healthy Foods: Experiences and Tools from
Page 41: Building the Supply of Healthy Foods: Experiences and Tools from

Communities of Practice:

Create informational hubs, a “multi-organizational Extension” responsive to producers’ needs

Catalyze information sharing, trust and peer learning among farmers/participants

Serve as magnets for funding

Scout new and cutting edge ideas

* Communities of Practice foster “coopetition” rather than competition among producers, in some cases leading to cooperative distribution, co-packing or co-branding, or other joint ventures.

Page 42: Building the Supply of Healthy Foods: Experiences and Tools from

Tools for Building Value

Chains & Supply

“ Values-based Food Supply Chains:

Strategies for Agri-Food Enterprises-of-

the-middle”

Steve Stevenson, Rich Pirog

www.agofthemiddle.org

Page 43: Building the Supply of Healthy Foods: Experiences and Tools from

Healthy Food Systems: A Toolkit for Building Value Chains

Healthy Food Systems:

A Toolkit for Building Value

Chains

Created by Anthony Flaccavento

Appalachian Sustainable DevelopmentWith support from the

Wallace Center at Winrock International’s National

Good Food Network

and the Ford Foundation

First Edition, December, 2009

Once you decide to embark on action learning to scan the potential for a

healthy food value chain, consider these questions to guide and organize

your investigation:

What is already here?

What are the major and minor crops or livestock that are being raised in

our area? Which of these are increasing (in acreage, $) and which are

stagnant or in decline?

Why are they increasing or declining? Is it falling prices, competition

and loss of market share, production problems, regulatory or PAD

barriers? Other factors?

Who are our farmers and food producers? Multi-generation or

newcomers? Conventional or sustainably minded? English speaking or

non-English speaking? What are their resources and limits, and what is

their capacity to handle risk?

What could be raised here – in terms of soils, climate, topography - or

once was, but is not now produced on a significant scale? What factors

have precluded current production of these things? Can they be profitably

and sustainably produced in our region?

What’s the market and where is it headed?

• In our region and surrounding areas, what are the most important direct

market outlets for healthy food: Farmers markets, CSAs, buying clubs,

produce stands, restaurants? What is being bought there? Are any foods

emerging in many or most of these markets that could be produced well in

our region? Who are the farmers already doing so?

Page 44: Building the Supply of Healthy Foods: Experiences and Tools from

Healthy Food Systems: A Toolkit for Building

Value Chains

Page 45: Building the Supply of Healthy Foods: Experiences and Tools from

Contact information Appalachian Sustainable Development (Denise Barrett, ED)

Healthy Food Systems: A Toolkit for Building Value

[email protected]

276-623-1121

Central Appalachian Network

Sarah Watling

[email protected]

859-671-0208

National Good Food Network

John Fisk

[email protected]

703-879-6556

Ford Foundation

Wayne Fawbush

[email protected]

SCALE

Anthony Flaccavento

276-628-4727

[email protected]

Page 46: Building the Supply of Healthy Foods: Experiences and Tools from

To order a copy of

Healthy Food Systems: A Toolkit for Building

Value Chains

Contact the ASD office at:

276-623-1121

[email protected]