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BUSINESS PLAN MUSKEGON FOOD HUB 2015-16MARCH 31, 2016

DEVELOPED BY:MARTY GERENCER, PRINCIPAL, MORSE MARKING CONNECTIONS, LLC

EVAN SMITH, CEO, CHERRY CAPITAL FOODS

1. EXECUTIVE SUMMARY

2. VISION AND MISSION

3. ADVISORY COMMITTEE

4. LAUNCH & START-UP

5. KEY STATISTICS

6. FOOD HUB FINANCIAL DATA

7. APPENDIX

3

4

6

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9

10

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2 Muskegon Food Hub Business Plan

TABLE OF CONTENTS

A project supported by the Muskegon deep water port advisory committee, the goals include developing a solid business plan of a for-profit food hub enterprise with four core functions: aggregation, marketing, distribution, and retail, to increase commerce by distributing locally produced food to the region, including areas of low-food access. Phase 1 (1-5 years) is estimated to generate up to $2 million in sales and occupy up to 10,000 sq. feet of space.

The 2015 Muskegon food hub feasibility study findings support the need for a regional food hub and retail storefront in Muskegon, Michigan, an urban area with access to highway, rail, and port. Local products from mid-size producers in surrounding rural counties will be aggregated and distributed in Muskegon, and expanding to regions of Michigan including Detroit, and in Chicago, Illinois. Support from the USDA Local Foods Promotion Program grant will ensure a solid business plan. The business planning will occur October 2015 - March 2016. Muskegon Area First, a lead economic development agency in Muskegon county, will be fiduciary, and provide leadership along with key partners: Morse Marketing Connections, Cherry Capital Foods, FamilyFarmed, local food access organizations, and an advisory committee.

It is anticipated that the Muskegon food hub business and implementation work will result in a 3-year business plan and pilot launch to begin implementation. As indicated earlier in these report findings, the food hub will contain four component sub-operations: aggregation, distribution, marketing, and retail. The food hub will ideally be located in Muskegon county nearby to the Muskegon Farmers Market, Kitchen 242, and other potential food businesses. The retail operation is likely to be located at a separate nearby building. It is anticipated that the Muskegon food hub will become a hub for new agricultural entrepreneurial processing opportunities through partnership work with entrepreneurs testing and expanding their value-added products at Kitchen 242. The Muskegon food hub team is also in discussions with other agricultural processors. The food hub

partnership with agricultural processors will increase efficiencies by sharing costs and resources under one roof.


EXECUTIVE SUMMARY1

Morse Marketing Connections (MMC), a national leader in the food hub movement based in Muskegon, was asked by local government officials and business leaders to explore the potential for creating one or more food hubs within the West Michigan region. The decommissioning of the Consumers Energy power plant on Muskegon’s deep-water port provides a rare opportunity to strengthen the region’s agriculture by transforming this property into a food hub that aggregates, processes, and distributes local foods throughout the Midwest. Other sites in the region are also being explored as potential locations for facilities that address the distribution, processing, and marketing needs of the region’s farmers.

To ensure the feasibility study would be technically sound and lead directly to implementation, MMC reached out to Evan Smith of Cherry Capital Foods. Evan Smith has developed Cherry Capital Foods into the state’s foremost local food distribution company, and is intimately knowledgeable about the needs of the state’s farmers and wholesale buyers.

Key project advisors include Consumers Energy, the Muskegon County Port Advisory Committee, the City of Muskegon, farmers from Muskegon Farmers Market, Sweetwater Organics, Swanson Pickle, and local/state government officials. The core team has relationships with sustainable food systems leaders at the state level and food hubs from around the country. Ongoing dialog and advice is being sought from state and national leaders as well.

Background Agriculture is Michigan’s second biggest industry, with over $100 billion in total annual economic impact. The industry employs a quarter of the state’s work force. The West Michigan region stands out within this robust economic sector: the region contains 10% of the state’s land in farms, yet commands 16% of the state’s total agriculture revenue. The total economic impact of West Michigan agriculture includes $579 million in labor income, $498 million in property income, over 26,000 jobs, and $2.4 billion in economic output. A modest 5% increase in agriculture’s performance would create an additional $29 million in labor income, $25 million in property income, 1,300 new jobs, and $120 million in economic output.1

The median household income in Muskegon County is 17% lower than the State of Michigan and 24% lower than the national median income. The poverty rate in Muskegon County averaged 18.5% between 2007 and 2011, compared to 15.7% for the state and 14.3% nationally. The percent of people with a bachelor’s degree or higher is only 16.8% in the county, compared to 25.3% statewide and 28.2% nationally.2

West Michigan agriculture is extraordinarily diverse, with a large variety of high quality specialty crops including fruits and vegetables, meat, dairy, and other products. The four-county region of Muskegon, Newaygo, Oceana, and Ottawa counties includes nearly 3,600 farms, predominately small and mid-sized family operations. Despite a long-term trend of declining net farm income, farmers in West Michigan have demonstrated tremendous resilience by finding new marketing opportunities, and have begun to reverse years of declining revenue. While the market value of agricultural products sold in the region increased significantly between 2002 and 2007, the increase lagged behind the state average by more than three percentage points.


VISION AND MISSION2


By virtue of its geographic position and excellent deep-water port, airport, highways, and rail system, the community of Muskegon is strategically positioned to supply fresh and value-added products from farmers in nearby rural counties to a region that stretches between the large metropolitan areas of Detroit, Chicago, and Indianapolis. Buyers in these regions are aggressively seeking locally grown, fresh, and value-added products to meet increasing demand from consumers and to positively affect health outcomes of their citizens. In the past decade, an entire new market has developed as hospitals, universities, K-12 schools, and restaurants seek healthy and fresh products from local farms. The region’s large-scale buyers, including Sysco Corporation, Meijer Supermarkets, and Spartan-Nash, have all actively sought locally grown foods, but have not been able to consistently source products that meet their volume and quality standards. Lastly, community and regional food access organizations such as the Veggie Van, Kids Food Basket, community food banks, and Feeding America West Michigan have sought options for purchasing locally produced food, and have agreed to purchase from a Muskegon Food Hub Operation.

ADVISORY COMMITTEE 2015-16• Cathy Brubaker-Clark, Community &

Economic Development, City of Muskegon• Lori Gomez-Payne, Marketmaster,

Muskegon Farmers Market• Dan Gorman, School Food Service Director,

Whitehall & Montague Schools• Janelle Mair, Director of Grantmaking,

Community Foundation for Muskegon County

• Christine Quane, Wholesale Market Coordinator, Detroit Eastern Market Corporation

• Jonathan Wilson, Economic Development Coordinator, County of Muskegon

• Ed Garner, President/CEO, Muskegon Area First


ADVISORY COMMITTEE3

Ownership StructureA for-profit business model will ensure the long-term financial sustainability of the Muskegon food hub. Because the success of a food hub depends on a solid core of producers, grower-stakeholders are encouraged to have a strong voice in the ownership structure ultimately chosen for the food hub.

LocationThe core team’s recommendation is to locate the Muskegon food hub operation in close proximity to the US31 corridor and near the US31 and I96 interchange for easy access to expressways and state trunk lines, avoiding county roads with seasonal restrictions. Locating the food hub operation near the port and railways in downtown on or nearby Muskegon Lake will provide additional opportunities for efficient aggregation and distribution of products. The operation should provide easy access to the multiple modes of transportation identified above. Refer to the site comparison data in Appendix A.

UtilitiesThe Muskegon food hub will require electric and natural gas for heating, cooling, refrigeration and freezers, compressors, and lighting, along with numerous other needs for energy. For electric use, the food hub needs to be equipped with 440v - 3 phase electric availability. City water/ sewer are preferred for more efficient cost and ease of linking to the Muskegon Wastewater Treatment Facility.

Wholesale FacilityThe Muskegon food hub operation should be a minimum 5,000 sq. ft., ideally 10,000 sq. ft. to accommodate for growth to the targeted $2 million in sales over 5 years. The Operation should be equipped with food grade construction (washable surfaces, etc.), ambient storage capacity (estimated at 500 sq. ft.) cooler and 200 sq. ft. freezer. The operation should be equipped with loading docks for aggregation and distribution of fresh and processed product. High overhead space, with ceilings up to 18 feet, will allow pallet racks to be located in the facility. The food hub operation should be equipped with floor drains throughout the facility and a mandatory fire suppression system should be installed. Additional equipment that should be considered for the food hub operation includes a three-compartment sink, hand washing station, pallet jacks, and eventually a forklift truck.

Retail FacilityA small retail storefront will sell product at the Muskegon food hub on select days scheduled to complement Muskegon Farmers Market selling days. The storefront should have proper signage and ease of entry for consumers interested in direct purchases of local foods. Access is critical for cars, bicycles, and pedestrian traffic. The bike path along Muskegon Lake should assist in providing such access. A shuttle service from the Muskegon Farmers Market to the Muskegon food hub operation retail days could be considered. Ample parking and lighting should be made available for the purchasing public.


4 LAUNCH & START-UP

Operating ModelThe food hub will have four core functions: aggregation, marketing, distribution, and retail selling. The operation receives fresh product from growers and packs it according to customer specifications. Depending on the grower’s on-farm post-harvest handling capabilities, the product is cooled, washed, graded, packed, palletized, and placed in cold storage until it is shipped to (or picked up by) customers. Farms that field pack may bring pre-packed cases to the food hub for cooling and storage. On-farm pickup may be offered to growers who do not have refrigerated transport. There is currently a separate complementary project starting through a partnership with the West Michigan Regional Development Authority, the West Michigan Rail Transporters, and the food hub core team to seek funding for a substantial cold storage facility to be located near the Muskegon food hub operation.

The marketing operation consists of buyers and salespeople who negotiate transactions with growers and customers. They may conduct pre-season crop planning with both groups to more consistently match supply and demand throughout the season. The distribution operation handles logistics of farm and customer pickups/ deliveries. This function is often outsourced, and is not included as a profit center in the business model. The retail selling phase will occur at the hub on selected days of the week, complementary to the Muskegon Farmers Market days of operation.


Muskegon County Population • 2013 Population Estimate - 171,008• 2010 Population Base - 172,188

Growth Rate from 2010 to 2013: - 0.7% overall population

Sales Projections:• Average spend by local school districts:

$6,103,170 annually• Average spend by local hospitals:

$2,030,000 annually

Industry Trends:• Focus on child poverty and eating habits:

33% of Muskegon County’s children live in poverty (more than 13,500 kids), and this figure has increased over the past six years.

Local Market Analysis:• Spend per student on food: $1.50• One healthcare system with two campuses

• 406 beds and $5,000 spend per bed, on average

Baker Culinary School and Muskegon Area Intermediate School District Culinary Program

SchoolsNumbers are from 2012-13. ADP is Average Daily Participation. Estimated 170 school days per year. Average food cost is around $1.50/meal (all food purchases.)

2012-13 Breakfast ADP Lunch ADPNumber of Meals Number of Meals

Muskegon 1889 3819

Holton 625 634

Ravenna 175 701

Oakridge 462 1268

Montague 518 1099

Whitehall 397 1364

Fruitport 394 1620

Reeths-Puffer 587 2059

North Muskegon 100 505

Mona Shores 345 1491

7467 16467

23934 meals per dayx 1.50 per meal$35,901 x 170 days per year = $6,103,170 annually on food spend (doesn’t include private and charter schools)

Demand(Refer to the Bodega Map in Appendix B)

• Muskegon County Restaurants, Grocery and Hospital• Manistee and Muskegon casinos• Detroit• Chicago• Milwaukee • Deep water port

Supply(Refer to the Farmers Map in Appendix C)

• Farmers – 4 county region; Muskegon, Newaygo, Oceana, Ottawa• Farmers beyond the 4 county region


5 KEY STATISTICS

10

See Appendix D.

Muskegon Food Hub Business Plan

6 FOOD HUB FINANCIAL DATA

SITE COMPARISONMUSKEGON COUNTY BUSINESS PARK NORTH & MUSKEGON COUNTY WASTEWATER MANAGEMENT SYSTEM

Muskegon County Business Park North – 500 Agard Rd., Dalton TownshipMuskegon County Business Park North offers over 110 acres of shovel ready industrial land. It is equipped with new infrastructure and on-site access to rail. It is strategically positioned just minutes from US-31, Interstate 96, Muskegon County Airport and the deepest port on Lake Michigan.

Property Details• 12 Miles from Muskegon County

Airport• 5 Miles from US-31• 6.5 Miles from Port of Muskegon

County• Adjacent to railway

Infrastructure• Gas on Site – DTE/MichCon• Electric on Site – Consumers

Energy/3 phase primary power• Water on Site – Muskegon

County provides water• Sewer on Site – Sewer service

provided by Dalton Township• Telecom Available – Verizon• Zoning – I-Industrial

Incentives• Free land with job creation

commitment

Site Disadvantages• Site is an EPA Superfund site

due to past groundwater contamination. Any development activity would need to be approved by MDEQ and follow criteria set up through Restrictive Covenants document.


7 APPENDIX A

Muskegon County Wastewater Management System – 698 N. Maple Island Rd., Egelston TownshipThe Muskegon County Wastewater Management System owns 11,000 acres in Moorland and Egelston Townships, of which 1,800 acres is currently being marketed for lease. The 11,000 acres of property currently treats a variety of different waste materials and products. This full service facility treats nearly all the public sewage generated in Muskegon County, serves as a regional disposal facility for hauled wastes including restaurant grease and provides slow-rate land application irrigation for 5,100 acres of crops.

Property Details• 15 Miles from Muskegon County

Airport• 7 Miles from US-31• 12 Miles from Port of Muskegon

County

Infrastructure• Gas on Site – Available (Potential

for natural gas)• Electric on Site – Consumers

Energy/ Strong high voltage site with flexibility to serve energy intensive/high load customers. Potential for renewable energy (i.e. Wind, Solar, etc.)

• Water on Site – No potable water available. Easy access to ground water. Reclaimed water available for cooling with the option of CHP development for power and cooling.

• Sewer on Site – Sewer service provided by Egelston Township

• Telecom Available – Multiple fiber providers within the direct vicinity of the site.• Zoning – Natural Resources and Industrial

Incentives• Potential free land with job creation commitment

Site Disadvantages• No potable water on site.• No direct rail access.


7 APPENDIX A

BODEGA MAP

GRANDRAPIDS

MUSKEGON

PENTWATER

• Wayne’s Deli & Beverage• Ed’s Orchard Market• John’s Market• Jay’s Food Market• DownTown Market• E & A Grocery• Cindy’s Food Markets• KB’s Market• Super Stop Food Store• Sunny Mart• Frontier Mart• Health Hutt• Healthy Pantry• Latitudes Market & Deli• Valy Vietnamese Oriental Food• Ishnala Trading Post Inc.• Ghezzi Market• West Olive One Stop• Jack’s Corner Store• Kari Liquor & Food Mart• The Corner Market• L & G Family Market• Pic N Pac• Ozzi’s Party Store• Duthler’s Family Foods• Benson Sav-Mor Pharmacy• Hansen Foods• Gale’s IGA Foodliner, Inc• Ken-N-Bea’s Party Store• Old World Pub• Ruth Deli• Muskegon Family Foods• Holton Food Market• Maple Island Grocery• Dalton Grocery• Roadside Express• Jack’s Quick Stop• Town & Country Grocery• Airline Food & Liquor Inc• Cloverville E-Z Mart• Spring Lake Orchard Market• Nunica Ez Mart


7 APPENDIX B

GRAND RAPIDS

MUSKEGON

GRAND HAVEN

HOLLAND

FENNVILLE

NEWAYGO

WHITE CLOUD

WHITEHALL

PENTWATER

HESPERIA

SAND LAKE

FREMONT

WALKER

WYOMING

FARMERS MAP


7 APPENDIX C


7 APPENDIX D - ORDINARY INCOME/EXPENSE - MUSKEGON FOOD HUB

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL

Income

Donations $200.00 $- $- $- $- $- $- $- $- $- $- $835.00 $1,035.00

Infrastructure Fund $75.00 $- $- $- $10.00 $- $- $- $- $- $- $- $85.00

Total Donations $275.00 $- $- $- $10.00 $- $- $- $- $- $- $835.00 $1,120.00

Other Income

Food Safety $- $- $- $- $- $- $- $- $- $1,192.00 $- $- $1,192.00

Honorarium $- $- $- $- $- $197.80 $495.00 $- $- $- $866.35 $1,559.15

Total Other Income $- $- $- $- $- $197.80 $495.00 $- $- $1,192.00 $- $866.35 $2,751.15

Sales

Sales-Baked Goods $47.88 $- $7.12 $45.24 $- $500.24 $390.00 $- $- $207.55 $- $- $1,198.03

Sales-Dairy $6,449.10 $5,531.00 $9,207.48 $9,088.41 $7,844.98 $8,893.82 $8,082.79 $9,446.93 $8,790.56 $15,353.24 $8,683.06 $7,763.32 $105,134.69

Sales-Eggs $8,259.35 $10,074.96 $11,360.58 $14,104.75 $15,904.98 $19,541.85 $19,980.42 $19,211.84 $26,818.34 $35,615.41 $26,115.74 $21,651.94 $228,640.16

Sales-Food Box $3,590.00 $8,620.00 $7,681.00 $6,920.00 $7,020.00 $8,187.00 $12,898.00 $11,115.00 $4,490.00 $9,732.00 $3,231.00 $7,800.00 $91,284.00

Sales-Fruit $- $- $669.68 $375.00 $- $204.24 $251.70 $384.00 $2,411.00 $3,004.00 $227.98 $41.25 $7,568.85

Sales-Meat

Beef $2,606.00 $6,208.00 $10,507.00 $10,546.00 $5,523.00 $5,830.00 $7,161.00 $6,164.00 $8,106.00 $6,448.00 $5,661.00 $6,623.00 $81,383.00

Pork $4,739.00 $7,871.78 $1,666.38 $9,301.00 $5,323.00 $1,919.00 $2,981.00 $5,690.00 $16,596.00 $10,800.00 $9,014.00 $11,918.00 $87,819.16

Poultry $3,746.00 $1,447.00 $8,041.00 $3,780.00 $3,739.00 $3,486.00 $3,678.00 $3,846.00 $3,749.00 $3,425.00 $4,160.00 $4,740.00 $47,837.00

Sales-Meat Other $- $- $- $386.00 $417.00 $131.00 $69.00 $6.40 $140.80 $- $- $- $1,150.20

Total Sales-Meat $11,091.00 $15,526.78 $20,214.38 $24,013.00 $15,002.00 $11,366.00 $13,889.00 $15,706.40 $28,591.80 $20,673.00 $18,835.00 $23,281.00 $218,189.36

Sales-Merchandise $- $- $- $- $- $62.49 $- $- $- $20.00 $- $487.82 $570.31

Sales-Other Foods $- $- $90.00 $- $6.75 $- $- $- $- $- $- $- $96.75

Sales-Vegetables $2,351.00 $5,685.00 $2,244.00 $1,400.00 $3,599.00 $3,510.00 $3,673.00 $3,443.00 $5,403.00 $6,488.00 $2,981.00 $2,134.00 $42,911.00

Sales-Wholesale $- $- $- $- $- $- $- $- $360.00 $- $- $- $360.00

Total Sales $31,788.33 $45,437.74 $51,474.24 $55,946.40 $49,377.71 $52,265.64 $59,164.91 $59,307.17 $76,864.70 $91,093.20 $60,073.78 $63,159.33 $695,953.15

Shipping and Delivery Income

$974.00 $2,120.00 $2,036.00 $2,248.00 $3,107.00 $1,716.00 $1,725.00 $1,572.00 $2,623.00 $3,834.00 $3,199.00 $2,924.00 $28,078.00

Total Income $33,037.33 $47,557.74 $53,510.24 $58,194.40 $52,494.71 $54,179.44 $61,384.91 $60,879.17 $79,487.70 $96,119.20 $63,272.78 $67,784.68 $727,902.30


Cost of Goods Sold

COGS Baked Goods

$- $- $- $- $- $299.00 $238.00 $237.00 $234.00 $- $111.00 $302.00 $1,421.00

COGS Dairy $4,772.33 $4,092.94 $6,813.54 $6,725.42 $5,805.29 $6,581.43 $5,981.26 $6,990.73 $6,505.01 $11,361.40 $6,425.46 $5,744.86 $77,799.67

COGS Eggs $6,442.29 $7,858.47 $8,861.25 $11,001.71 $12,405.88 $15,242.64 $15,584.73 $14,985.24 $20,918.31 $27,780.02 $20,370.28 $16,888.51 $178,339.32

COGS Food Box $1,256.50 $3,017.00 $2,688.35 $2,422.00 $2,457.00 $2,865.45 $4,514.30 $3,890.25 $1,571.50 $3,406.20 $1,130.85 $2,730.00 $31,949.40

COGS Fruit $- $- $- $264.00 $240.00 $3,382.00 $197.00 $658.00 $1,567.15 $1,745.00 $118.00 $402.00 $8,573.15

COGS Herbs $270.00 $- $- $- $165.00 $- $- $- $- $20.00 $195.70 $275.70 $926.40

COGS Loss $- $- $- $- $- $- $- $- $- $- $- $- $-

COGS Meat $-

Beef $1,693.90 $4,035.20 $6,829.55 $6,854.90 $3,589.95 $3,789.50 $4,654.65 $4,006.60 $5,268.90 $4,191.20 $3,679.65 $4,304.95 $52,898.95

Pork $3,080.35 $5,116.66 $1,083.15 $6,045.65 $3,459.95 $1,247.35 $1,937.65 $3,698.50 $10,787.40 $7,020.00 $5,859.10 $7,746.70 $57,082.45

Poultry $2,434.90 $940.55 $5,226.65 $2,457.00 $2,430.35 $2,265.90 $2,390.70 $2,499.90 $2,436.85 $2,226.25 $2,704.00 $3,081.00 $31,094.05

Total COGS Meat $7,209.15 $10,092.41 $13,139.35 $15,357.55 $9,480.25 $7,302.75 $8,983.00 $10,205.00 $18,493.15 $13,437.45 $12,242.75 $15,132.65 $141,075.45

COGS Other $- $- $- $432.00 $- $- $- $- $- $- $- $- $432.00

COGS Processing $2,996.00 $2,455.00 $1,121.00 $4,090.00 $4,724.00 $3,210.00 $1,529.00 $703.00 $4,400.00 $3,582.00 $6,691.00 $1,523.00 $37,024.00

COGS Vegetables $1,528.15 $3,695.25 $1,458.60 $910.00 $2,339.35 $2,281.50 $2,387.45 $2,237.95 $3,511.95 $4,217.20 $1,937.65 $1,387.10 $27,892.15

Loss Expense $- $- $- $- $- $- $- $- $- $- $- $- $-

Total COGS $24,474.43 $31,211.07 $34,082.08 $41,202.68 $37,616.77 $41,164.77 $39,414.74 $39,907.16 $57,201.07 $65,549.27 $49,222.69 $44,385.82 $505,432.55

Gross Profit $8,562.90 $16,346.67 $19,428.16 $16,991.72 $14,877.94 $13,014.67 $21,970.17 $20,972.01 $22,286.63 $30,569.93 $14,050.09 $23,398.86 $222,469.75

Expense

Advertising and Promotion

$- $- $59.00 $- $- $60.00 $- $- $- $- $500.00 $620.00 $1,239.00

Bank Service Charges

$8.00 $5.00 $5.00 $12.00 $- $- $- $- $120.00 $16.00 $- $-

Computer and Internet Expenses

$284.00 $119.00 $153.00 $115.00 $281.00 $106.00 $106.00 $106.00 $736.00 $106.00 $106.00 $106.00

Facility Costs

Equipment Note $718.00 $718.00 $718.00 $718.00 $718.00 $718.00 $718.00 $718.00 $718.00 $718.00 $718.00 $718.00 $8,616.00

Food Safety $- $- $- $- $- $- $- $1,656.00 $- $- $- $- $1,656.00

Property Insurance $632.00 $- $- $- $- $- $- $- $- $- $- $- $632.00

Rent $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $9,000.00


Repairs Maintenance Cleaning

$- $- $28.00 $37.00 $- $582.00 $- $42.00 $12.00 $12.00 $64.00 $- $777.00

Utilities $65.00 $215.00 $163.00 $161.00 $166.00 $227.00 $353.00 $392.00 $367.00 $265.00 $234.00 $230.00 $2,838.00

Waste Disposal Service

$- $- $- $59.00 $- $48.00 $- $- $- $48.00 $- $155.00

Total Facility Costs $2,165.00 $1,683.00 $1,659.00 $1,666.00 $1,693.00 $2,277.00 $1,869.00 $3,558.00 $1,847.00 $1,745.00 $1,814.00 $1,698.00 $23,674.00

Insurance Expenses

Board $- $- $- $918.00 $- $- $- $- $- $- $- $- $918.00

Liability Insurance $- $- $- $- $- $- $- $- $- $- $- $1,228.00 $1,228.00

Total Insurance Expense

$- $- $- $918.00 $- $- $- $- $- $- $- $1,228.00 $2,146.00

Licenses and Permits

$48.00 $- $44.50 $- $50.00 $286.00 $- $6.00 $78.00 $337.00 $- $849.50

Meeting Expenses $- $48.00 $48.00 $48.00 $- $- $120.00 $- $- $- $50.00 $314.00

Membership Dues $42.00 $210.00 0 $- $125.00 $- $- $- $- $- $5.00 $- $382.00

Misc. Expense $- $- $- $- $- $- $41.00 $- $- $- $- $- $41.00

Office Supplies $- $- $- $- $- $- $- $- $204.00 $- $- $- $204.00

Payroll - Benefits

Federal Income Tax $1,996.22 $- $(1,054.00) $- $- $- $- $- $- $- $- $- $942.22

FUTA $94.00 $- $- $- $(94.00) $- $- $- $- $- $- $- $-

Healthy Stipend - Coordinator

$400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $4,800.00

Insurance - Workman's Comp

$(1,677.00) $- $- $- $- $- $- $- $1,836.00 $- $776.00 $- $935.00

State Income Tax $- $655.00 $- $- $- $- $- $- $- $- $- $- $655.00

SUTA $- $107.00 $- $- $- $- $- $- $- $- $- $- $107.00

Total Payroll- Benefits

$813.22 $1,162.00 $(654.00) $400.00 $306.00 $400.00 $400.00 $400.00 $2,236.00 $400.00 $1,176.00 $400.00 $7,439.22

Payroll Expenses $5,344.00 $5,826.00 $10,126.00 $7,126.00 $9,663.00 $11,156.00 $9,260.00 $7,699.00 $9,117.00 $9,128.00 $8,710.00 $11,974.00 $105,129.00

Postage $- $- $- $- $- $- $- $12.00 $31.00 $56.00 $36.00 $- $135.00


Professional Services

Accounting $510.00 $- $36.00 $528.00 $252.00 $576.00 $- $- $1,027.00 $820.00 $445.00 $- $4,869.00

Tax Prep $- $- $675.00 $- $- $- $- $- $- $- $- $- $675.00

Total Professional Services

$510.00 $- $711.00 $528.00 $252.00 $576.00 $- $- $1,027.00 $820.00 $445.00 $- $5,544.00

Shipping and Delivery Expense

Logistics Services $- $3,700.00 $- $681.00 $1,919.00 $1,230.00 $1,885.00 $554.00 $2,405.00 $3,128.00 $2,163.00 $1,417.00 $19,082.00

Gas Expense $985.00 $929.00 $1,615.00 $1,000.00 $1,088.00 $1,138.00 $82.00 $1,169.00 $1,033.00 $1,170.00 $938.00 $930.00 $12,077.00

Insurance Truck $- $- $- $- $26.00 $- $- $1,367.00 $1,367.00 $(1,367.00) $- $(77.00) $1,316.00

Labor Packers $238.00 $- $- $- $- $- $- $- $- $- $- $- $238.00

Mileage $192.00 $- $316.00 $514.00 $142.00 $66.00 $31.00 $28.00 $150.00 $184.00 $122.00 $300.00 $2,045.00

Other Shipping $105.00 $180.00 $137.00 $- $181.00 $16.00 $- $106.00 $37.00 $75.00 $- $(75.00) $762.00

Truck Service/Repair $89.00 $1,070.00 $101.00 $61.50 $725.00 $458.00 $42.76 $589.00 $491.00 $4,799.00 $206.00 $264.00 $8,896.26

Total Shipping and Delivery Expense

$1,609.00 $5,879.00 $2,169.00 $2,256.50 $4,081.00 $2,908.00 $2,040.76 $3,813.00 $5,483.00 $7,989.00 $3,429.00 $2,759.00 $44,416.26

Supplies Expense

Supplies Food Sales $- $79.00 $- $7.00 $- $39.00 $- $641.00 $785.00 $70.00 $959.00 $- $2,580.00

Supplies/Office $3.09 $- $- $- $168.00 $- $22.00 $40.00 $85.00 $- $- $- $318.09

Total Supplies

Telephone Expense $104.00 $158.00 $153.00 $163.00 $69.00 $282.00 $63.00 $270.00 $171.00 $171.00 $181.00 $188.00 $1,973.00

Travel and Training

Training Workshops $- $15.00 $- $- $- $- $- $- $- $- $- $- $15.00

Travel $- $248.00 $- $136.00 $- $- $- $106.00 $- $- $- $- $490.00

Total Travel and Training

$- $263.00 $- $136.00 $- $- $- $106.00 $- $- $- $- $505.00

Total Expense $10,927.22 $15,353.00 $14,429.00 $13,413.00 $16,470.00 $17,815.00 $14,065.76 $16,084.00 $20,978.00 $20,509.00 $16,739.00 $19,023.00 $193,990.98

Net Income $(2,364.32) $993.67 $4,999.16 $3,578.72 $(1,592.06) $(4,800.33) $7,904.41 $4,888.01 $1,308.63 $10,060.93 $(2,688.91) $4,375.86 $28,478.77

Ending Inventory ~$5,500


PHOTO CREDITS

All photosCommunity Foundation for Muskegon County - Healthy Muskegon Project

APPENDIX CREDITS

APPENDIX ACounty of Muskegon

APPENDIX B & CMuskegon Farmer’s Market

APPENDIX DExample ProForma for a Regional Food Hub

7 APPENDIX - CREDITS

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