IDEA TOIMPACT

NORTHWEST MICHIGAN Food & Farming Economy

A NEW ECONOMY FOR MICHIGAN’S RECOVERY

Along with the auto industry, manufacturing, and technology, the state’s recovery is being fueled by its natural resources.“As our state economy transitions from one built on the platform of an old industrial model to one built on the principles of the next economy, it is important for state residents and their elected representatives to better understand the range of assets that are relevant in economic development in the New Economy.”From - “DRIVERS OF ECONOMIC PERFORMANCE IN MICHIGAN” MSU – Land Policy Institute 2012

This new approach precisely fits the economic strengths of northwest Lower Michigan.

WHAT CONSTITUTES THE AGRICULTURE ECONOMY IN NORTHWEST MICHIGAN?Large scale commoditiesApples, Cherries, Asparagus, Potatoes, etc.

Small farmsDirect to grocer/consumer, institution, etc.

Value-added producersWine, beer, jams, jellies, salsa, potato chips, canned goods, etc.

Agri-tourismVineyards, fruit-picking, color-tours, etc.

A COLLECTIVE VISION FOR THE REGION’S AG ECONOMY

Our Food System Partners Share this Goal:

“By the year 2020, 20% of northwest Michigan food will be supplied by local growers and food entrepreneurs.”

There’s a business In here somewhere

Represents only four of the

ten counties in Northwest Michigan

HOW WE’RE GETTING THERE

Job creationNew farms and food businesses

Growing existing farms and food businesses

Economic activityRich region-wide collaboration

Openly articulated and shared goals

Branding and Marketing the Food SystemComprehensive marketing plans

Connecting the consumer to the grower and the retailer

Real partnerships with the business community

MichiganMEDC

KEY COMPONENTSBusiness CounselingMSU Extension and SBDC Michigan via:

A. Susan Cocciarelli (MSUE & NWMCOG – Traverse City based)B. Annie Shetler-Olds (SBDC Michigan & NWMCOG - Kalkaska

based)C. Wendy Wieland (MSU Extension – Petoskey based)D. And other through network partners

Access to CapitalSBDC Michigan, EDCs, local Angel groups

TBEDC 20/20 fund +$500k distributed to ag businesses through 2013

New Food Hub Grand Traverse Food Shed Alliance, Cherry Capital Foods, MLUI, NWMCOG, Goodwill Industries, Traverse Bay EDC

KEY COMPONENTS CONT.

Regional Food Marketing/BrandingTaste the Local Difference, Cherry Capital Foods, Goodwill, Tom’s, Oleson’s, Oryana, Kroger’s, etc.

Land Conservation and SuccessionGrand Traverse Regional Land Conservancy, Leelanau Conservancy, Little Traverse Bay Land Conservancy, MSUE Research Stations, etc.

Funding ResourcesRotary Charities Traverse City, Petoskey Harbor Springs Area Community Foundation, Charlevoix Community Foundation, USDA RBEG, MDARD, MSUE, Cherry Republic, Cherry Capital Foods, Tom’s Markets, Crystal Mountain, Kellogg Foundation, Private Donors.

KEY RESEARCHSBDC Counseling Detailed record-keeping helps us measure progress and see trends n business development needs

Food Innovation Districts StudyVia NWMCOG—Helps us understand needs and requirements

Regional Food Hub Feasibility StudyCompleted in 2013. Executing recommendations now.

Taste the Local Difference Market StudiesEach year TLD surveys farms, retailers, wholesalers, and consumers

Statewide Partner ResearchMSU Extension, Good Food Charter, Fair Food Network, more…

THE 2014 EXPERIMENT

A = local food B = Consumer demandX = 20%(A)*(B)*(Y) = X

If X = (20% of Local Market)Find for Y

THE HYPOTHESIS

We will measurably increase sales of locally grown food in northwest Michigan by applying four distinct strategies:1. Testing the TLD (Northwest Michigan) brand itself

2. Testing customized brands for differing business sectors

3. Testing whether food quality is a differentiator in selling locally grown food

4. Testing the concept of “consumer local”

5. Testing new methods of distribution of our already successful marketing materials

We have active participation of several major grocery store chains that will allow us access to their stores for testing and measuring this hypothesis.

THE SHELF TALKER DISTANCE LOGO

• We will generate a branded logo that strongly emphasizes the distance between the farm and where the consumer is standing at the point of purchase.

• The green leaf icon indicates the product is GROWN here.

• The orange/brown hand icon indicates the product was “made” here.

• These icons will be used as part of a shelf-talker.

• The distance will be applied with a sticker by a TLD staffer, volunteer, store employee, or distributor.

• Further information about the producer can be accessed by calling a TLD representative, going to the online database, on our iPhone app, or by scanning the QR code.

PROPOSED SHELF TALKER2013/2014 Test

Apply this branded shelf-talker tomarket-basket selection of 50northwest Michigan products.

This will encompass a broad collectionof products grown, made, and grown

& made here.

THE SHELF TALKER DISTANCE LOGO IN CONTEXT

• Marketing materials will be designed with consumer buying decisions in mind.

• Marketing materials will be designed to match existing retail store conventions.

• They will stand out on the shelf while fitting a level of quality that other retail branding elements represent. (They won’t look like they were printed on your home ink-jet machine.)

• 2014 projects underway with Tom’s Markets, Oleson’s Markets, Oryana Natural Foods, and Kroger’s

www.localdifference.org

BROCHURES & REGIONAL MAPS

TLD

iPhone /

Andro

id

App

THIS IS ONLY A TEST

Our primary goal in its simplest form is to sell more locally grown food products within our region. This will help support existing business, new business development, and create new jobs.

Remember, 20% local foods by 2020.

All the elements of this project will need to answer both of the following questions in the affirmative:

1. “Will this directly help us to sell more local food here?”

2. “Can the impact of this be measured?”

WHAT WE’D ASK OF YOU

Help Us Evaluate This Project’s Portability

• Imagine how Northwest Michigan’s agricultural support mechanisms may help serve other regions in the state.

• We’ve done the research.• We’ve built systems that work and are built

to scale.

• Help identify the regions that can make use of such collaborative effort.

• Not every region fits.

This is all designed to create jobs in the food and farming sector of the economy by expanding current businesses, and building new ones.

QUESTIONS?

NORTHWEST MICHIGAN Food & Farming Economy