southern sawg - food hub lessons: early decisions
TRANSCRIPT
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Food Hub Lessons:
Early Decisions
Jim Barham – USDA Rural Development, DC
Sara Clow – GrowFood Carolina, SC
Leslie Hossfeld – Feast Down East, NC
Southern Sustainable Agriculture Working Group Conference
Mobile, AL
January 17, 2015
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Presentation Overview
Food Hubs:
Clarifying the Food Hub Concept
Early Decisions, Lessons Learned, Best Practices Sara Clow – GrowFood Carolina, SC Leslie Hossfeld – Feast Down East, NC
Additional Reflections
Resources to Support Food Hubs
Open Discussion
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Local/Regional Food Systems
Food Hubs
Aggregating Distributing Marketing Local Food
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Regional Food Hubs
Actively linking producers to markets On-farm pick up Production and post-harvest handling
training Business management services and
guidance Value-added product development Food safety and GAP training Liability insurance
Aggregation Distribution Brokering Branding and market
development Packaging and repacking Light processing (trimming,
cutting, freezing) Product Storage
“Buy Local” campaigns Distributing to “food deserts” Food bank donations Health screenings, cooking
demonstrations SNAP redemptions Educational programs Youth and community employment
opportunities
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*Based on a working list of 302 food hubs identified by the USDA’s Agricultural Marketing Service (April 2014)
Regional Food Hubs
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7 12 26
44 53 55 58 63
75 87 101
119
153
184
215
256
286 298
020406080
100120140160180200220240260280300
Growth in the Number of Food Hubs (2001-2013)*
At least 145 food hubs have started in the past five years (2009-2013),
as well as at least 83 in the past three years (2011-2013)
*Based on a working list of 302 food hubs identified by the USDA’s Agricultural Marketing Service (April 2014)
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Regional Food Hubs by Legal Status*
Food Hub Legal Status Number Percentage
Privately Held 144 48%
Nonprofit 87 29%
Cooperative 61 20%
Publicly Held 7 2%
Informal 3 1%
*Based on a working list of 302 food hubs identified by the USDA’s Agricultural Marketing Service (April 2014)
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Regional Food Hub Models*
Farm to
Consumer
39%
Farm to
Business
29%
Hybrid
32%
*Based on a working list of 302 food hubs identified by the USDA’s Agricultural Marketing Service (April 2014)
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GrowFood Carolina’s mission is to help the local food system reach its full
potential by providing meaningful opportunities to farmers
which will strengthen and secure the future of a regional food supply
and ensure an enduring productive and diverse landscape.
WHY (and how) does a conservation organization start a food hub??
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GrowFood Carolina (GFC) is:
A non profit, all local, wholesale produce distributor.
We provide:
• Crop planning • Post harvest education
• Warehousing • Sales & Marketing
• Distribution • Vendor Compliance
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GUIDING PRINCIPLES
1.Farmers. Farmers. Farmers. 2.Consistency 3.Collaboration
SET GOALS RECOGNIZE
CHALLENGES
CREATE
SOLUTIONS
ANALYZE
RESULTS REPEAT
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EXPANDING THE MODEL
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Feast Down East is a BUY LOCAL economic
development, poverty alleviation project, devoted to
supporting our local farmers through local food
purchasing in our region.
Our focus is on helping small to mid-sized limited-
resource farmers build and sustain their farm
businesses, connecting them with local food
businesses and educating consumers on the
importance of BUYING LOCAL!
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HOW WE BEGAN – SECTOR ANALYSIS
Growth sectors of health and education;
- Emerging sectors of entrepreneurship/small business and recreation/tourism;
- Challenged sectors of agriculture/forestry and manufacturing
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Core 9-County Region
• New Hanover
• Brunswick
• Pender
• Columbus
• Robeson
• Bladen
• Onslow
• Duplin
• Sampson
- Most ethnically diverse region in rural America - One of three regions of persistent poverty in NC - Lost more farms than any other state in the US - Average age of farmers is 57
Southeastern North Carolina
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OUR PRIMARY GOAL is to
Create a
Fully Integrated
Local Food System .
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FULLY INTEGRATED FOOD SYSTEM - Feast Down East
PRIORITY INITIATIVES
BUY LOCAL Campaign
Farmer Support
Farm to School and Farm to Institution
FDE FOOD HUB
Processing & Distribution
Healthy Communities
Program Farm to Chef
Statewide Local Food
Movement
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www.feastdowneast.org
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USDA Designated
“Food Hub”
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FARMERS
DIRECT SALES
FARMERS MARKETS &
CSAs
CONSUMERS
RESTAURANTS SCHOOLS/
UNIVERSITIES
FEAST DOWN EAST P&D
HOSPITALS/
ASST. LIVING GROCERS
TECHNICAL ASSISTANCE
MARKETING
Farmer Support
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Farm to Chef Farm to Chef Directory
Farm to Chef Partnership Meetings
Over 40 Participating Restaurants
26 Premier Restaurants
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Farm to Institution UNCW - Aramark
Hospitals
Assisted Living Facilities
Whole Foods - Retail
Lowes Foods - Retail The
Green Spot
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Farm to School
• Teaching Nutrition, Gardening & Local
Agriculture in the Classroom
• Building School Gardens
• Increasing Fresh Fruits & Vegetables in
the Cafeteria
• Public Housing Neighborhoods
After-School Garden Program
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Healthy Communities Program
Addresses the lack of healthy food in
our underserved communities –
“Food Deserts”
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Local and State-wide Partners in the Local Food Movement
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Local Food Means Economic Development Multiplier Effect - The information in this table is based on 73 workers directly employed in farm and food-related jobs in 7 counties (Bladen, Brunswick, Columbus, New Hanover, Pender, Robeson and Sampson). All figures 1Q2013.
Type of Impact Impact
Output $22.6 million
Employment (a) 180
Labor Income (b) $6.2 million
State/Local Government Taxes
$1.2 million
Federal Taxes $1.2 million
(a) Fulltime and Part time Employment
(b) Wages and salaries and self-
employment income
Prepared by: Dr. William Hall UNCW Senior Economist
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FOOD POLICY COUNCILS
Food Policy Councils examine how the local food system operates, and provide policy recommendations to improve that system. Food Policy Councils identify and strengthen the connections between food, health, natural resource protection, economic development and the agricultural/food production community.
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SAVE THE DATE! February 6th
Feast Down East 5th Annual Regional Conference Burney Center
University of North Carolina Wilmington Wilmington, North Carolina
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Food Hub Best Practices – NINE Keys to Successful Marketing for Food Hubs –
Don’t sell commodities – Product differentiation is key (unique product attributes, source identified, production
practices, social equity), telling a compelling story, branding, chain transparency, certifications
Sweat the small stuff – To tell an authentic and compelling story, all staff need to know every detail of the
production and handling practices of the product sold under the brand (even the truck drivers!)
Be there all year for your customers – Must sustain operations year round to cover costs and keep customer communication
constant. Be pragmatic about your approach in terms of sourcing “locally”
Get buyer commitment – Be clear with buyers about volume order expectations and use a combination of
specials, incentives, rewards, public recognition for “committed” buyers
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Think farmers first – Ensure good prices for producers and find ways to build their capacity to grow and be
successful. What kind of relationship and interaction, individually, as group, co-op?
Make friends – Seek operational advantages by seeking partnerships with existing distribution
infrastructure players, e.g., existing distributors, producer groups, trucking companies, food banks, etc.
Don’t buy what you don’t need – Infrastructure investment (e.g. warehouse, trucks, equipment) needs to match the
hubs’ stage of development and marketing capacity.
Don’t poison your customers – Food safety needs to be an integral part of the whole operation, with food safety plans
for producers, GAP/GHP, traceability/recall mechanisms in place.
Never forget “supply, supply, supply” – Without ensuring a consistent, reliable supply of quality products, you have no business
running a food hub, and you will have no business!
Food Hub Best Practices – NINE Keys to Successful Marketing for Food Hubs –
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OPEN DISCUSSION
QUESTIONS, COMMENTS?
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Moving Food Along the Value Chain: Innovations in Regional Food Distribution By Adam Diamond & James Barham – USDA Agricultural Marketing Service
Regional Food Hub Resource Guide Food hub impacts on regional food systems, and the resources available to support their growth and development By USDA Agricultural Marketing Service and the Wallace Center at Winrock International
The Role of Food Hubs in Local Food Marketing By James Matson, Martha Sullins, and Chris Cook – funded by USDA Rural Development
Food Hub and Distribution Resources
Electronic copies of these publications can be downloaded for free at www.ams.usda.gov/FoodHubs
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Food Value Chains: Creating Shared Value to Enhance Marketing Success – joint project
between USDA and the Wallace Center
The report is designed to provide guidance to the reader on how food value chains are initiated and structured, how they function, and the benefits they provide to participants.
New Report on Food Value Chains
http://dx.doi.org/10.9752/MS141.05-2014
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USDA’s Food Hub Portal www.ams.usda.gov/FoodHubs
A catalogue of USDA's research findings, resources, and support for food hubs
Food Hub and Distribution Resources
National Food Hub Collaboration http://foodhub.info
Map and list of known food hubs, current news, webinars, conference proceedings, print resources
Food Hub Benchmarking Webinar on Thursday!
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www.usda.gov/knowyourfarmer
Website: One-stop shop for financial
and technical assistance resources from USDA to grow your local food enterprise www.usda.gov/knowyourfarmer
The Compass: How USDA resources
are put to work in your community www.usda.gov/kyfcompass
The Compass Map: See what’s
funded in your community and learn how others are using USDA programs
USDA’s “Know Your Farmer, Know Your Food” Initiative
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Know Your Farmer, Know Your Food: - Resources for Navigating USDA -
www.usda.gov/knowyourfarmer
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Farm Microloans
Farm Storage Loans
Organic Cost Share
Grass-fed Verification
Environmental Quality Incentives Program (hoop houses/high tunnels)
Rural Energy for America Program
USDA Programs in the Local Food Supply Chain
Business and Industry Guaranteed Loans
Community Facilities Loans and Grants
Rural Business Enterprise Grants
Rural Business Opportunity Grants
Value-Added Producer Grants
Local Food Promotion Program
Conservation Reserve Program
Agricultural Conservation Easement Program
Conservation Stewardship Program
Environmental Quality Incentives Program
Business and Industry Guaranteed Loans
Community Facilities Loans and Grants
Rural Business Enterprise Grants
Rural Business Opportunity Grants
Local Food Promotion Program
Specialty Crop Block Grants
Farm to School Grants
Senior Farmers’ Market Nutrition Program
WIC Farmers’ Market Nutrition Program
Community Food Projects Competitive Grants
Farmers Market Promotion Program
Specialty Crop Block Grants
Land Conservation
Processing
www.usda.gov/knowyourfarmer
Aggregation/ Distribution
Production Markets / Consumers
Rural Cooperative Development Grants
Small Business Innovation Research
Risk Management Education Program
Federal State Marketing Improvement Program
Conservation Technical Assistance
Beginning Farmer and Rancher Development Program
Sustainable Agriculture Research and Education Program
Agriculture and Food Research Initiative
Research, Education, and Technical Assistance Programs – all along the supply chain
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Includes data on:
USDA-funded local food projects
Farmers markets, food hubs, and other “context data” gathered by USDA agencies
Projects and resources from 9 other Federal Departments
The KYF Compass Map
www.usda.gov/kyfcompass
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Explore Options, Partnerships, and Opportunities
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Find Resources to Fit the Need
www.usda.gov/kyfcompass
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Jim Barham USDA Rural Development
Washington, D.C. 202-690-1411
www.usda.gov/kyfcompass
www.usda.gov/knowyourfarmer
Thank You!