Camden Food Economy Strategy October 25, 2013 Campbell ...
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Camden Food Economy Strategy October 25, 2013 Campbell Soup Company
Transcript of Camden Food Economy Strategy October 25, 2013 Campbell ...
Camden Food Economy Strategy
October 25, 2013
Campbell Soup Company
The Reinvestment Fund
TRF Development Partners
Policy Research
Business Lines
Lending & Investing
$1.2 billion in community investments
$700 million in capital
under management 800
individual & institutional investors 2600
projects financed
PolicyMap
New Jersey Food Access Initiative
TRF organizes & manages public-private partnerships to improve
access to fresh foods in underserved communities
Public Policy Advocacy • Improve access to healthy
foods
• Foster better health outcomes
• Support small business development
• Create & retain jobs
• Revitalize communities
• Contribute to local food system development
• Incent public-private partnerships
Healthy Food Financing Initiative
A National Campaign
Research & Analysis
• Economic Impacts of Supermarkets
• FFFI Rural Grocery Case Study
• Limited Supermarket Access (LSA) Study
• Food Systems Research
Building Capacity
www.healthyfoodaccess.org
Camden’s Institutional Food Sourcing
1. Food Service Industry Timeline
2. Selection of Institutions
3. Interview Topics
4. Key Findings
5. Food Vendors and Managers
6. Recommendations for Policy and Planning
Camden’s Institutional Food Sourcing
Food Service Distribution Created in response to The National School Lunch Act
(1946) – known as “institutional distribution”
Restaurant growth further expanded distribution: 25% of food dollars in 1950s to 49% today
Sysco was formed in 1970 by 10 independent distributors with a broad geographic scope
Industry is now an oligopoly due to economies of scale in warehousing and transportation
Technology is the new “economies of scale” – real time inventory, long-term delivery and supply chain schedules, computerized transportation routing, and even apps…
Selection of Institutions and Vendors
Selected 12 institutions from DVRPC’s Stakeholder Analysis
Hospitals (3), primary and secondary education (4), higher education (3), and two others
Responses from the first 5 institutions revealed additional food supply networks
Exploring rabbit holes…
Interview Topics
Primary food sources
Interest in purchasing regional foods
Options to purchase regional foods
Barriers to purchasing regional foods
Interest in collective purchasing with other Camden institutions
Key Findings
Interest in Regional Foods Strong interest, but significant barriers
Sometimes part of organizational mission
Driven by health, regional economy, sustainability, and consumer preference
“There is no lack of interest in purchasing local foods, but someone needs to make it easy. Even if it costs more.”
Key Findings: Primary Food Sources
National Managers Aramark Sodexo
National Vendors Sysco US Foods Compass
Regional Vendors and Distributors Common Market Ambrogi Foods Nu-Way Novick Brothers Prepared Meals Local catering companies Revolution Foods
Key Findings
Options to purchase regional foods National managers offer fewer regional options – they control the
entire process (Aramark, Sodexo) National vendors are more committed to regional options – customer
demand and regional offices (Sysco, Compass, US Foods) Small to medium size regional vendors are the most likely to sell
regional foods – fits their supply chain and scale
Dairy and grains are almost universally sourced from regional producers, even by national managers
Proteins are the most difficult to source regionally
Key Findings
Barriers to purchasing regional foods
Cost o Schools are limited by federal reimbursement o Hospitals and Universities are less constrained, but still cost conscious
Ease of acquisition o Many respondents cited this as the largest barrier o Having more than one or two vendors requires too much time
Seasonal production o Menus are often planned quarterly, requiring steady supplies o Northeast is a higher-cost market for regional foods due to limited growing
Safety and quality o Hospitals and educational institutions are especially concerned about safety o Consistent quality is important when planning menus far in advance
Key Findings
Interest in Collective Purchasing
Smaller organizations are interested, but wary of scheduling conflicts, choice, and bureaucracy
Larger institutions are less interested, as they tend to use food managers
Some institutions participate in group purchasing organizations (GPO)
GPOs are often associated with specific vendors or industries
o Sysco and Compass have dedicated GPOs
o HealthTrust GPO represents 1,400 hospitals
Independent Food Vendors
Common Market Common Market sources local and regional produce and sells to
a wide range of organizations and institutions, including schools, hospitals, and grocers
Full product line, with seasonal variation
Nu-Way NJ-based distributor to childcare centers and charter schools Full product line with both regional and international sourcing Novick Brothers Philadelphia-based distributor to childcare centers, independent
institutions, and restaurants throughout Mid-Atlantic Full product line with both regional and international sourcing,
including paper goods and cleaning supplies
Sysco
Recommended Strategies
Develop a food inventory system that coordinates the collection and distribution of regionally produced and processed foods – the inventory system would be more logistical than physical
Work with Sysco to make the Camden region one of its test markets for regional food sourcing (Grand Rapids, Kansas City, and Chicago are current test markets)
Explore the potential for creating a Camden group purchasing organization (GPO) that represents a wide variety of institutions, regardless of their services.
When creating regional food strategies, focus more on the region’s producers and processors of livestock, poultry, and seafood – distributors and interest groups seem overly focused on the region’s capacity for fruits and vegetables
Supply Chain Matrix
Contact Information
Lance Loethen Research Associate TRF Policy Solutions
TRF Policy Solutions
