Draft Food Hub Feasibility Study

8/17/2019 Draft Food Hub Feasibility Study

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greater bendIgo food hub report

Food Hubs represent an exciting and powerful opportunity forcommunities grappling with the challenges of designing sustainableand fair food systems in the 21st century.

From producers to retailers, chefs, emergency food providers and communitymembers, experience in North America and elsewhere demonstrates that FoodHubs offer a way to involve everyone who grows, eats, cooks and shares food in an

integrated approach that achieves multiple and long-lasting benets:• Increased access to and affordability of healthy, fresh and local produce for

vulnerable and low-income residents• Signicantly better returns to local producers• Marketing, storage and distribution solutions for local producers and food

businesses• Signicant efciency savings and distribution solutions for restaurants and

other businesses wanting to access local produce• Training and employment opportunities for local residents• Business incubation opportunities for new entrepreneurs

• Urban renewal and regeneration, enhancing the aesthetics of the CBD This study describes a number of sequenced Food Hub models that in ourassessment match Bendigo’s current and anticipated food security needs. Itprovides national and international examples of best practice; and is cognisant oflessons learned through practice over the past three years, particularly by membersof the Australian Food Hubs Network.

EXECUTIVE SUMMARY

The strategic timing of this study allows for the previous work of Healthy TogetherBendigo and the recent establishment of the Bendigo Regional Food Alliance toprovide linkages and a base upon which to continue positive community participation.It is no coincidence that the City of Greater Bendigo has played a critical facilitationand leadership role in both these initiatives. Similarly the City of Greater Bendigowould very likely play a similar enabling and facilitation role in bringing together thecommunity and a ‘lead’ Not For Prot organisation in the development of a Bendigo

Food Hub. The prospect of availability of infrastructure in the CBD is a timely complement toplanning occurring currently across the community and the City of Greater Bendigoin relation to food and provides opportunities for existing or newly establishedconsortia to be a focus of assessing a Food Hub’s feasibility in Bendigo. This andother potential available sites provide a canvas upon which to conceptualise the shortto longer term vision for a food system for Bendigo. One that is based on accessand affordability of healthy food for all and a connected and active community.

High-level economic and social impact assessments indicate the benets thisproject would provide for the community from multiple perspectives. Key ndings of

the social impact assessment include: There is a strong likelihood that all three Food Hub models considered will increaseaccess in desired areas of identied food insecurity in Greater Bendigo

There is a medium likelihood that the Food Hub models will enhance affordability ofhealthy local foods to low income consumers


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There is a strong likelihood that the Food Hub models will contribute to communitydevelopment in Greater Bendigo

The ndings of the Economic Impact Assessment reveal that:

After 12 months activities outlined in Table 3 plus a weekly farmers market wouldsee:

• 16 jobs created and supported via activities• $2.62 mn increase in total output to the Greater Bendigo economy• $3.65 mn increase in value-added and tourism impact combined to the

Greater Bendigo economy

After 5 years

• 30 jobs created and supported• $4.75 mn increase in total output to the Greater Bendigo economy• $5.94 mn increase in value-added and tourism combined to the Greater

Bendigo economy

Further, the impact of a 5% increase in local food purchasing in Bendigo over 12months is likely to result in:

• 33 jobs created and supported• $8.03 mn increase in total output to the Greater Bendigo economy• $3.56 mn increase in value-added to the Greater Bendigo economy

A solid nancial analysis based on modest assumptions sees the potential forbusiness and nancial strengths and viability of a Food Hub, bearing in mind thepublic good expected of such an enterprise. It allows for a technological connector

of the Open Food Network to facilitate the preliminary phases of coordinatingFood Hub activities. The nancial modelling reveals the core activities of a BendigoFood Hub, namely education and training, storage and warehousing, marketingand distribution, and the operation of a commercial and community kitchen, couldgenerate a net revenue in excess of $330,000 within ve years.

This can be facilitated by the evaluation, research and dissemination opportunitiesbuilding on relationships in the education sector, together with the participation ofthe Australian Food Hubs Network. In this respect, the conduct of this Food Hubfeasibility study has been made easier by our signicant and broad communityrelationships in the community food sector in Greater Bendigo. Organisations suchas Bendigo Foodshare, SecondBite and Foodbank Victoria are positioned well toexpand into a new phase of activity in response to increased expressed communityneeds for emergency food relief and their enhanced community prole.

The potential for signicant social enterprise activity, located centrally or inneighbourhoods settings via the three conceptualised Food Hub models is a valueadd for current community food projects, and the preferred ultimate objective of amore comprehensive Bendigo Community Food Centre combines with a new modelfor community partnerships.

Bringing people together to pursue objectives that can achieve outcomes greaterthan individually creates the potential to procure resources for the large-scale FoodHub vision. It allows for a Start-Up phase to underpin a prototype of CommunityFood Centres to be developed for use throughout Australia.

As demonstrated by Canadian Food Centres, and in particular The Stop, the meansof success of a Food Hub rely on a staged approach to their development and whenthat occurs, anything is possible and our community can become truly ‘Edible’.


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1 Scoping a BendigoFood Hub


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Activities around growing, eating, sharing, cookingand sourcing local food in community and businessnetworks within the Bendigo region reect internationaltrends to localise food systems. The developmentof a Food Hub is a logical next step to support thisgroundswell of community support and engagement.Experience with Food Hubs internationally revealsa wide range of positive outcomes, includinghealth improvements, enhancements in socialconnectedness, greater protection of the environment,as well as stimulation of the economy and job creation.

Matching the community’s enthusiasm for a strongand fair local food system, the City of Greater Bendigohas conducted research and developed policy and

programs to support the importance of healthy eatingvia increasing fresh food intake as part of the Healthy

Together Bendigo project. (1) It has also investigatedhow an integrated approach to transport can improvethe health of all residents. (2)

Food insecurity and lack of healthy food consumptionare signicant issues for the region. Data reveals poorhealth indicators, placing our community in a high-riskcategory for chronic ill health into the future. (3) This iscompounded by the rise in diseases associated with

lack of physical activity. This evidence base, combinedwith the visible community, organisational andbusiness interest, provides the impetus and contextfor discussions about a Food Hub.

Introduction

This study proceeds from the recognition that food is fundamental to the health and wellbeing of each andevery one of us, both individually and as a community. Food Hubs can provide an environment where local foodis valued, availability is made easier and a more integrated approach to food access and affordability supports

local and regional producers.

Further, the opportunity for a site to be made availablewith a charitable purpose enables a focus on creatinga whole-of-community, long term and inclusiveresponse to improving healthy eating in GreaterBendigo. Potential exists to value and enhanceexisting community assets, and to allow the creationof precincts surrounding railway stations to bedesignated as Food Hubs. These precincts would belocated close to organisations currently undertakingfood related community development programsand activities, building on such activity centres for

community benet.


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This project is titled ‘Greater Bendigo FoodHub. A feasibility study for the establishmentof a regional food hub in Bendigo.’ For easeof use this will be assumed to be covered bythe term Bendigo Food Hub and the wordsFood Hub throughout.

Food Hubs mature and develop over time, capable ofdoing so due to their dynamic nature, as experienceof their operations accumulates. This project outlinestheir role and purpose in the community and makesrecommendations for core functions, such aseducation, food production and food relief. It providesa model for their staged delivery that provides the basisfor novel partnerships, development and functions of aFood Hub.

One strength of this project is our strong understandingof the local food system in Greater Bendigo. It enablestimely examination of how a Food Hub could besustainable and combined with a solid nancial

analysis determines the most appropriate Food Hubbusiness model and strategy.

The study describes the role of the City of GreaterBendigo as the lead organisation in project managingthe feasibility study and our approach supportsdeveloping an innovative model for potentialpartnerships and community involvement as it

progresses. The City of Greater Bendigo will also bea critical partner in securing funding for the potentialdevelopment of the Food Hub.

This project investigates and scopes the feasibilityof the core functions of a proposed Food Hub forBendigo in contributing to food security for vulnerablecommunities. It investigates how to enhance incometo food rescue and emergency food relief services,

THE PROJECTand also considers the systemic issues relating toaffordable access to quality food.

A dynamic multi-functional Food Hub would providea venue to generate income through innovative socialenterprise, including education, food warehousingand value adding in addition to emergency food relief.It would also support the long-term viability of ourregional food producers and food businesses.

The study describes the following outcomes for a Food Hub:

• A logical plan for staging the development and operations• A practical and sustainable business model (including partnerships, nancial management, services

and operations and their staging)• The required site characteristics, plus any complementary facilities or property• A proposal ready for the Start Up phase, including the required capital resources for the project to

be ‘funding ready’• A management model, including the role of local government plus key partnerships, including the

currently presented public private partnership opportunity• The extent to which the project contributes to economic growth in the region, in the form of a high-

level economic impact assessment• Understanding the extent to which the project supports or addresses disadvantage in the region, in

the form of a high-level social impact assessment.


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Bendigo has a thriving community food sector. Interestin growing, cooking and swapping food and rescuingsurplus food for charitable purposes has boomed. Thishas occurred in conjunction with the development ofthe Bendigo and Heathcote Community FarmersMarkets, the Bendigo Community Food Network, and,more recently, the Bendigo Regional Food Alliance,plus the development of school kitchen gardens andcooking programs and a greater understanding of theimportance of composting organic waste.

On a regional scale, food production in the Loddonregion includes livestock and horticulture, withvegetable, fruit and nut production totalling $419million of agricultural product(7). This includes eighteenmanufacturers and eight wholesalers that provide awide range of fresh produce in the region (8), with anestimated $91 million in local sales in the GreaterBendigo region (9).

The emergence of the Bendigo community foodsector has seen the development of Food Fossickers,the producers and food retailers network, supportedby the City of Greater Bendigo to work togetherto increase the connection between farmers andmarkets into the community. Many local producers aremembers of Food Fossickers and supply local FarmersMarkets. The community food sector’s emergencehas also seen the development of the emergency

food relief sector, including organisations such asFoodbank Victoria, SecondBite and the establishmentof Bendigo Foodshare. The signicantly high foodinsecurity rate in Bendigo (9.4% compared with 5.6%for Victoria)(10), combined with a high proportion of low-income households (14.3% versus 12% for Victoria), (11) necessitates a focus on food security as a high priorityfor the City of Greater Bendigo.

The Food Hub will become a health-promoting settingthat will have a focus on groups in the communityvulnerable to food insecurity. These groups includethose with low incomes, the unemployed (also underemployed and ‘working poor’), those with a disability,experiencing mental illness, CALD, the elderly, thosewith addictions, who are homeless or are Indigenouscommunity members.

The Bendigo Food Scene

Food Production & Emergency Food Relief

Food Security Risk Factors 2008 - 2011 City of Greater Bendigo

Simply telling people thatsomething is good for them, or

using the fact that the food is freeto force them to eat things thatthey dislike, will never promote

changes in people's choices.

-Scharf, Levkoe and Saul (2010)

The activities of Food Hubs are often values-based,and therefore prioritise increased access to affordableand nutritious fresh food for low-income communities.

The focus on food security and health outcomes forthis project needs to be balanced by the capacity toachieve a viable business model.


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This study covers the three geographic areas outlined inthe project brief: the specic central CBD site that couldbe suitable for a Food Hub; the food-related activitieswithin the urban and peri-urban city boundaries; andfood production and related activities in the broaderGreater Bendigo Municipality. We explore optionsfor the Food Hub to have a greater presence in thecommunity than just a place to distribute food; on thecontrary, it should be a venue to generate enhancedeconomic and community impact on the City of GreaterBendigo’s food system. This study provides a conduitfor increased communication, information sharing andcoordination between producers and others active inthe food value chain.

Preliminary discussions currently occurring for apublic private partnership to support the developmentof a regional Food Hub in Bendigo present a goodopportunity for viable Food Hub developmentsfollowing the completion of the feasibility study. Itis opportune to assess this in detail, and that the

proposed site forms a core component of Study Area1 in the CBD, identied below. The other two studyareas, Study Area 2 and 3 apply to the urban and periurban areas of Bendigo and the broader municipality,specically in regarding producers and players in thefood system that could be integral to a Food Hub(such as market gardens, intensive horticulture or fooddistribution facilities).

study areas

Study Area 1:

Central business district


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2 Exploring FoodHubs for Bendigo


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Great emphasis is placed on foods grown fornational and international markets, howeverfood that is grown, processed and soldprimarily for local or regional markets mayunderpin a local or regional food economy.Local impacts of farmers’ markets underpinother transactions at the community leveland can be used as an example of the moreintimate connection between producers andpurchasers of food, with reported higherlevels of trust and interpersonal relationshipsmaking them a key means of rebuilding alocal food system. (12) (13)

In this study local food in the Greater Bendigo regionrefers to the Greater Bendigo Municipality plus producefrom adjacent interface councils that are consideredunder the category of ‘exible localism’ (14).

Some question the assumption that local food isnecessarily more desirable from an environmentalor socially justice perspective, or more nutritious,fresher, and able to address issues of food security. (15) Compared with the larger retail alternatives though,people are voting with their feet in favour of local food.

That said, producers still face many barriers in takingfull advantage of the opportunities that local marketsoffer, including the need to travel to numerous marketsto sell produce and the long hours this entails.

What is a Food Hub?

Food Hubs often aim to beeconomically self-sustainingenterprises that support the

local food economy, facilitatecollaboration between key

stakeholders and communitymembers(18) and thereby foster amore community-oriented food

system.

Community members often experience difcultysourcing local, fresh and affordable produce. (16)

In its strictest sense a Food Hub coordinates someaspect of the production, processing and/or marketingof food to meet demand for local, fresh, organic or othervalue-laden products. (17) It is important for this projectto consider that farmers, eaters, local businesses andcommunities are creating new, innovative food valuechains and networks to distribute food within local/ regional economies and communities, and that anobjective of increased access to and affordability oflocal produce can be achieved.

Components and markets of a local, community-based food system may include:

• Farmers markets,• Community-supported agriculture (CSA),• U-pick operations and roadside stands,• Food cooperatives,• Chef collaboratives,• Community gardens,

• Farm-to-school networks,• University, hospital, and institutional food

procurement programs,• Critical local infrastructure such as abattoirs

and dairies,• Produce and livestock auctions,• Food banks and community food pantries,• Community kitchens,• Producer cooperatives,• Locally-owned grocery stores, restaurants,

and• Food service operations. (19)


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The three chosen case studies illustratethe importance of the community setting increating a Food Hub, the international bestpractice benchmark, and the reality of localefforts and learnings in the Food Hub arena.

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Incredible Edible Todmorden

CASE STUDIESwOULD THESE WORK HERE?

South East Food Hub

The Stop - Community Food Centres Canada


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The South East Food Hub provides freshlocal food to people in Greater Melbourneand the south-east region of Victoria, at afair price to the farmer and to the eater. Itaims to provide an option that supports ourfarmers, advocates for healthy communitiesand addresses issues of food access.

This south-east Melbourne region was specicallychosen for this project because it is an under-represented area of Victoria both in terms of customeraccess to fresh food and easy access to market forits producers. The south-east Melbourne regionincludes urban growth corridors, communities of highcultural diversity and lower socio-economic statusthan the Victorian average. Access to fresh food isa signicant issue, with food insecurity in the City ofGreater Dandenong very high, and Cardinia Shire oneof the highest in Victoria – two thirds greater than thestate average. The South East is also one of greaterMelbourne’s most productive horticultural areas,

generating a wide variety of fruit and vegetables allyear round – however there are signicant pressureson agricultural production in this area, ranging fromloss and fragmentation of land for housing; pricepressure and a lack of fair market access; seasonallabour shortages, and a perception (among farmers)that their presence and products are not valued in thebroader community.

South East Food Hubcase study 1

South East Hub Infographic (33)


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The South East Food Hub was established as a pilotproject to test the feasibility of a food delivery model thatenables local people in the South East of Melbourneto access the abundant and diverse produce that isgrown all around them.

The scoping study (in 2011) was conducted byEaterprises Australia with the Australian Food HubsNetwork, and supported by VicHealth and the Cityof Casey. The scoping study produced concepts that

were further developed through a 2-year innovationresearch project, again supported by VicHealth – toexplore possible models for providing better returns tofarmers AND improved food access in the community.

Operating trials were commenced in early 2014, toinvestigate feasibility and test assumptions aboutsupply and demand through an agile / lean and action-research approach. The project’s intention for the trialwas to establish, utilise and develop:

• A strong brand and market expectation of the

South East Food Hub;• An online trading network – using the prototype

Open Food Network (OFN) software;• A weekly Food Hub order cycle, including

ability for orders and payments to be handledonline; and

• Food Hub warehouse and distributionoperations.

Food Clubs allow friends, work colleagues, schools,neighbours or community groups to band togetherand gain access to good food at more affordableprices. Simply order your produce online, our farmersdeliver it to us, we pack it for you and deliver it to yournominated pick-up point.

The South East Food Hub continues to operate aweekly order cycle, with produce availability conrmedwith farmers on a Tuesday, orders taken (online)

between Tuesday and Friday afternoon. The SouthEast Food Hub currently services approximately10 community ‘food clubs’ and a small number ofwholesale customers (e.g. local shops and cafes).

You can see a sample of the range currently availableat https://openfoodnetwork.org.au/sefhub-sample/ shop.

Produce is delivered by farmers to the packing facilitiesof one of the participating farmers (Cafresco in KooWee Rup) by 7am Tuesday morning, where ordersare compiled and delivered to the Food Clubs andcustomers throughout the day. The Food Hub has aexible ‘mark-up’ structure (facilitated by the OpenFood Network) that aims to keep costs down andsupport community groups to develop their ownassociated enterprises e.g. if they collect or pack theircustomers’ orders the Food Hub’s mark-up is reducedto as little as 17%.

How did it start?How does it work?


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This project has demonstrated a Food Hub modelthat can deliver the three intended outcomes ofmarket access for farmers; jobs and local enterpriseopportunities; and improved healthy food accessfor communities in Melbourne’s South East. It hasestablished:

• 10 community buying groups: includingcommunity enterprise models that raiserevenue for community centres and schools;

and the establishment of independent smallbusinesses to replicate and extend the model• New opportunities for job creation and skill

development: the South East Food Hubtrial involved participants from training andemployment programs at Avocare, andworked with local distribution companies.Early participants reported their learning curvein relation to types of fruit and vegetables.Base operations of the current model requiretwo packing staff (total 0.4), an operations

coordinator (0.5) and a business developmentmanager (0.6)• It has involved 16 farmers, over 110 varieties of

fruit and vegetables, and almost $60,000 paidto the participating farmers.

• Over 210 people have placed orders over thepast 18 months, and they have approximately

120 people placing regular orders (weekly orfortnightly).

Thank you so much for all thewonderful fruit and vegetables,they are just so delicious, fresh

and exude healthiness! I am so

delighted with the quality and feelvery privileged to have such anamazing service provided to our

school community.

-Member, Menzies Creek Primary School

The trials were commenced under the auspice of aDandenong-based non-prot training and employmentorganization – Avocare Ltd. This enabled the FoodHub to start trying things out within an existingwarehouse environment, and through employment ofan Avocare supervisor to manage the packing. Otherearly partners were crucial, such as local provedore

Chefelds, who conducted South East Food Hubdeliveries to restaurant and hotel customers for therst six months for free.

As the Hub grew, it became too large for the spaceand auspice of Avocare and in April 2015 began itstransition to an independent operation. It is currentlyoperating within the legal structure of social enterpriseincubator Eaterprises Australia, while a full businessand/or investment plan and ownership structure for an

independent Food Hub is developed.

You can nd out more at www.southeastfoodhub.org or on the Open Food Network – www.openfoodnetwork.org.au/groups/south-east-food-hub.

WHAT WERE THE OUTCOMES?

Ownership / Governance


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Incredible Edible Todmordencase study 2

Incredible Edible Todmorden (IET) (29) isrecognised worldwide as a communityinitiative that enables the wholeTodmorden township to be enthusiasticabout growing and campaigning forlocal food.

They aim to provide access to good local food forall, through:

• working together• learning – from eld to classroom to

kitchen• supporting local business

IET membership prerequisite: Ifyou eat you are in!

From a small start planting herb gardens aroundtown, IET is now an incorporated association, andhas grown to planting and growing vegetablesand orchards on all manner of public spaces inthe locality.

IET believe local food means fresher food – tastier

origins

food – and ‘you know where it’s come from’. They want their campaign to encourage healthiereating. Their achievement of food-based learningis one to be studied. Their campaigns - such asEvery Egg Matters, which creates a network ofpoultry producers - are original and effective.

IET provides support and resources to aninternational network of Incredible Edible townsand cities. They have a great advocate in PamWarhurst - you can watch her in action on this

TED talk about how we can eat our landscapeshttp://www.ted.com/talks/pam_warhurst_how_we_can_eat_our_landscapes?language=en 30)

Recently funded half a million pounds to establisha Food Hub at the local high school, they havecreated a position of ‘Food Inspirer’ for the projectto promote education in cooking and nutrition.

In 2015 IET gave permission and provided thelogo for Incredible Edible Bendigo to use.

IET High School Food Hub aims to:


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Canadian Community Food Centres are “Reinventingwhat a “Foodbank” means in the 21st century –from charity and dependence, to empowerment andagency”

The Stop Community Food centre, under the guidanceof then CEO Nick Saul (now CEO of Community FoodCentres Canada), pioneered a transformation from atraditional charity model food bank, that distributes(often inferior quality) food on an emergency basisto people on low incomes, to a new, human rights-based, empowerment model of ‘community food

centre’.(31)

The Stop continues to provide emergencyfood relief of a high quality, but its focus has shiftedto educating and empowering its clients to becomeagents of change and advocates in their own causeto address the structural roots of food poverty andinequality. The Stop is a not-for-prot organisation, with a high

degree of participation as volunteers and employeesfrom community members and clients. It is governed

by a volunteer Board of Directors, which has a broadcross-section of skills and experience from the foodindustry, charitable, community and corporate sectors.

The Stop - Community Food Centres canadacase study 3

Description Functions

Ownership / Governance

Objectives

“While our food access programming helps confront the issue of hunger, it also creates opportunities for community members to forge their own responses to hunger. We believe this approach will end the way charity divides us as a society into the powerful and the powerless, the self-sufcient and the shamed. At The Stop, we are creating a new model to ght poverty and hunger: a community food centre.”

-Nick Saul

• Drop in service• Perinatal program• Community action program• Ovens and community cooking• Community advocacy• Sustainable food systems education and

training• Urban agriculture• Sustainable food production and education for

primary schools

• Greenhouse and nursery propagation

The Stop's objectives are to:

• Meet basic food needs of its clients

• Foster opportunities for community membersto build mutual support networks• Enable community members to connect to

important resources• Empower members to 'nd their voices on the

underlying causes of hunger and poverty'


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The project brief requested examination of the food-related activities within the urban and peri-urban cityboundaries as Study Area 2. Thus the ability to locateall of the current Local Community Food Initiativesunderway in Bendigo under the banner of IncredibleEdible Bendigo has been timely and a bonus forthe community. Building on years of work, it greatlyfacilitated the mapping commenced by Healthy

Together Bendigo to identify community food assets. This draft map was then displayed at the communityforum, held at the Bendigo Town Hall on June 16th.

The recent formal identication of Bendigo as anIncredible Edible community, complete with logo,allows for support from the original Todmordentownship and, indeed, that has been offered.

Inspired by the City of Greater Bendigo’s Integrated Transport and Land Use Strategy, a unique opportunityto progress this mapping of community assets toprovides a starting point for developing NeighbourhoodFood Hubs as an ancillary or stand-alone model forFood Hubs in Bendigo. The notional 2km RailwayStation precinct locates a majority of those assetswithin a transport zone that is complemented by railaccess as well as walking and cycling tracks, busroutes.

It includes the potential for mobile food delivery

Mapping Community Assets

Incredible Edible Bendigoprogrammes such as that run by Foodshare Toronto (35),where their mobile food market truck travels acrosstown selling affordable fresh food in neighbourhoodsselected through consultation with local communitiesand analysis of gaps in food access.

Key Community food Initiatives ingreater bendigo municipality


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29

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Produce Map The study brief also requested examination of food-related activities in the broader Greater BendigoMunicipality, corresponding with Study Area 3. Mapping the range and availability of produce in theBendigo region has commenced through the activities of groups such as the Council’s Farming AdvisoryGroup, Food Fossickers (36) and Bendigo Community Farmers Market (37)activities. This preliminary exerciseidenties food production activities within and adjacent to the Greater Bendigo municipality, and setsa starting point for a more detailed / dynamic mapping activity to support the business expansion oflocal producer networks. It can support increased communication, information sharing and coordination

between producers and others active in the food supply chain. There is also a possibility to leverage Open Food Network (38)’groups’ infrastructure to create a Bendigofood map / directory that enables easy identication (and updating) of producers and their produce in theregion.

Key


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Chicken

Mushrooms

Walnuts

CheeseLamb

Beef

Pork

Olives

Olives

Eggs

Game Birds

Legumes

Legumes

Lamb

Beef

Salt

Olives

Tomatoes

Goat Cheese

Pork Apples

Honey

OlivesVegetables

Poultry

Poultry

Pork

Poultry


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3 Three Conceptsfor Bendigo


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We have developed three independent conceptsfor the Food Hub, but believe that these - together- could form a strategic intervention for the Cityof Bendigo and region. This section describes themseparately.

Chapter 4 (Feasibility Assessment) then outlineshow these could be developed as socialenterprises, and Chapter 5 (Next Steps) outlineshow events and development could be staged togradually build up to this full system.

All three concepts detailed below describe what

a Food Hub could deliver, with a specific focus onsocial equity and food justice.


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Concept 1

The Bendigo Food HubOne core need of Concept 1 is for a permanent andexpandable base for emergency food relief operations,such as provided by SecondBite, Foodbank Victoriaand Bendigo Foodshare, on a necessary scalein Bendigo. In addition, other revenue generationactivities can be added to boost nancial viability of anexpanded operation.

The consultations revealed some additional communityneeds and interests in relation to a potential Food Hub.

These were:• Storage and Warehousing: need for more

permanent facilities with room to grow tomeet signicant demand for food relief inBendigo, and make facilities available to otherorganisations and other activities such asHome Care Meals Services.

• Producers: provision of storage and coolroomfacilities, support for distribution logistics andshared marketing opportunities, possibilityof accessing these services under one roof.NB. Most of the producers interviewed arealready involved in networks such as theBendigo Community Farmers Market and FoodFossickers. These were opportunities identiedto build on and strengthen existing activities.

• Organisations in the health, welfare, communityservice and education sectors are keen to be

part of a vision that moves beyond a foodbankmodel to incorporate life skills education,providing training and job opportunities.

• Non-prot organisations and public healthunits are interested in cooking and gardeningprograms as a way to promote exercise andimproved nutrition.

These interests could shape the core features of aBendigo Food Hub as outlined in Table 3.

These component activities are essential to the viability

of a start up phase of 1 year and integral to a longer-term vision for the site, see more detail in Chapters 4and 5. This model enables starting small and lean withavailable infrastructure and building up the model andactivities as initial revenue streams are established.

There is signicant interest in using the central CBDsite identied in the tender documents as Study Area1, owned by ISPT. This site has been used to shapethe visualisations and concept design, but this is not

intended to suggest that it is the only possible site incentral Bendigo. Further investigation to identify othersites could be part of next steps if / as required.

Exterior view of Model 1


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36


Outside Garden Area

Dry Store Area Overview of Model 1

Loading and Cold Store Area


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Function Explanation

!"#$%&'($)(+",$

Storage and Warehousing

Provision of storage andwarehousing – for both food

relief and local producersaccessing local markets

A base non-prot partner and operator or consortia of existing relief entities, facilitat ing the establishment of a more permanentfacility for coordination of emergency food relief, enabling increasing scale to better meet identied and growing need.

By establishing additional storage and refrigeration facilities, the Hub could quickly move to providing these as services to localproducers and other local businesses.

-&&./&,0(+01(

Marketing, Aggregation andLogistics

Aggregation and logisticssupport to enable local foodproducers to enhance theirbusinesses and access new

markets

Virtual Food Hubs create an information source and create networks and link buyers that are typically much harder for smallerproducers to reach.

Expand communication and networking between producers, buyers, sellers and others by creating a virtual, online Food Hub toprovide a shared marketing and logistics platform for local producers. This can continue / build on the Bendigo Community Farmers

Market producer liaison and sales operations recently initiated using the virtual hub functions of the Open Food Network.

This activity will be designed to ll gaps in local food supply (not compete with existing retailers), initially providing small-scalewholesale services, with a longer-term aim to obtain procurement contracts with local institutions and other related food

businesses.

20+1%$3

Kitchen The potential to co-locate a signicant community of interest on one central CBD site to enable cooking activities. Potential also

exists for community lunches with schools and community members, plus for take home meals.

+#"0303, )$.'1"+0&3

Education, providing trainingand job opportunities

Training in warehousing and logistics and commercial cookery has been modelled.

&--01$ )033&4"+0&3

Innovation

Demonstration site for food production from seed through to waste to compost generation in a garden setting. This will encourage

outreach from and entry to the Food Hub facilities by the many community partners who have expressed interest in participating, tohelp shape future activities.

5$&5/$6(7"#2$+

People’s Market (a FarmersMarket with emphasis on

access and equity)

Up to 1000 people visiting weekly provides opportunity for organisations to facilitate physical access to those requiring better foodaccess and affordability.

Table 1: Core features of Model 1


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Concept 2

The Bendigo Community Food CentreModel 2 would build on Model 1, while providing someof the same key functions such as scaled emergencyfood relief activities, requiring more storage space, butsignicantly expanding ambition in four key areas:

• Commercial Kitchen:• Training and Education:• Ofce and Social Enterprise Incubator:• Community Engagement.

In the longer term, the Community Food Centre wouldallow for signicant complementary enterprises to beco-located with the core Hub activities outlined inModel 1, again illustrated using the site identied inStudy Area 1. These enterprises would link with thecommunity via many and varied opportunities foroutreach programs, home delivery of foods to lowincome residents and continuation of support forthe numerous community food initiatives underwayencompassed by high level preliminary mapping ofIncredible Edible Bendigo.

Potential features of the full-scale Bendigo CommunityFood Centre are outlined in Table 2

“Health promotion programs also need a way toreach low- income communities through trustedorganisations that offer more than a “talking to” aboutpersonal choice.” In Every Community a Place forFood, Scharf, Levkoe and Saul, (2010)


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39


Plan view of Model 2

GARSED STREET

A Q U A P O N I C S

FOOD TRUCK FLEET

FREEZER

COOL COOL

OFFICE

T R U C K D E L I V E R Y

P O I N T

EDUCATIONTRAININGEVENTS

OFFICE /Incubatorspace

COMMUNITYGARDEN

COMPOST

CAFE

DRY

KITCHEN

4 0 m

180m

STAFF ROOM/volunteer Amenities

AMENITIESTRUCK ACCESS


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40



!"#$%&'($)(+",$

Storage andWarehousing

Expanded from Model 1

-&&./&,0(+01(

Marketing, Aggregationand Logistics

Expanded from Model 1

Ofce and Education Training Areas

Cafe, outdoor garden and recreation area

Foodshare and storage area

EDUCATIONTRAININGEVENTS

COMMERCIALKITCHEN

OFFIce/INCUBATORSPACE


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41


Table 2: Core features of Model 2


20+1%$3

Full-Scale CommercialKitchen

Signicantly expandedfrom Model 1

Storage of the scale required for 30,000 Meals On Wheels servings per annum.

Potential additional contracts with food providers, such as Meals on Wheels Providers.

The provision of space to niche, culturally appropriate and demographic-specic cooking sessions and value adding of local produce tocreate social enterprises would create additional revenue streams.

The potential for a food truck model, to be funded philanthropically, to operate from the Food Hub would allow for outreach affordable freshproduce access and additional longer term plans may include educational activities at Food Hub sites associated with neighbourhood food

initiative activities alongside Bendigo’s railway stations at Eaglehawk, Kangaroo Flat and Bendigo

+#"0303, )$.'1"+0&3

Education

Signicantly expandedfrom Model 1

Housing large events such as a ‘Taste of Bendigo’, a potential annual sit down food tourism event plus catering for other events.

Ability to incorporate learning from early years through to the Univers ity of the Third Age and also provide mentoring opportunities. Partnersin the educational space would include all levels of early childhood education, primary and secondary school, Bendigo Kangan TAFE, othertraining providers in relevant Certicate 3 and 4 qualications, LaTrobe university public health students, Registered Training Organisations

in the disability sector.

Potentially a food education enterprise. The ability for a large educational provider to use the space for school children based on the foodsystem from seedling through to compost production from food waste would provide an opportunity for education in Central Victoria.

&--01$ )033&4"+0&3

Ofce and SocialEnterprise Incubator

Space for food-relatedsocial enterprise

incubation with outreachfunctions

The potential exists for a commercial tenant sympathetic to the social justice principles of equitable food access. A commercial range rentalcould underpin half of the space available to subsidise smaller community tenants.

The former ‘Bendigo Preserving Company’ would present an interesting and engaging street frontage and create marketing opportunitiesfor enterprise development on site.

5$&5/$6(7"#2$+

People’s Market

Location for a weeklyPeople’s Market,a demonstration

community garden andmore activities

Demonstration site for food production from seed through to waste to compost generation in a garden setting.

In addition a waste management demonstration location utilising ‘The Rocket’ composter (39) would allow for food waste from CBD cafesand restaurants to provide compost for sale or use in the demonstration community garden on site.

An aquaponics demonstration unit would be located there and be funded through grants. It could grow niche product for local cafes andrestaurants.


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4 FeasibilityAssessment


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45


assessment

The nature of program models and options forinnovative products and services will inuence thecreation of a sustainable business model for theproposed Bendigo Food Hub. How these servicesare delivered and how the business entity is structuredneed to be developed in a considered and transparentmanner, together with a solid nancial analysis

A traditional business analysis would assess whetherdemand and need for a Food Hub and its services aregreater than existing supply. However, in this projectthere is a unique constellation of factors:

• The potential use of an existing site thatcould be made available to a Not For Protagency, an agency in partnership with othersin the food relief network or a newly formedgovernance group building on the learningsfrom each agency to further their emergencyfood relief activities, with a refurbishedwarehouse space that could be made availablewithin months, and the potential for fundingand in-kind support from related business

interests.• This is accompanied by momentum within the

community for a more integrated approach toemergency food relief, the regions’ poor foodsecurity and health data, and the high level oflow-income community members, all of whichindicate an increasing need for assistance withobtaining a healthy diet.

• In addition a number of food related initiatives,Food Fossickers, the Bendigo CommunityFarmers market and the Bendigo CommunityFood Network and the new Bendigo RegionalFood Alliance are all looking to increase thescale of their activities and the ability to focuson a Food Hub for Bendigo would be strategicand timely.

How will iT succeed?• Asking the right questions of the right

people• Strategic timing and partnership

opportunities• Start Up phase prototyping for larger

Community Food Centre• Signicant community participation potential• Value add for current community food

projects


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commercial business purposes• Space for ofce• Kitchen space• Training area• Outdoor market area• Green space for demonstration food growing• Parking: for 2 small vans and visiting vehicles

Infrastructure such as walk-in coolrooms and freezers

and kitchen t out may be leveraged through charitabledonations and / or partners. If this does not occur, thefacilities would need to be funded via funding obtainedfor their establishment in the second year of operation.

The specic potential revenue streams of the differentModels are outlined in more detail below.

Infrastructure provision is a critical need for facilitatingstart-ups in the Food Hub sector. Consideration of thepotential use of Study Area 1 would create a signicantadvantage (unrealised by many potential Food Hubstart-ups) with a suitable building available at minimalcost. If this site turns out not to be suitable or is notavailable, then a critical element of progressing the

project would be to identify other potential centralsites. All the costings below assume that a suitablesite is available with minimal / no rent, and withsuitable refurbishment and equipment in place (e.g.no major infrastructure set-up cost). Specic nancialmodelling for another location would need to takeplace separately.

Conceptually, a breakdown of space suitable fordevelopment of Model 1, and potentially expandableto Model 2, could include:

• Coolroom and freezer• Access requirements: truck and long wheel

base delivery van access at least twoentrances, clear of pedestrian trafc; locationto promote physic activity with proximity topublic transport and walking and cycling tracks

• Council zoning: appropriate to use for

Required Site Characteristics for Model 1


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Model 1 - The Bendigo Food HubModel 1 returns a surplus of $27,000 in the rst year,increasing to $336,000 in the fth year. The followingactivities have been included:

• Coolroom and freezer storage would beavailable for producers and local businessesto rent per pallet, with a base of 100 pallets inyear one, increasing to 200 pallets by year ve.

This activity supports a logistics manager andan operations manager.• Aggregation of wholesale produce for local

food businesses would be supported bythe Open Food Network’s technology withdistribution logistics supported through acombination of cargo bikes locally and foodvehicles travelling to Melbourne. The cargobike eet could also support the distributionof produce, collected through a gleaningprogram.

• Cooking demonstrations could be providedin the community kitchen, while mobilefood delivery could be facilitated throughexisting community service agencies andprograms. The kitchen could also operate asocial enterprise offering partial processingfor product diversication for wholesale, and

prepare sandwiches and seasonal salads forsale.

• Provision of RTO training courses in yearone, increasing to year three, covering:warehousing, logistics and forkliftmanagement; commercial cookery, capacitybuilding for persons with disabilities; and otherfood related training. Students could volunteerto gain practical experience in the cool roomand storage area, or the commercial kitchen asappropriate and would work with volunteers toproduce take home and school meals. Fundsgenerated from the provision of training wouldcontribute to funding the full time logisticsmanager.

• A grant-funded community garden could beestablished for educational purposes for schoolgroups, including the provision of a sit downmeal, prepared with donated and surplusproduce, by the community kitchen.

• A weekly People’s Market, supported bylocal transport services, would expand thenumber and diversity of customers visitingthe market to purchase culturally appropriatefood, including take home meals preparedwith donated and surplus produce, by thecommunity kitchen.

Separate to this project there will be a partnershipbetween the Not For Prot and the BendigoSustainability Group to install solar PV arrays on the roofand implement other energy efciency measures. Thescale and cost of these are anticipated to contributean income stream to offset some energy costs, but notall, of the operations, which will have signicant energyrequirements for the coolroom.

Calculations of the economics of environmental

efciencies would be a further project.

Business & financial sustainability


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Estimated net cash ows

Function Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total

Storage and Warehousing

Coolroom and freezer storage (net of electricity and forklift)

Operations and Logistics Managers salaries

0

0

26,520

-122,564

47,338

-134,054

68,979

-142,882

91,466

-152,009

114,824

-164,642

349,127

-716,151

Marketing, Aggregation and Logistics

Wholesale hub 0 46,626 59,216 72,056 85,154 98,514 361,566

Full-Scale Commercial Kitchen

Take home meals

Meals for school group visits

Partial processing of food for meal preparation

0

0

0

0

0

0

28,403

3,745

44,607

30,351

7,641

45,499

32,365

11,690

46,409

34,447

11,924

47,337

125,566

35,000

183,853

Education

Training courses:

Warehousing, logistics, and forklift

Commercial cookery, food studies

Capacity building for persons with disabilities

Other food related training

0

0

0

0

43,509

52,077

0

0

44,379

53,119

53,119

0

45,267

54,181

54,181

54,181

46,172

55,265

55,265

55,265

47,096

56,370

56,370

56,370

226,423

271,011

218,934

165,816

Ofce and Social Enterprise Incubator (n/a)

People’s Market (n/a)

Other operating expenses -2,500 -18,932 -19,923 -20,933 -21,964 -23,015 -107,267

TOTAL -2,500 27,237 179,949 268,520 305,077 335,596 1,113,880

Table 3: Financial Costings Model 1. Please refer to Appendix 3. for further information on calculation and assumptions.

Enterprises scoped for and established in the second year of Food Hub operations are anticipated to take a further 5 years to fully realise their potential. Financial modellingof Model 1 shows a viable model for staging of a Bendigo Food Hub as per Model 1. This can be paralleled by Model 3 activities, bringing the benet of community interestand involvement.

SUMMARY OF ESTIMATED NET CASH FLOWS BY ACTIVITY This information is derived as part of the scoping of the proposed operations of the potential food hub from the rst to fth year for Model 1 proposed. The associatednancial modelling is based on estimates derived from the community consultation undertaken over the tender consultation period for anticipated warehouse space andrunning costs; potential food enterprise income production and the delivery of training courses and was undertaken by an experienced certied chartered accountant.


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Model 2 - The Bendigo CommunityFood Centre

This model is inspired by The Stop in Canada thatoperated for many years very effectively with just onecommunity space, a garden, and a kitchen, providingfor a primary focus on the needs of low-incomecommunity members. Inspired by this, programs ata Community Food Centre in Bendigo could include acombination of healthy meals, a food bank, producersstorage and wholesaling, community kitchen andcooking classes, community garden, training, food-systems education, a People’s Market and volunteerand social enterprise projects involving people invarious areas contributing to food security.

Model 2 is anticipated to be planned for during the rstyear of operations of the Hub and associated entitiesas per Model 1. The nancial focus of this study hasnecessarily been on Model 1. During the Model 1Start Up phase sufcient funding is anticipated to be

attracted for the development of the full site on theCBD Study Area 1 site (or at a separately identiedlocation) to create a full scale Bendigo CommunityFood Centre over the following 4 years, taking the fullsite expansion 5 years in total from commencement.

Area of Food Hub activity Detail

!"#$%&'($)(+",$

-&&./&,0(+01(

The continued expansion of producer storage requirements and enterprises wholesalingand delivery from the original site, with access for larger vehicles, could eventually see thekitchen and training areas move to the larger locations available in building 2, 3 and 4 inoption 2.

20+1%$3

Larger commercial kitchen t out via funding bids in Years 1 - 2, allowing for a large scaleenterprise contracts for food and produce preparation.

Training as pathway to employment associatedCulturally appropriate meals cooked by people from diverse communities.

Kitchen for hire by community groups e.g. similar to CERES in Melbourne.

Short courses and specialist food related events e.g. Melbourne Food and Wine satelliteevents and Taste of Bendigo

A eet of Food Trucks, tted out as mobile kitchens for extended program of emergencyfood relief and outreach of delivery of fresh produce, cooked meals and education tolocations particularly identied as food insecure within Bendigo.

Schools could also use the space.

Participating schools could have plots in the larger demonstration community kitchengardens, using some of the produce for cooking classes.

Table 4: Financial Costings Model 2 (continued overleaf)


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model 3: Networked Railway StationFood Hub PrecinctsModel 3 involves a network of sites mapped as partof Incredible Edible Bendigo, based in the communityand integrated around railway stations precincts witha wide circumference at Bendigo, Eaglehawk andKangaroo Flat, in the rst instance.

These locations are identied as key nodes of activity

in the forthcoming Bendigo Metro Rail Plan, aimingto create a community commuter rail network withinthe city. They also link to walking and cycling tracks.Currently there are many community assets existingin proximity to these sites and the rst year of activityof this option would involve building on the mappingof community assets and producer networks currentlyundertaken at a high level for this project under thebanner of Incredible Edible Bendigo, encouragingcommunity food growing and free food access.

Signicant funding would be needed to undertake thiswork and prepare a submission for further funding,in partnership with a range of relevant communitypartners at both the organisational and communitymembership levels. Various existing communityfood initiatives would be built upon and new foodenterprises could be established to create sustainablefunding steams for their operations. Food tracks

and cargo bike delivery enterprises would locate inneighbourhoods and travel to areas of need or deliverfood as required.

Training income would still be available at distributedsites such as surplus community halls, senior citizensand schools after hours. Thus income streams atBendigo, Eaglehawk and Kangaroo Flat CommunityFood Hub precincts could generate additionalfunding to be matched by other funders for small

neighbourhood emergency food relief Food Hubs thatwould progressively diversify their functions over time,based on community grants and facilities, to becomesmall versions of Community Food Centres. Thesewould be connected by walking and cycling pathsand public transport options in addition to the trainnetwork.

Funding could be obtained to establish a network ofcommunity orchards on land around railway stations.Herbs could be planted at railway stations for travellersto access on their way home. Food trucks could be

selling take home meals to travellers when they arriveat the stations. Multiple community-based initiativescould provide income streams in the Model.


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Social Impact AssessmentFood Hubs can provide a tool for communitydevelopment via the transformative impact of localfood system initiatives. A high-level Social Impact

Assessment can assist in estimating how well the foodhub business creates access to healthy local food,increases food affordability in low-income communitiesand is a critical component of community development.

The extent to which this is proposed to occur for eachof the three Models addresses the extent to which

the project addresses disadvantage in the region.Infrastructure available differs in each Model but thecommon theme is that by making locally grown foodeasily available and more accessible to all communitymembers, regardless of income, it is possible to createa strong local and regional, healthy food system.

The Social Impact Potentials of Models 1, 2 and 3varying in location, scale and development time:

• Connection through emergency food relief • Support for local food producers via a fair price

for produce• Business expansion opportunities for

producers• Convenient and culturally appropriate healthy

food access• Training and employment opportunities

• Healthy eating and Life skills education via foodpreparation training

• Social connectedness via access to a cafe onsite

• Social connectedness via People’s Market withfocus on affordable food

• Engagement via demonstration communitygarden activities

• Educational opportunities for children of all

ages• Increased sense of community (40)

The potential impact of planned activities for foodhubs in this project was determined using the USHealthy Food Commerce Investments tool (41) to assessareas of food access, affordability and communitydevelopment.


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‘Does the Food Hub have a goal to provideaccess to healthy local foods for low incomeresidents?’

It is anticipated that all three Food Hub models willincrease access in desired areas of identied foodinsecurity in Greater Bendigo, therefore is rated asstrong.

‘To what extent does the Food Hub have a goalof providing greater affordability of healthylocal foods to low income consumers?’

This issue addressed by each Model is less robustthan the access issues addressed by each proposalmodelled. The assumption exists that the affordabilityof foods will be enhanced by both a greater capacity ofemergency food relief, thus freeing up more nancesin those experiencing disadvantage to spend on othertypes of food. It is unclear at this stage how a weeklyPeople’s Market will impact on affordability, exceptthat larger quantities of seasonal produce that are

proposed to be included for sale would have a lowerprice point. Model 3 provides greater possibility ofmore affordability via local food production but thismay take time to achieve. Therefore the social impactassessment of affordability is described as medium.

‘In what ways is the Food Hub contributingto community development?’

This is particularly the case in Models 2 and 3 and inModel 3 the location of distributed networks withincommunity infrastructure to address food insecuritywould facilitate novel, multiple means to create newcommunity partnerships and initiatives relating toincreased food supply. This aspect of all 3 Models israted as strong.

Therefore overall the potential social impacts assessedin developing any of the options would bring a benetseparate to that solely restricted to economics and jobcreation.

This strengthens the case to potential funders,particularly in the philanthropic sector, to achievemultiple outcomes with this innovative and timelyproject.

Therefore overall the potential social impacts assessedin developing any of the options would bring a benetseparate to that solely restricted to economics and jobcreation.

This strengthens the case to potential funders,particularly in the philanthropic sector, to achievemultiple outcomes with this innovative and timelyproject.


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Overview The Economic Impact analysis has been undertakenusing the REMPLAN input-output economic modellingsoftware, with the support of staff at the EconomicDevelopment Unit at the City of Greater Bendigo.

This is necessarily a high-level analysis that is basedon a set of core assumptions (see below and Appendixfor full details), given that the Food Hub has not yet

commenced operations of any kind. The analysis takes the form of a snapshot of theeconomic impacts (in terms of job outcomes, totaloutput and gross value added to the regional) atintervals of 12 months in operation and ve years’ inoperation, across the following economic activities:

• Training offered out of the Food Hub site by aRegistered Training Organisation (RTO) leadingto certicate-level qualications across a rangeof vocational occupations

• Warehouse and storage provision• Operation of a weekly People’s Market• Sales, packing, marketing and distribution /

delivery services offered by a social enterpriseoperating out of the Food Hub site

There is a range of associated and ancillary activities

that will likely form part of the operation of the BendigoFood Hub, however for the purposes of this feasibilitystudy they have not been explicitly modelled.

Food Hubs deliver value to localfarmers

A key feature of Food Hubs and crucial to their enhancedeconomic impact are the higher returns they deliver

for local farmers. The Social Return on Investment Analysis of Food Connect Brisbane (40) revealed thatfarmers selling to FCB received an additional $1.14 mnmore than they would have received had they sold theequivalent volume of produce to a major supermarketor wholesaler, i.e. a difference of 40 cents on the dollar.

The experience from the US is similar: Food Hubstypically return 50% or more of the nal retail price tothe producers from whom they source their produce.

The analysis incorporates, at a high level, the benetsto farmers from selling to the Food Hub rather thanselling to supermarkets / wholesalers. It also examinesthe benets to surrounding local businesses andthe benet to the wider regional economy from ananticipated increase in tourism, particularly associatedwith the operation of a weekly farmers’ market.

HIGHLIGHTS

AFTER 12 MONTHS

• 16 jobs created and supported viaactivities

• $2.62 mn increase in total output to theGreater Bendigo economy

• $3.65 mn increase in value-added andtourism impact combined to the GreaterBendigo economy

AFTER 5 YEARS

• 30 jobs created and supported• $4.75 mn increase in total output to the

Greater Bendigo economy• $5.94 mn increase in value-added

and tourism combined to the GreaterBendigo economy

economic Impact Assessment

Full report contained in Appendix.


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Core assumptions1. The Bendigo Food Hub will ll identied gaps

in the local and regional market, especially asregards enhanced access to affordable goodquality fresh and healthy produce for peopleon low and xed incomes; and for enhancedaccess to marketing, storing and distributionservices for local and regional producers.

2. The medium and long-term nancial viabilityof the Bendigo Food Hub will be achieved byincorporating as a core part of its businessmodel the proven success of the evolutionof Food Hubs in the United States, i.e. that itmeets the following denition:

Definition of a Food Hub“A regional food hub is a business or organisation thatactively manages the aggregation, distribution, andmarketing of source-identied food products primarilyfrom local and regional producers to strengthen theirability to satisfy wholesale, retail, and institutionaldemand.” (41)

3. The demand for local and regional produce inBendigo has increased signicantly in the pastve years, and can be reasonably anticipatedto continue growing strongly in the next veyears.

4. In addition, the modelling of a 5% increasein demand for local and regional produceindicated important economic benets,especially as regards the increase in

employment and total output to the GreaterBendigo economy.

Please refer to Appendix for details of specicassumptions.

A tool for analysis of economic and social impacts hasbeen developed by the US Department of Agriculture,which requires a ne-grained analysis over time oncethe Food Hub is up and running. The Healthy FoodCommerce Investements (HCFI) is a very usefultemplate for further research and evaluation, which wewould denitely recommend at regular stages as theFood Hub enterprise progresses.

By creating economic opportunities and diversifyingfood based industry and employment a replicablebusiness model can be developed to create diverseand healthy regional and local economies.


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risks & opportunitiesModel Risk Opportunity

Model 1 Too long lead time for project commencement would potentially lead to a loss of valuable infrastructureand partnership support, without which it would be more difcult to attract additional funding.

Achieving Corporate Social Responsibility may ultimately emphasise other commercial entities in thefood space, such as supermarkets, in return for infrastructure sponsorship.

The aim of the ownership structure of a Food Hub needs to allow for the Not For Prot functions tomaintain an emphasis on organisational values, aims and objectives.

Victoria means conguration of cooling units is an essential design factor.

Longer term risk of increasingly high temperatures in Central Victoria means conguration of coolingunits is an essential design factor.

The Bendigo emergency food relief sector can benet from anexpanded operation and a central location.

Readiness of the community participants and producerssurveyed to utilise a resource such as a warehouse in the CBD.

‘Kitchen Elders’ as a new volunteer role to assist with a numberof community food initiatives.

Model 2 Achieving Corporate Social Responsibility may ultimately emphasise other commercial entities in thefood space, such as supermarkets, in return for infrastructure sponsorship.

The aim of the ownership structure of a Food Hub needs to allow for the Not For Prot functions tomaintain an emphasis on organisational values, aims and objectives.

Further buildings on the CBD Study Area 1 site may become unavailable over time.

May lose traction with programmes and funding opportunities needed for its success.

Participation fatigue.

Maintaining community volunteer commitment.

Longer term risk of increasingly high temperatures in Central Victoria means conguration of coolingunits is an essential design factor.

For a dedicated project team comprising local government,potential landlord, health and community services, food reliefnetwork and community members such as the BendigoRegional Food Alliance.

Encouraging participation by marginalised population groups inorder to engage more fully with the community and thus enableoutcomes that are more democratic, effective and grassrootsbased.

Maintaining community volunteer commitment.‘Kitchen Elders’ as a new volunteer role to assist with a numberof community food initiatives.


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Table 5: Risks and Opportunities Analysis

Model Risk Opportunity

Model 3 Lack of nancial support for local community food initiatives Readiness of the community participants and producerssurveyed to utilise a resource such as a warehouse in the CBD.

‘Kitchen Elders’ as a new volunteer role to assist with a numberof community food initiatives

Inclusion of community based infrastructure could allow forenergy efciency information aimed at the community level byBendigo Sustainability Group.

For all 3 models - development of a New CommunityPartnership model and prototype for Food Hubs in Australia

Toronto Foodshare food truck Inside the Toronto Foodshare food truck


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5 NEXT STEPS


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From the models outlined above, we propose thatthe most exciting vision for a Bendigo Food Hub isa concurrent and integrated operation of Models2 & 3. This is clearly a big vision and therefore a lotof careful and well-implemented work is required toreach it. We have outlined below a possible stagingthat would continue momentum, support / encouragediverse community participation, build partnershipsand put the groundwork in place for development ofthis Bendigo Food Hub over 5 years.

There are four key areas that require initiationand investment regardless of which model/ models are ultimately pursued. These are:

1. Funding : secure funding to progress all of thebelow;

2. Strengthening Community : continuing tostrengthen regional relationships, networks,identity and activities that would support afuture Hub;

3. Governance : Formalising partnerships,governance and contracting models e.g. PPP,Board, roles and responsibilities etc. and

4. Infrastructure identication anddevelopment :

» Progress and solidify planning for

development of ISPT site; and/or » Explore alternative available sites within City

of Bendigo, to host Model 1 and/or 2

Establishing Model 1 is the rst step towardsdevelopment of Model 2. Early activities to worktowards Model 3 can be progressed concurrently.

Tables X – Y indicate a possible schedule of activities toprogress the Bendigo Food Hub, designed to maintainexibility in the context of uncertain / uncommittedfunding sources or commercial partners. This can besummarised as:

• Stage 1 (Years 0-2) - Bendigo Food Hub witha Not For Prot major tenant. 1 year Start Upand 2 years of operating with an additionalfee for service model. There is a need tobring together key potential funders to beginresource development for a Start Up phaseand seek further funding with those partners.

• Stage 2 (Years 2–5)- Expansion phase thatbecomes the Bendigo Community Food

Centre. Inspired by the example of The Stop inCanada which followed a strategy of gradual,measured expansion.

• Model 3 can occur concurrently (Years 0–5). This includes satellite neighbourhood FoodCentre precincts around railway stations,initially at Eaglehawk, Bendigo and Kangaroo

Flat. A strong feature of this model is the publicand active transport options including rail,walking, cycling, cargo bikes and food trucks.

Anticipated activities beyond year 5 would follow a fullevaluation of the project as it has evolved to that date.


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Activity Stream Model 1 Model 2 Model 3

Secure $$ HIGH PRIORITY: secure funds for next steps

Relationships &Community

• Develop dynamic mappingof Producers and availableProducts

• Bendigo Community Farmers’Market

• Build on Incredible EdibleBendigo (or other ‘integrating’identity) for community foodactivities

• Community asset mapping

Governance • Establish inclusive Board orSteering Committee for theBendigo Food Hub to progressformalised governance andpartnership arrangements

• Draft MoUs with key partners

Led by Bendigo Regional Food Alliance

Infrastructure • Develop formal ISPT proposalor offer for Bendigo Food Hub

• Mapping and feasibility of otherpotentially suitable central sites

• Develop detailed structure anddevelopment plans

As part of asset mapping,conduct audit of distributedcommunity infrastructure:

kitchens; coolrooms; vehicles etc.

Operations(in Yr 0 any

operations are‘stretch’ goals)

• Start-up / opportunistic

• Potential ‘pop-up’ uses of ISPTsite for packing, events, indoormarket etc. (once basic clean-up is complete)

Identify community leaders readyto lead or participate in trials

staging tablesIf Model 1 were to be situated at the ISPT site,it could potentially commence by Year 1. Thekey requirements are refurbishment of buildings1a, 1b, and 1c, building an awning covereddriveway to the north side and support theestablishment of a pocket park communitygarden space to complement the whole. If theISPT site were not progressed, the staging wouldbe affected depending on availability, funding andrefurbishment of another suitable site.

Table 6: Year 0 Activities: Groundwork, Governance and Mapping

b dI f d h b


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Secure $$ HIGH PRIORITY: secure funds for next steps


Bendigo Community Farmers Market

Governance Agreements with key partners nalised Bendigo Regional Food AllianceInfrastructure Detailed investigation into uses and further capital

investmentIdentify initiating hubs

Operations Bendigo Food Hub (model 1) with non-prot tenant,food relief and initial wholesale trading activities

Trials of distributed food access model supportedby Bendigo Food Hub


Secure $$

Continue, learn,expand


Food providers, local health and communityservice organisations

Food providers, local health and communityservice organisations

Governance Management of Model 1 Commence planning

Infrastructure Provision of services and t out by donation Detailed refurbishment plans

Operations Bendigo Food Hub (model 1) with Not For Prottenant, food relief and initial trading activities

Growing the business


Secure $$

Continue, learn, expand


Establish new Community Partnership Model Establish new CommunityPartnership Model

Governance PPP Transfer Board and governanceif/as required

Infrastructure Expansion phase Refurbishment undertaken

Operations Bendigo Community Food Centre operations

Table 7: Year 1 Activities for Bendigo Food Hub

Table 8: Year 2 – Operate, plan for Model 2

Year 3-5 – Progressive Implementation of Integrated Models 2 + 3

g t b dIg f d h b t


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Management model/governanceEffective community participation has been identiedas a priority in planning for viable community initiativesand developing a successful governance process forthe Food Hub (Kenny et al 2014). (42)

A public private partnership (PPP) could be formed toprogress the Bendigo Food Hub, with a transparentBoard / Steering Committee established, as soon asis feasible, to include the range of interested parties.Key partners (and their potential contributions) couldinclude:

• City of Bendigo facilitation and coordination;streamline planning / zoning and regulatoryapprovals; lead role in securing funding fromstate and federal sources

• Bendigo Foodshare and other NotFor prots such as Foodbank Victoriaand SecondBite, training organisations,community organisations etc. potentiallytaking responsibility for different aspects ofthe development and of other activities, with a

wide range of contributions.• ISPT or other commercial property and

infrastructure partner: making facilitiesavailable, support for refurbishment, leveragingcontacts and relationships for cost-effectiveset-up, potential for matched funding toleverage other funding steams

If ISPT is to be a key partner, then the initialimplementation could see ISPT and the Not For Protas primary partners, informed by an Advisory Groupcomprising representatives of Food Hub customersand participants community organisations, eachhaving individual rental agreements/MoUs with apartnership established informed by an advisory groupincorporating representatives of the Food Hub and theCity of Greater Bendigo.

FundingFunding opportunities and options have been exploredto enable this project to progress, and potentiallyinitiate a funding stream to incubate innovation in foodsystem initiatives and enterprises in Greater Bendigoover the longer term.

There are signicant advantages to havinga Not For prot as the lead ‘public-facing’

partner in a Food Hub venture, such as:

• Capacity to generate income, with fundsreapplied to social mission;

• Ability to apply for a multitude of governmentgrants and individual philanthropic funding,and to educate and strengthen the localagricultural community, ultimately resulting inhigh revenues for producers.

Once established, it is anticipated that the Food Hubwill operate as a social enterprise and generate avariety of revenue streams that go towards supportingits operations. However, it is not anticipated that astrategic regional intervention such as this could (orshould) aim to be completely self-funding (as themodel is designed to generate signicant publicbenets), nor that the proposed models would be able



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to commence without considerable further investmentfrom other sources.

A high-level review of potential sources of fundingfor the next stages of this project is summarised inopposite..

There may be potential to apply for signicant Federaland State Government funding early in the newnancial year, however specics of funding programsare not yet available.

Ensuring that a non-prot is the lead partner opensup access to grants and other opportunities that arewell aligned with Food Hub business. NFPs are eligiblefor grants and can receive tax-deductible contributionsfrom sponsors, income tax-free, and can charge asmaller fee for services.

However, relying purely on these sources meanssignicant investment in difcult and time-consumingfundraising, before anything can get started. If acommercial partner were willing to provide an initial

injection of funds to a PPP, this would enable matchedfunding to be sought from other funding sources whilethe social enterprise income streams are initiated anddeveloped.

The Bendigo Food Hub Feasibility Study forms onerequirement for application for these funds, in additionto the potential for matched contributions from a PPP.

Bendigo Food Hub Funding Opportunities



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1. Model 1 is a start up phase for a Food Hubin Bendigo that has potential to be nanciallyviable via a number of associated revenuegenerating activities. Currently described asyear zero, the immediate actions to establishthis phase of Food Hub activity are a priority.

2. Model 2 should be the long term preferredmodel of a Bendigo Community FoodCentre for full investment and developmentat all levels of philanthropy, local, state andfederal government support. Similar to, andinformed by, the Canadian model, it couldbecome a prototype of a cutting edge modelthat could be rolled out across the state, if notthe country.

3. Model 3 needs to be explored. There iscurrently momentum in the community for adistributed community model, with diversecommunity assets situated within broadprecincts located around railway stations

at Eaglehawk, Bendigo and Kangaroo Flat.Walking and cycling underpin access issuesfor food security and need to be developedwit

Draft Food Hub Feasibility Study

Documents

Transcript of Draft Food Hub Feasibility Study