Gathering 2011 Breakout Session - Local Foods - CAN presentation on Established Food Systems
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Transcript of Gathering 2011 Breakout Session - Local Foods - CAN presentation on Established Food Systems
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Appalachian Funders Network
Established Local Food System
June 7, 2011
Presenters: Michelle Decker,
Kathlyn Terry and Leslie Schaller
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Central Appalachian NetworkCAN is a network of sustainable economic development organizations working to build a more just and sustainable Appalachia.
CAN works to advance the economic transition of the region by fostering the development of enterprises, organizations, and policies that promote and protect the health of our local economies, communities, and environment.
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Today we will…. Animate the food value chain of a mature model
Highlight the impacts of the wealth creation indicators in Central Appalachia
Review the crucial role processing, aggregation and distribution plays in economic impact of local foods
Emphasize the power of networks for branding, training and shared assets
Identify issues & gaps of mature value chains
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Passion for Local Food Economies
We hope to leave you with a sense of possibility and excitement for this work as part of the
Appalachian Transition!
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CAN’s Current Sub-regions of Focus
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CAN Member OrganizationsCAN is led by a Steering Committee of six member organizations:
Appalachian Center for Economic Networks (ACEnet) Athens, OH
Appalachian Sustainable Development (ASD) Abingdon, VACenter for Economic Options (CEO) Charleston, WVMountain Association for Community Economic
Development (MACED) Berea, KYNatural Capital Investment Fund (NCIF) Shepherdstown, WVRural Action, Trimble, OH
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CAN’s Local Food Systems Work
CAN member organizations approach sustainable economic development from a variety of sectors
Our current focus as a network is on the development of local food value chains
We use the wealth creation framework as an assessment, planning, and measurement tool for this work
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What is the wealth creation framework? A systems approach to creating wealth that
sticks in rural areas
Emphasizes local ownership and control of resources
Facilitates the development of multiple forms of wealth simultaneously
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The Seven Forms of Wealth• Individual
• Social
• Intellectual
• Natural
• Built
• Political
• Financial
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2 Year CAN WCI HighlightsMembers worked with 96 producers who sold $3.5
million of local food into wholesale markets
Over 30 new producers brought into wholesale markets
Increased the value of sales of local food to wholesale markets to $4,754,180.54 or 33%
The number of acres being sustainably farmed by CAN producers increased 177% between 2009 and 2010
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WCI as a tool for reinventing healthy local food systems Learning how measurement informs
interventions along the food value chain
Understanding gaps and disconnects
Building collaborations and leveraging shared assets
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Traditional Supply Chain
Production Processing Distribution Marketing Consumption
Traditional Supply Chains: push supply to the next node in the chain
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Making a supply chain—a value chain
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A Mature Local Food Chain has…
Sustainable and diversified agriculture
Farmers and food producers utilizing multiple market channels
Production ready to scale
Seeded consumer demand through consumer education, branding & market partnerships
Food infrastructure & distribution in place
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Southeastern Ohio Region
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Southwest Virginia Region
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Production
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Production Innovators
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Production scaling requires new models for PAD
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Impact of Aggregation, Processing and Distribution
Models from the Region
ACEnet Food Ventures Center & Services
ASD --- Appalachian Harvest
Rural Action – The ChesterhillProduce Auction
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Aggregation
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Central aggregation & branding
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Aggregation
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Climate controlled warehousing
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Figuring out appropriate equipment scale
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Publicly supported investment
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• Supported by RA since 2004
• Purchased in 2010 for $100,000 with public –private investment
• CPA: A Rural Appalachian Case History, at www.ohiofoodshed.org/newsfromthefoodshed
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Aggregation
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What is a Produce Auction?A wholesale venue supplied with fresh fruits and vegetables by local growers and sold through competitive bidding.
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Meeting demand and creating marketsBuyers - providing a higher quality of fresh product packed and ready
for resale.
Consumers - The opportunity to purchase the freshest Ohio produce
available.
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What sells?
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What sells?• Fresh grown fruits
• Vegetables
• Bedding plants, flowers
• Handcrafted items
• Baked goods
• Eggs
• Herbs
• Grains
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Seasonality
Produce Auctions are run during the growing season.
• Any one who would like to buy or sell is invited to participate.
• Rules and regulations are set for those who intend to buy or sell.
For more detail go to Homerville Wholesale Produce Auction Guidebook, http://www.hightunnels.org/ForGrowers/Marketing&Economics/HomervilleAuctionImages/HPA_Guidebook.pdf
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Benefits of a Produce AuctionOhio University Began Purchasing from CPA in 2007
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Location of CPA Buyers & Sellers 2009
Number of buyers and sellers doubled in 2010!
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Processing
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Shared Processing Facility
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Processing Fresh Produce
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Prepared Foods Production
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Thermal Processing
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Scale & Efficiencies
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Access to Wholesale Markets
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Workforce Development
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Job Creation
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Distribution
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Distribution early stage
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Regional Distribution
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Buyer Dock Times
Produce Source Partners: M-F 7 AM to 4 PM, Sat/Sun 7 AM – 2 PM
Ingles: 4AM to 1030 AM
Earth Fare: 8 AM to 4 AM
Whole Food South: 4 AM – 10 AM, none on Wednesday
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DOT- HOURS-OF-SERVICE RULES for Property-Carrying CMV Drivers
• 11-Hour Driving LimitMay drive a maximum of 11 hours after 10 consecutive hours off duty.
• 14-Hour LimitMay not drive beyond the 14th consecutive hour after coming on duty, following 10 consecutive hours off duty. Off-duty time does not extend the 14-hour period.
• 60/70-Hour On-Duty LimitMay not drive after 60/70 hours on duty in 7/8 consecutive days. A driver may restart a 7/8 consecutive day period after taking 34 or more consecutive hours off duty.
• Sleeper Berth ProvisionDrivers using the sleeper berth provision must take at least 8 consecutive hours in the sleeper berth, plus a separate 2 consecutive hours either in the sleeper berth, off duty, or any combination of the two.
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Cost Containment
Full Trucks
Backhauling
Buying/Re-Selling
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InglesReceive
Whole Foods
Earth Fare
Leading Green
Appalachian Harvest Packinghouse
Produce Source
Partners
Backhaul Produce to Resell
Deliver AH Produce
Haul AH produce and products for resale
Deadhead
Richmond, VA
Asheville, NC Area
Atlanta, GADuffield, VA
InglesReceive
Whole Foods
Earth Fare
Leading Green
Appalachian Harvest Packinghouse
Produce Source
Partners
Backhaul Produce to Resell
Deliver AH Produce
Haul AH produce and products for resale
Deadhead
Richmond, VA
Asheville, NC Area
Atlanta, GADuffield, VA
Appalachian Harvest Distribution Flow
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Appalachian Harvest2010 Revenue > $685K
Employs 10-15 laborers and truck drivers in the peak season
Works with 50-60 farmers within the immediate area and over 100 in the region
Covered distribution costs in 2010 through a combination of backhauling, brokering and ‘traditional’ sales
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Distribution Infrastructure
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Marketing
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How is food access measured?Physical Accessibility
– 24% or 475,095 of rural Ohio households do not live within a 10-minute drive of a retail grocery store of any size
– 75% of rural Ohio households live greater than a 1-mile walk to a grocery store…4% (59,389 rural Ohioan households) do not own a car.
Economical Accessibility– 71% of rural Ohio households live outside areas of competition
Nutritional Accessibility– “It is hypothesized that the relative lack of access to full-service
grocery stores and the easier access to fast and convenience foods may be linked to poor diets and, ultimately, to obesity and other diet-related diseases.” (USDA ERS, 2009)
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Food DesertsAs Defined in 2008 Farm Bill
A food desert is an “area with limited access to affordable and nutritious food, particularly such an area composed of predominantly lower income neighborhoods and communities” (Title VI, Sec. 7527”).
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Country Fresh Stops• MAP
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Country Fresh Stops
Funding will offer interested businesses help with:
– Nutritional Education
– Advertising and promotional items
– Painting, shelving, and store updates
– Refrigeration
– Fruit and vegetable delivery through the ChesterhillProduce Auction and other local growers
Laura Jane Musser Fund and Ohio Department of Ag – Specialty Crop Initiative
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Chesterhill
City of Athens
Reedsville
Current Locations
Chauncey
Stockport
Rutland
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Chauncey pics – CeeDee mart
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County Economic ClassificationLocation MORGAN ATHENS MEIGS U.S.
Three-Year Average Unemployment Rate, 2006–2008
9.6% 6.2% 9.1% 5.0%
Per Capita Market Income, 2007 $13,958 $17,478 $15,102 $32,930
Poverty Rate, 2000 18.4% 27.4% 19.8% 12.4%
Three-Year Avg. Unemp. Rate, Percent of U.S. Avg., 2006–2008
191.0% 123.0% 181.4% 100.0%
Per Capita Market Income, Percent of U.S. Average, 2007
42.4% 53.1% 45.9& 100.0%
Poverty Rate, Percent of U.S. Average, 2000
148.8% 221.0% 159.9& 100.0%
Appalachian Regional Commission 2011
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Country Fresh Stops
Funding is providing: Nutritional Education Advertising and promotional items Painting, shelving, and store updates Refrigeration Fruit and vegetable delivery through the
Chesterhill Produce Auction and other local growers Reach 1500 new customers
Laura Jane Musser Fund and Ohio Department of Ag – Specialty Crop Initiative
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Market Partnerships
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Market Partnerships
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Market Partnerships
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Regional Brands
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Preparation
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Local Restaurants use local ingredients
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Local Producers & Market Partners tell the story of the value chain
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Youth Initiatives for Food Literacy
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Consumption
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Drive demand
Educate consumers
Create excitement
Market Partners & Consumers
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Whole Foods provide producer loans
Regional partners: NCIF & MACED can assist with expansion loans
Private Support & Investment
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Investment Partners
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Measurement and TrackingProducer Measures• Profitability
• Revenue
• Number of Producers
• Producer Retention Rates
• Number of Products Grown/Produced
• Number of Acres by Level of Sustainability
• Gross Sales & Gross Sales within 3 hours
• Gross Sales Paid to Growers
• Number of Youth Engaged in Farming
• Number of Minorities and Women in Farming
• Pounds of Food Donated
• Market Access
• Division of Sales by Market
• On-Farm Infrastructure: Existing Infrastructure and Infrastructure Needs
Buyer/Customer Measures• Senior Farmers Market Nutrition Program Dollars Spent
• Markets Accepting EBT
• Dollars Spent at Markets on EBT
• Number and Type of Wholesale Buyers
• Amount of Sales to Wholesale Buyers
• Buyer Retention
Training and Education Measures• Number and Type of Technical Assistance Provided
• Training Attendance
• Impact of Training and Technical Assistance (Follow Up Evaluations)
• Number of National and Regional Outreach/Presentations
Value Chain Measures• Number, Diversity, and Strength of Relationships within the
Value Chain
• Number and Type of Shared-Use Infrastructure Available in the Value Chain
• Number and Type of Opportunities for Building and Utilizing Political Capital Available to Members of the Value Chain
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Barriers and issues ---not everything works out the way you think!
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Barriers & Issues Scale
Capacity --- human, financial, analytical, time
Time – long haul view
Flexibility to experiment
Tension between social enterprises & non-profit goals
Funding trend shifts
Higher entry cost for market and distribution access
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Focus on Infrastructure Capital from private and public sources to reorganize
food production, processing and distribution
Program financial support and partnerships to creates a “food value chain” which engages all stakeholders in a just food system
Corporate partners in the value chain need to invest with seed capital/equity and go beyond loans and purchase orders
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Focus on access to markets Food safety and market readiness training for
scale
Support for regional brands (entrepreneurs, market partners, funders, citizen eaters)
New delivery and distribution partnerships
Non-traditional partners driving consumer demand and educational campaigns
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Focus on capital products Slow money, new mechanisms for angel
investment
Local money for local economies: local stock exchanges, local currencies, cooperative ownership, coop hybridization
New investment and debt products
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Policy Education Webinars
Farm BillFood safety
Sub-regional producer education
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Farm Bill Reauthorization
working with National Sustainable Agriculture Coalition (NSAC)
huge budget cuts to critical programs
Beginning Farmer & Rancher Program
Sustainable Agriculture Research and Education
Value-Added Producer Grants
Rural Micro-Entrepreneur Assistance Program
Rural Conservation & Development
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What You Can Do ensure Appalachian voices are heard
advocate for programs to help small farmers, not agribusiness
support local work
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Central Appalachian Network: www.cannetwork.org
Center for Economic Options: www.centerforeconomicoptions.org
Natural Capital Investment Fund: www.ncifund.org
Mountain Association for Community Economic Development: www.maced.org
Resources
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ResourcesAppalachian Sustainable Development:
www.asdevelop.org
Appalachian Center for Economic Networks: www.acenetworks.org
Rural Action: www.ruralaction.org
Mountain Association for Community Economic Development: www.maced.org