Going Local - techconkona.11.2.13
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Transcript of Going Local - techconkona.11.2.13
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Going Local Models and Solutions
for Local Systems
Amber Bieg, MBA www.green-ideas.com
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How do you define the boundaries?
Watershed Foodshed Fibershed
“Local” doesn’t necessarily mean within 100 miles. I define local as a system where 100% of the benefit returned to the community where materials, goods or wealth is sourced = wealth is not extracted.
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Keys to successful local systems
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Integration (vertical or virtual)
Community Investment
Consistent Brand & Marketing Accountability
Stewardship
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The Food Commons Model
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What is the Food Commons?• A business development initiative
to create integrated, sustainable, and economically competitive regional food enterprises that are owned by and for the communities in which they operate.
• A large-scale initiative to design and build a nationally networked system of physical, financial and organizational infrastructure that enables these regional food enterprises to develop, collaborate and thrive.
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What does this look like?
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The Food Commons is made of up three integral parts: a land trust, a financing arm, and an operating entity
Fresno Food Commons
Trust
Fresno Food Commons
Fund
• Vertically integrated, community-owned regional food system enterprise including farms, processing, wholesale distribution, and retail stores
• Non-profit community-based financial institution that aggregates and supplies capital and financial services to Food Commons-related enterprises
• Non-profit community-based land trust to acquire and steward critical foodshed assets
Fresno Food Commons
Community Corporation
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Potential Ancillary Hub Functions (for profit, non-profit, and/or public):
Combining the hub with vibrant public spaces
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• Value-added processing• Commercial kitchen• Incubator kitchen
• Demonstration farm
• Educational programs• Health and human
services
• Public market• Mobile vendors
• Gleaning program
• Public meeting space• Community garden
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Core Hub Functions:• Strategic planning and enterprise management• Sales & marketing• Production planning• Packing & light processing• Aggregation & distribution• Logistics• Certification & quality assurance• Training• Business services (HR, IT, accounting, legal, government
relations, etc.)• FC Bank & FC Trust offices
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Point of Purchase Marketing is Key!
Local
Fresh
Trusted
Just simple sign indicating “local” drives up local sales by 3%
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Point of Purchase Prompt
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The Fibershed Model
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90% Drop in US Sheep Population
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Why is New Zealand Successful?
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Why is Australia Successful?
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The Myth of Overseas Competition
Credit: New York Times
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The California Wool Mill Example
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Why people buy local
Support ag and local economy
Perceived Safety and Quality
Env. Benefits from farms
Reduce fossil fuel use
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100
200
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400
500
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700
Source: Iowa State University, Allan Ortiz 2010
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$597 Million in Ag
Exports to Mainland
Only $79 Million was
edible
The Hawaii Context
Estimated less than 8% of it was eaten in the State of Hawaii
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Vertical Integration
Strengths Weaknesses
Start-up cost and complexity
Management complexity
May be perceived as competitive threat to
independent businesses
Built-in visibility Broad-based local
ownership and control
Transparency and system efficiencies resulting in lower
prices to consumers
Consistent HR policies and practices
Employee mobility and advancement opportunities
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Virtual Integration
Strengths Weaknesses
individual profit maximization
Transaction costs
Barriers to new entrants (capital, skills) and high
failure rate of independent businesses
Participation and support from existing enterprises
Reduced start-up cost and complexity
Potentially high individual rewards for
entrepreneurship and risk-taking
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Tools for Virtual Integration
Eco Trust Food Hub (www.food-hub.org)
Local Dirt (www.localdirt.com)
MARKETING!!!!
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Community Financing is Key
Shareholders• Direct Public Offering
CSA Model• Credibles.com
Cooperative ownership• Farmer • Multi-stakeholder
Non-profit ownership• Land Trust
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Keys to successful local systems
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Integration (vertical or virtual)
Community Investment
Consistent Brand & Marketing Accountability
Stewardship