Going Local - techconkona.11.2.13
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Transcript of Going Local - techconkona.11.2.13
Going Local Models and Solutions
for Local Systems
Amber Bieg, MBA www.green-ideas.com
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.
Keys to successful local systems
3
Integration (vertical or virtual)
Community Investment
Consistent Brand & Marketing Accountability
Stewardship
The Food Commons Model
5
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.
What does this look like?
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
7
Potential Ancillary Hub Functions (for profit, non-profit, and/or public):
Combining the hub with vibrant public spaces
8
• 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
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
Point of Purchase Marketing is Key!
Local
Fresh
Trusted
Just simple sign indicating “local” drives up local sales by 3%
Point of Purchase Prompt
The Fibershed Model
90% Drop in US Sheep Population
Why is New Zealand Successful?
Why is Australia Successful?
The Myth of Overseas Competition
Credit: New York Times
The California Wool Mill Example
Why people buy local
Support ag and local economy
Perceived Safety and Quality
Env. Benefits from farms
Reduce fossil fuel use
0
100
200
300
400
500
600
700
Source: Iowa State University, Allan Ortiz 2010
$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
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
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
Tools for Virtual Integration
Eco Trust Food Hub (www.food-hub.org)
Local Dirt (www.localdirt.com)
MARKETING!!!!
Community Financing is Key
Shareholders• Direct Public Offering
CSA Model• Credibles.com
Cooperative ownership• Farmer • Multi-stakeholder
Non-profit ownership• Land Trust
Keys to successful local systems
24
Integration (vertical or virtual)
Community Investment
Consistent Brand & Marketing Accountability
Stewardship