Challenges and Opportunities for Linking

Producers to Institutional Markets

Moderated by James Barham, USDA

Presenters:

Mandy Davis, Intervale Center

Robin Morris, Mad River Food Hub

Katherine Sims, Green Mountain Farm Direct

Stacey Sobell, Ecotrust/National Farm to School Network

National Farm to Cafeteria Conference

Burlington, VT

August 5, 2012

08/05/2012

Presentation Overview

Regional Food Hubs Setting the stage – a national perspective on food hubs

Food hub sales pitch!

Conversational Q&A on challenges/opportunities

Open discussion

Closing – food hub resources

08/05/2012

Workshop Objectives

After this workshop, attendees will:

have increased their understanding of some of the persistent challenges that producers and food hubs face when trying to sell to institutional markets.

be armed with several strategies to employ and/or share with others for overcoming these barriers, and opportunities available for institutional partnerships and purchasing.

08/05/2012

NGFN Food Hub Collaboration

Collaboration between USDA, Wallace Center at Winrock International, and the National Good Food Network

Major Accomplishments to Date Carried out a national survey of regional food hubs

National database of operating food hubs

Published the Regional Food Hub Resource Guide

Convened a national gathering of over 150 food hubs and their supporters to launch a Food Hub Community of Practice

08/05/2012

Regional Food Hub Definitions

Definitions vary from narrow market efficiency functions to those related to visions of building a more sustainable food system

Working Definition

A business or organization that actively manages the aggregation, distribution, and marketing of source-identified food products primarily from local and regional producers to strengthen their ability to satisfy wholesale, retail, and institutional demand.

08/05/2012

Regional Food Hub - Defining Characteristics -

Carries out or coordinates the aggregation, distribution, and marketing of primarily locally/regionally produced foods from multiple producers to multiple markets.

Considers producers as valued business partners instead of interchangeable suppliers and is committed to buying from small to mid-sized producers whenever possible.

Uses product differentiation strategies (e.g. identity preservation, group branding, sustainable production practices, etc.) to ensure that producers get a good price for their products.

Works closely with producers to ensure they can meet buyer requirements by either providing direct technical assistance or finding partners that can provide this technical assistance.

Aims to be financially viable while also having positive economic, social, and/or environmental impacts within their communities

08/05/2012

Food Hub Survey Key Findings

Well over 200 food hubs are in operation around the country,

with large clusters in the Midwest and Northeast

Entrepreneurs took the organizing lead in establishing 40 percent of the food hubs

A nascent industry: 60 percent of the food hubs have been in operation for five years or less

Average food hub sales are nearly $1 million annually

Food hubs employ on average 7 full-time and 5 part-time employees with an average of 5 regular volunteers

The median number of suppliers to a food hub is 40, many of whom are small and mid-sized farmers and ranchers

08/05/2012

Food Hub Survey Key Findings

Offers a wide range of food products, with fresh produce being its

major product category, and sells through multiple market channels, with restaurants being an important entry market

A socially driven business enterprise with a strong emphasis on

“good prices” for producers and “good food” for consumers Actively involved in their community, offering a wide range of

services to both producers and consumers Over 40 percent of food hubs are working in "food deserts" to

increase access to fresh, healthy, local food products in communities underserved by full-service food retail outlets

08/05/2012

Based on a working list of 200 regional food hubs identified by the NGFN Food Hub Collaboration 08/01/2012

Regional Food Hub Classifications

Breakdown of Regional Food Hubs*

Food Hub Legal Status Number Percentage

Privately Held 91 46%

Nonprofit 59 29%

Cooperative 39 20%

Publicly Held 8 4%

Informal 3 1%

Intermediated Market Model Number Percentage

Farm to Consumer (F2C) 78 39%

Farm to Business/Institution (F2B) 67 34%

Both F2B and F2C 55 27%

*Based on a working list of 200 food hubs identified by the NGFN Food Hub Collaboration (Aug. 1, 2012)

08/01/2012

47 49 53 56

68 77

88

105

129

152

172

197

10

30

50

70

90

110

130

150

170

190

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Growth in the Number of Food Hubs (2001-2011)*

At least 68 food hubs have started in the past three years (2009-2011), with at least 25 food hubs established in 2011 alone

*Based on a working list of 200 food hubs identified by the NGFN Food Hub Collaboration (Aug. 1, 2012) 08/05/2012

The Big Picture… - Regional Food Hubs and the Food System -

Regional food hubs are filling a market function not adequately addressed by the current distribution system: the aggregation and distribution of food products from small to mid-sized producers into local/regional wholesale market channels

Strong potential partnerships between regional food hubs and other distributors/wholesalers. Regional food hubs can: Serve as aggregation points for regional distributors/wholesalers

Provide a reliable and ready supply of local/regional products

Offer a broader and more diverse selection of source-identified and branded local products

Increase supply of local/regional products by providing training/technical assistance to “grow” more producers

08/05/2012

Yes, healthy, nutritious food is what wellness

promotes but supporting Vermont farmers

feeds our souls.

Our local farmers are some of the hardest

working people I know and my purchase of

the Intervale Food Hub CSA at Hickock &

Boardman is more than the food. It's my small

investment in helping sustain local growers. I

hope to inspire others to understand the value

of the Intervale Food Hub CSA and to return to

the joys of eating real food again.

Lori Smith, Hickok & Boardman, Burlington,

Vermont

By being a member of the Intervale Food

Hub CSA, you are helping 24 small

farms thrive.

When we thrive, farmland remains open,

we are able to reinvest in our local

economies, and our vital communities

are strengthened through our family

farm businesses.

If you have not already, we hope you will

join us.

-Intervale Food Hub Farm Suppliers

madriverfoodhub.com F2C 8/5/12

Mad River Food Hub (MRFH)

supporting local food producers

Mad River Valley in central Vermont is a 92,000 acre watershed with Meat, Dairy, Vegetable & Fruit Farms.

The Mad River Food Hub supports the farmers and food producers by providing USDA meat and FDA vegetable processing rooms, cold and dry storage, and local distribution within a 50 mile radius.

Opened in October 2011 this 4,000 SF facility offers three processing rooms for rent on a daily basis. Additional services are offered including HACCP, Business Planning and Business Consulting.

madriverfoodhub.com F2C 8/5/12

Intervale Zucchini to Vermont Bean Crafters at

MRFH for Burlington School District

madriverfoodhub.com F2C 8/5/12

Farm 2 School collaboration, education & organization

Washington West Supervisory District

L O C A L F A R M S K I N G S B U R Y M A R K E T G A R D E N , S M A L L S T E P F A R M , S A N TA D A V I D A F A R M ,

G AY L O R D F A R M , N E I L F A R M , T H R E E S P R I N G S F A R M , K N O L L F A R M , K E N Y O N S V A R I E T Y S T O R E A N D F A R M , C A R P E N T E R F A R M , V O N T R A P P

F A R M S T E A D , B R U C E F A R M

madriverfoodhub.com F2C 8/5/12

A great place to meat and veg out

Delivering Local Food to School and Institutions

It’s easy to order from them

We make it easy to order from him

How Farm Direct Works

Publish Product List

Distribute weekly Local Food Product List, featuring products from multiple farms, to schools and other institutions.

Coordinate Orders

Receive orders from the institutions and submit them to the necessary farms.

Deliver Product

Deliver orders to the institution. All products from multiple farms arrive in one delivery with one invoice.

FoodHub is a project of

What is FoodHub?

www.food-hub.org

FoodHub is an online

directory and marketplace

that makes it easy and

efficient for regional food

professionals to connect

and do business.

FoodHub is a project of

Who’s Using FoodHub?

Buyers: Chefs, grocers, restaurateurs,

institutional food service directors (schools,

preschools, hospitals, senior centers, jails,

colleges, etc.) and professional food buyers

of all kinds.

Sellers: Farmers, ranchers, fishermen,

dairies, brewers, distilleries, wineries, food

processor/manufacturers or brokers.

Distributors: Broadline and specialty

wholesale food distributors.

Associates: Industry suppliers, media,

farmers’ markets, trade associations and

other supporters of the regional food

economy.

FoodHub is a project of

What Schools and Farms are Saying:

“It’s a privilege to have our produce served to the children at David-Douglas,

especially given the high rate of free and reduced meals there.” – Andrea

Sandberg, Treasure from Heaven Farm

“FoodHub gives me a real sense of who’s in my area. It brings the farmers’

market right into my office.” – Beth Hyndman, Wahluke School District

“We posted a request on the FoodHub Marketplace for 200 lbs of radishes for

our Harvest of the Month special and got responses from farmers right in

our district! Doesn’t get any fresher than that.” – Gitta Grether-Sweeney,

Portland Public Schools

“We’re selling to schools because we joined Food-Hub and got connected.” –

Gregg Everts, Bella Terra Gardens

QUESTIONS

1. What were some of major challenges your food hub has faced and what strategies have you employed to overcome the challenges?

2. What are the most important lessons you’ve learned along the way?

3. What do you see coming on the horizon with food hubs and farm to cafeteria? What are your plans for taking advantage of these emerging opportunities, or for addressing new challenges?

08/05/2012

Distribution and Food Hub Resources

Moving Food Along the Value Chain: Innovations in Regional Food Distribution By Adam Diamond & James Barham - USDA Agricultural Marketing Service

Regional Food Hub Resource Guide: Food hub impacts on regional food systems, and the resources available to support their growth and development A collaboration between USDA and the Wallace Center

08/05/2012

USDA Agricultural Marketing Service – Marketing Services Division http://www.ams.usda.gov/WholesaleFarmersMarkets

Includes National Farmers Market Directory, grant programs, and research/resources to assist producers improve their market opportunities

USDA’s Food Hub Portal www.ams.usda.gov/FoodHubs

A catalogue of USDA's findings, resources, and support for food hubs

08/01/2012

USDA Food System Resources

08/05/2012

NGFN Food Hub Collaboration Site http://foodhub.info

Map and list of known food hubs

News

Webinars (upcoming, and recorded)

Print resources (e.g. feasibility studies)

Form to let us know about new hubs

Food hub conference proceedings & recordings of sessions

NGFN Food Hub Resources

08/05/2012

“Know Your Farmer, Know Your Food” Compass 2.0 www.usda.gov/kyfcompass

USDA KYF2 COMPASS

Includes an interactive map of USDA-supported local and regional food activities in all 50 states Now displays food hubs!

An online multi-media narrative with stories, pictures and video about USDA’s support for local and regional food systems

USDA’s “Know Your Farmer, Know Your Food” Initiative www.usda.gov/knowyourfarmer

08/05/2012