simon berge - how to talk about local food

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How do we talk about local food? Cooperative consumer communication 4th Annual LOFC Assembly 26th February 2013 Simon Berge, PhD (candidate) University of Guelph Monday, February 25, 2013

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Page 1: Simon Berge - How to Talk about Local Food

How do we talk about local food?

Cooperative consumer communication

4th Annual LOFC Assembly26th February 2013

Simon Berge, PhD (candidate)University of Guelph

Monday, February 25, 2013

Page 2: Simon Berge - How to Talk about Local Food

Agenda

Presentation: Local foodCommunication gap: Asymmetry of InformationShort food Supply Chainscooperative Opportunity

Introductions - Desiree PinkneyGroup Discussion Conclusion

Monday, February 25, 2013

Page 3: Simon Berge - How to Talk about Local Food

Local Food

What is it?There is no single definition for local food

100 mile diet, provincial sources (spatial)Carbon Footprint, organic, biodynamic (environmental)Direct sales, CSAs, Farmers’ Markets (relational)

Monday, February 25, 2013

Page 4: Simon Berge - How to Talk about Local Food

Market FailureWhy local food?Conventional Food systemConsolidation within the industry.Decreased diversity of product. Commodification of agricultural products.Asymmetry of information: consumer unclear as to what food is or where it comes from?

Country of Origin labelling (Coo)Labelling - “may contain” - ability to choose cheapest ingredients worldwide. Genetically Modified organisms (GMO)

Monday, February 25, 2013

Page 5: Simon Berge - How to Talk about Local Food

Asymmetry of information

Lack of trust in food systemConfusion in the food system.Industry response:

loblaw’s PC Blue LabelMaple Leaf Natural SelectionsMcDonald’s Restaurant - Our Food your questions campaign

Heart and stroke - dietary labelsConsumers unsure who to trust (Huffman et al., 2004)

quasi-governmental agency, not controlled by government, would be most credible source of independent, third party information.

Monday, February 25, 2013

Page 6: Simon Berge - How to Talk about Local Food

Communication gap

Who do consumers listen too?Third party certification are being questioned.

Larger players entering the system to create a power imbalance - adjust standards for their needs.

Governments will not advocate specific foods characteristics - form of regulation.Governments lack the speed of response to address a changing food system.

Monday, February 25, 2013

Page 7: Simon Berge - How to Talk about Local Food

communication gap

how are consumers listening?Social media

facebook - Foodland Ontariotwitter - immediate updates

Allows for updates without active searching.Creates sense of communityNested networking - cooperation among cooperativesMobile updates - smartphones, appsrequires a coordinated approach to for a consistent, trustworthy message.

Monday, February 25, 2013

Page 8: Simon Berge - How to Talk about Local Food

Asymmetry of Information

Speaking to consumers:Efficient market - information processing mechanism.Information efficiency allows actors to forecast and price products (lusztig et al., 2001).

Decreasing Fungibility of products - conventional systemcooperative in wales produced value added beef through place of origin designation and traceability of product (Marsden et al., 2000).

Creates a comparative advantage via development of social connections, reciprocity and trust (hinrichs, 2000).

Monday, February 25, 2013

Page 9: Simon Berge - How to Talk about Local Food

Short food supply chains

Transaction distanceFace-to-Face - Direct interaction with actors.Spatial Proximity - Local nature identified. Spatial Extended - Certifications, POD, Traceability, Embedded value-added information (Marsden et al., 2000).

Rural DevelopmentMarketing of local food production via co-operatives.Multiplier Effect - Blay-Palmer (2006) - Local food produces $2.59 versus conventional food’s $1.40 for the local economy.Co-ordinated approach to agricultural Marketing & production - quantity, quality and production practices

Monday, February 25, 2013

Page 10: Simon Berge - How to Talk about Local Food

cooperative opportunity

There is no local food third party certifying body.Government will not act to fill the gap of local food certification. Local food has not been defined as either spatial, environmental, or relational.Through short food supply chains cooperatives can link consumers to producers creating a relational short food supply chain.

Monday, February 25, 2013

Page 11: Simon Berge - How to Talk about Local Food

Question to you!

What challenges exist to creating a local food system within the cooperative environment?What opportunities exist for cooperatives within local food?What barriers are there to creating a cooperative to cooperative coordinated local food system?What tools, supports, or systems would be helpful in building a cooperative local food system.

Monday, February 25, 2013

Page 12: Simon Berge - How to Talk about Local Food

Questions of me?

Thank you for your attention!

Are there any questions?

Monday, February 25, 2013