Food Hub Lessons:

Early Decisions

Jim Barham – USDA Rural Development, DC

Sara Clow – GrowFood Carolina, SC

Leslie Hossfeld – Feast Down East, NC

Southern Sustainable Agriculture Working Group Conference

Mobile, AL

January 17, 2015

Presentation Overview

Food Hubs:

Clarifying the Food Hub Concept

Early Decisions, Lessons Learned, Best Practices Sara Clow – GrowFood Carolina, SC Leslie Hossfeld – Feast Down East, NC

Additional Reflections

Resources to Support Food Hubs

Open Discussion

Local/Regional Food Systems

Food Hubs

Aggregating Distributing Marketing Local Food

Regional Food Hubs

Actively linking producers to markets On-farm pick up Production and post-harvest handling

training Business management services and

guidance Value-added product development Food safety and GAP training Liability insurance

Aggregation Distribution Brokering Branding and market

development Packaging and repacking Light processing (trimming,

cutting, freezing) Product Storage

“Buy Local” campaigns Distributing to “food deserts” Food bank donations Health screenings, cooking

demonstrations SNAP redemptions Educational programs Youth and community employment

opportunities

*Based on a working list of 302 food hubs identified by the USDA’s Agricultural Marketing Service (April 2014)

Regional Food Hubs

7 12 26

44 53 55 58 63

75 87 101

119

153

184

215

256

286 298

020406080

100120140160180200220240260280300

Growth in the Number of Food Hubs (2001-2013)*

At least 145 food hubs have started in the past five years (2009-2013),

as well as at least 83 in the past three years (2011-2013)

*Based on a working list of 302 food hubs identified by the USDA’s Agricultural Marketing Service (April 2014)

Regional Food Hubs by Legal Status*

Food Hub Legal Status Number Percentage

Privately Held 144 48%

Nonprofit 87 29%

Cooperative 61 20%

Publicly Held 7 2%

Informal 3 1%

*Based on a working list of 302 food hubs identified by the USDA’s Agricultural Marketing Service (April 2014)

Regional Food Hub Models*

Farm to

Consumer

39%

Farm to

Business

29%

Hybrid

32%

*Based on a working list of 302 food hubs identified by the USDA’s Agricultural Marketing Service (April 2014)

GrowFood Carolina’s mission is to help the local food system reach its full

potential by providing meaningful opportunities to farmers

which will strengthen and secure the future of a regional food supply

and ensure an enduring productive and diverse landscape.

WHY (and how) does a conservation organization start a food hub??

GrowFood Carolina (GFC) is:

A non profit, all local, wholesale produce distributor.

We provide:

• Crop planning • Post harvest education

• Warehousing • Sales & Marketing

• Distribution • Vendor Compliance

GUIDING PRINCIPLES

1.Farmers. Farmers. Farmers. 2.Consistency 3.Collaboration

SET GOALS RECOGNIZE

CHALLENGES

CREATE

SOLUTIONS

ANALYZE

RESULTS REPEAT

EXPANDING THE MODEL

Feast Down East is a BUY LOCAL economic

development, poverty alleviation project, devoted to

supporting our local farmers through local food

purchasing in our region.

Our focus is on helping small to mid-sized limited-

resource farmers build and sustain their farm

businesses, connecting them with local food

businesses and educating consumers on the

importance of BUYING LOCAL!

HOW WE BEGAN – SECTOR ANALYSIS

Growth sectors of health and education;

- Emerging sectors of entrepreneurship/small business and recreation/tourism;

- Challenged sectors of agriculture/forestry and manufacturing

Core 9-County Region

• New Hanover

• Brunswick

• Pender

• Columbus

• Robeson

• Bladen

• Onslow

• Duplin

• Sampson

- Most ethnically diverse region in rural America - One of three regions of persistent poverty in NC - Lost more farms than any other state in the US - Average age of farmers is 57

Southeastern North Carolina

OUR PRIMARY GOAL is to

Create a

Fully Integrated

Local Food System .

FULLY INTEGRATED FOOD SYSTEM - Feast Down East

PRIORITY INITIATIVES

BUY LOCAL Campaign

Farmer Support

Farm to School and Farm to Institution

FDE FOOD HUB

Processing & Distribution

Healthy Communities

Program Farm to Chef

Statewide Local Food

Movement

www.feastdowneast.org

USDA Designated

“Food Hub”

FARMERS

DIRECT SALES

FARMERS MARKETS &

CSAs

CONSUMERS

RESTAURANTS SCHOOLS/

UNIVERSITIES

FEAST DOWN EAST P&D

HOSPITALS/

ASST. LIVING GROCERS

TECHNICAL ASSISTANCE

MARKETING

Farmer Support

Farm to Chef Farm to Chef Directory

Farm to Chef Partnership Meetings

Over 40 Participating Restaurants

26 Premier Restaurants

Farm to Institution UNCW - Aramark

Hospitals

Assisted Living Facilities

Whole Foods - Retail

Lowes Foods - Retail The

Green Spot

Farm to School

• Teaching Nutrition, Gardening & Local

Agriculture in the Classroom

• Building School Gardens

• Increasing Fresh Fruits & Vegetables in

the Cafeteria

• Public Housing Neighborhoods

After-School Garden Program

Healthy Communities Program

Addresses the lack of healthy food in

our underserved communities –

“Food Deserts”

Local and State-wide Partners in the Local Food Movement

Local Food Means Economic Development Multiplier Effect - The information in this table is based on 73 workers directly employed in farm and food-related jobs in 7 counties (Bladen, Brunswick, Columbus, New Hanover, Pender, Robeson and Sampson). All figures 1Q2013.

Type of Impact Impact

Output $22.6 million

Employment (a) 180

Labor Income (b) $6.2 million

State/Local Government Taxes

$1.2 million

Federal Taxes $1.2 million

(a) Fulltime and Part time Employment

(b) Wages and salaries and self-

employment income

Prepared by: Dr. William Hall UNCW Senior Economist

FOOD POLICY COUNCILS

Food Policy Councils examine how the local food system operates, and provide policy recommendations to improve that system. Food Policy Councils identify and strengthen the connections between food, health, natural resource protection, economic development and the agricultural/food production community.

SAVE THE DATE! February 6th

Feast Down East 5th Annual Regional Conference Burney Center

University of North Carolina Wilmington Wilmington, North Carolina

Food Hub Best Practices – NINE Keys to Successful Marketing for Food Hubs –

Don’t sell commodities – Product differentiation is key (unique product attributes, source identified, production

practices, social equity), telling a compelling story, branding, chain transparency, certifications

Sweat the small stuff – To tell an authentic and compelling story, all staff need to know every detail of the

production and handling practices of the product sold under the brand (even the truck drivers!)

Be there all year for your customers – Must sustain operations year round to cover costs and keep customer communication

constant. Be pragmatic about your approach in terms of sourcing “locally”

Get buyer commitment – Be clear with buyers about volume order expectations and use a combination of

specials, incentives, rewards, public recognition for “committed” buyers

Think farmers first – Ensure good prices for producers and find ways to build their capacity to grow and be

successful. What kind of relationship and interaction, individually, as group, co-op?

Make friends – Seek operational advantages by seeking partnerships with existing distribution

infrastructure players, e.g., existing distributors, producer groups, trucking companies, food banks, etc.

Don’t buy what you don’t need – Infrastructure investment (e.g. warehouse, trucks, equipment) needs to match the

hubs’ stage of development and marketing capacity.

Don’t poison your customers – Food safety needs to be an integral part of the whole operation, with food safety plans

for producers, GAP/GHP, traceability/recall mechanisms in place.

Never forget “supply, supply, supply” – Without ensuring a consistent, reliable supply of quality products, you have no business

running a food hub, and you will have no business!

Food Hub Best Practices – NINE Keys to Successful Marketing for Food Hubs –

OPEN DISCUSSION

QUESTIONS, COMMENTS?

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 By USDA Agricultural Marketing Service and the Wallace Center at Winrock International

The Role of Food Hubs in Local Food Marketing By James Matson, Martha Sullins, and Chris Cook – funded by USDA Rural Development

Food Hub and Distribution Resources

Electronic copies of these publications can be downloaded for free at www.ams.usda.gov/FoodHubs

Food Value Chains: Creating Shared Value to Enhance Marketing Success – joint project

between USDA and the Wallace Center

The report is designed to provide guidance to the reader on how food value chains are initiated and structured, how they function, and the benefits they provide to participants.

New Report on Food Value Chains

http://dx.doi.org/10.9752/MS141.05-2014

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

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

Food Hub and Distribution Resources

National Food Hub Collaboration http://foodhub.info

Map and list of known food hubs, current news, webinars, conference proceedings, print resources

Food Hub Benchmarking Webinar on Thursday!

www.usda.gov/knowyourfarmer

Website: One-stop shop for financial

and technical assistance resources from USDA to grow your local food enterprise www.usda.gov/knowyourfarmer

The Compass: How USDA resources

are put to work in your community www.usda.gov/kyfcompass

The Compass Map: See what’s

funded in your community and learn how others are using USDA programs

USDA’s “Know Your Farmer, Know Your Food” Initiative

Know Your Farmer, Know Your Food: - Resources for Navigating USDA -

www.usda.gov/knowyourfarmer

Farm Microloans

Farm Storage Loans

Organic Cost Share

Grass-fed Verification

Environmental Quality Incentives Program (hoop houses/high tunnels)

Rural Energy for America Program

USDA Programs in the Local Food Supply Chain

Business and Industry Guaranteed Loans

Community Facilities Loans and Grants

Rural Business Enterprise Grants

Rural Business Opportunity Grants

Value-Added Producer Grants

Local Food Promotion Program

Conservation Reserve Program

Agricultural Conservation Easement Program

Conservation Stewardship Program

Environmental Quality Incentives Program

Business and Industry Guaranteed Loans

Community Facilities Loans and Grants

Rural Business Enterprise Grants

Rural Business Opportunity Grants

Local Food Promotion Program

Specialty Crop Block Grants

Farm to School Grants

Senior Farmers’ Market Nutrition Program

WIC Farmers’ Market Nutrition Program

Community Food Projects Competitive Grants

Farmers Market Promotion Program

Specialty Crop Block Grants

Land Conservation

Processing

www.usda.gov/knowyourfarmer

Aggregation/ Distribution

Production Markets / Consumers

Rural Cooperative Development Grants

Small Business Innovation Research

Risk Management Education Program

Federal State Marketing Improvement Program

Conservation Technical Assistance

Beginning Farmer and Rancher Development Program

Sustainable Agriculture Research and Education Program

Agriculture and Food Research Initiative

Research, Education, and Technical Assistance Programs – all along the supply chain

Includes data on:

USDA-funded local food projects

Farmers markets, food hubs, and other “context data” gathered by USDA agencies

Projects and resources from 9 other Federal Departments

The KYF Compass Map

www.usda.gov/kyfcompass

Explore Options, Partnerships, and Opportunities

Find Resources to Fit the Need

www.usda.gov/kyfcompass

Jim Barham USDA Rural Development

Washington, D.C. 202-690-1411

James.Barham@wdc.usda.gov

www.usda.gov/kyfcompass

www.usda.gov/knowyourfarmer

knowyourfarmer@usda.gov

Thank You!