2. 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.
3. Keys to successful local systems
Integration
(vertical or virtual)
Stewardship
Accountability
Community
Investment
Consistent Brand
& Marketing
3
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.
5
7. The Food Commons is made of up three integral parts:
a land trust, a financing arm, and an operating entity
•
Non-profit
communitybased financial
institution that
aggregates and
supplies capital
and financial
services to Food
Commons-related
enterprises
•
Fresno Food
Commons
Fund
Fresno Food
Commons
Trust
Non-profit
communitybased land trust
to acquire and
steward critical
foodshed assets
Fresno Food
Commons
Community
Corporation
•
Vertically integrated, communityowned regional food system
enterprise including
farms, processing, wholesale
distribution, and retail stores
7
8. Combining the hub with vibrant public spaces
Potential Ancillary Hub Functions (for
profit, non-profit, and/or public):
• Value-added processing • Demonstration farm
• Commercial kitchen
• Educational programs
• Incubator kitchen
• Health and human
services
• Public market
• Mobile vendors
• Gleaning program
• Public meeting space
• Community garden
8
9. 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
10. Point of Purchase Marketing is Key!
Just simple sign indicating “local” drives up local sales by 3%
Local
Fresh
Trusted
18. Why people buy local
700
600
500
400
300
200
100
0
Support ag and
local economy
Perceived Safety
and Quality
Source: Iowa State University, Allan Ortiz 2010
Env. Benefits from Reduce fossil fuel
farms
use
19. The Hawaii Context
$597 Million
in Ag
Exports to
Mainland
Only $79
Million was
edible
Estimated less than 8% of it was eaten in the State of Hawaii
20. Vertical Integration
Strengths
Consistent HR policies and
practices
Employee mobility and
advancement opportunities
Transparency and system
efficiencies resulting in
lower prices to consumers
Weaknesses
May be perceived as
competitive threat to
independent businesses
Management complexity
Built-in visibility
Broad-based local
ownership and control
Start-up cost and complexity
21. Virtual Integration
Strengths
Weaknesses
Potentially high individual
rewards for
entrepreneurship and risktaking
Barriers to new entrants
(capital, skills) and high
failure rate of independent
businesses
Reduced start-up cost and
complexity
Transaction costs
Participation and support
from existing enterprises
individual profit
maximization
22. Tools for Virtual Integration
Eco Trust Food Hub
(www.food-hub.org)
Local Dirt
(www.localdirt.com)
MARKETING!!!!
23. Community Financing is Key
Shareholders
CSA Model
• Direct Public Offering
• Credibles.com
Cooperative
ownership
Non-profit
ownership
• Farmer
• Multi-stakeholder
• Land Trust
24. Keys to successful local systems
Integration
(vertical or virtual)
Stewardship
Accountability
Community
Investment
Consistent Brand
& Marketing
24
Editor's Notes
USDA just conducted the 2012 census, and we have approximately 6.6 million sheep in the United States.
Advertising, advertising, advertisingAdvertising to consumersVery aggressive advertising campaigns Reliable domestic consumers with national pride! 100% pasture raised, smaller lambs = quality meatPride in their sheep
Advertising, advertising, advertisingAdvertising to consumersVery aggressive advertising campaigns Reliable domestic consumers with national pride! 100% pasture raised, smaller lambs = quality meatPride in their sheep
