Gathering 2011 Breakout Session - Local Foods - CAN presentation on Established Food Systems

Appalachian Funders Network Established Local Food System June 7, 2011 Presenters: Michelle Decker, Kathlyn Terry and Leslie Schaller

Central Appalachian Network CAN is a network of sustainable economic development organizations working to build a more just and sustainable Appalachia. CAN works to advance the economic transition of the region by fostering the development of enterprises, organizations, and policies that promote and protect the health of our local economies, communities, and environment.

Today we will….  Animate the food value chain of a mature model  Highlight the impacts of the wealth creation indicators in Central Appalachia  Review the crucial role processing, aggregation and distribution plays in economic impact of local foods  Emphasize the power of networks for branding, training and shared assets  Identify issues & gaps of mature value chains

Passion for Local Food EconomiesWe hope to leave you with a sense of possibility and excitement for this work as part of the Appalachian Transition!

CAN’s Current Sub-regions of Focus

CAN Member OrganizationsCAN is led by a Steering Committee of six member organizations:  Appalachian Center for Economic Networks (ACEnet) Athens, OH  Appalachian Sustainable Development (ASD) Abingdon, VA  Center for Economic Options (CEO) Charleston, WV  Mountain Association for Community Economic Development (MACED) Berea, KY  Natural Capital Investment Fund (NCIF) Shepherdstown, WV  Rural Action, Trimble, OH

CAN’s Local Food Systems Work CAN member organizations approach sustainable economic development from a variety of sectors Our current focus as a network is on the development of local food value chains We use the wealth creation framework as an assessment, planning, and measurement tool for this work

What is the wealthcreation framework?  A systems approach to creating wealth that sticks in rural areas  Emphasizes local ownership and control of resources  Facilitates the development of multiple forms of wealth simultaneously

The Seven Forms of Wealth • Individual • Social • Intellectual • Natural • Built • Political • Financial

2 Year CAN WCI Highlights Members worked with 96 producers who sold $3.5 million of local food into wholesale markets Over 30 new producers brought into wholesale markets Increased the value of sales of local food to wholesale markets to $4,754,180.54 or 33% The number of acres being sustainably farmed by CAN producers increased 177% between 2009 and 2010

WCI as a tool for reinventinghealthy local food systems Learning how measurement informs interventions along the food value chain Understanding gaps and disconnects Building collaborations and leveraging shared assets

Traditional Supply ChainProduction Processing Distribution Marketing ConsumptionTraditional Supply Chains: push supply to the next node in the chain

Making a supply chain—a value chain

A Mature Local Food Chain has…  Sustainable and diversified agriculture  Farmers and food producers utilizing multiple market channels  Production ready to scale  Seeded consumer demand through consumer education, branding & market partnerships  Food infrastructure & distribution in place

Southeastern Ohio Region

Southwest Virginia Region

Production

Production Innovators

Production scalingrequires newmodels for PAD

Impact of Aggregation,Processing and Distribution Models from the Region  ACEnet Food Ventures Center & Services  ASD --- Appalachian Harvest  Rural Action – The Chesterhill Produce Auction

Aggregation

Central aggregation & branding

Aggregation

Climate controlled warehousing

Figuring out appropriate equipment scale

Publicly supported investment

• Supported by RA since 2004• Purchased in 2010 for $100,000 with public – private investment• CPA: A Rural Appalachian Case History, at www.ohiofoodshed.org/ newsfromthefoodshed

Aggregation

What is a Produce Auction? A wholesale venue supplied with fresh fruits and vegetables by local growers and sold through competitive bidding.

Meeting demand and creating marketsBuyers - providing a higher quality Consumers - The opportunity toof fresh product packed and ready purchase the freshest Ohio produce for resale. available.

What sells?

What sells?• Fresh grown fruits• Vegetables• Bedding plants, flowers• Handcrafted items• Baked goods• Eggs• Herbs• Grains

SeasonalityProduce Auctions are run during the growing season. • Any one who would like to buy or sell is invited to participate. • Rules and regulations are set for those who intend to buy or sell.  For more detail go to Homerville Wholesale Produce Auction Guidebook, http://www.hightunnels.org/ForGrowers/Marketing&Ec onomics/HomervilleAuctionImages/HPA_Guidebook.pdf

Benefits of a Produce AuctionOhio University Began Purchasing from CPA in 2007

Location of CPA Buyers & Sellers 2009 Number of buyers and sellers doubled in 2010!

Processing

Shared Processing Facility

Processing Fresh Produce

Prepared Foods Production

Thermal Processing

Scale & Efficiencies

Access to Wholesale Markets

Workforce Development

Job Creation

Distribution

Distribution early stage

RegionalDistribution

Buyer Dock Times Produce Source Partners: M-F 7 AM to 4 PM, Sat/Sun 7 AM – 2 PM Ingles: 4AM to 1030 AM Earth Fare: 8 AM to 4 AM Whole Food South: 4 AM – 10 AM, none on Wednesday

DOT- HOURS-OF-SERVICE RULES for Property-Carrying CMV Drivers • 11-Hour Driving Limit May drive a maximum of 11 hours after 10 consecutive hours off duty. • 14-Hour Limit May not drive beyond the 14th consecutive hour after coming on duty, following 10 consecutive hours off duty. Off-duty time does not extend the 14-hour period. • 60/70-Hour On-Duty Limit May not drive after 60/70 hours on duty in 7/8 consecutive days. A driver may restart a 7/8 consecutive day period after taking 34 or more consecutive hours off duty. • Sleeper Berth Provision Drivers using the sleeper berth provision must take at least 8 consecutive hours in the sleeper berth, plus a separate 2 consecutive hours either in the sleeper berth, off duty, or any combination of the two.

Cost Containment Full Trucks Backhauling Buying/Re-Selling

Appalachian Harvest Distribution FlowProduce Richmond, Source VAPartners Asheville, Leading Green NC Area Backhaul Produce to Resell Ingles Receive Haul AH produce and Earth products for FareDeliverAH resaleProduce Deadhead Appalachian Harvest Whole Packinghouse Foods Duffield, VA Atlanta, GA

Appalachian Harvest2010 Revenue > $685KEmploys 10-15 laborers and truck drivers in the peak seasonWorks with 50-60 farmers within the immediate area and over 100 in the regionCovered distribution costs in 2010 through a combination of backhauling, brokering and ‘traditional’ sales

Distribution Infrastructure

Marketing

How is food access measured?Physical Accessibility – 24% or 475,095 of rural Ohio households do not live within a 10-minute drive of a retail grocery store of any size – 75% of rural Ohio households live greater than a 1-mile walk to a grocery store…4% (59,389 rural Ohioan households) do not own a car.Economical Accessibility – 71% of rural Ohio households live outside areas of competitionNutritional Accessibility – “It is hypothesized that the relative lack of access to full-service grocery stores and the easier access to fast and convenience foods may be linked to poor diets and, ultimately, to obesity and other diet- related diseases.” (USDA ERS, 2009)

Food DesertsAs Defined in 2008 Farm Bill A food desert is an “area with limited access to affordable and nutritious food, particularly such an area composed of predominantly lower income neighborhoods and communities” (Title VI, Sec. 7527”).

Country Fresh Stops• MAP

Country Fresh Stops Funding will offer interested businesses help with: – Nutritional Education – Advertising and promotional items – Painting, shelving, and store updates – Refrigeration – Fruit and vegetable delivery through the Chesterhill Produce Auction and other local growers Laura Jane Musser Fund and Ohio Department of Ag – Specialty Crop Initiative

Stockport Chesterhill Chauncey City of Athens ReedsvilleRutland Current Locations

Chauncey pics – CeeDee mart

County Economic Classification Location MORGAN ATHENS MEIGS U.S.Three-Year Average Unemployment 9.6% 6.2% 9.1% 5.0%Rate, 2006–2008Per Capita Market Income, 2007 $13,958 $17,478 $15,102 $32,930Poverty Rate, 2000 18.4% 27.4% 19.8% 12.4%Three-Year Avg. Unemp. Rate, 191.0% 123.0% 181.4% 100.0%Percent of U.S. Avg., 2006–2008Per Capita Market Income, Percent 42.4% 53.1% 45.9& 100.0%of U.S. Average, 2007Poverty Rate, Percent of U.S. 148.8% 221.0% 159.9& 100.0%Average, 2000 Appalachian Regional Commission 2011

Country Fresh StopsFunding is providing:  Nutritional Education  Advertising and promotional items  Painting, shelving, and store updates  Refrigeration  Fruit and vegetable delivery through the Chesterhill Produce Auction and other local growers  Reach 1500 new customers Laura Jane Musser Fund and Ohio Department of Ag – Specialty Crop Initiative

Market Partnerships

Regional Brands

Preparation

Local Restaurants use local ingredients

Local Producers &Market Partnerstell the story of thevalue chain

Youth Initiatives for Food Literacy

Consumption

Market Partners & Consumers  Drive demand  Educate consumers  Create excitement

Private Support & Investment  Whole Foods provide producer loans  Regional partners: NCIF & MACED can assist with expansion loans

Investment Partners

Measurement and TrackingProducer Measures • Amount of Sales to Wholesale Buyers• Profitability • Buyer Retention• Revenue• Number of Producers Training and Education Measures• Producer Retention Rates • Number and Type of Technical Assistance Provided• Number of Products Grown/Produced • Training Attendance• Number of Acres by Level of Sustainability • Impact of Training and Technical Assistance (Follow Up• Gross Sales & Gross Sales within 3 hours Evaluations)• Gross Sales Paid to Growers • Number of National and Regional Outreach/Presentations• Number of Youth Engaged in Farming• Number of Minorities and Women in Farming Value Chain Measures• Pounds of Food Donated • Number, Diversity, and Strength of Relationships within the• Market Access Value Chain• Division of Sales by Market • Number and Type of Shared-Use Infrastructure Available in• On-Farm Infrastructure: Existing Infrastructure and the Value Chain Infrastructure Needs • Number and Type of Opportunities for Building and Utilizing Political Capital Available to Members of the Value ChainBuyer/Customer Measures• Senior Farmers Market Nutrition Program Dollars Spent• Markets Accepting EBT• Dollars Spent at Markets on EBT• Number and Type of Wholesale Buyers

Barriers and issues --- not everything works out the way you think!

Barriers & Issues Scale Capacity --- human, financial, analytical, time Time – long haul view Flexibility to experiment Tension between social enterprises & non-profit goals Funding trend shifts Higher entry cost for market and distribution access

Focus on Infrastructure Capital from private and public sources to reorganize food production, processing and distribution Program financial support and partnerships to creates a “food value chain” which engages all stakeholders in a just food system Corporate partners in the value chain need to invest with seed capital/equity and go beyond loans and purchase orders

Focus on access to markets Food safety and market readiness training for scale Support for regional brands (entrepreneurs, market partners, funders, citizen eaters) New delivery and distribution partnerships Non-traditional partners driving consumer demand and educational campaigns

Focus on capital products  Slow money, new mechanisms for angel investment  Local money for local economies: local stock exchanges, local currencies, cooperative ownership, coop hybridization  New investment and debt products

Policy Education Webinars Farm Bill Food safetySub-regionalproducer education

Farm Bill Reauthorizationworking with National Sustainable Agriculture Coalition(NSAC) huge budget cuts to critical programs  Beginning Farmer & Rancher Program  Sustainable Agriculture Research and Education  Value-Added Producer Grants  Rural Micro-Entrepreneur Assistance Program  Rural Conservation & Development

What You Can Do ensure Appalachian voices are heardadvocate for programs to help small farmers,not agribusiness support local work

Resources Central Appalachian Network: www.cannetwork.org Center for Economic Options: www.centerforeconomicoptions.org Natural Capital Investment Fund: www.ncifund.orgMountain Association for Community Economic Development: www.maced.org

Resources Appalachian Sustainable Development: www.asdevelop.org Appalachian Center for Economic Networks: www.acenetworks.org Rural Action: www.ruralaction.orgMountain Association for Community Economic Development: www.maced.org

Gathering 2011 Breakout Session - Local Foods - CAN presentation on Established Food Systems

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Gathering 2011 Breakout Session - Local Foods - CAN presentation on Established Food Systems Presentation Transcript