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

  1. 1. Appalachian Funders Network Established Local Food System June 7, 2011 Presenters: Michelle Decker, Kathlyn Terry and Leslie Schaller
  2. 2. 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.
  3. 3. 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
  4. 4. 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!
  5. 5. CAN’s Current Sub-regions of Focus
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. The Seven Forms of Wealth • Individual • Social • Intellectual • Natural • Built • Political • Financial
  10. 10. 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
  11. 11. 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
  12. 12. Traditional Supply ChainProduction Processing Distribution Marketing ConsumptionTraditional Supply Chains: push supply to the next node in the chain
  13. 13. Making a supply chain—a value chain
  14. 14. 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
  15. 15. Southeastern Ohio Region
  16. 16. Southwest Virginia Region
  17. 17. Production
  18. 18. Production Innovators
  19. 19. Production scalingrequires newmodels for PAD
  20. 20. Impact of Aggregation,Processing and Distribution Models from the Region  ACEnet Food Ventures Center & Services  ASD --- Appalachian Harvest  Rural Action – The Chesterhill Produce Auction
  21. 21. Aggregation
  22. 22. Central aggregation & branding
  23. 23. Aggregation
  24. 24. Climate controlled warehousing
  25. 25. Figuring out appropriate equipment scale
  26. 26. Publicly supported investment
  27. 27. • Supported by RA since 2004• Purchased in 2010 for $100,000 with public – private investment• CPA: A Rural Appalachian Case History, at newsfromthefoodshed
  28. 28. Aggregation
  29. 29. What is a Produce Auction? A wholesale venue supplied with fresh fruits and vegetables by local growers and sold through competitive bidding.
  30. 30. 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.
  31. 31. What sells?
  32. 32. What sells?• Fresh grown fruits• Vegetables• Bedding plants, flowers• Handcrafted items• Baked goods• Eggs• Herbs• Grains
  33. 33. 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, onomics/HomervilleAuctionImages/HPA_Guidebook.pdf
  34. 34. Benefits of a Produce AuctionOhio University Began Purchasing from CPA in 2007
  35. 35. Location of CPA Buyers & Sellers 2009 Number of buyers and sellers doubled in 2010!
  36. 36. Processing
  37. 37. Shared Processing Facility
  38. 38. Processing Fresh Produce
  39. 39. Prepared Foods Production
  40. 40. Thermal Processing
  41. 41. Scale & Efficiencies
  42. 42. Access to Wholesale Markets
  43. 43. Workforce Development
  44. 44. Job Creation
  45. 45. Distribution
  46. 46. Distribution early stage
  47. 47. RegionalDistribution
  48. 48. 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
  49. 49. 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.
  50. 50. Cost Containment Full Trucks Backhauling Buying/Re-Selling
  51. 51. 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
  52. 52. 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
  53. 53. Distribution Infrastructure
  54. 54. Marketing
  55. 55. 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)
  56. 56. 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”).
  57. 57. Country Fresh Stops• MAP
  58. 58. 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
  59. 59. Stockport Chesterhill Chauncey City of Athens ReedsvilleRutland Current Locations
  60. 60. Chauncey pics – CeeDee mart
  61. 61. 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
  62. 62. 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
  63. 63. Market Partnerships
  64. 64. Market Partnerships
  65. 65. Market Partnerships
  66. 66. Regional Brands
  67. 67. Preparation
  68. 68. Local Restaurants use local ingredients
  69. 69. Local Producers &Market Partnerstell the story of thevalue chain
  70. 70. Youth Initiatives for Food Literacy
  71. 71. Consumption
  72. 72. Market Partners & Consumers  Drive demand  Educate consumers  Create excitement
  73. 73. Private Support & Investment  Whole Foods provide producer loans  Regional partners: NCIF & MACED can assist with expansion loans
  74. 74. Investment Partners
  75. 75. 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
  76. 76. Barriers and issues --- not everything works out the way you think!
  77. 77. 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
  78. 78. 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
  79. 79. 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
  80. 80. 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
  81. 81. Policy Education Webinars Farm Bill Food safetySub-regionalproducer education
  82. 82. 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
  83. 83. What You Can Do ensure Appalachian voices are heardadvocate for programs to help small farmers,not agribusiness support local work
  84. 84. Resources Central Appalachian Network: Center for Economic Options: Natural Capital Investment Fund: www.ncifund.orgMountain Association for Community Economic Development:
  85. 85. Resources Appalachian Sustainable Development: Appalachian Center for Economic Networks: Rural Action: www.ruralaction.orgMountain Association for Community Economic Development: