This 2014 presentation to the Eastern Corridor Steering Committee of the National Co-operative Grocers Association (NCGA) outlines some of the NFCA's projects in regional sourcing and next steps in building a thriving regional economy.

1. Exploring*the*Potential**
of*Regional*Sourcing*
*
*
*
*
Kari*Bradley*&*Erbin*Crowell*
Presentation*to*the*NCGA*Eastern*Corridor*Steering*Committee*
Friday*17th*Jan*2014*

2. Neighboring*Food*CoIops*
• Brattleboro Food Co-op’s 100 Year Vision
• Desire for Regional Support, Collaboration
 Formerly provided through CGAs, NE Co-ops
• NCGA East Corridor Interest Group
 Funding, Coordination, Administration
• Impact Study (Hoffer, 2008)
• Scenario Planning: Vision
• Dues Supported Staff
• Project Related Grants
• Network Collaboration (Co-ops & Other Orgs)

3. Vision
Focus
Areas
Strategy
Network
Partnerships
Collaboration
among
Co-ops
Healthy, Just &
Sustainable Food
System
A Thriving
Regional Economy

4. Regional*Impact!
The NFCA in 2012:
• 34 member co-ops and start-ups
• 91,000+ member-owners
• 7,000+ new member-owners
• 1,480+ employees
• $214 million in annual revenue
• $30 million* in local
purchases
• $2.2 million* in Fair Trade
purchases
• $2 million* in purchases from
other co-ops
*incomplete reporting

5. Priorities!
• Organizational
Development
• Peer Collaboration
• Shared Marketing &
Education
• Network Partnerships
• Regional Sourcing
TheUnitedNationshasdeclared2012theInternationalYearofCo-ops.
Please visit www.nfca.coop for more information and a map of
our more than 20 member food co-ops, including these area stores.
T

6. N

7. F

8. C -­‐

9. A
P.O.

10. Box

11. 93

13. //

15. Shelburne

16. Falls,

17. MA

19. //

21. 01370-­‐0093
info@nfca.coop // www.facebook.com/neighboring // www.nfca.coop
Vermont
Brattleboro Food Co-op, Brattleboro

22. Buffalo

23. Mountain

24. Food

25. Co-­‐op,

26. Hardwick

27. Co-­‐op

28. Food

29. Stores,

30. White

31. River

32. Junction

34. Hunger

35. Mountain

36. Co-­‐op,

37. Montpelier

38. Plainfield

39. Food

40. Co-­‐op,

41. Plainfield

42. Putney

43. Food

44. Co-­‐op,

45. Putney

46. Rutland

47. Area

48. Food

49. Co-­‐op,

50. Rutland

51. Springfield

52. Food

53. Co-­‐op,

54. Springfield

55. South

56. Royalton

57. Food

58. Co-­‐op,

59. S.

60. Royalton

61. Stone

62. Valley

63. Community

64. Market,

65. Poultney

67. Upper

68. Valley

69. Food

70. Co-­‐op,

71. White

72. River

73. Junction
New Hampshire

74. Concord

75. Co-­‐op

76. Market,

77. Concord

78. Co-­‐op

79. Food

80. Stores,

81. Hanover

82. &

83. Lebanon

84. Kearsarge

85. Co-­‐op

86. Grocer,

87. New

88. London

89. Littleton

90. Food

91. Co-­‐op,

92. Littleton

93. Monadnock

94. Community

95. Co-­‐op

96. Market,

99. Keene

100. (Opening

101. in

102. 2012)

103.
Massachusetts

104. Green

105. Fields

106. Co-­‐op

107. Market,

108. Greenfield

109. McCusker’s

110. Co-­‐op

111. Market,

114. Shelburne

115. Falls

116. River

117. Valley

118. Co-­‐op

119. Market,

120. Northampton
Co-ops Build a Better World!
Stop in at Your
Local Food Co-op
and See What the
Buzz is All About.

121. Synergy*with*NCGA!
• Regional Marketing of
Member Co-ops
• Local System for
Collaboration –
Increase Success
• “Runway” for Smaller
Co-ops to NCGA
• Forum for
Innovation,
Experimentation

122. Regional*Sourcing!
• Background
• Priorities
• Pilots
• Learning
 Challenges
 Opportunities
cave to co-op
sheep milk
bloomy rind
creamy, mushroomy, buttery
Woodcock Farm
Weston,Vermont
Summer Snow
o n s p e c i a l $ 1 5 . 9 9 / p o u n d
cave to co-op
sheep milk
bloomy rind
creamy, mushroomy, buttery
Woodcock Farm
Weston,Vermont
Summer Snow
o n s p e c i a l $ 1 5 . 9 9 / p o u n d
Cave to Co-op is a partnership of the Neighboring Food Co-op
Association, Provisions International Ltd and regional artisan
cheesemakers. For more information, please visit www.nfca.coop
Cave to Co-op is a partnership of the Neighboring Food Co-op
Association, Provisions International Ltd and regional artisan
cheesemakers. For more information, please visit www.nfca.coop

123. Background*to*Regional*Sourcing*
1. Core priority: Leverage purchasing power
2. Development of priority product list
 Products with limited availability regionally
3. Member dialog on regional sourcing criteria
 Member co-op product priorities
 Likelihood of success
 Manageability
 Alignment with vision
 Support Competitive Advantage

124. Exploring*Our*Priorities*
Members support…
• Regional impact in sourcing…
• …regional distribution to all
members
• Healthy, organic, non-GMO
• Fair trade principles
• Collaboration with other co-op
sectors
• Balance mission, quality, affordability

125. Focus*on*Pilots*
• Limited external response to
priority list
• Pilots as model for exploration of
potential
• Opportunity for food system
collaboration
• Direct experience of
challenges & opportunities
• Exercise more control –
Branding, sourcing, priorities, etc.

126. What*We*Have*Learned*
Cave to Co-op (5,688 pounds cheese, ‘12)
Project: Local artisan cheeses available to
member co-ops at discount. 5+ years.
• Pros: Member benefit; shared
impact, promote regional producers;
easy to manage; builds market for
regional producers…
• Cons: slim margins; limited control,
branding; no income for NFCA;
distribution limited; sales bump
is temporary…

127. What*We*Have*Learned*
Farm to Freezer (13,000# produce, ‘13)
Project: Regionally sourced frozen fruits &
vegetables. 2-year pilot, supported in part by
NCGA Eastern Corridor grants.
• Pros: Innovative – new product in
marketplace; branded, available
exclusively to NFCA co-ops; some
potential for income, cross sector
collaboration…
• Cons: Pricing; processing capacity
limited; conflicting priorities;
distribution expensive, inefficient…

128. Opportunities*
• Buzz: Raised the profile of Food Co-ops and
their role in local food systems.
• Branded regional product – supports
competitive advantage of member co-ops.
• Working with co-operative partners we have
the potential for product development,
efficiencies gained through aggregation,
common vision, excitement around co-ops.
• Regional associations (e.g. NFCA) can focus
on regional while NCGA leverages national.

129. Core*Challenge:*Distribution*
Key Constraint on…
• Ability to serve members
• Branding, identity
• Scale, volume
• Affordability
• Collaboration
• Innovation
• Sustainability
• Control: Vision & Priorities

130. Potential*for*Collaboration*
• Food co-ops
 Aggregated purchasing (efficiency)
 Coordination of demand (planning, risk mgmt)
• Supplier co-ops
 Aggregated supply (efficiency, affordability)
 Coordination of processing (product development)
• Basis for collaboration
 Shared principles, values, vision, message
 Efficiency, potential and impact of co-op model
 Not-for-profit co-operative model for distribution
• Volume, efficiency, focus

131. Next*Steps*
• USDA Value Added Producer Grant
 Collaboration with regional farmer co-op
 Support from Farmers Union, CoBank
 Exploration of priority products
 Co-op partners (farmer, fishery, processing, etc.)
 Co-op structure
 Feasibility study
 Business plan
• Workplan & Timeline
 2014 Calendar Year

132. Discussion*
• Feedback
• Questions
• Ideas