In-depth analysis of the feasibility of a "Community Supported Agriculture" program in Waterbury, CT

1. FEASIBILITY REPORT: CSA PROGRAM IN WATERBURY,
CT
Provided for:
Susan Pronovost, Executive Director of Brass City Harvest
Mayor Neil O’Leary, Mayor – City of Waterbury
Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
07/19/19
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2. TABLE OF CONTENTS
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Table of Contents
I. Executive Summary………………………………..…..…....3
II. Product/Service Overview………………..………..…..........4
III. Statement of Need…………………….………………........5
IV. Market Feasibility……………………….……………...........6-10
A. Industry Overview………………..……………….....6
B. Target Market………………………………….…….7
C. Market Profile………………………………………..8-9
D. Market Strategy…………………………………......10
V. Technical Feasibility……………………………………........11
VI. Organizational Feasibility………………….……………......12
VII. Long-Term Considerations…………………………....……13-16
A. Low Retention Rate………………………………...13
B. Factors of Influence for Joining a CSA…..…..…........14
C. Lack of Product Diversity……………………….......15-16
VIII. Suggestions for Future Viability……………………………..17-18
I. Cost Reduction and Advertising…………………....17
II. Aggregation/Distribution and Product Diversity…..18
IX. Links to Data Sources………………………………….…..19
Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

3. EXECUTIVE SUMMARY
In a low-income, majority overweight/obese, high-school educated, food-insecure
community like Waterbury, CT, there is a precedent for establishing programs and services that
can not only increase peoples’ access to fresh fruits and vegetables, but also can increase peoples’
consumption of fresh fruits and vegetables.
With an obesity rate of 41%, a high-blood pressure/hyper-tension rate of 32%, and a food
insecurity rate of 25%, Waterbury is clearly in need of a service that provides both middle-and
low-income families with a consistent source of healthy food. One such service is a CSA program;
this program model supports local farmers and promotes healthy home-cooking by providing
purchasers with a weekly box of assorted produce items and easy recipes.
Although the demographic makeup of a typical Waterbury resident is markedly different
than the demographic makeup of a typical CSA purchaser, a CSA program in Waterbury is
still a feasible option for both addressing food equity and improving residents’ diets.
If the stakeholders developing the CSA program carefully consider the issues of
product cost, product accessibility, and product diversity, it is possible that Brass City
Harvest could feasibly launch a sustainable version of a CSA program. This program
could be an important part of the plan to improve the health and wellbeing of
Waterbury residents by addressing one of the most essential part of one’s existence:
their diet.
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Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

4. PRODUCT/SERVICE OVERVIEW
Product/Service
 A food production and distribution system that helps connect producers (local farmers) to
consumers (Waterbury residents) by allowing consumers to subscribe to a farmer’s seasonal
harvest
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How It Works:
 Potential customers will sign up in person or over the phone through the non-profit Brass City
Harvest
 The program will run for12-14weeks per season with a total of three seasons (late January-
May, mid June-August, mid September-December)
 Purchasers will be required to pay the total cost of the 12-14 weeks before the program begins
(a small number of income qualified purchasers will be able to set up payment plans that are
either weekly or monthly
 After paying the total cost of the program at the start of the season, the purchaser will pick up
a box of assorted produce items once a week that includes a few recipe suggestions
 Customers will pick up their box of assorted produce at the defined drop-off spots within the
community
 The materials needed for these boxes of produce will be the produce items, the boxes, and a
refrigerator where boxes of produce can be stored before pick-up
*produce items can be sourced from the many local farmers as well as from local
supermarkets
Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

5. CSA PROGRAM STATEMENT OF NEED
Food Security/ Time-Availability
Concerns:
Dietary Health Concerns:
Obesity
 41% of Waterbury residents are obese (45% for those
earning less than $30,000 and 37% for those earning more
than $75,000
* CT rate in 2018 was 26.9%
Diabetes
 12% of Waterbury residents are diabetic (15% for those
earning less than $30,000 and 10% for those earning more
than $75,000)
*CT rate in 2016 was 8.9%
High-Blood Pressure/ Hypertension
 32% of Waterbury residents (34% for those earning less than
$30,000 and 25% for those earning more than $75,000)
*CT rate in 2018 was 30.5%
Heart Disease
 8% of Waterbury residents (9% for those earning less than
$30,000 and 5% for those earning more than $75,000
*CT rate in 2018 was 3.8%
Availability of High-Quality Fruits and Vegetables
 40% of Waterbury residents say the availability is fair/poor (46% for
those earning less than $30,000 and 36% for those earning more
than $75,000)
*61.4% of North-End residents in 2016 indicated that it was difficult to
buy fruits/veggies in their neighborhood
Free-Time Availability
 35% of Waterbury residents indicated that they “had no time at all or
only a little bit” to do things they enjoy (36% for those earning less
than $30,000 and 37% for those earning more than $75,000
Food Security
 25% of Waterbury residents reported over the past 12 months not
having enough money to buy food their family needed AND 26%
reported this experience happening every month (44% for those
earning less than $30,000 and 6% for those earning more than
$75,000 % of Waterbury residents CT average in 2016 was 8.9%
*CT food insecurity rate in 2018 was 12.3%
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Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

6. MARKET FEASIBILITY: INDUSTRY STATISTICS
Market Feasibility
Industry Statistics
 CSA programs make up 53% of the value of farm sales
 CSA programs in the Northeast have an average enrollment size of 203.8 shareholders
 The CSA programs in the Northeast on average have been in operation for 7.8 years
 54.7% of Northeast CSAs are in an urban location (urban=located near (within 50 miles) of a large city – over 1 million or small city – 250,000 to 1,000,000)
 Response from a survey provided to CSA managers suggest not only an increase in sales, but also an increase the range of entities that will be sold to: 71.5%
anticipated increased sales to schools and institutions, 65% expected increased sales at on-farm retail markets, 60% expected increased sales to restaurants, and 58%
expected increased sales to grocery accounts
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Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

7. MARKET FEASIBILITY: TARGET MARKET
Target Market:
 Because the plan proposes a cross-subsidization model, there are two target market for the meal-kit service in Waterbury:
 1.) Residents aged 35-44 with a household income above $75,000 who seek convenient food options for dinner
 2.) Residents aged 35-44 with a household income of $40,000 or below who have little or know time to prepare meals for themselves or family and
struggle with dietary related health conditions such as diabetes, hypertension, high-blood pressure, etc.
 Benefits of the meal-kit service:
 1.) it supports local farmers and provides them funds needed to cover operational costs in the non-growing parts of the season
 2.) it provides fresh, healthy ingredients that are highly nutritious and not processed
 3.) it gives food insecure families a consistent, reliable source of healthy foods throughout the year
 The nutritional level of a CSA program fulfils a critical need of Waterbury residents: 1.) the need for food that is good for one’s health
 32% of Waterbury residents have high-blood pressure and hyper-tension
 41% of Waterbury residents are obese
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Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

8. MARKET FEASIBILITY: TARGET MARKET
(CSA PURCHASER PROFILE)
8
Data Source Age Education Income Race
Impacts of a Community
Agriculture (CSA) Voucher
on Food Lifestyle Behaviors:
Evidence from an Employer-
Sponsored Pilot Program (2017)
45 years old (mean
age)
86% Minimum 4 year degree $101,000 Household (Hh) income Avrg. Hh size of
2.89
***no data
Community Supported
on the Central Coast: The CSA
Member Experience (2003)
***no data 81% College degree $66,000+ per capita (66% of sample 90% European-
American
Exploring member data for
Community Supported
(CSA) in California: Comparisons
Former and Current CSA members
(1997)
38 years old (mean
age)
Some level of graduate
school [Mean of 8.9 on a
scale of 1 (middle school or
less) to 10 (graduate degree)
$80,000+ Household (Hh) income
*Mean of 7.7 on a 1-10 scale
1=$10,000 or less
10= $200,000 or more
77% White
 A typical CSA purchaser is White, in the age range of 34-49, has a college degree, and earns more than $60,000.
Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

9. MARKET FEASIBILITY: TARGET MARKET
(WATERBURY PROFILE)
Data Source Age Education Income Race
DATA Haven
(2018)
-31%: 18-34 years old
-25%: 34-49 years old
-37%: High school or less
-36%: Some college or associates
degree
-25%: Bachelor’s degree or higher
-36%: less than $30,000
-33%: $30,000-$75,000
-19%: $75,000 or more
45% White
21% Latino
19% Black
DATA USA (2017) 34.7 Median age ***no data $40,879 Median Household(Hh) income 38.5% White
37.2% Latino
17.9% Black
United States
Census Data
-25.6%: under 18 years old
-61.8%: 18-64 years old
-61.5% High school degree
-17.2% Bachelor’s degree or higher
$22,004 per capita income
$41,499 Median Household(Hh) income
58.8% White
31.2% Latino
20.1% Black
 The profile of Waterbury resident is Latino or Black, in the age range of 34-49, has a High school degree, and earns less than
$30,000
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Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

10. MARKET FEASIBILITY: MARKET STRATEGIES
Market Strategies:
 Unique Selling Proposition (USP) Messaging
 A substantial amount of affordable, nutritious food provided to low-income earners on a weekly basis
 The food packages (shares) will consist of healthy, locally sourced products with accompanying recipes that allow purchasers to experience home-cooking
 The products will be aggregated in high-traffic community locations such as faith-based organizations, seniors centers, the YMCA, and possibly in super-markets
 Advertising
 Partner with community organizations like the Hispanic Coalition, the Waterbury Senior Center, Our Lady of Lourdes Church, etc. to spread information about a CSA
program through word-of-mouth, print-out brochures/documents, and card with web-link to website
 Establish a social media presence that regularly promotes the CSA service and how it functions
 Advertisements should focus on the two main selling points: 1.) affordability 2.) nutritional value
 Community Engagement
 Reach out to community partners mentioned above and request that they sponsor presentation that explains how CSAs work
 Recruit volunteers to help pack shares or distribute shares (significantly reduce labor costs)
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Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

11. TECHNICAL FEASIBILITY
 Facility Requirements:
 A location to aggregate food products and package boxes (Brass
City Harvest’s food hub)
 Space in a community partner’s building to aggregate the food
packages (space within a faith-based organization or community
organization with access to a refrigerator)
 Technological requirements:
 An active phone line where a potential customers can call and sign
up for a meal-kit
 Possibly an operational website with a payment system where
people can sign up for a weekly food package (a “share”)
 Transportation requirements:
 A refrigerated delivery truck that can store food packages that need
to be delivered to drop-off spots
 Raw Material Requirements:
 Food products from local farmers which may include meats, poultry, fish, dairy,
vegetables, fruits, and grains
 Cardboard boxes or reusable grocery bags to pack the “shares”
 Labor Requirements:
 1 Executive Director of the CSA
 1 Program Manager who will oversee the operations of the people aggregating,
packing, and delivering the food packages
 2-3 Packers who will put together the meal-kits and have them ready for delivery (1
for the first 50 shares; 2 for 50-100 shares; 3 for100 shares)
 2-3 Deliverers who will bring the packed boxes of food to the specified drop-off
locations (1 for 50 shares; 2 for 50-100 shares; 3 for100+ shares)
 2-3 Distributers who check-in purchasers at the community drop-off spots and
provide the purchasers with their shares (1 for 50 shares; 2 for 50-100 shares; 3
for100+ shares)
Technical Feasibility
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Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

12. ORGANIZATIONAL FEASIBILITY
Organizational Feasibility
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 Executive Director
 Program Manager
Position October November December January February March April Total
Executive
Director
? ? ? ? ? ? ? ?
Program
Manager (Rate/
Hr. $15.50)
$2,604 (8 Hrs. per
day for 21 days)
$2,604 (8 Hrs. per
day for 21 days)
$2,604 (8 Hrs. per
day for 21 days
$2,604 (8 Hrs. per
day for 21 days
$2,604 (8 Hrs. per
day for 21 days
$2,604 (8 Hrs. per
day for 21 days
$2,604 (8 Hrs. per
day for 21 days
$18,228
Packers
(Rate/ Hr. $12)
$2,016 (8 Hrs. per
day for 21 days)
$2,016 (8 Hrs. per
day for 21 days)
$1,512 (6 Hrs. per
day for 21 days)
$1,512 (6 Hrs. per
day for 21 days)
$1,512 (6 Hrs. per
day for 21 days)
$2,016 8 Hrs. per
day for 21 days)
$2,016 8 Hrs. per
day for 21 days)
$12,600
Drivers
(Rate/ Hr. 13.50
$1984.50 (7 Hrs.
per day for 21
days)
$1,984.50 (7 Hrs.
per day for 21
days)
$1,701 (6 Hrs. per
day for 21 days)
$1,701 (6 Hrs. per
day for 21 days)
$1,701 (6 Hrs. per
day for 21 days)
$1984.50 (7 Hrs.
per day for 21
days)
$1,984.50 (7 Hrs.
per day for 21
days)
$13,041
Distributors
(Rate/ Hr. $12)
$1,008 (4 Hrs. per
day for 21 days)
$1,008 (4 Hrs. per
day for 21 days)
$1,008 (4 Hrs. per
day for 21 days)
$1,008 ( Hrs. per
day for 21 days)
$1,008 (4 Hrs. per
day for 21 days)
$1,008 (4 Hrs. per
day for 21 days)
$1,008 (4 Hrs. per
day for 21 days)
$7,056
Total $7,612.5 $7,612.5 $6,825 $6,825 $6,825 $7,612.5 $7,612.5 $50,925
Projected Labor Costs Without Volunteers
Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

13. LONG-TERM CONSIDERATIONS FOR
CSA VIABILITY: RETENTION RATE
 Low Retention Rates are one of the main issues to consider when analyzing the long-term viability of a meal-kit service
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Data Source Retention Rate (%)
The 2014 CSA Farming Annual Report: Trends and Statistics in CSA Farming 46.1% (2015)
45.2% (2016)
Community-Supported Agriculture in the Research Triangle Region of North
Carolina: Demographics and Effects of Membership on Household Food Supply
and Diet (2010)
68%
The Changing Face of Community-Supported Agriculture (2010) 75%
Community Supported Agriculture, Food Consumption Patterns, and Member
Commitment (2008)
33%
Expanding Our Understanding of Community Supported Agriculture (CSA): An
Examination of Member Satisfaction (2004)
50%
Community Supported Agriculture on the Central Coast: The CSA Member
Experience (2003)
65%
Retention Rates for CSAs
Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

14. LONG-TERM CONSIDERATIONS FOR
CSA VIABILITY: FACTORS INFLUENCING JOINING CSA
14
The mean probability of joining a CSA: 0.067
 Factors of Increase
 0.091 if individuals hears of CSA through word of mouth (35% increase)
 0.078 if the cost per person falls by 10% (increase of 17.2%)
 Factors of Decrease
 0.053 if children under 12 are present in the household (decrease of 20%)
 0.059 if teens are present in the household (decrease of 14%)
 0.054 if the cost per person rises by 10% (decrease of 10%)
*Although an exact probability value was not given, researchers also noted education level was a significant predictor of membership status in a CSA.
Members generally had a high level of education.
 Hearing about the CSA program through word-of-mouth, reducing the cost of the share, having a high level of education, and not having
children in the household all were significant factors that positively increased the probability of joining a CSA.
Factors Influencing Probability of Joining a CSA
Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

15. OTHER LONG-TERM CONSIDERATIONS
FOR CSA VIABILITY: PRODUCT DIVERSITY
15
CSA Member Experience: Reasons Members Might Not Renew Membership
*Additional statistics:
•Only 24% were very satisfied with the product mix
•52% reported spending less time on obtaining food BUT 59% reported spending more time preparing food
**Note:
An important point to be made about this data is that the percentages for “cost/value issues” and “pick-up issues” would likely be much higher in a community
such as Waterbury. The subjects of this particular study had a household income of more than $66,000 a year and they most likely did not rely on public
transportation regularly. Contrast this with the Waterbury community where the average household income is $41,000 and more than a 25% of residents use public
transportation as the primary source of travel.
CATEGORIES PERCENTAGES
PRODUCT MIX ISSUES (MORE VARIETY, WANT TO SELECT OWN) 44%
PROBLEMS WITH QUANTITY (THREW OUT TOO MUCH, ETC.) 37%
HOUSEHOLD ISSUES (MOVING, DON’T COOK, ETC.) 26%
COST/VALUE ISSUES 14%
PICK-UP ISSUES 14%
PROBLEMS WITH QUALITY 9%
PROBLEMS WITH PROCESSING AND STORING 4%
PREFER FARMERS ‘MARKET 5%
OTHER 11%
 The lack of product diversity is the top reason for not renewing CSA membership
Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

16. OTHER LONG-TERM CONSIDERATIONS
FOR CSA VIABILITY: PRODUCT DIVERSITY CONT’D
16
 CSA members are most concerned with 1.) the quality of the produce, 2.) the quantity of food in the share, and 3.) the farm’s agricultural practices.
 CSA members were least satisfied with 1.) the inability to choose their share items, 2.) the lack of product diversity in their share, and 3.) the high
cost of the share.
Categories Importance Satisfaction
Appropriate diversity of products in share 4.35 3.31
Appropriate quantity of food in the share 4.51 3.76
Ability to choose share items/content 3.62 2.95
High quality produce 4.89 4.22
Affordability 3.95 3.42
Convenient pickup/delivery location 4.32 3.89
The farm's agricultural practices (e.g., organic) 4.36 4.23
Health, dietary, &/or lifestyle impacts from 3.79 4.19
Short transportation distances for produce 3.58 4.05
*Importance
5= important AND essential for
continuing my CSA
3.75= important BUT NOT essential for
continuing my CSA
2.5= off minor importance
1.25= not important
**Satisfaction
5= very satisfied
4= satisfied
3= neutral/mixed feeling
2= unsatisfied
1= very unsatisfied
Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

17. SUGGESTIONS FOR CREATING A VIABLE
CSA PROGRAM
17
 COST
Explore how to make meal-kits affordable for people earning roughly $30,000 annually
 Reduce labor costs by establishing only a few centrally located delivery spots
 Streamline distribution by linking with community organizations that can aggregate the meal-kits and distribute them to
those who have enrolled in the service
 Recruit volunteers for packing and distributing food packages to reduce labor costs
 Apply for grants that could be directed towards reducing the costs of the meal-kits
 Use a system of income-qualification to create different payments levels
 ADVERTISING
Try different techniques for promoting the CSA program/making the community aware of the program’s benefits
 Use an incentive system that rewards current CSA members for referring others to the program
 Reach out to trusted community organizations and leaders who could disseminate advertisements or spread a message
about a possible CSA program
 Focus on using word-of-mouth to promote the CSA program but also establish a social media presence through
Facebook and Instagram
 Create print-outs that explain both how the program works and why it’s beneficial to purchasers
Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

18. SUGGESTIONS FOR CREATING A VIABLE
CSA PROGRAM
18
 AGGREGRATION/DISTRIBUTION:
Explore the different aggregation and distribution options
 Food packages could be pre-packaged and delivered to drop-off spots
OR
 All food products could be organized and displayed at a defined location; purchasers would come to this location and
assemble their food package by taking the appropriate amount of each item
 PRODUCT DIVERSITY:
Try to come up with a diverse package of food with products ranging from leafy-greens, tubers, root vegetables,
herbs, etc.
 Source from as many local growers as possible and inquire about different produce items if the grower continues to
offer the same products each week
 Explore the possibility of specialty items that may not necessarily be fresh produce( i.e. canned goods)
Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019

19. DATA RESOURCES
 Impacts of a Community Supported Agriculture (CSA) Voucher Program on Food Lifestyle Behaviors: Evidence from an Employer-Sponsored Pilot Program
 Community Supported Agriculture on the Central Coast: The CSA Member Experience
 Exploring member data for Community Supported Agriculture (CSA) in California: Comparisons of Former and Current CSA members
 United States Census Data
 DATA USA
 Exploring member data for Community Supported Agriculture (CSA) in California: Comparisons of Former and Current CSA members
 Factors Influencing the Decision to Join a Community Supported (CSA) Farm
 Community Supported Agriculture on the Central Coast: The CSA Member Experience
 Expanding Our Understanding of Community Supported Agriculture (CSA): An Examination of Member Satisfaction
 The Changing Face of Community-Supported Agriculture
 Community Supported Agriculture on the Central Coast: The CSA Member Experience
 Community-Supported Agriculture in the Research Triangle Region of North Carolina: Demographics and Effects of Membership on Household Food Supply and Diet
 The 2014 CSA Farming Annual Report: Trends and Statistics in CSA Farming
 Community Supported Agriculture, Food Consumption Patterns, and Member Commitment
 2018 DataHaven Community Wellbeing Survey Waterbury
 FOOD DESERTS IN THE BRASS CITY A STUDY OF ACCESS TO HEALTHY FOOD OPTIONS IN WATERBURY’S NORTH END
 America’s Health Rankings: United Health Foundation
 Community Supported Agriculture: New Modes for Changing Markets
19
Tom MacMullen, Brown University-Class of 2020, Waterbury Health Department Intern Summer
2019