Regional Food Hubs: Challenges and opportunities for linking producers to regional markets - presentation

1. Challenges and Opportunities for Linking
Producers to Institutional Markets
Moderated by James Barham, USDA
Presenters:
Mandy Davis, Intervale Center
Robin Morris, Mad River Food Hub
Katherine Sims, Green Mountain Farm Direct
Stacey Sobell, Ecotrust/National Farm to School Network
National Farm to Cafeteria Conference
Burlington, VT
August 5, 2012
08/05/2012

2. Presentation Overview
Regional Food Hubs
 Setting the stage – a national perspective on food hubs
 Food hub sales pitch!
 Conversational Q&A on challenges/opportunities
 Open discussion
 Closing – food hub resources
08/05/2012

3. Workshop Objectives
After this workshop, attendees will:
 have increased their understanding of some of the
persistent challenges that producers and food hubs face
when trying to sell to institutional markets.
 be armed with several strategies to employ and/or share
with others for overcoming these barriers, and
opportunities available for institutional partnerships and
purchasing.
08/05/2012

4. NGFN Food Hub Collaboration
Collaboration between USDA, Wallace Center at Winrock
International, and the National Good Food Network
Major Accomplishments to Date
 Carried out a national survey of regional food hubs
 National database of operating food hubs
 Published the Regional Food Hub Resource Guide
 Convened a national gathering of over 150 food hubs
and their supporters to launch a Food Hub Community
of Practice
08/05/2012

5. Regional Food Hub Definitions
Definitions vary from narrow market efficiency functions to
those related to visions of building a more sustainable food
system
Working Definition
A business or organization that actively manages the
aggregation, distribution, and marketing of source-identified
food products primarily from local and regional producers to
strengthen their ability to satisfy wholesale, retail, and
institutional demand.
08/05/2012

6. Regional Food Hub
- Defining Characteristics -
 Carries out or coordinates the aggregation, distribution, and
marketing of primarily locally/regionally produced foods from
multiple producers to multiple markets.
 Considers producers as valued business partners instead of
interchangeable suppliers and is committed to buying from small to
mid-sized producers whenever possible.
 Uses product differentiation strategies (e.g. identity preservation,
group branding, sustainable production practices, etc.) to ensure
that producers get a good price for their products.
 Works closely with producers to ensure they can meet buyer
requirements by either providing direct technical assistance or
finding partners that can provide this technical assistance.
 Aims to be financially viable while also having positive economic,
social, and/or environmental impacts within their communities
08/05/2012

7. Food Hub Survey Key Findings
 Well over 200 food hubs are in operation around the country,
with large clusters in the Midwest and Northeast
 Entrepreneurs took the organizing lead in establishing 40
percent of the food hubs
 A nascent industry: 60 percent of the food hubs have been in
operation for five years or less
 Average food hub sales are nearly $1 million annually
 Food hubs employ on average 7 full-time and 5 part-time
employees with an average of 5 regular volunteers
 The median number of suppliers to a food hub is 40, many of
whom are small and mid-sized farmers and ranchers
08/05/2012

8. Food Hub Survey Key Findings
 Offers a wide range of food products, with fresh produce being its
major product category, and sells through multiple market
channels, with restaurants being an important entry market
 A socially driven business enterprise with a strong emphasis on
“good prices” for producers and “good food” for consumers
 Actively involved in their community, offering a wide range of
services to both producers and consumers
 Over 40 percent of food hubs are working in "food deserts" to
increase access to fresh, healthy, local food products in communities
underserved by full-service food retail outlets
08/05/2012

9. Based on a working list of 200 regional food hubs identified by the NGFN Food Hub Collaboration
08/01/2012

10. Regional Food Hub Classifications
Breakdown of Regional Food Hubs*
Food Hub Legal Status Number Percentage
Privately Held 91 46%
Nonprofit 59 29%
Cooperative 39 20%
Publicly Held 8 4%
Informal 3 1%
Intermediated Market Model Number Percentage
Farm to Consumer (F2C) 78 39%
Farm to Business/Institution (F2B) 67 34%
Both F2B and F2C 55 27%
*Based on a working list of 200 food hubs identified by the NGFN Food Hub Collaboration (Aug. 1, 2012)
08/01/2012

11. Growth in the Number of Food Hubs (2001-2011)*
190 197
170 172
150 152
130 129
110
105
90
88
70 77
68
50 56
49 53
47
30
10
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
At least 68 food hubs have started in the past three years (2009-
2011), with at least 25 food hubs established in 2011 alone
*Based on a working list of 200 food hubs identified by the NGFN Food Hub Collaboration (Aug. 1, 2012)
08/05/2012

12. The Big Picture…
- Regional Food Hubs and the Food System -
Regional food hubs are filling a market function not adequately
addressed by the current distribution system: the aggregation
and distribution of food products from small to mid-sized
producers into local/regional wholesale market channels
Strong potential partnerships between regional food hubs and
other distributors/wholesalers. Regional food hubs can:
 Serve as aggregation points for regional distributors/wholesalers
 Provide a reliable and ready supply of local/regional products
 Offer a broader and more diverse selection of source-identified and
branded local products
 Increase supply of local/regional products by providing
training/technical assistance to “grow” more producers
08/05/2012

14. Yes, healthy, nutritious food is what wellness
promotes but supporting Vermont farmers
feeds our souls.
Our local farmers are some of the hardest
working people I know and my purchase of
the Intervale Food Hub CSA at Hickock &
Boardman is more than the food. It's my small
investment in helping sustain local growers. I
hope to inspire others to understand the value
of the Intervale Food Hub CSA and to return to
the joys of eating real food again.
Lori Smith, Hickok & Boardman, Burlington,
Vermont

15. By being a member of the Intervale Food
Hub CSA, you are helping 24 small
farms thrive.
When we thrive, farmland remains open,
we are able to reinvest in our local
economies, and our vital communities
are strengthened through our family
farm businesses.
If you have not already, we hope you will
join us.
-Intervale Food Hub Farm Suppliers

16. Mad River Food Hub (MRFH)
supporting local food producers
Mad River Valley in central Vermont is a 92,000 acre
watershed with Meat, Dairy, Vegetable & Fruit Farms.
The Mad River Food Hub supports the farmers and
food producers by providing USDA meat and FDA
vegetable processing rooms, cold and dry storage, and
local distribution within a 50 mile radius.
Opened in October 2011 this 4,000 SF facility offers
three processing rooms for rent on a daily basis.
Additional services are offered including HACCP,
Business Planning and Business Consulting.
madriverfoodhub.com F2C 8/5/12

17. Intervale Zucchini to Vermont Bean Crafters at
MRFH for Burlington School District
madriverfoodhub.com F2C 8/5/12

18. Farm 2 School
collaboration, education & organization
Washington West Supervisory District
L OCAL FARMS
K I N G S B U R Y M A R K E T G A R D E N , S M A L L S T E P F A R M , S A N TA D A V I D A F A R M ,
G AY L O R D F A R M , N E I L F A R M , T H R E E S P R I N G S F A R M , K N O L L F A R M ,
K ENYONS VARIETY S TORE AND FARM, C ARPENTER FARM, V ON T RAPP
FARMSTEAD, B RUCE FARM
madriverfoodhub.com F2C 8/5/12

19. A great place to meat and veg out
madriverfoodhub.com F2C 8/5/12

20. Delivering Local Food to
School and Institutions

21. It’s easy to order from them

22. We make it easy to order from him

23. How Farm Direct Works
Publish Product List
Distribute weekly Local Food Product List, featuring products from
multiple farms, to schools and other institutions.
Coordinate Orders
Receive orders from the institutions and submit them to the necessary
farms.
Deliver Product
Deliver orders to the institution. All products from multiple farms arrive
in one delivery with one invoice.

25. What is FoodHub?
www.food-hub.org
FoodHub is an online
directory and marketplace
that makes it easy and
efficient for regional food
professionals to connect
and do business.
FoodHub is a project of

26. Who’s Using FoodHub?
Buyers: Chefs, grocers, restaurateurs,
institutional food service directors (schools,
preschools, hospitals, senior centers, jails,
colleges, etc.) and professional food buyers
of all kinds.
Sellers: Farmers, ranchers, fishermen,
dairies, brewers, distilleries, wineries, food
processor/manufacturers or brokers.
Distributors: Broadline and specialty
wholesale food distributors.
Associates: Industry suppliers, media,
farmers’ markets, trade associations and
other supporters of the regional food
economy.
FoodHub is a project of

27. What Schools and Farms are Saying:
“It’s a privilege to have our produce served to the children at David-Douglas,
especially given the high rate of free and reduced meals there.” – Andrea
Sandberg, Treasure from Heaven Farm
“FoodHub gives me a real sense of who’s in my area. It brings the farmers’
market right into my office.” – Beth Hyndman, Wahluke School District
“We posted a request on the FoodHub Marketplace for 200 lbs of radishes for
our Harvest of the Month special and got responses from farmers right in
our district! Doesn’t get any fresher than that.” – Gitta Grether-Sweeney,
Portland Public Schools
“We’re selling to schools because we joined Food-Hub and got connected.” –
Gregg Everts, Bella Terra Gardens
FoodHub is a project of

28. QUESTIONS
1. What were some of major challenges your food hub has
faced and what strategies have you employed to overcome
the challenges?
2. What are the most important lessons you’ve learned along
the way?
3. What do you see coming on the horizon with food hubs and
farm to cafeteria? What are your plans for taking advantage
of these emerging opportunities, or for addressing new
challenges?
08/05/2012

29. Distribution and Food Hub Resources
Moving Food Along the Value Chain:
Innovations in Regional Food Distribution
By Adam Diamond & James Barham
- USDA Agricultural Marketing Service
Regional Food Hub Resource Guide:
Food hub impacts on regional food systems, and
the resources available to support their growth
and development
A collaboration between USDA and the Wallace Center
08/05/2012

30. USDA Food System Resources
USDA’s Food Hub Portal
www.ams.usda.gov/FoodHubs
A catalogue of USDA's findings, resources,
and support for food hubs
USDA Agricultural Marketing Service –
Marketing Services Division
http://www.ams.usda.gov/WholesaleFarmersMarkets
Includes National Farmers Market Directory,
grant programs, and research/resources to assist
producers improve their market opportunities
08/05/2012
08/01/2012

31. NGFN Food Hub Resources
NGFN Food Hub Collaboration Site
http://foodhub.info
 Map and list of known food hubs
 News
 Webinars (upcoming, and recorded)
 Print resources (e.g. feasibility studies)
 Form to let us know about new hubs
 Food hub conference proceedings &
recordings of sessions
08/05/2012

32. USDA KYF2 COMPASS
“Know Your Farmer, Know Your Food” Compass 2.0
www.usda.gov/kyfcompass
An online multi-media narrative with stories,
pictures and video about USDA’s support for
local and regional food systems
Includes an interactive map of USDA-
supported local and regional food
activities in all 50 states
Now displays food hubs!
USDA’s “Know Your Farmer, Know Your Food” Initiative
www.usda.gov/knowyourfarmer
08/05/2012