This PowerPoint presentation was given on Oct. 16, 2013 by James Matson at the Third International Conference on Food Studies in Austin, Texas. This presentation addresses the topic of how food hubs are emerging as a solution for local food marketing in the United States. they serve as a way to connect producers and buyers while maintaining traceability as a value proposition.

1. James Matson, Matson Consulting
Jeremiah Thayer, Matson Consulting
FOOD HUBS: SUPPLY CHAIN TRACEABILITY TO
ENHANCE RURAL SUSTAINABILITY

2. WHY ARE THESE APPLES NOT THE SAME?
Presented October 16, 2013 – Food Studies Conference Austin, Texas

3. ANSWER:
A traditional commodity distribution channel
vs.
A developing local foods marketing channel
Presented October 16, 2013 – Food Studies Conference Austin, Texas

4. TRACEABILITY
“The transfer of information about a product from the
producer or point of origin through all intermediaries in
the transaction to the end consumer”
(Thilmany 2008)
Presented October 16, 2013 – Food Studies Conference Austin, Texas

5. TRACEABILITY
The information maintained through…traceability
efforts can contribute to higher pricing being received
by the producer, because customers demand to know
more about where their food comes from, and are
willing to pay for it.
Presented October 16, 2013 – Food Studies Conference Austin, Texas

6. LOCAL FOOD EXPANSION

Willing to pay a premium

Achieved $7 billion in
sales for 2011 (USDA‐ERS).

Estimated 107,000 farms, or about 5% of all U.S. farms
(CRS-2013).

Formation of multi-farm Community Supported Agriculture
(CSA) programs and food hubs.
Presented October 16, 2013 – Food Studies Conference Austin, Texas

7. WHAT IS A FOOD HUB?
Gaskin, Julia W. et al. (January 2013). “Is There Farmer Interest in Food Hubs in Georgia? A Needs
Assessment Survey.” Georgia Sustainable Agriculture Consortium.
Presented October 16, 2013 – Food Studies Conference Austin, Texas

8. USDA DEFINITION OF A FOOD HUB
“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”
(Barham et al. 2012).
Presented October 16, 2013 – Food Studies Conference Austin, Texas

9. BROADER DEFINITION OF FOOD HUBS

function rather than form:
“In many cases, food hubs share
information with end users on where
or how food was produced, providing
a greater connection between
producers and consumers.”
(Matson et al 2013)

evolved from an educational or social mission:
 striving
to keep food dollars in the local economy
 keeping working agricultural lands in production
Presented October 16, 2013 – Food Studies Conference Austin, Texas

10. THE VARYING FUNCTIONS OF FOOD HUBS

Market Access for Local Foods

Transportation and Distribution

Brokerage Service

Increasing Market Share by Bundling

Increasing Market Share by Extending the Season

Maintaining a Consumer-Producer Connection

Information Flow and Sharing (Source of Information)
Presented October 16, 2013 – Food Studies Conference Austin, Texas

11. FOOD HUB AS AN INFORMATION SOURCE
 Creation
of Networks and the Linking of
Buyers
- E.g. LuLu’s Local (Virtual)
 Product
Assurances
- Assurances about product quality
 Traceability
- Point of origin
Presented October 16, 2013 – Food Studies Conference Austin, Texas

12. TRACEABILITY

Producer to Consumer
 Fresh
produce has no label with pertinent
production information.
Food Safety
 Inventory Management
 Information of Value

 Consumers
can make more informed purchasing
decisions.
Presented October 16, 2013 – Food Studies Conference Austin, Texas

13. TRACEABILITY

Sustainability and Transparency

The producer is able to become a price maker and directly
represent themselves and their products to consumers.
Presented October 16, 2013 – Food Studies Conference Austin, Texas

14. COMMUNITY REVITALIZATION

“Locavore”

Values Based Food Chain

Food Deserts

Intersection of Demand and Social Values
Presented October 16, 2013 – Food Studies Conference Austin, Texas

15. CONCLUSION
Traditional Market



Cost
Volume
Optimization
Traceable Market



Information
Quality
Satisfaction of Customer
Presented October 16, 2013 – Food Studies Conference Austin, Texas

16. CONCLUSION

Conventional U.S. Food
Marketing Chains are ill
equipped to maintain the
traceability of products.

Food Hubs connect
producers and buyers

Food hubs maintain
traceability as a value
proposition
Presented October 16, 2013 – Food Studies Conference Austin, Texas

17. WANT TO KNOW MORE?
For more information on local
food marketing, check out
USDA Report 73 by James
Matson, Martha Sullins, and
Chris Cook.
Visit: www.matsonconsult.com
(803) 233-7134
Connect with Matson
Consulting on Facebook and
Linked In
Presented October 16, 2013 – Food Studies Conference Austin, Texas