Gathering 2011 Breakout Session - Local Foods - CAN presentation on Established Food Systems
1. Appalachian Funders Network
Established Local Food System
June 7, 2011
Presenters: Michelle Decker,
Kathlyn Terry and Leslie Schaller
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. 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. Passion for Local Food Economies
We hope to leave you with a sense of possibility
and excitement for this work as part of the
Appalachian Transition!
6. CAN Member Organizations
CAN 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. 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. What is the wealth
creation 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. The Seven Forms of Wealth
• Individual
• Social
• Intellectual
• Natural
• Built
• Political
• Financial
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. WCI as a tool for reinventing
healthy local food systems
Learning how measurement informs
interventions along the food value chain
Understanding gaps and disconnects
Building collaborations and leveraging
shared assets
12. Traditional Supply Chain
Production Processing Distribution Marketing Consumption
Traditional Supply Chains: push supply to the next node in the chain
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
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
28. • Supported by RA since
2004
• Purchased in 2010 for
$100,000 with public –
private investment
• CPA: A Rural Appalachian
Case History, at
www.ohiofoodshed.org/
newsfromthefoodshed
32. What is a Produce Auction?
A wholesale venue supplied with
fresh fruits and vegetables by local
growers and sold through
competitive bidding.
33. Meeting demand and creating markets
Buyers - providing a higher quality Consumers - The opportunity to
of fresh product packed and ready purchase the freshest Ohio produce
for resale. available.
36. Seasonality
Produce 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,
http://www.hightunnels.org/ForGrowers/Marketing&Ec
onomics/HomervilleAuctionImages/HPA_Guidebook.pdf
37. Benefits of a Produce Auction
Ohio University Began Purchasing from CPA in 2007
38. Location of CPA Buyers & Sellers 2009
Number
of buyers
and
sellers
doubled
in 2010!
52. 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
53. 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.
55. Appalachian Harvest
Distribution Flow
Produce Richmond,
Source VA
Partners
Asheville,
Leading Green
NC Area
Backhaul
Produce to
Resell
Ingles
Receive
Haul AH
produce and Earth
products for Fare
Deliver
AH resale
Produce
Deadhead
Appalachian Harvest Whole
Packinghouse Foods
Duffield, VA Atlanta, GA
56. 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
59. 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 competition
Nutritional 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)
60. Food Deserts
As 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”).
62. 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
63. Stockport
Chesterhill
Chauncey
City of Athens
Reedsville
Rutland
Current Locations
65. County Economic Classification
Location MORGAN ATHENS MEIGS U.S.
Three-Year Average Unemployment
9.6% 6.2% 9.1% 5.0%
Rate, 2006–2008
Per Capita Market Income, 2007 $13,958 $17,478 $15,102 $32,930
Poverty 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., 2006–2008
Per Capita Market Income, Percent
42.4% 53.1% 45.9& 100.0%
of U.S. Average, 2007
Poverty Rate, Percent of U.S.
148.8% 221.0% 159.9& 100.0%
Average, 2000
Appalachian Regional Commission 2011
66. Country Fresh Stops
Funding 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
80. Measurement and Tracking
Producer 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 Chain
Buyer/Customer Measures
• Senior Farmers Market Nutrition Program Dollars Spent
• Markets Accepting EBT
• Dollars Spent at Markets on EBT
• Number and Type of Wholesale Buyers
82. 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
83. 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
84. 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
85. 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
87. 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
88. What You Can Do
ensure Appalachian voices are heard
advocate for programs to help small farmers,
not agribusiness
support local work
89. Resources
Central Appalachian Network:
www.cannetwork.org
Center for Economic Options:
www.centerforeconomicoptions.org
Natural Capital Investment Fund:
www.ncifund.org
Mountain Association for Community Economic
Development: www.maced.org
90. Resources
Appalachian Sustainable Development:
www.asdevelop.org
Appalachian Center for Economic Networks:
www.acenetworks.org
Rural Action: www.ruralaction.org
Mountain Association for Community Economic
Development: www.maced.org