Phase 1: Food Hub Feasibility Study in Pierce County, WA. PA R T N ER O R G A N I Z AT I O N S :
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1 Phase 1: Food Hub Feasibility Study in Pierce County, WA. SELENA LIGRANO, PINCHOT UNIVERSITY PA R T N ER O R G A N I Z AT I O N S : FO R T ERRA & THE P I E RC E COUNTY AGRICULT URE COMMUNITY O F INTEREST
2 Methodology Key Findings Agenda Currently Happening Recommendations Further Research Next Phases
3 Methodology Literature review of national and regional food system studies and assessments Secondary data collection Identify aggregation, distribution and marketing barriers and opportunities
4 Key Findings
5 Barriers & Opportunities for Producers and Buyers Producers Food Hub Buyers Marketing Over arching brand while maintaining individual producer identity Infrastructure Financing Provide one location for buyers to source products Quality Quantity Consistency Land Costs Labor Costs Regulations Aggregated products can reduce the need to expand while reaching new markets Reduces time spent away from farm, delivering and marketing to multiple buyers Provide infrastructure needs through partnerships Processing Seasonality Pricing
6 Business Structure Non-Profit, Co-Op Non-Profit For-Profit, Co-Op For-Profit Partners/ # of Employees Number of Producers Market Channels Number of Buyers 4 Partners with a Board 2 employees, 1 AmeriCorps within STFW and 20 outside producers Wholesale Hybrid: Direct-toconsumer and wholesale 200 wholesale 300 CSA, 5 farmers markets, 5 wholesale and over 100 Good Food Bag 2 employees 15 employees Wholesale Hybrid: Directto-consumer and wholesale 25 wholesale 1,000 CSA 15 wholesale
7 Infrastructure and Partnerships Regional data LINC Foods utilized a Food Bank s cold storage Lack of commercial kitchens reduces market channel and season extension options Partnerships between distributors to reduce barriers for expansions and create new market channels
8 Marketing Regional data 42% of producers use word of mouth 35% of producers want help connecting to new markets 50% of buyers have expressed an interest in sourcing locally Top 5 trends for 2016 local meat and seafood, local grown produce and hyper local sourcing Multiple federal and state buy local campaigns *Agricultural Infrastructure Study Pierce County 2015, Workshop surveys, National Restaurant Association and Specialty Food Industry Surveys
9 Aggregation Regional data Producers as small as ½ acre can be involved in a Food Hub Producers continue to maintain own identity while benefiting from Puget Sound Food Hub overarching brand Regional food hubs comprised of between producers Producers products range from produce to meat, dairy and poultry
10 Number of Farms by Size, 2007 to # of Farms acre acre acre acre acre
11 Number of Pierce County Farms by Value of Sales, 2007 to Less than $1,000 $1,000 to $2,499 $2,500 to $4,999 $5,000 to $9,999 $10,000 to $19,999 $20,000 to $39,999 $40,000 to $99,999 $100,000 to $499,999 *
12 SWOT Analysis for Pierce County Food Hub Strengths Increased marketing and branding Aggregation of small farms products Ability to maintain branding of individual farms Help to support the local economy through job creation The AgCOI support through marketing campaigns and grant funding Weaknesses Food Hubs are still a new model, need more outreach Large start-up costs Heavily rely on grants and subsidies for start up Breakeven around $2 million *NGFN Need full producer and buyer participation to work Opportunities Provides farmers a way to expand into wholesale markets Allows for the collaboration of experiences from other farmers Build partnerships with existing Food Hubs Utilizing and expanding Pierce County marketing campaigns Threats Concern of dilution of existing market channels Do not receive enough funding for start-up Won t have enough buyers to scale up and succeed Won t have sufficient producer participation Seasonality of products will limit buyer participation
13 Currently Happening in Pierce County Infrastructure and Partnerships Terra Organics has partnered with PSFH to expand into Pierce County Marketing AgCOI provide funding for marketing campaign to help increase support of local producers and economy Aggregation Small producers able to cooperatively expand product availability
14 Recommendations
15 Moving Forward Pierce County Food Hub Platform for marketing and connecting producers to buyers Pursue infrastructure that can be complimentary to a Food Hub Create and expand partnerships Producer engagement, business and farm education
16 Further Research Needed Quantity of surplus available from producers Product specific demand from buyers Identify current supply chain flow for producers and buyers
17 Next Phases Outreach Community Groups Steering committee Identify partners Identify customers Identify producers Identify processors, distributors and aggregators Market Analysis Economic Impacts Environmental Impacts Social Impacts Cost Analysis Budget Modeling Sample Costs to Ag COI/Funding needed Costs to producers Food Hub Model Cost Comparison
18 Thank you Questions
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