Using the Co-op Model to Supply Local Food to Institutions

Similar documents
Multi-Stakeholder Co-ops:

Food Hubs and Healthy Food Distribution: Sustaining Profits for Farmers while Providing More Accessible Healthy Foods for All Consumers

Remaking the food system for farmers, eaters, and community. Sarah Lloyd Wisconsin Farmers Union and Wisconsin Food Hub Cooperative

Dane County s Local Food Economic Development Initiatives: Collaboration and Regional Partnerships

Planning for a Networked Produce Storage and Aggregation System for the Piedmont Triad Region

Understanding the scope and scale of food hub operations

Increasing access to fruits and vegetables in schools is one way to address nutritional

The link between improving healthy food access and economic opportunity: challenges and opportunities

Increasing access to fruits and vegetables in schools is one way to address

GET ON THE PATH. Value Chain Puzzle Finding the Missing Pieces. Jason Boyce Sustainability Manager

Ministry of Agriculture. BC Ministry of Agriculture GROW BC, FEED BC, BUY BC Presentation to BC Food and Beverage Processors October 2018

Snohomish County Food Hubs

The 7 Most Important Things Business Owners Need to Know Before Selling Your Funeral Home

Presentation Overview

Defining the Future of Animal Agriculture

An HCSI, Inc. Project

HARVEST NEW YORK PROGRAM HIGHLIGHTS

Presentation Overview Regional Food Hubs

Organic Market Research Study

Home Page Back Dictionary Thesaurus Help Tips Cite. Share

BUILDING A LOCAL FOOD SYSTEM. Brad Leibov Liberty Prairie Foundation

History Why Local Food Fits Current Projects Economic Impacts

Reflections on Aggregation and Distribution Needs and Possibilities

Rural Healthy Food Retail: Challenges and Opportunities

Farmer=s Cooperative and the City of Keota, Iowa: A Case Study

NORTHERN WISCONSIN LOCAL FOODS PUBLIC OPINION POLL FACT SHEET

Allocating Growth in the Chicken Industry in Ontario

Building Capacity for Local Food Systems

An Intro to EMS: Agriculture Environmental Management Systems (EMS) Farm and Ranch Management to Improve your Environmental and Economic Bottom Line

Mark Mahnken The MBA Cowboy

An Intro to EMS: Agriculture Environmental Management Systems (EMS) Farm and Ranch Management to Improve your Environmental and Economic Bottom Line

Community Based Food Systems Training

Case Histories of Grass-Fed Market Development in the Upper Midwest

Tell me what you eat, and I will tell you what you are.

Marketing Strategies: What works for YOU

Weavers Way Five Year Strategic Plan Draft Summary Page 2

What True Leaders MUST Understand about Economics

SURVEY CONCLUDES MINIMUM WAGE AND AGRICULTURAL OVERTIME LAWS WILL REDUCE POTENTIAL FARMWORKER EARNINGS

An NGFN Webinar. October 17, 2013

A VISION FOR HEALTHY & RESILIENT LOCAL FOOD ECONOMIES

The SISU Companies, Success Story. July 19, 2005

FARM TO HOSPITAL SUPPORTING LOCAL AGRICULTURE AND IMPROVING HEALTH CARE. Community Food Security Coalition

Building a Local Food Economy in North Carolina. Farm-to-Fork

A Comprehensive Approach to Building North Carolina's Local Food Economy From Farm to Fork. Nancy Creamer Center for Environmental Farming Systems

North Georgia Local Food & Local Farms. Helping to grow North Georgia s local food economy

5.2 Collaborative Marketing Groups and Agricultural Cooperatives

MSU Center for Regional Food Systems

Howard County Food Hub Project AREC 489N

Agricultural Business-Planning Webinar Series

RECENT TRENDS IN URBAN COOPERATIVE DEVELOPMENT

Wisconsin s Farm to Institution Procurement Strategy

New Roads to New Markets

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 :

Wellbeing of dairy farmers

Leadership for Local Foods

WAIT! Do you really need to start that food hub? NGFN National Conference March 28, 2018

Financing Farm to Fork: Growing the Sustainable and Local Food Movement

Chapter 2: Food Safety is Important. Learning Objectives

Life of a Multi-Million Dollar Amazon Seller. By: Dan Meadors

October 22, From Planning to Policy, Partnerships, and Investment

Q & A. Council 25. Michigan AFSCME. Questions and Answers. Council 25. American Federation of State, County and Municipal Employees, AFL-CIO

Finding Common Measures for the Nation s Food Hubs

2017 North Country Symposium Value Chain Mapping Exercise

Rural Hospital Networks: Lessons Learned

Presentation of Annual Activities and Recommendations

Innovation Meets Experience

Do members have different farm and personal characteristics than nonmembers?

Chapter 5 Review Questions

Black Hawk County Food Assessment 2012 Population: 131,820

Demonstrating Positive Elearning ROI

Everything you need to know about the Content Marketer s Blueprint

PRODUCER PERSPECTIVES:

HANDLERS PERSPECTIVES ON SOURCING ORGANIC PRODUCE FROM THE GREAT LAKES REGION

THE STATE AND FUTURE OF DAIRY SECTOR IN THE EAC

An NGFN Webinar. May 16, 2013

Talking with Consumers

Take six food cards but give two to the person on your left. You can afford one food card. Take two food cards. Take one food card.

Local Food Systems. August 20 th Sustainable Cities Institute

EVER WONDERED. Have you. What are GMOs? Should I buy organic? Where does the food I feed my family come from?

CHAPTER 2: MARKETS AND MARKETING

Innovation Center for U.S. Dairy Sustainability Commitment Overview. Erin Fitzgerald January 3, 2015

Opportunities Working With Small Scale Farmers

February Presented by: Karin Morris Manager, Office of Smart Growth

Baseline Research for a Local Food Marketing and Awareness Campaign

Global Food Traceability Center

CHANGES IN THE MIDWESTERN U.S. PORK INDUSTRY

Tackling the productivity challenge:

S M T W T F S. Farm to Early Care. A year of healthy kids, happy farmers and connected communities. Farm early care

The Map vs. The Road

June Dairy Month Open Houses: Improving Consumer Understanding of Modern Animal Agriculture

The growing local and sustainable food movements have spurred new opportunities for family farmers, food processors, and rural and urban businesses.

2016/2017 Public Sector Annual Wage Increase Survey

consumption function

supporting the production, consumption, and marketing of local food products.

I am going to start by outlining the initiative we are introducing to get more people into the industry which is our Basic Skills Programme.

LOCALLY SOURCED FOOD MOVEMENT:

How to Create a Regional Presence with Referral Relationships Gaining Market Share in Competitive Tertiary Markets

If yes, about how many farmers/food producers are you already purchasing from?

K-State s Engagement E-News

Transcription:

Using the Co-op Model to Supply Local Food to Institutions Wisconsin Local Food Summit January 27, 2012 Margaret Bau Cooperative Development Specialist USDA Rural Development Wisconsin Courtney Berner Outreach Specialist UW Center for Cooperatives

Presentation Overview How co-ops are engaging with the local food movement How co-ops are connecting institutions with local foods Two Wisconsin examples

Retail: Consumer Owned 400+ consumer owned food co-ops Most in natural foods Tend to be upscale Model tends to struggle in other situations Conventional foods Food deserts

Retail: Worker Owned Just Local Food, Eau Claire Worker-owned grocery store and delivery service in Eau Claire Mission is to connect Chippewa Valley to local producers and fair trade items Founded in 2004 Started with home delivery of milk then expanded to include other local foods

Retail: Consumer + Worker Owned Chapel Hill, NC Founded in 1988 3 grocery stores Restaurant Food production 14,000 members

Distribution: Producer Owned Grown Locally Based in Decorah, Iowa 16 members farm, but source from 20+ producers Deliver to a 6 county region in NE Iowa, SE Minnesota, and Western Wisconsin

Distribution: Multi-stakeholder Model Brings two or more members of the local food chain into one co-op. Examples Producers & Buyers Co-op (4 member classes) Fifth Season Co-op (6 member classes) Eastern Carolina Organics (LLC, but run like a co-op with 2 member classes)

An in depth look at a recent failure

The Situation Low quality, cheap food in institutions Get whatever you want, when you want Mystery food trucked from distant shores Risk management issue Flu pandemic or oil embargo Tracing food borne pathogens

Bright Idea Spend 10% of $2 million food budget on local food Sacred Heart Hospital CEO, Stephen Ronstrom

Explore the Idea Rick Beckler, Director of Hospitality Services Searched for a farmer But one farmer can t fill demand Overwhelming for hospital to work with multiple farmers Need to aggregate Searched for partners at the 2008 Value Added Ag Conference Who wants a piece of $200K?

Gather Information Barriers to purchasing local food: Seasonal production Quantity Transportation Processing Pricing Delivery

Form follows function. Form and function should be one, joined in a spiritual union. -Frank Lloyd Wright

So what co-op model (form) to use? Traditionally either: Producer co-op: just of farmers Purchasing co-op: just of institutions Realized we need all stakeholders In theory: ongoing learning and trust Mere customer relationship not sufficient

The Stakeholders Producers Strict requirements on feed, handling, safety, sustainability Buyers hospitals, technical colleges, nursing homes, schools pledge to buy 10% local foods Processors be picky no mixing mystery meat Distributors and local transportation Friends and family patient capital investors want to support local food Nonvoting

Lessons Learned

Lesson #1 Raise sufficient capital before launching Resist temptation to just do something Do a thorough equity drive If you can t raise $ - that tells you something!

Lesson #2 Hire an experienced manager Don t try to get by on the cheap Initial position is not the place to grow someone into this field Lost time in personnel issues Board took on operational and managerial functions Burned out board members!

Lesson #3: Require contracts between parties Institutional reality Personnel churn Policy churn Clash of cultures Small business handshake Corporations respect contracts Require $ down when placing orders 50% down, 50% upon delivery

Lesson #4 Educate and train members at all levels (Co-op principle 5: ongoing education) Benefits of local food that outweigh costs Longer shelf life, less waste More sales from better taste buy-in from all levels of institution Doctors, CEO, board Front line kitchen staff Learn directly about their needs Teach new ways to prepare foods

Lesson #5 Multiple members are needed in each membership class A.k.a. Don t become identified as one member s project Be wary of the public relations blitz

What DID work? Co-op as coordinator Buyers want one point of contact Producers want to focus on production Co-ops can assure level of quality Aggregate product Assure follow through on delivery and invoicing Producers and processors got paid in full

Fifth Season Basics 6 membership classes Community Supporters 7 member Board of Directors Advisory Council Operate in the 7 Rivers Region

Learning by Example Lesson #1: Raise sufficient capital In addition to member equity, Fifth Season has raised over $90,000 in equity through the sale of Class B Preferred Stock. Lesson #2: Hire an experienced manager The Co-op hired an operations manager with institutional food service experience and a successful track record with farm to school programs.

Lesson #3: Require contracts between parties The operations manager is working with buyers and producers to create growing plans for the 2012 season. Lesson #4: Educate and train members at all levels From the beginning, one of the Co-op s goals has been education and training for members. Lesson #5: Multiple members are needed in each membership class The project has never been seen as the pet project of one business or individual and most membership classes have several members.

Ongoing Challenges Matching buyer and seller prices Matching supply and demand Minimizing cost of operations Ensuring the product is sourced and delivered per contract

Questions?