Co-ops and local food

Food Hubs Connect Healthy Food, Farms, and Communities

The USDA defines a food hub as 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”, but food hubs do much more. Food hubs are a catalyst for community wellness. They address problems of food insecurity and connect community members to the source of their food.

Building a regional food hub requires collaboration of multiple partners. Each partner contributes unique strengths and resources to the project. Community stakeholders amplify success by participating in project planning and execution and supporting the food hub in their community.

In 2018 the Ohio State University’s Initiative for Food and AgriCultural Transformation (InFact) partnered with the Methodist Theological School in Ohio (MTSO), Seminary Hill Farm, and Franklinton Gardens Urban Farm, to develop a model for food hub businesses in underserved urban communities. The organizations invite community stakeholders, individuals and organizations to attend the Building Regional Food Hubs Conference on Nov. 9, 2018.

The conference will host local food leaders from across the state of Ohio. Anna Haas from Local Food Connection will share online possibilities for urban food hubs. Piper Fernway will describe how Bon Appetit Management Company connects institutions to local food in Appalachia. Leslie Schaller, the founder of the Appalachian Center for Economic Networks’ (ACEnet) Food Venture Center and Nelsonville Food Hub, will tell how ACEnet helps producers enhance their businesses with value-added products.

The conference will feature a panel of practitioners discussing challenges and opportunities for producers in food hub models. Panelist Tadd Petersen, manager of Seminary Hill Farm, notes that producers face many challenges. Tadd says, “Storage is the number one barrier facing producers.” Food hubs can provide aggregation, packing, processing and storage space to help farmers expand business capacity. Seminary Hill Farm works with 30 local farms to provide catering and event services, supply MTSO’s dining facilities with farm fresh food, and operate a 300-member Community Supported Agriculture (CSA) subscription. A tour of Seminary Hill Farm will follow the conference.

Attend the Building Regional Food Hubs Conference

Date: Friday, Nov. 9, 2018

Time: 9 a.m. to 4 p.m.

Location: Methodist Theological School in Ohio, 3081 Columbus Pike, Delaware, Ohio

Fee: $10

To learn more and register for the event visit www.mtso.edu/foodhubconference

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References

1. Barham, James, Debra Tropp, Kathleen Enterline, Jeff Farbman, John Fisk, and Stacia Kiraly. Regional Food Hub Resource Guide. Washington, D.C. U.S. Department of Agriculture, Agricultural Marketing Service. April 2012.

*Article originally published in Farm & Dairy Newspaper

Get ready for retail: Selling farm products at grocery stores and restaurants

Retail and restaurant sales are an opportunity for farmers and food businesses to increase sales volume and revenue, while building brand awareness in the local marketplace. But selling farm products to retail buyers isn’t as easy as showing up with samples. Before approaching grocery store and restaurant buyers, farmers must understand the market, obtain required insurance and certifications, and comply with industry standards for packaging and labeling.

Understand the market: products, people, promotions and pricing

Visit the grocery store(s) you wish to sell product to. Survey the store’s current products, customers, promotions, and pricing. Pay special attention to similar products that your products will compete against, noting the price range. Typical retail mark-up is 40%; if the retail price of fresh asparagus is $2.89 per pound, the grocer paid about $1.73 per pound.

Enjoy a meal at the restaurant you wish to sell products to. Look for language or signage that promotes local sourcing. Notice fellow diners- will your products appeal to the restaurant’s typical customers? Review the menu and consider if your products are a good fit. Make note of prices on the menu. Restaurant industry food costs average 30-35%, depending upon the style of restaurant.

Insurance and certifications

Retail and restaurant buyers may require vendors to maintain a level of product liability insurance, worker’s compensation and/or other insurance policies. Grocers may require vendor farms to be Good Agricultural Practices (GAP) certified. Buyers will appreciate a copy of your farm’s food safety plan, and an invitation to perform an on-farm food safety inspection.

Be prepared to provide buyers with documentation proving your products are USDA Certified Organic, Certified Natural, Verified Non-GMO, Animal Welfare Approved or other specialty certifications. You may need to explain terms like “grass-fed”, “pasture raised”, “natural”, “antibiotic free”, and how those terms can be used to market products to customers.

Packaging and labeling

Grocery stores and restaurants require product to be delivered in packaging that complies with industry standards. Packaging may need to include USDA or industry grading, sizing and quality standard information.

Understand legal regulations for labeling retail products, including Country of Origin labeling, USDA inspection seals, label claims, weights and business contact information that allows for product traceability. Many grocers require a price look up (PLU) or universal product code (UPC) label.

Pitching your farm products

Farmers that understand the market, obtain required insurance and certifications, and comply with industry standards for packaging and labeling, can approach buyers with confidence! The first successful sale is the start of a long-term mutually beneficial buyer-seller relationship.

Need help getting ready for retail?

Join the Ohio State University Direct Food and Ag Marketing Team for MarketReady Producer Training.

Dates: Two-part training on Thursday, November 1, 2018 and Friday, November 9, 2018

Time: 10 a.m. to 2:30 p.m. both days

Location: OSU Extension- Cuyahoga County, 12200 Fairhill Rd. E Bldg. Cleveland, OH 44120

Fee: $30 covers both days (lunch is provided)

Register: Contact gardner.1148@osu.edu or 740-289-2071 ext 132 by October 30th.

*Article originally published in Farm & Dairy Newspaper

How to Communicate the Value of Local Food to Customers

Local food is good for health and the environment. Buying local builds a strong local economy and a resilient food system, ensuring there is an adequate supply of fresh and healthy food in the community.

Consumers concerned with how their food is grown and raised enjoy greater transparency through interaction with local food producers.

The benefits of local food are undeniable, but the price of local products is often higher than conventional goods. Inconvenience accessing locally grown produce and meat also keeps consumers from spending more of their food budget on local fare.

Communicating the health, environmental and economic benefits of local food justifies the added cost and effort consumers must make to obtain it. Farmers can communicate the true value of local food through conversations, samples, in-store signage, newsletters, menus, blogs and vlogs, and agritourism.

Conversations

Direct sales are an opportunity for farmers to communicate the value of local food to customers. “Consumers‘ Preferences for Locally Produced Food: A Study in Southeast Missouri” found consumers’ want to know the farmer behind their food. ¹ Since traditional grocery stores and food distributors cannot share the story behind the food, farmers’ ability to engage consumers in conversations about local foods during direct sales is a competitive advantage.

In-store signage

When conversations with customers are not possible, in-store signage informs consumers of opportunities to buy local and support farmers in their community. On a recent trip to the supermarket I noticed signage featuring a rancher selfie with cattle. The sign invited shoppers to buy beef raised on local pastures to support area farmers.

Samples

Freshness, taste and quality are the top reasons consumers purchase local food over conventional goods. ¹ Offering samples invites consumers to see, smell and taste the local food difference.

Samples also inspire consumers to try local favorites in new ways. Local honey drizzled over Ohio cheese and apple dumplings made with fruit from a hometown orchard, demonstrate local products’ superior flavor and versatility.

Menus

Restaurant menus and advertisements that list sources of local ingredients show hometown pride. Diners are less sensitive to premium-priced meals when they know their choice supports agriculture in their community. Their purchase of local food from a local business reduces food miles, invests in area infrastructure, and create jobs in the community.

Newsletters

Newsletters communicate the value of local food in depth. Farmers can educate consumers about the health benefits of just-picked produce, sustainable production of pastured poultry or grass-fed beef.

Readers learn what’s in season now, and what fresh produce to look forward to in the future. Farmers can engage customers by asking them to submit their favorite seasonal recipes or share a testimonial about their love of local food.  Newsletters share regional farm and garden events and tell customers where they can purchase farm products or how they can support local farms.

Print and digital newsletters make sense depending on delivery. Print newsletters work well in direct sales situations such as Community Supported Agriculture (CSA). Farmers who don’t have direct contact with consumers can create digital newsletters. Farmers can use free Microsoft Word templates to create newsletters and email to a list of subscribers. Alternatively, email marketing services such as Constant Contact and Mail Chimp are an easy way to create and manage newsletter subscriptions online.

Blogs and Vlogs

Blogs and vlogs are a window into farmers’ world. A blog is an online dairy of personal experiences and opinions. Vlogging (video blogging) is great for farmers who don’t enjoy writing or have limited time to create content. Both give consumers whom may never step foot on a farm an opportunity to experience agriculture and virtually participate in food production.

Agritourism

Inviting consumers to the farm is a powerful way to communicate the value of local food. Pasture walks, volunteer days, “How-to” and “DIY” clinics combine entertainment and education. Agritourism creates positive associations with farming and food production in the minds of consumers. It deepens their connection and commitment to local food.

Resources

  1. Brown, Cheryl., “Consumers‘ Preferences for Locally Produced Food: A Study in Southeast Missouri.” American Journal of Alternative Agriculture. Vol. 18, Iss. 4, December 1, 2003, pp. 213-224.

Article originally published in Farm & Dairy Newspaper, October 5, 2018.

 

Take Ag Action in Moorefield, West Virginia on 8/27 and Kearneyville, WV on 8/28

Think a co-op may be part of the solution for your farm or food business?

Now is the time to get involved and/or come to ask questions.

Date: Monday 8/27/2018

Time: 6:30 p.m.

Location: Eastern WV Community & Technical College, 316 Eastern Drive, Moorefield, West Virginia 26836

Date: Tuesday 8/28/2018

Time: 6:30 p.m.

Location: WVU Kearneysville Tree Fruit Research and Education Center, 67 Apple Harvest Drive, Kearneyville, WV.

For more information and to register contact:  tina.metzer@easternwv.edu or nbergdoll@wvda.us

From Farm to Cafeteria to Field

The Center for Cooperatives Guides National Farm to Cafeteria Tours

The 2018 National Farm to Cafeteria Conference brought together educators, dieticians, foodservice staff, farmers and local food advocates from across the country in Cincinnati, Ohio in late April. Attendees discussed how Farm to School initiatives enrich their communities, strengthen the food system and boost local economies. Conference sessions shared best practices to boost local food consumption in the cafeteria and provide agriculture, food, health and nutrition education to students.

The conference featured field trips to several Ohio food and farm destinations. The CFAES Center for Cooperatives guided tours “From Garden to Food Hub” and “The Science of Local Food” at the Ohio State University South Centers.

On the conference’s final morning, twenty conference attendees boarded the bus for a 2-hour scenic trip from the conference center in Cincinnati to OSU South Centers in Piketon. They participated in the award winning food-science program “The Story of the Strawberry.” The program is a partnership between OSU Extension Pike County, OSU Horticulture and OSU Food, Nutrition and Wellness.

Attendees learned about plasticulture strawberry production and OSU researchers’ efforts to extend the Ohio harvest season from a historical 3-week strawberry harvest to a 3-month harvest window. Attendees also gained disease prevention insights from current berry nutritional research. Hands-on activities included taste tests and strawberry DNA extraction.

Next, the group got on a hay wagon for a tour of South Center’s research plots. They visited the hops yard, grape vineyard and aquaculture ponds. Attendees learned about services provided to new businesses in South Center’s unique business incubator, the 27,000-square foot Endeavor Center. The Business Team shared how they help entrepreneurs, including agricultural producers and food manufacturers, start and grow businesses in southern Ohio.

CFAES Center for Cooperatives Program Manager Hannah Scott greeted twenty-five conference goers on a sunny afternoon outside of the Duke Energy Convention Center for a tour focused on local food aggregation and distribution. Attendees visited the facilities of Our Harvest Cooperative and Ohio Valley Food Connection located in The Incubator, a commercial kitchen and food aggregation incubator in northern Kentucky, to learn about the collaboration between the two southwest Ohio food hubs to move more local food to institutions. The field trip also took attendees to Fox Tail Farm in New Richmond, Ohio, a small produce farm marketing produce like carrots and greens through a hub. Participants learned about the farm’s production techniques and the advantages the farm experiences marketing through a hub.

The unique challenges of moving locally produced food from farms to restaurants, cafeterias, and retailers have been a focus of the Center for Cooperatives since 2014 through the Ohio & West Virginia Food Hub Network and technical assistance work with food hubs. According to a recently released study from Michigan State University’s Center for Regional Food Systems and Wallace Center at Winrock International, approximately 31% of U.S. food hubs marketed products to k-12 schools in 2017. Despite challenges, food hubs can help producers access larger markets than they may be able to working on their own. In 2017, approximately 18% of food hubs in the U.S. were cooperatively owned.

Article originally published in the Spring 2018 edition of The Ohio State University South Centers Connections newsletter. The full newsletter is available at: https://southcenters.osu.edu/newsletter/connections-newsletter

Scaling-up to Sell to Schools

 

Farm fresh food benefits not only students but the farmers that grow it for students. Scaling-up to sell to schools presents challenges, but farmers have achieved success through cooperation, collaborative relationships with buyers and year-round purchasing programs.

Farmers benefit from Farm to School

Institutions are a dependable market that provides farmers with timely and reliable payments. Clarity of a cafeteria’s needs allows farmers to plan production and delivery in advance. Schools streamline procurement, delivery and invoicing processes so farmers can focus their energy on producing high-quality food to nourish students.

Selling to schools is good for the local economy. Schools purchased $790 million of local food in 2013-2014. 42,587 Schools across the United States participated in Farm to School activities according to the USDA Farm to School Census. ¹ Case studies of public schools in Minnesota and Georgia found $82 of every $100 spent stayed in the local economy. ²

Some schools incorporate agriculture and nutrition education into Farm to School programming. Farmers that are passionate about inspiring the next generation of healthy eaters may have an opportunity to partner with educators to teach youth about what it takes to get food from the farm to the cafeteria.

Challenges selling to schools

Schools purchase a large volume of product. Small operations often struggle to produce a volume sufficient for foodservice needs. Cooperative marketing is a solution. An agricultural cooperative can aggregate multiple farms products to achieve intuitional volumes. A co-op offers farmer-members other benefits such as group food safety certifications, shared distribution and reduced costs on supplies. The Preston Growers Cooperative formed in response to the West Virginia Farm to School initiative. Working together, farmers achieve institutional volumes, maintain quality and offer a wider selection of products to local schools.

Farmers receive lower prices from institutional sales than other direct marketing channels. School buyers have tight budget constraints when making food purchasing decisions. The average school lunch cost $2.90 to prepare, only $1.07 of the total cost is allocated to food. The remaining $1.83 goes to labor, preparation and indirect costs. ³ Marketing Michigan Products: A Step-by-Step Guide from Michigan Farm to School is a free online resource that helps farmers prepare bid documents, price their products and negotiate contract agreements.

The school cafeteria is vacant during much of peak fruit and vegetable season. Minimal processing, such as freezing fresh food for future use, can be a solution. Cafeteria staff may process the food in the school cafeteria or coordinate with a food hub or co-packer to process the food in an approved facility. The Ohio Department of Education’s Summer Food Service Program provides a consistent market for farmers by purchasing food when school is not in session. Meals are served to youth enrolled in summer education programs at local YMCAs, libraries and other partner organizations.

Success

Farmers that have successfully sold to schools suggest developing working relationships with school dieticians, buyers and food service staff. Farmers should clarify vendor requirements, volume, packaging, delivery, insurance, payment terms and necessary food safety certifications prior to making the first delivery. Regular communication throughout the school year is vital to success.

For more information on Farm to School in Ohio visit http://farmtoschool.osu.edu/.

To learn about the Ohio State University Dining Service’s goal to purchase 40% local and sustainable Food by 2025 visit https://dining.osu.edu/sustainability/local-and-sustainable-food/.

References

  1. “Farm to School Census.” 2015. U.S. Department of Agriculture Food Nutrition Service.
  2. Christensen, L., Jablonski, B., Stephens, L. & Joshi, A. “Economic Impacts of Farm to School: Case Studies and Assessment Tools.” Sept 2017. National Farm to School Network. Retrieved April 27, 2018 from http://www.farmtoschool.org/Resources/EconomicImpactReport.pdf.
  3. “School Lunch and Breakfast Cost Study-II.” 2006. U.S. Department of Agriculture Food Nutrition Service.

*Originally published in Farm and Dairy newspaper 5/4/2018

Casa Nueva: A New Flavor of Foodservice

Low salaries, high turnover and lack of employee engagement are prevalent in food service. Eight food entrepreneurs had a solution; they would create a restaurant that empowered employees through ownership. In 1985 they opened Casa Nueva, the first worker-owned cooperative restaurant in Ohio, in the heart of downtown Athens.

In 1987 Casa Nueva worked with the Appalachian Center for Economic Networks (ACEnet) to develop and market a product line of salsas and other value-added goods. The restaurant added a cantina in 1993, and a second kitchen in 2003.

Worker ownership in practice

Casa Nueva carries out daily operations with the help of worker-owners and non-owners (associates). 1/3 of staff are worker-owners, 2/3 are associates. Associates have an opportunity to apply for ownership after working 1000 hours in the restaurant, serving on special committees and earning positive performance evaluations. The co-op board of directors vote to approve or disapprove the associate’s application for ownership. All new owners contribute equity. The cost is offset by a raise that goes into effect when an associate becomes a member of the cooperative. Other benefits of membership include: voting rights, paid time-off, insurance and scheduling preference.

For over 30 years Casa has provided worker-owners with meaningful work, sustainable jobs and opportunities for advancement. Fresh ingredients, Mexican-inspired flavors, culture, music and art delight locals and students of Ohio University, the city’s main economic driver.

Founder Leslie Schaller shares Casa Nueva’s Story

Contribute to Food Hub Knowledge, Participate in 2018 Food Hub Benchmarking Study

Did you know that the average gross revenue of a food hub in 2017 was $2.4 million? Or that the most common types of customers for food hubs are restaurants and direct consumers? Or that the average number of vendor selling to a food hub was 55 in 2013?

 

“Findings of the 2017 National Food Hub Survey,” published in March 2018, details these and many more findings from a comprehensive review of the maturing food hub sector in the United States. The report reviews many aspects of a food hub business from finances to food safety, giving food hub stakeholders access to information that can help inform their decisions, based on a national survey of existing food hubs. You can learn more about the study’s results in a webinar hosted by the National Good Food Network at 3:30pm EST on Thursday, April 19, 2018.

“Counting Values: Food Hub Financial Benchmarking Study,” released in 2014 by the Wallace Center at Winrock International, Farm Credit East, and other partners, details financial and operational characteristics for food hubs in a way that can serve as performance indicators for other businesses in the sector.

Food hub stakeholders have an opportunity now to contribute to an update of research like this through the 2018 Food Hub Benchmarking Study. The study, according to the Wallace Center at Winrock International will collect financial and operational data from food hub businesses, standardizing and aggregating the data to develop sector insights and performance indicators. Hubs that participate in the study will receive and individualized benchmark report and technical assistance on using the report as a business tool. Learn more about how to participate in the study here.

According to the “Findings of the 2017 National Food Hub Survey,” fresh produce and herbs are the most common products sold by food hubs in the U.S.

 

Appalachian Table Event

 

Meet us in the foothills of Appalachia for this local foods event!

  • Local food breakfast buffet
  • Appalachian grown proteins, produce, dairy, and value-added goods on display
  • Producer and distributor educational panels
  • Food business resources
  • Networking opportunities

Date: Friday, April 13, 2018

Time: 8 a.m. to noon

Location: OSU South Centers, Endeavor Center, 1864 Shyville Road, Piketon, Ohio 45661

Cost: FREE (those attending must register)

Registration: Contact Charissa Gardner at 740.289.2071, ext.132 or gardner.1148@osu.edu

Deadline to Register is April 6th

http://go.osu.edu/appalachiantableapril2018

Appalachian Table 4.13.18 Final-schpfl