exploring the potential of regional sourcing
DESCRIPTION
This 2014 presentation to the Eastern Corridor Steering Committee of the National Co-operative Grocers Association (NCGA) outlines some of the NFCA's projects in regional sourcing and next steps in building a thriving regional economy.TRANSCRIPT
Exploring*the*Potential**of*Regional*Sourcing*
****
Kari*Bradley*&*Erbin*Crowell*Presentation*to*the*NCGA*Eastern*Corridor*Steering*Committee*
Friday*17th*Jan*2014*
Neighboring*Food*CoIops*• Brattleboro Food Co-op’s 100 Year Vision • Desire for Regional Support, Collaboration
Formerly provided through CGAs, NE Co-ops • NCGA East Corridor Interest Group
Funding, Coordination, Administration • Impact Study (Hoffer, 2008) • Scenario Planning: Vision • Dues Supported Staff • Project Related Grants • Network Collaboration (Co-ops & Other Orgs)
Vision
Focus Areas
Strategy
Network Partnerships
Collaboration
among Co-ops
Healthy, Just & Sustainable Food
System
A Thriving Regional Economy
Regional*Impact! The NFCA in 2012:
• 34 member co-ops and start-ups • 91,000+ member-owners • 7,000+ new member-owners • 1,480+ employees • $214 million in annual revenue • $30 million* in local
purchases • $2.2 million* in Fair Trade
purchases • $2 million* in purchases from
other co-ops *incomplete reporting
Priorities!
• Organizational Development
• Peer Collaboration • Shared Marketing &
Education • Network Partnerships • Regional Sourcing
The United Nations has declared 2012 the International Year of Co-ops.
Please visit www.nfca.coop for more information and a map of
our more than 20 member food co-ops, including these area stores.
T� N
� F� C -‐ � A
P.O.� Bo
x� 93� � //� �
Shelbur
ne� Falls
,� MA� � //� �
01370-‐00
93
[email protected] // www.facebook.com/neighboring // www.nfca.coop
Vermont
Brattleboro Food Co-op, Brattleboro
� Buffalo� Mou
ntain� Food� Co
-‐op,� Hardwick
� Co-‐op� Food� S
tores,� White�
River� Junctio
n�
� Hunger� Mou
ntain� Co-‐op,� M
ontpelier
� Plainfield� Fo
od� Co-‐op,� Plain
field
� Putney� Foo
d� Co-‐op,� Putne
y
� Rutland� Are
a� Food� Co-‐op,
� Rutland
� Springfield� F
ood� Co-‐op,� Sp
ringfield
� South� Royalt
on� Food� Co-‐op
,� S.� Royalton
� Stone� Valley�
Community� Ma
rket,� Poultney�
� Upper� Valley
� Food� Co-‐op,� W
hite� River� Junc
tion
New Hampshire
� Concord� Co
-‐op� Market,� C
oncord
� Co-‐op� Food� S
tores,� Hanover
� &� Lebanon
� Kearsarge� Co
-‐op� Grocer,� Ne
w� London
� Littleton� Fo
od� Co-‐op,� Littl
eton
� Monadnock�
Community� C
o-‐op� Market,�
� � Keene� (Openi
ng� in� 2012)�
Massach
usetts
� Green� Fields�
Co-‐op� Market,�
Greenfield
� McCusker’s� C
o-‐op� Market,�
� � Shelburne� Fal
ls
� River� Valley�
Co-‐op� Market,� N
orthampton
Co-ops Build a Better World!
Stop in at Your
Local Food Co-op
and See What the
Buzz is All About.
Synergy*with*NCGA!
• Regional Marketing of Member Co-ops
• Local System for Collaboration – Increase Success
• “Runway” for Smaller Co-ops to NCGA
• Forum for Innovation, Experimentation
Regional*Sourcing!
• Background
• Priorities
• Pilots
• Learning
Challenges
Opportunities
cave to co-op
sheep milk
bloomy rind
creamy, mushroomy, buttery
Woodcock Farm
Weston, Vermont
S u m m e r S n ow
o n s p e c i a l $ 1 5 . 9 9 / p o u n d
cave to co-op
sheep milk
bloomy rind
creamy, mushroomy, buttery
Woodcock Farm
Weston, Vermont
S u m m e r S n ow
o n s p e c i a l $ 1 5 . 9 9 / p o u n d
Cave to Co-op is a partnership of the Neighboring Food Co-op
Association, Provisions International Ltd and regional artisan
cheesemakers. For more information, please visit www.nfca.coop
Cave to Co-op is a partnership of the Neighboring Food Co-op
Association, Provisions International Ltd and regional artisan
cheesemakers. For more information, please visit www.nfca.coop
Background*to*Regional*Sourcing*
1. Core priority: Leverage purchasing power 2. Development of priority product list
Products with limited availability regionally
3. Member dialog on regional sourcing criteria Member co-op product priorities Likelihood of success Manageability Alignment with vision Support Competitive Advantage
Exploring*Our*Priorities*Members support… • Regional impact in sourcing… • …regional distribution to all
members • Healthy, organic, non-GMO • Fair trade principles • Collaboration with other co-op
sectors • Balance mission, quality, affordability
Focus*on*Pilots*• Limited external response to
priority list • Pilots as model for exploration of
potential • Opportunity for food system
collaboration • Direct experience of
challenges & opportunities • Exercise more control –
Branding, sourcing, priorities, etc.
What*We*Have*Learned*Cave to Co-op (5,688 pounds cheese, ‘12) Project: Local artisan cheeses available to member co-ops at discount. 5+ years. • Pros: Member benefit; shared
impact, promote regional producers; easy to manage; builds market for regional producers…
• Cons: slim margins; limited control, branding; no income for NFCA; distribution limited; sales bump is temporary…
What*We*Have*Learned*Farm to Freezer (13,000# produce, ‘13) Project: Regionally sourced frozen fruits & vegetables. 2-year pilot, supported in part by NCGA Eastern Corridor grants. • Pros: Innovative – new product in
marketplace; branded, available exclusively to NFCA co-ops; some potential for income, cross sector collaboration…
• Cons: Pricing; processing capacity limited; conflicting priorities; distribution expensive, inefficient…
Opportunities*• Buzz: Raised the profile of Food Co-ops and
their role in local food systems. • Branded regional product – supports
competitive advantage of member co-ops. • Working with co-operative partners we have
the potential for product development, efficiencies gained through aggregation, common vision, excitement around co-ops.
• Regional associations (e.g. NFCA) can focus on regional while NCGA leverages national.
Core*Challenge:*Distribution* Key Constraint on…
• Ability to serve members • Branding, identity • Scale, volume • Affordability • Collaboration • Innovation • Sustainability • Control: Vision & Priorities
Potential*for*Collaboration*• Food co-ops
Aggregated purchasing (efficiency) Coordination of demand (planning, risk mgmt)
• Supplier co-ops Aggregated supply (efficiency, affordability) Coordination of processing (product development)
• Basis for collaboration Shared principles, values, vision, message Efficiency, potential and impact of co-op model Not-for-profit co-operative model for distribution
• Volume, efficiency, focus
Next*Steps*• USDA Value Added Producer Grant
Collaboration with regional farmer co-op Support from Farmers Union, CoBank Exploration of priority products Co-op partners (farmer, fishery, processing, etc.) Co-op structure Feasibility study Business plan
• Workplan & Timeline 2014 Calendar Year
Discussion*
• Feedback
• Questions
• Ideas