farm to institution purchasing - tri state local food summit 2017
TRANSCRIPT
Farm To Institution Purchasing Panel Tri State Local Food Summit - February 11th, 2017
Carolyn ScherfLocal Food CoordinatorDubuque County ISU Extension & Outreach563 583 6496 [email protected]
Court
Farm to Institution Purchasing
Farm to Institution Purchasing Agenda
THE BIG PICTURETrends in Local and Regional Food SystemsCommunity Food Systems Program
Panel Farmer & Buyer Q&A
I am concerned about…
Rural economies
Environment
Health
Animal Welfare
Social JusticeSource: University of Iowa - Food Is CommunitySource: Howard, Allen - Beyond Organic An Analysis of ecolabel preferences… Rural Sociology
“Locavores” are driven to eat locally because their commitment to do so makes them feel a part of something greater than themselves—a community that shares their passion for a healthy lifestyle & sustainable environment. “
- Ion Vasi, Pd.D
Local FoodsDirect to Consumer sales are on the
riseFarmers Markets & Community Supported
Agriculture
SOURCE: ERS
Food away from home as a share of household food expenditures has risen from 25% in 1970 to nearly 50% in 2012
The popularity of local food purchasing is growing. In 1998 a study found 3 institutions in Iowa purchasing $111,000 worth of local food. .013
% 1998 - $111,000
What if… 25% of 22,000 of Iowa’s institutional markets purchased local food at the same rate as those 37+ who currently are?
5,500 - $800,000,000
Est. Opportunity for 4,249 - 16,997 middle-sized farms
Trends in regional food systems: Industrialization of Production Specialization | Mechanization | Standardization | Consolidation | Greater reliance on off-farm Inputs.
This concentration & vertical integration along food supply chains is credited with improving efficiency, reducing costs, and lowering prices for consumers,
but is also implicated in the the loss of farmers’ and citizens’ autonomy over food production, processing, distribution, and sales.
Source: Ikerd, J.E (2008) Crisis and Opportunity: Sustainabiility in American Agriculture University of Lincoln Nebraska
Industrialization of production How does it affect rural communities?
Nearly 56,000 mid-sized farms were lost nationally from 2007 to 2012 while large farms increased by more than 400.
Iowa alone lost about 6,000 mid-sized farms 2007 -2012 Source: Growing Economies Connecting Local Farmers and Large Scale Buyers to Create Jobs & Revitalize Americas Heartland
Trends in regional food systems: Industrialization of The Food Service Industry Increase Revenue | Lower Expenses | Privide Customer Satisfaction
Source: Fitch, Santo - 2016 - John Hopkins
As an economic enterprise, food service management prioritize:● increased revenue● lower expenses● customer satisfaction
Revenue is generated through:● Management fees ● Revenue from individual institutions● Rebates from Food Suppliers -Volume Discount
Allowances (VDAs)
Food Service Management
Companies form agreements with
distributors or directly with manufacturers and producers for rebates on their institutions’
purchases.
Volume Discount Allowances“Rebates”
A manager for a small New England produce supplier describes the system this way:
“Say you’re selling a case of apples at $20 and you have to pay 15% sheltered income [or rebate] to Sodexo. So now you have a $23 case that should be going at $20…”
“Now the food-service directors in the schools will use a frozen item to substitute the fresh produce.”
Source: Direct and Intermediated Marketing of Local Foods in the United States(ERS)
Source: Direct and Intermediated Marketing of Local Foods in the United States(ERS)
Source: Direct and Intermediated Marketing of Local Foods in the United States(ERS)
85% Produced on farms
with gross cash farm income <$75,000
10% $75,000-$350,000
5%
>$350,000
Small Farms account for 13%
of local food sales
Large Farms Account for 67% of local foods
sales
The goal of the Farm to Institution Project Team is to understand the potential for institutional local purchases and quantify the benefits of institutional purchases if made at the local level. Additionally, this team helps connect and develop a network between producers, aggregators and institutional buyers, providing events and resources to understand and address constraints to large scale institutional purchasing of food.
Panelists
5 minute intro :
Mission/ Vision of organization or business
Background of buying or selling local
Why is this important?
Panelists Questions
What are the hurdles to this type of business model?
What resources have been helpful to start?
Dubuque Eats Well Farm to Institution Project Team Food buyers including hospitals, local grocers, mother houses, and others. Distributors, food hubs, area farmers, local government staff, elected leaders, small business development center, and Extension food systems professionals are a part of the DEW Farm to Institution Project Team.
ISU Extension & Outreach - Local Foods Team, ISU Community Design Lab, Dubuque
County ISU Extension & Outreach
Iowa Food Hub Public PartnersWest Union Based Lorem ipsum dolor sit
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Private PartnersLorem ipsum dolor sit
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