food hubs: supply chain traceability to enhance rural sustainability
DESCRIPTION
This PowerPoint presentation was given on Oct. 16, 2013 by James Matson at the Third International Conference on Food Studies in Austin, Texas. This presentation addresses the topic of how food hubs are emerging as a solution for local food marketing in the United States. they serve as a way to connect producers and buyers while maintaining traceability as a value proposition.TRANSCRIPT
FOOD HUBS: SUPPLY CHAIN TRACEABILITY TO ENHANCE RURAL SUSTAINABILITY
Jeremiah Thayer, Matson Consulting
James Matson, Matson Consulting
Presented October 16, 2013 – Food Studies Conference Austin, Texas
WHY ARE THESE APPLES NOT THE SAME?
Presented October 16, 2013 – Food Studies Conference Austin, Texas
Presented October 16, 2013 – Food Studies Conference Austin, Texas
ANSWER: A traditional commodity distribution
channel
vs.A developing local foods marketing
channel
Presented October 16, 2013 – Food Studies Conference Austin, Texas
TRACEABILITY
“The transfer of information about a
product from the producer or point of
origin through all intermediaries in the
transaction to the end consumer”
(Thilmany 2008)
Presented October 16, 2013 – Food Studies Conference Austin, Texas
TRACEABILITY
The information maintained through…traceability efforts can contribute to higher
pricing being received by the producer, because customers demand to know more about where their food comes from, and are willing to pay for it.
Presented October 16, 2013 – Food Studies Conference Austin, Texas
LOCAL FOOD EXPANSION Willing to pay a premium
Achieved $7 billion in sales for 2011 (USDA‐ERS).
Estimated 107,000 farms, or about 5% of all U.S. farms (CRS-2013).
Formation of multi-farm Community Supported Agriculture (CSA) programs and food hubs.
Presented October 16, 2013 – Food Studies Conference Austin, Texas
WHAT IS A FOOD HUB?
Gaskin, Julia W. et al. (January 2013). “Is There Farmer Interest in Food Hubs in Georgia? A Needs Assessment Survey.” Georgia Sustainable Agriculture Consortium.
Presented October 16, 2013 – Food Studies Conference Austin, Texas
USDA DEFINITION OF A FOOD HUB
“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”
(Barham et al. 2012).
Presented October 16, 2013 – Food Studies Conference Austin, Texas
BROADER DEFINITION OF FOOD HUBS
function rather than form:
evolved from an educational or social mission:
striving to keep food dollars in the local economy keeping working agricultural lands in production
“In many cases, food hubs share information with end users on where or how food was produced, providing a greater connection between producers and consumers.”
(Matson et al 2013)
Presented October 16, 2013 – Food Studies Conference Austin, Texas
THE VARYING FUNCTIONS OF FOOD HUBS
Market Access for Local Foods
Transportation and Distribution
Brokerage Service
Increasing Market Share by Bundling
Increasing Market Share by Extending the Season
Maintaining a Consumer-Producer Connection
Information Flow and Sharing (Source of
Information)
Presented October 16, 2013 – Food Studies Conference Austin, Texas
FOOD HUB AS AN INFORMATION SOURCE
Creation of Networks and the Linking of Buyers
- E.g. LuLu’s Local (Virtual)
Product Assurances- Assurances about product quality
Traceability- Point of origin
Presented October 16, 2013 – Food Studies Conference Austin, Texas
TRACEABILITY Producer to Consumer
Fresh produce has no label with pertinent production information.
Food Safety Inventory Management Information of Value
Consumers can make more informed purchasing decisions.
Presented October 16, 2013 – Food Studies Conference Austin, Texas
TRACEABILITY
Sustainability and Transparency The producer is able to become a price maker and
directly represent themselves and their products to consumers.
Presented October 16, 2013 – Food Studies Conference Austin, Texas
COMMUNITY REVITALIZATION
“Locavore”
Values Based Food Chain
Food Deserts
Intersection of Demand and Social Values
Presented October 16, 2013 – Food Studies Conference Austin, Texas
CONCLUSION
Traditional Market
Cost Volume Optimization
Traceable Market
Information Quality Satisfaction of
Customer
Presented October 16, 2013 – Food Studies Conference Austin, Texas
CONCLUSION Conventional U.S. Food
Marketing Chains are ill equipped to maintain the traceability of products.
Food Hubs connect producers and buyers
Food hubs maintain traceability as a value proposition
Presented October 16, 2013 – Food Studies Conference Austin, Texas
WANT TO KNOW MORE?
Visit: www.matsonconsult.com
For more information on local food marketing, check out USDA Report 73 by James Matson, Martha Sullins, and Chris Cook.
Connect with Matson Consulting on Facebook and Linked In
(803) 233-7134