Farm to Institution Purchasing - Tri State Local Food Summit 2017

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

Welcome! www.DubuqueEatsWell.com

@LocalFoodDBQ

Where do you and your family eat?

It’s growing For different reasons.

At different pace.

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.

foodtechconnect.com

Farm to Institution

Collaborative Farm

Bee Branch Orchard

Double Up Food Bucks

Farm to School

Panelists

5 minute intro :

Mission/ Vision of organization or business

Background of buying or selling local

Why is this important?

Your Turn!!

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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