Dubuque County ISU Extension & Outreach – Local Foods

Emerging Markets for Local Foods

Carolyn ScherfLocal Food Coordinator

“Greg Rinehart picks tomatoes in a high tunnel at his farm on Wednesday, August 17, 2016 in Boone. Rinehart grows a variety of fruits and vegetables his farm in addition to corn and soybeans which he says helps with cashflow throughout the year and diversity for the soil.”

Iowa farmers planting fruits, vegetables over corn, soybeans

Iowa State University economist David Swenson said unlike grapes in California, apples in Washington or blueberries in Michigan, in most cases there is no discernible competitive advantage for many producers to raise fruits and vegetables in Iowa.

Farmers who decide to grow produce and do so profitably tend to cluster near metropolitan areas where they can easily transport their food to farmers markets, grocery stores and restaurants.

“In and around the Des Moines area there are a wide range of producers that are producing specifically for that Des Moines metropolitan market and, of course, many of them can make a decent living,” Swenson said. “But you get out into the more rural areas of the state and you can’t do that. You’re not going to have the local demand.”

In Iowa, there are opportunities for more producers to enhance farm household income by growing fruits and vegetables, “but not many.”

Local Food Coordinators

• Build Coalitions & Partnerships• Coordinate Buy Fresh Buy Local

Chapters• Facilitate Food Hub Development• Provide Education to Farmers• Assist with Marketing &

Networking • Find opportunities for regional

business development

Finding your ISU Extension & Outreach Local Food Coordinator

Goldfish Plant

Today’s Objectives1.Understand Possibilities for Local Food Markets

Direct & Wholesale

2. Understand Things That Matter to ALL Customers

Food Safety, etc.

3. Understand Resources & Opportunities• Online Resources

• Upcoming Workshops & Training Opportunities

Direct-to-ConsumerFarmers’ MarketRoadside Stand

CSA

Institutional/Wholesale

IntermediaryFood HubSchool Hospital

Restaurant

Markets

Things that matter to ALL customers

Food Safety Consistency • GAP (Good Agricultural Practices)• FSMA

• Wholesale SuccessException: Food Banks (They do pay

for food.)

Farmers’ Markets

National direct-to-

consumer food sales

increased three-fold

between 1992 and 2007,

growing twice as fast

as total agricultural

sales.

-USDA

The local foods sector is fast growing in response to consumer demand in Iowa & around the country.

Direct-to-Consumer Sales: Farmers Markets

The number of farmers markets listed in the USDA National Farmers Markets increased from 3,706 in 2004 to 8,268 in 2014.

Direct to Consumer Markets: What are your customers looking for?

“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.

“…supporting the local food movement is a sort of civic duty, an act to preserve their local economy against the threats of globalization and big-box stores.”

“Local food markets were more likely to develop in areas where

residents have a strong commitment to civic

participation, health & the environment.

Direct-to-Consumer Sales: Find a Farmers’ Markets Near You

Tip: Talk to the vendors. What is a ‘Good Day’?

Direct-to-Consumer Sales: Farmers Markets

Opportunities to help low-income populations access healthy food through Farmers’ Market Promotion Programs like “SNAP into Market”

What are some ways that you might market your products to customers interested in the following:

•Health

•The Environment

•CommunityFamily FarmsAuthenticityLocal Economy

Direct to Consumer Markets: What are your customers looking for? Environment

AuthenticityCommunity

Local Economy

Health

Community Supported Agriculture & Food Boxes

Direct-to-Consumer Sales: Community Supported Agriculture (CSA)

• Members purchase a share in advance helping cover annual costs

• Share options: Extended season, multiple types & sizes (weekly, bi-weekly), special payment plans

• In return, members receive boxes of the farm’s products throughout the season (~May - mid-October)

• Pick-up sites located at a member’s house, businesses, or at the farm

• Most farms also create• A newsletter• Opportunities for members to visit the farm

Direct-to-Consumer Markets: Community Supported AgricultureWhat will customers pay?

Average Price Per Share:

Direct-to-Consumer Markets:

Community Supported Agriculture

What will customers pay?

Average Price Per

Box:

•Goal vs. Actual

•What’s in the box?

Food BoxVs. CSA

•Urban Canopy•Iowa Food Hub •Collaborative Models

Workplace CSA

•Marketing •Crop Planning•Network Support

Legal Concerns

•Volunteer Shares•‘Independent Contractors’ vs. ‘Employees’ vs. ‘Interns’

Direct-to-Consumer SalesCommunity Supported Agriculture (CSA)

Food Safety, Competitive Pricing, Presentation Community Supported AgricultureCrop Planning, Equipment & Tools Networking, Marketing Support

Legal, Workload, CSA Member Involvement, Potential Problems

Farmers’ Market Pre and Post Harvest Food Safety, Marketing & Best Practices at the

Market + Value Asses Products

safeproduce.cals.iastate.edu

Direct to Consumer Markets: What are your customers looking for?

Questions, Comments about Farmers’ Market or CSA Marketing?

Institutional/ WholesaleIntermediary Markets:

RestaurantsFood HubsSchools Hospitals

Emerging MarketsInstitutional, Retail & Other Intermediate Markets

In the state of Iowa, a 2008 study found that local purchases in

intermediary markets had increased from 3 institutions purchasing

$111,000 worth of local food in 1998 to 25 stores and institutions

purchasing $1.8 million worth a decade later.   

1998$111,000

2008$1,800,000

Local food sales and purchases indicated Iowa farm sales of nearly $24 million from 2012-2013, and with large-scale buyers of reported local purchases totaling more than $22 million with 80% of those purchases coming from a mere 37 buyers.

Furthermore, these markets created 171 new jobs, including 63 full-time, year-round jobs.

2013$22,000,000

If just 25% of Iowa’s 22,000 institutions purchased local food at the same level as survey respondents, $800 million of economic activity would be generated for

state's economy, creating opportunity for between 4,249 and 16,997 middle-sized farms

5,500 Institutions $800,000,000

Institutional Markets: What are your customers looking for?

1. Safety - GAP (Good Agricultural Practices) 2. Competitive Pricing & Convenience – Like mainline distributors 3. Image

Attractive to Millennials, Young Families & their values

• Sustainability• Healthy• Civic Responsibility / Local Economy

Restaurants

Understanding what the restaurateur needs and wantsQuality and consistency: "The corn needs to look the same every time it is delivered. People do not like surprises.

Delivery: consistently on time and responsive to chef and restaurant needs.

Packaging: A chef does not want to receive a trash bag full of snow peas. It will not store well, and it is too cumbersome to deal with.

Product: Product needs to be different, better, more dazzling than what is offered by the big food suppliers.

Providing Convenience Up & Coming Opportunities: Food Hubs

Up & Coming Opportunities: Food Hubs

http://www.leopold.iastate.edu/content/food-hubs-serving-iowa-markets?utm_source=hootsuite

Emerging MarketsInstitutional & Retail

Markets

Institutions: Colleges, Hospitals

Identify & Build a relationship with Executive Chef & Food Service Directors•Tend to build long-term relationships •Preference to work with Food Hubs •Limited by Contracts•Food Safety = High concern

Farm to School Month in Dubuque

Dubuque Community School

District •Institutions encouraged to articulate goals & definitions

• What is ‘Local’• How much will we spend?

•Start Small

Schools

Questions or comments on Institutional Markets?

RestaurantsFood Hubs / Local Distributors

RetailInstitutionsSchools

Farm to School

Things that matter to ALL customers

Food Safety Consistency • GAP (Good Agricultural Practices)• FSMA

• Wholesale SuccessException: Food Banks (They do pay

for food.)

• Local Foods has been linked to a whole

suite of USDA Priorities including:

• Enhancing the rural economy

• Enhancing environmental

sustainability

• Food access & nutrition

• Strengthening agricultural

producers & markets

Risk Management Agency•Risk Management Education and Outreach•Whole Farm Revenue Protection

Rural Development•Business and Industry Guaranteed Loan Program•Community Facilities•Rural Business Development Grants•Rural Cooperative Development Grants•Value Added Producer Grants

STEP 3: RESOURCES FOR NEW FARMERS•Access to Land and Capital•Risk Management•Protect and Invest in Your Land and Resources•Build Your Market and Grow Your Business•Education and Assistance•Taxes•Health Care•Food Safety•Environment•Labor and Farm Safety

STEP 4: GET CONNECTEDGet ConnectedDiscovery Tool

STEP 1: START TO FARMImportant ConsiderationsFirst Steps

STEP 2: MAKE A PLANMake A Farm Business PlanTechnical Assistance for Planning Your Business

Goldfish Plant

Today’s Objectives

1.Understand Local Foods as Viable Option

Overview of Direct & New Wholesale Markets

2. Understand Things That Matter to ALL Customers

3. Understand Funding Opportunities

Other Resources • Online Resources

• Upcoming Workshops & Training Opportunities

Contact us:

Dubuque County Local Foods cscherf@iastate.edu

563-583-6496

www.extension.iastate.edu/dubuque

www.facebook.com/dubuquecountyextension