Low Carbon Distribution & Logistics

Collaboration

Collaboration Focus: Introduction• Localised food systems: markets and

distribution networks with min. environmental impact & max. social gain• Why of interest? Producers: economic, volume

markets, resilience; Consumers: good food at affordable prices; Partnership working; Viable supermarket alternative; New Economic Models• Models: Today – interesting examples of public,

private, third sector collaborative models• How? Explore what they doing and how they

achieved it; • What can we learn? Key elements for

achieving success and what to avoid!

How to achieve Collaboration?• Collaboration isn’t easy, patience & time!• Stakeholder Engagement: Identify,

communicate, facilitate• Define Objectives then Model to suit: Informal,

Umbrella, Producer run, Commercial • Coordinator: facilitate vision, maintain focus &

momentum, explore new possibilities & ensure member commitment• Advice: Legal, Finance, Business Planning• Finance: Community Investment?

Crowdfunding, CSA model, Start-up/development grants – RDPE?

Private Sector Model:Riverford Organic – Case StudyA family-run business box scheme 40,000+ customers, farm shop, restaurant1998 South Devon Organic Producers’ Co-op (SDOP): wider variety of produce, continuity of supply and the potential to expand the box scheme, co-ordinated & specialized crop production, facilitate communication & good working relations.Other Family members: dairy, butchery, farm shop. Franchise model: recruit customers & deliver boxes in a local area.

Private Sector Model:Riverford Organic – Case Study• Riverford Farm has developed in Devon

an innovative model of local food provision, with 4 key elements:

• A core farm, with a main focus on salad vegetables.

• A packing and distribution centre, based at the core farm, with the capacity to process up to 25,000 boxes per week.

• A network of vegetable farms working together through a supply co-operative headquartered at the core farm.

• A network of franchisees, who market Riverford, recruit customers and deliver the boxes to homes

Riverford Organic – Marketing• Value: Av. 20% cheaper than Tesco, Waitrose and

Sainsbury’s, best value boxes outstripping supermarket org. equivalent <40%

• High Customer Turnover: Marketing challenging (+ competition Abel & Cole, Ocado)

• Internet / Festivals: Variable success in securing and retaining new customers, so Riverford now recruiting directly: internet, shows, festivals, etc.

• Box schemes: require ‘cook from scratch’ skills & motivation

• Community: Mixed ‘local’ reputation, too big & remote from the customers it serves? Lots of opportunity to develop this base.

• Recent Growth: Strong market growth last 3 years (10.3% 2013 / 17.9% 2014), organic comeback, new recipe boxes, social media community, Guy PR & blogs, new London base /pub, business efficiencies.

Public Sector Model: CaterED, Plymouth• Food For life (FFL): Ethos & principles built

into requirements. contractors know what expected of them.

• Gold FFFL Catering Mark: Local, seasonal, ‘cook from scratch’ + MSc + Organic; Recognition, Build into contracts, Embedded into service (staff, stakeholders), Educational, School Commitment 30% increase uptake

• Price: “We were able to contain whatever changes there were in costs – it was really just a few pence here or there – and maintain no overall increase in our prices.

• Local Suppliers: Good support, offered alternatives when needed

• Structure: New cooperative trading company owned 51% PCC 49% schools.

Where does our food come from?

Three local suppliers covering all requirements All have a presence in Devon and Cornwall Road miles and carbon footprint significantly

reduced Increased contract spend into Plymouth and

surrounding area by up to £1.6m per annum High quality local produce Shared deliveries Food costs per meal maintained Meal numbers up

Community Supported Agriculture (CSA)• CSA: A Partnership between producer &

citizen sharing risks and rewards of production

• 4 types: producer-led, community-led, joint partnership, community owned.

• Tips for success: Start small, involve all stakeholders from start, define values and aims, core group with clear responsibilities, regular communications, define contract, access to farm, diversity market outlets, extend seasons, cooperate other farmers, listen to members requests.

• Knowledge transfer: All businesses can learn alot from this stakeholder engagement

Community Investment & Engagment

• Recognition that some community services best delivered through a business model, greater autonomy for communities• Encouraging people to become members,

through a share offer, can bring about a host of benefits• Historic shift in financing community

enterprises: from fundraising approach (events, gifts, donations) to investment in community shares• Community Shares website:

www.communityshares.org.uk

Community share societiesTrade sector Post 2009

societiesPre 2009 societies Members Share capital

Renewable energy 34 13 8,831 £15,304,000

Community shops 20 9 2,492 £903,000

Community regeneration 14 9 3,041 £1,908,000

Food & farming (CSAs) 18 4 10,228 £1,171,000

Consumer co-operatives - 20 8,553,000 £191,275,000

Pubs and brewing 10 2 687 £733,000

Community finance 1 9 1.837 £2,114,000

Community land trusts 7 2 318 £25,000

Fair trade 2 1 9,222 £26,151,000

Other 9 9 38,530 £7,345,000

Totals 115 (27) 78 (75) 8,629,000 £247m

Social Enterprise Model: Tamar Grow Local CIC, Cornwall• Collaboration: access to

different markets, share risks and costs • Processing, Branding: Honey Co-

op, extraction & bottling equipment, shared label, marketing• Economies of scale: Reduce

costs by sharing equipment, Bulk purchasing etc.

Orchards

Apiaries

CSA

Livestock Co-ops

Community Growing

‘First tier’ projects

Food Hubs

Customers: 185 members8 hubs / collection points (2 in Plymouth) + Home delivery

Pricing: 15% commission from producers30% mark-up on wholesale

Producers: 45 active local producers Includes TGL community groups

Orchards

ApiariesCSA

Livestock Co-ops

Community Growing

Markets & Food Hubs

Distribution

Equipment BankTraining & Events

Produce Co-ops

Tamar Grow Local CIC

Local Producers

TGL provides:Collective IdentityStrategic managementShared InsuranceShared bank accountAdvice & ExperienceCommunity

‘Second tier’ projects

‘First tier’ projects

Social Enterprise: Community Farm, Bristol• Business focus: community-owned social

enterprise, growing and selling organic food through a box delivery service. CSA production, distribution/sales

• Location: 11 acres in the Chew Valley, six miles south of Bristol, land owned by Luke Hasell, organic livestock farmer.

• Legal structure: IPS for Community Benefit, 500 members, through a community share issue.

• Background: Took over veg growing business, formerly Better Food Company, a shop in Bristol. Produce is sold through a vegetable box scheme (approx. 360 customers) produce also supplied to wholesale customers including local restaurants, cafes and other businesses

Social Enterprise Model: Community Farm, Bristol• Scaling-up strategies: The Community Farm plans to

expand the acreage under production, at the existing site.

• People: Good staff team. Would like more volunteers, but time-consuming to organise and transport is difficult.

• Land: potential issues around security of tenure, but confidence that there will be a renewal.

• Equipment/Workspace: Key area. Need more equipment, e.g. tractor, polytunnels.

• Finance: Raised £180K through initial share offer, income now a mix of box scheme sales and grants for educational work, opening up for gifts & donations soon to support this.

• Education & community: Events, volunteer, school & corporate days, members –a big part of their ethos and work.

Real Food Store, Exeter• Business focus & supply chain

location: Exeter’s first community owned food business, urban based retail operation, with a shop, café, take away counter and in-store bakery.• Legal structure: Owned by Exeter

Local Food Ltd, IPS (for community benefit) over 300 members, one of the largest community-owned food enterprises in the country.• Sourcing: 70% producers Devon,

almost 100% SW, when outside area always fairtrade & organic.

Social Enterprise Retail: Real Food Store, Exeter• Bkgd: Transition Exeter in March 2009 at a

public meeting about local food. resolutions to create a food hub in the city, small working group was established to produce Business Plan.

• Process: Advice from Wessex Community Assets, which registered Exeter Local Food as an IPS with FSA, in December 2009, for community share issue.

• Prospectus: prepared & share offer launched June 2010, inviting people to invest in Exeter Local Food Ltd.

• Opened: September 2010 over £153,000 raised and Board able to prepare for the opening of the business. The Real Food Store began trading on 30 March 2011 and is open Mon-Sat 9-6pm.

Challenges and opportunitiesStaff / Investment: Not sustainable at the present level of operation – can’t afford to take on more staff. Building a customer base: 300 investor-members, regular communication through a website, twitter, facebook, ning groupStaff engagement: need to do more staff training; none of the staff are investor members; Members as volunteers: not currently requesting members to contribute volunteer labourSustainability: Achieving closed loop. Produce that is near its sell by date can be used in the café.

Some Conclusions• New economic & governance

models: lots of case studies and resources now out there• Customers, stakeholders..

Citizens! need to consider relationships differently, here lie the opportunities, social media important role to play here• Big job: Don’t underestimate the

time it takes, need to be clear on everyone’s objectives, plan, get advice & when start commit to it