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Earthlab Food Hub Presentation #2

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on 16 June 2016

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Transcript of Earthlab Food Hub Presentation #2

Non-Profit Case Studies
Customers
- tailor your food hub to your customer
Labor
- continuity in labor - dedicated staff - volunteers
Products
- variety of goods to satisfy the market
Food Safety Certification
- allow the needs of the customers to dictate the level of safety certification (ex. hospitals/schools typically more interested in certifications)
Infrastructure
- 2 approaches
More services (ex. aggregating, packing, sales and delivery) requires trucking, product storage, cooling and dry good storage (5,000-10,000sq ft warehouse)
Fewer physical services (ex. just in time delivery, minimized need for cooling & storage) (1,000-4,000 sq ft warehouse)

Outline
What is a food hub?
Southeast San Diego
Food Hub: from local farm to school
Earthlab Food Hub Presentation

UC Santa Barbara

Campus Initiative
Serves 10,000 meals/day. 2.5 milion/year

Farmer Direct Produce (FDP)
now known as Harvest Santa Barbara
wholesale link between farmers and UCSB
currently 16 local farms
2010, UCSD had bought 100,000 lbs from FDP

On Campus Projects
"Closed-loop" system:food waste into compost for food garden
Financed/supported by:
Alumni
AS Food Bank
Student Org. Department of Public Worms
has serviced around 3,000 students since last summer

Goal=upscale locally grown pesticide-free or organic produce within UCSB dining halls.
What's Next?
Implementation: Phase Two
Acquire funds
Harness community resources
Tap into market niche
Expand the alternative food movement in Southeast San Diego
I. Introduction to Food Hubs
II. Potential Clients and Distribution
III. Important Maps
IV. Non-Profit Case Studies
V. Lessons Learned
VI. UCSB Case Study
VII. Business Plan Necessities
VIII. What's Next?
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. " (USDA)
What is "local?"
Local food is still a small portion of the total food market.

More than $77 billion worth of food was imported into the United States in 2007, while local food sales totaled slightly less than $5 billion in 2008 (USDA)
However, demand has been growing recently!


Our definition: San Diego county and any counties that border San Diego county
Many consumers and policymakers define "local" as being within a 100-mile radius of one’s home (sometimes up to 400 miles)
Eden Berdugo, Ginger Stout, Jane Kang, Angela Orias, Hannah Chan
California Food Hubs
Restaurants
Keys for a Successful San Diego Food Hub
San Diego's Keys to a Successful Food Hub
Follow USDA definition
Educate, Educate, Educate!
Whether regarding cross-cultural due to language barriers, or importance of local agriculture, or how to prepare foods, etc.
Investment in infrastructure and marketing should be built for smaller farms in urban areas
BUILDING BLOCKS OF
BUSINESS MODEL
Alchemy Restaurant (South Park)
Arterra (Del Mar)
A.R. Valentien (La Jolla)
Blind Lady Ale House (Normal Heights)
Blue Water Grill (Mission Hills)
Eco Caters (Ocean Beach)
Cocina Urbana
Harney Sushi
Kensington Grill
Farm House Cafe (University Heights)
George's At The Cove (La Jolla)
Local Habit (Hillcrest)
http://www.sandiegoroots.org/restaurants.php

LOOKING AT BUSINESS MODEL
Lessons Learned

FamilyFarmed.org. (2012). Building Successful Food Hubs: A Business Planning Guide for Aggregating and Processing Local Food in Illinois
Advantages of Non-Profit
Application to gov. grants
Tax exemption
Educate community
Important Relationships to Maintain
Project advisers to provide insight
"The business model should be investigated in the due diligence process by asking key audiences how they would prefer to transact business"
Institutions and Grocery Stores
Popular Fruits and Vegetables
Collard greens
Tomatoes
Corn
Green beans
Okra
Pinto beans
Black eyed peas
Red beans
Black beans
Lessons Learned cont.

Source: FamilyFarmed.org. (2012). Building Successful Food Hubs: A Business Planning Guide for Aggregating and Processing Local Food in Illinois
Viability & Success
- the majority were not operationally profitable
Transportation
- typically the most expensive aspect
Peppers
Cilantro
Avocado
Onion
Strawberry
Watermelon
Mango
Oranges
- seek partnerships
- logistic partnerships w/ transportation can help offset costs
- good intentions do not run a business
- be flexible and willing to change
- lack of funding will limit growth
- volunteers can be difficult to train and manage
ADVICE - "What we've learned so far"
http://www.rd.usda.gov/files/RD_RuralCoopMagJulyAugust14.pdf
Who Supplies Food Hubs?
Local farmers
Local ranchers
Community gardens
Millie Fleurs
Mistral
Peace Pies
Nine Ten Restaurant and Bar (La Jolla)
Quality Social (Downtown)
The Red Door Restaurant and Wine Bar (Mission Hills)
Spread (North Park)
Whiskinladle (La Jolla)
Zenbu (La Jolla)
Ritual Tavern (La Jolla)
Common Market
$1.7 million in sales
Colleges and schools, including 13 inner-city charter schools fed daily, hospitals, and retailers
Uses efficiencies like aggregation points
Elementary schools (28)
Middle schools (6)
High schools (3)
Hospitals
Keil's Food Stores
Pancho Villa's Farmers Market
Local farmers
Suzie's Farm
Seabreeze Organics
Farmers market suppliers
Community gardens
Community supported agriculture
ALBA Organics
http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELPRDC5091490
$5 million annual sales
Sells to hospitals, UCSC, Google
Farm business incubator
Stakeholders of public/academic/private business
Image/Identity for production
Taking Advantage of Federal Grants
Research/Education
Professional Development
Farmer/Rancher
Producer
Grad Students
Sources: http://www.sarep.ucdavis.edu/sfs/files/SD%20Foodshed%20Assessment%20Final.pdf; http://healthyworks.org/sites/default/files/PrioritiesforAction.pdf
Sources: http://www.ngfn.org/resources/ngfn-database/knowledge/Food%20Hubs%20-%20Solving%20Local.pdf; http://www.albafarmers.org/alba_organics.html; http://centralcoastgrown.org/2013/09/alba-city-farm-san-luis-obispo-model-farm-4/
Agriculture in San Diego
As of 2011
San Diego County had more farms than any other county in U.S. - 6,687
68% are between 1 and 9 acres
303,889 acres of agricultural land in San Diego County
http://cesandiego.ucanr.edu/cooperativeextension/FAQs_62/
1. Customers
2. Value
3. Channels
4. Relation

5. Revenue
6. Resources
7. Activities
8. Partners
9. Costs
1.
Customers
-institutions and groceries; restaurants

2.
Value Proposition

3.
Channels
-local farmers, community gardens, Community Supported Agriculture

4.
Customer Relation

5.
Revenue

6.
Resources
-Earthlab; grants; full-time staff?

7.
Activities

8.
Partners
-Groundwork; UCSD; school district

9.
Costs


1.
Customers
-describe customers; understand needs
2.
Value Proposition
-promise of value to be delivered
3
. Channels
-how the value proposition is reached to customer
4.
Customer Relation
-
how food hub will maintain its customers
5.
Revenue
-if and how will food hub make money from each customer segment
6.
Resources
-physical; financial; Intellectual
7.
Activities
-production; problem solving; supply chain management
8.
Partners
-strategic allies; suppliers; etc
9.
Costs
-money spent by organization for key resources

Building Blocks Explained
Full transcript