Exploring the Potential of Regional Sourcing

Exploring*the*Potential**of*Regional*Sourcing*

****

Kari*Bradley*&*Erbin*Crowell*Presentation*to*the*NCGA*Eastern*Corridor*Steering*Committee*

Friday*17th*Jan*2014*

Neighboring*Food*CoIops*•  Brattleboro Food Co-op’s 100 Year Vision •  Desire for Regional Support, Collaboration

  Formerly provided through CGAs, NE Co-ops •  NCGA East Corridor Interest Group

  Funding, Coordination, Administration •  Impact Study (Hoffer, 2008) •  Scenario Planning: Vision •  Dues Supported Staff •  Project Related Grants •  Network Collaboration (Co-ops & Other Orgs)

Vision

Focus Areas

Strategy

Network Partnerships

Collaboration

among Co-ops

Healthy, Just & Sustainable Food

System

A Thriving Regional Economy

Regional*Impact! The NFCA in 2012:

•  34 member co-ops and start-ups •  91,000+ member-owners •  7,000+ new member-owners •  1,480+ employees •  $214 million in annual revenue •  $30 million* in local

purchases •  $2.2 million* in Fair Trade

purchases •  $2 million* in purchases from

other co-ops *incomplete reporting

Priorities!

•  Organizational Development

•  Peer Collaboration •  Shared Marketing &

Education •  Network Partnerships •  Regional Sourcing

The United Nations has declared 2012 the International Year of Co-ops.

Please visit www.nfca.coop for more information and a map of

our more than 20 member food co-ops, including these area stores.

T� N

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P.O.� Bo

x� 93� � //� �

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ne� Falls

,� MA� � //� �

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[email protected] // www.facebook.com/neighboring // www.nfca.coop

Vermont

Brattleboro Food Co-op, Brattleboro

� Buffalo� Mou

ntain� Food� Co

-‐op,� Hardwick

� Co-‐op� Food� S

tores,� White�

River� Junctio

n�

� Hunger� Mou

ntain� Co-‐op,� M

ontpelier

� Plainfield� Fo

od� Co-‐op,� Plain

field

� Putney� Foo

d� Co-‐op,� Putne

y

� Rutland� Are

a� Food� Co-‐op,

� Rutland

� Springfield� F

ood� Co-‐op,� Sp

ringfield

� South� Royalt

on� Food� Co-‐op

,� S.� Royalton

� Stone� Valley�

Community� Ma

rket,� Poultney�

� Upper� Valley

� Food� Co-‐op,� W

hite� River� Junc

tion

New Hampshire

� Concord� Co

-‐op� Market,� C

oncord

� Co-‐op� Food� S

tores,� Hanover

� &� Lebanon

� Kearsarge� Co

-‐op� Grocer,� Ne

w� London

� Littleton� Fo

od� Co-‐op,� Littl

eton

� Monadnock�

Community� C

o-‐op� Market,�

� � Keene� (Openi

ng� in� 2012)�

Massach

usetts

� Green� Fields�

Co-‐op� Market,�

Greenfield

� McCusker’s� C

o-‐op� Market,�

� � Shelburne� Fal

ls

� River� Valley�

Co-‐op� Market,� N

orthampton

Co-ops Build a Better World!

Stop in at Your

Local Food Co-op

and See What the

Buzz is All About.

Synergy*with*NCGA!

•  Regional Marketing of Member Co-ops

•  Local System for Collaboration – Increase Success

•  “Runway” for Smaller Co-ops to NCGA

•  Forum for Innovation, Experimentation

Regional*Sourcing!

•  Background

•  Priorities

•  Pilots

•  Learning

 Challenges

 Opportunities

cave to co-op

sheep milk

bloomy rind

creamy, mushroomy, buttery

Woodcock Farm

Weston, Vermont

S u m m e r S n ow

o n s p e c i a l $ 1 5 . 9 9 / p o u n d

cave to co-op

sheep milk

bloomy rind

creamy, mushroomy, buttery

Woodcock Farm

Weston, Vermont

S u m m e r S n ow

o n s p e c i a l $ 1 5 . 9 9 / p o u n d

Cave to Co-op is a partnership of the Neighboring Food Co-op

Association, Provisions International Ltd and regional artisan

cheesemakers. For more information, please visit www.nfca.coop

Cave to Co-op is a partnership of the Neighboring Food Co-op

Association, Provisions International Ltd and regional artisan

cheesemakers. For more information, please visit www.nfca.coop

Background*to*Regional*Sourcing*

1.   Core priority: Leverage purchasing power 2.  Development of priority product list

  Products with limited availability regionally

3.  Member dialog on regional sourcing criteria   Member co-op product priorities   Likelihood of success   Manageability   Alignment with vision   Support Competitive Advantage

Exploring*Our*Priorities*Members support… •  Regional impact in sourcing… •  …regional distribution to all

members •  Healthy, organic, non-GMO •  Fair trade principles •  Collaboration with other co-op

sectors •  Balance mission, quality, affordability

Focus*on*Pilots*•  Limited external response to

priority list •  Pilots as model for exploration of

potential •  Opportunity for food system

collaboration •  Direct experience of

challenges & opportunities •  Exercise more control –

Branding, sourcing, priorities, etc.

What*We*Have*Learned*Cave to Co-op (5,688 pounds cheese, ‘12) Project: Local artisan cheeses available to member co-ops at discount. 5+ years. •  Pros: Member benefit; shared

impact, promote regional producers; easy to manage; builds market for regional producers…

•  Cons: slim margins; limited control, branding; no income for NFCA; distribution limited; sales bump is temporary…

What*We*Have*Learned*Farm to Freezer (13,000# produce, ‘13) Project: Regionally sourced frozen fruits & vegetables. 2-year pilot, supported in part by NCGA Eastern Corridor grants. •  Pros: Innovative – new product in

marketplace; branded, available exclusively to NFCA co-ops; some potential for income, cross sector collaboration…

•  Cons: Pricing; processing capacity limited; conflicting priorities; distribution expensive, inefficient…

Opportunities*•  Buzz: Raised the profile of Food Co-ops and

their role in local food systems. •  Branded regional product – supports

competitive advantage of member co-ops. •  Working with co-operative partners we have

the potential for product development, efficiencies gained through aggregation, common vision, excitement around co-ops.

•  Regional associations (e.g. NFCA) can focus on regional while NCGA leverages national.

Core*Challenge:*Distribution* Key Constraint on…

•  Ability to serve members •  Branding, identity •  Scale, volume •  Affordability •  Collaboration •  Innovation •  Sustainability •  Control: Vision & Priorities

Potential*for*Collaboration*•  Food co-ops

  Aggregated purchasing (efficiency)   Coordination of demand (planning, risk mgmt)

•  Supplier co-ops   Aggregated supply (efficiency, affordability)   Coordination of processing (product development)

•  Basis for collaboration   Shared principles, values, vision, message   Efficiency, potential and impact of co-op model   Not-for-profit co-operative model for distribution

•  Volume, efficiency, focus

Next*Steps*•  USDA Value Added Producer Grant

  Collaboration with regional farmer co-op   Support from Farmers Union, CoBank   Exploration of priority products   Co-op partners (farmer, fishery, processing, etc.)   Co-op structure   Feasibility study   Business plan

•  Workplan & Timeline   2014 Calendar Year

Discussion*

•  Feedback

•  Questions

•  Ideas