Cooperatives in Local Food Systems

Elisabeth Howard

November 20, 2003

UW Center for Cooperatives Brown Bag Series

Cooperatives in Local Food Systems

1. Local Food Systems

2. One Area of Research: Institutions

3. My Masters Thesis Topic

Local Food Systems

The biophysical and The biophysical and socioeconomic processes and socioeconomic processes and relationships involved in the relationships involved in the

production, processing, production, processing, distribution, marketing, distribution, marketing,

consumption and disposal of food.consumption and disposal of food.

“Where are we then?…”

“…We are embedded in a global food system structured around a market economy which is geared to the proliferation of commodities and the destruction of the local…”

“…We are faced with transnational agribusiness whose desire to extend and consolidate their global reach implies the homogenization of our food, our communities, and our landscapes…”

“…We live in a world in which we are ever more distant from each other and from the

land, and so we are increasingly less responsible to each other and to the land…”

“…Where do we go from here?…”

“…How can we come home again?”

(Kloppenberg, Stevenson, Hendrickson, 1996)

“In addition to yield potential,

economic feasibility depends on

the availability of outlets for the

produce, the market price, and

the cost of production.”

(Colette & Wall, 1978)

Farmers Markets

Community Supported Agriculture

(CSA)

On-Farm Markets

Grocery Stores

"We strive to work with

ingredients that are

cultivated in accordance

with their natural cycles,

and are grown in their

native and adapted

soils."

“Our inspiration is drawn

from French and American

cuisines, spotlighting

locally grown, organic

ingredients.”

Restaurants

Food Service

One area of research:

How do farmers sell to local institutions?(grocery stores, restaurants, food service)

Between Farm and Institution

Essential Intermediate Functions

• Cultivate relationships

• Brokerage

• Processing

• DistributionWho does this?1. Non-Profits2. For-Profits3. Government Agencies4. Cooperatives

Red TomatoRed Tomato

• 1998, Canton, MA

• Act as broker/distributor

• Sell to grocery stores

• Goal: To “reinvent local food systems”

Project Farm Fresh StartProject Farm Fresh Start

• 1994, Hartford, CT1994, Hartford, CT

• Farms sell to school district food serviceFarms sell to school district food service

• Local wholesaler coordinates purchasingLocal wholesaler coordinates purchasing

Iowa Farm Bureau Dining

Facility

•West Des Moines, IA•Loffredo Fresh Produce Company

• Coordination between state Departments of Agriculture and US Department of Defense

• Use existing market expertise, quality assurance, and procurement and distribution systems

DOD Fresh Produce ProgramDOD Fresh Produce Program((North Carolina, Kentucky, New Jersey, others)North Carolina, Kentucky, New Jersey, others)

Farm-to-SchoolFarm-to-School

•1997, one school district•Wash, chop, bag, weigh, deliver•2001, 15 school districts, 3 states

• Postville, IA, 11 members• Sell to group shelters, hospitals, nursing homes, health care facilities, school district, college, restaurants• Online ordering• Wash, process, deliver

• South-central WI, 23 farmsSouth-central WI, 23 farms

• Sell to high-end restaurants in Sell to high-end restaurants in Madison, Milwaukee, Sheboygan Madison, Milwaukee, Sheboygan and and Chicago areaChicago area

• UW food serviceUW food service

• Madison Metropolitan School District Madison Metropolitan School District Food ServiceFood Service

•Collaboration between UW, MMSD food service, local farmers, parents, teachers, community members•Pilot project in three Madison schools in fall of 2003•Local ingredients from Home Grown Wisconsin in new menu options•Special event meals

Thesis Topic

Compare Local Produce Marketing Options

• Farmers Markets

• On-Farm Markets• CSA• Institutions (restaurants, food

service, grocery stores)

Based On:•Access•Expected Returns•Price Risk

ACCESS

EXPECTED RETURNS

PRICE RISK

Methods

• Personal interviews with farmers in south-central Wisconsin

- Two different samples

- Criteria

Qualitative questions (access, methods,objectives, obstacles, reasons)

Quantitative questions (prices & costs) using five crops: carrots, tomatoes, potatoes, strawberries, salad mix

Simulate Model of Typical Farm

- Use price and cost information- Look at dynamic effects of changing

certain variables (market access, risk aversion, etc.)

Expected Results• Access to local markets will be an issue

• Farms use strategic mix of marketing options

Considerations:Considerations:• What is “local”?What is “local”?

• GeographyGeography

Who will find this useful?Who will find this useful?•Farmers

- Help in sorting out decisions about production and marketing

•Those who promote local food systems

- Are there inefficiencies or infrastructure needs that could be addressed

Feedback