Food Aggregation Centers: An Overview Presented by Claire Thompson Wisconsin Local Food Network November 22, 2013

Mainstreaming Local Food - assumptions Economic Stimulus Job Creation Increased Farmer Income Environmental Impact Improved Food Access & Health Source: Building Successful Food Hubs; A business planning guide for aggregating and processing local food in Illinois, January 2012

Consumer Interest Consumers are interested in: Local Sustainable Authentic Innovative Organic Healthy Safe Proximity is a proxy for some or all of these attributes Consumers first notice local fruits and vegetables as an indicator of store quality Source: Networking Across the Supply Chain: Transportation innovations in Driftless local and regional food systems. Michelle Miller, University of WI – Madison, Center for Integrated Agricultural Systems 8/7/13

Wholesale Market Segmentation wholesale buyer type Red = institutional market Green = grocery Blue = restaurant Meal service Megabox Fast food Private cafeteria Gourmet retail White table cloth restaurants Grow your own resources Source: Networking Across the Supply Chain: Transportation innovations in Driftless local and regional food systems. Michelle Miller, University of WI – Madison, Center for Integrated Agricultural Systems 8/7/13

USDA Definition of a Food Hub A business or organization that actively manages the aggregation, distribution, and marketing of source-identified locally or regionally grown food from primarily small to mid-sized producers. A food hub may provide the core services of a packing house and/or aggregate and distribute farm-packed produce.

Business Models & Services Service/Function Aggregation FacilityPacking House Web-Based Aggregator Aggregation *** Washing * Cooling ** Grading, Sorting, Packing * Re-packing * Sales and Marketing *** Distribution *** Ancillary services: Harvesting, Merchandising, Labeling, Financing Technical Assistance – GAPs, GHPs, HACCP Source: Building Successful Food Hubs; A business planning guide for aggregating and processing local food in Illinois, January 2012

Business Entities Cooperative For-Profit Nonprofit Public-Private Partnership

Thank you!

Discussion Questions In thinking of who is in attendance today, where do our mutual interests lie? What are some ways we can work together to advance those mutual interests?

Discussion Questions Are there some specific next steps that some or all of us can work on to advance our mutual interests? What is the best way to keep each other informed of future developments?