Linking Producers to Consumer Markets Ken Meter, Crossroads Resource Center (Minneapolis) Hawaii Agriculture & Landscape Conference — October 16, 2003
Food & farm economy study of Southeast Minnesota David Cole Sunnyside Farms Institute August tour of Hawaii farms Why an economist from Minneapolis?
“Finding Food in Farm Country” Southeast Minnesota Partners: Community Design Center & University of Minnesota
Southeast Minnesota’s Food & Farm Economy 303,000 residents $10 billion purchasing power 8,436 farm families 1.4 million farm animals
Southeast Minnesota’s Food & Farm Economy Stable farm community Lasting social bonds Leaders in conservation tillage Many small farms One of most diverse farm economies in U.S.
Houston, MN spent 2 years with no grocery store Fragile, small food businesses are springing up all over Southeast Minnesota’s Food & Farm Economy However… How to explain this?
Region’s farmers produce $866 million of food per year (1997) Spend $947 million to raise it Lose $80 million in production costs Southeast Minnesota’s Food & Farm Economy Yet…
Southeast Minnesota’s Food & Farm Economy Farm families require $129 million of other farm-related income to cover their costs This includes $42 million in federal supports So…
Finding Food in Farm Country The region’s consumers spend $500 million buying food each year Most bought from outside region Moreover…
Finding Food in Farm Country The average food item in the U.S. travels 1,500 miles from farmer to consumer Over 60% of the cost of food is an energy cost In fact…
Finding Food in Farm Country Loses $400 million raising food, & Loses $400 million buying food Potential wealth lost each year All told, Southeast Minnesota...
Finding Food in Farm Country $800 million each year! Totals 92% of the value of all food raised in the region Total loss is:
Finding Food in Farm Country $45 million of new farm income earned each year If local consumers bought only 15% of their food locally:
Finding Food in Farm Country 45 farms & processors work together Goal: $250,000 sales in 2003 Southeast Minnesota Farm Network Impact of the study...
Community-Based Food Systems: Map courtesy of
Meanwhile, in Hawaii...
Victories 49% self-sufficient in fresh fruits 42% self-sufficient in fresh vegetables 80% bananas 80% cantaloupe 80% melons 80% tomatoes 50% onions
Hawaii has... Leaders in food production & storage technology Plantations working with smaller producers New immigrant farmers able to work the land Groups of producers working to create a new sustainable vision for agriculture
Potential crop opportunities Veal Lamb Pork Goat Chickens Asparagus Broccoli Potatoes Frozen produce? Lemons Limes Oranges Grapefruit Native Tropicals Goat cheeses Eggs
Each year, Hawaii residents consume $2.3 billion of food Tourists buy another $2.2 billion Not including cruise ships, air passengers, etc.
All told, food is a $4.5 billion industry in Hawaii This is 10% of the Gross State Product Tourists spend 1 of every 5 dollars on food & beverages
Hawaii’s farmers earn perhaps $200 million of this This is 4% of total sales
Hawaii farms buy an estimated $200 million of farm inputs per year outside the state.
This is one-third the value of all farm production
Every input that can be purchased locally cycles more of these dollars into the state economy
Residents consume each year: millions Cereals & Bakery$196 Meat, Poultry, Fish & Eggs$334 Dairy Products$124 Fruit & Vegetables$262 Other food at home$407
Kurt Hirabara
Farms gain little income from tourism:
Farm assets increasing Debt is relatively low
Still, taking inflation into account... Assets steady / declining since 1983
Monty Richards
Prime farm acreage is declining
Loss of sugar production drives 63% fall in real value of farm products
Alec Sou
Farm production expenses outpace sales since 1992
Cumulative loss for all farms is $171 million
Number of farm owners increases Despite falling farm income
Dean Okimoto
Sales for very small- & medium- sized farms fall the least
Direct food sales rising
Rick Habein and Hayden