FOOD BUSINESS RISK EDUCATION – ASSISTING WOMEN FARMERS WITH THE CHALLENGES OF DIRECT MARKETING AND ADDING VALUE 2014 Women in Agriculture Educators’ National Conference Winifred W. McGee, Senior Extension Educator Lynn F. Kime, Senior Extension Associate

The Pennsylvania State University is an affirmative action, equal opportunity university. This presentation includes material is based upon work supported by USDA/NIFA under Award Number " "This project supported [in part] by the Northeast Sustainable Agriculture Research and Education (SARE) program. SARE is a program of the National Institute of Food and Agriculture, U.S. Department of Agriculture."

Agenda The Setting -- local foods marketplace Farmers’ need for risk management info The Food for Profit project — Workshop — On-line — Fact sheets KASA gains and impacts of the project — End-of-session — Six-months out

Local Food in the Marketplace Consumers – Demand fresher, more nutritious foods – Support for local economies/ farmers – Desire better food security – Reduce carbon footprint of food Responding trends – Farm markets/CSAs/ community gardens – State buy-local programs – New emphasis on food security

USDA ERS Report – Local Foods “Growers often need education and training” – Meeting the market requirements – Respond to consumer-expectation issues: Risk management Postharvest practices Recordkeeping GAP certification Liability insurance requirements Source: Martinez, Steve, et al. Local Food Systems: Concepts, Impacts, and Issues, ERR 97. May U.S. Department of Agriculture, Economic Research Service.

Food for Profit Program Basic food business start-up instruction: Realities of business ownership Legal requirements Food safety Developing a business plan Niche marketing strategies Packaging and labeling Pricing your product

Incorporating Risk Management In 2011, added these topics to the workshop: Good Agricultural Practices (GAP)/Good Handling Practices (GHP) Hazard Analysis Critical Control Points (HACCP) Adequate/correct Insurance Coverage Allergen notification Pro-active recall planning In 2013, Good Management Practices (GMPs) joined the other five strategies.

Growing the Program Massive updates/changes (since 1990s) Focus changed from “pin money” to “serious business” Increasing percentage of farmers seeking diversification of income Increasing percentage of food entrepreneurs seeking locally grown commodities

Workshop/Fact Sheets/On-line “Annie’s Project” type class – Interactive/discussion-based learning 10 Fact Sheets – Business development – Business growth On-line, self-paced class – 24/7 access – 2013  added 7 th module on risk management

Client Response Since the “renaissance” of FFP (fall 2010) 982 participants; 211 since October 2013 Train-the-trainers in PA, MD, WV, and TN 171 respondents, 2013/14 post-survey tool: – 95% (147/155) rated “Needs Met” Good/Excellent – 99% (165/168) rated “Speakers” Good/Excellent – 96% (161/164) rated “Materials” Good/Excellent – 57% (85/149) said program Met Expectations; 36% (54/149) said program Exceeded Expectations

Knowledge Gain -- Starting a Food Business

Knowledge Gain -- Legal and Liability Issues

Importance: Having a Written Plan

Importance: Food Safety Protocols

Risk Mgt Strategies: Food for Profit

Risk Management Steps: Intermediate Impact

Future Opportunities NE SARE funded Professional Development – Train/apprentice additional educators – Develop additional fact sheets/resources Beyond the original states (PA/MD/WV) Training available for Extension Professionals – Webinar – Guided Application – Apprenticeships

Discussion/Questions