1. Greenmarket Wholesale A Food Hub for NYC March 27, 2012

2. Why Local Food? Better and more stable farm incomes that keep existing farms in business, attract new farmers, and preserve farmland. More income, assets and prosperity retained in rural communities. New jobs created in food production, processing, distribution and retailing. Better access to healthier, more diverse foods that help to prevent obesity and diet ‐ related diseases. Increased supply of healthy, local food in underserved communities with federal, state and city subsidies. Enhanced product traceability and accountability of producers to consumers.

3. Farming is crucial to New York State’s economy, accounting for $4.4 billion in sales and employing tens of thousands of New Yorkers. New York ranks among the top five states for apples, vegetables and dairy production. The market value of agricultural products sold in New Jersey is over $1.1 billion. New Jersey agriculture ranks third in importance (behind pharmaceuticals and tourism) in economic importance to the state. Regional Importance of Farming

4. Local Food Trends Direct–to-consumer sales of agriculture products have increased by $660 million (120 percent) from 1997 to 2007. The number of farmers markets nationwide more than doubled between 2000 and 2010 and CSAs grew from 2 in 1986 to an estimated 2,500 in 2010. Despite the growth of retail outlets, 99% of agriculture products consumed in the U.S. are purchased through wholesale, not retail channels. NY State is losing farms at a much higher rate than the national average: Since 1950, NY had a 70% drop in the number of farms and a 76% loss in farmland acres (compared to 20% loss nationally).

5. Local Food is Reaching More Low Income New Yorkers

6. 8.4 million NYC Residents X $3,929 per capita food expenditures 1 = $33 billion If 10% were spent on local food this would result in $3.3 billion in sales 1 USDA, Economic Research Service, 2009 per capita food expenditure What is the Potential Demand for Local Food?

7. $867 million demand for locally grown products among NYC wholesale buyers* $649 $48 $44 $126 $867 million Demand for Local Food by Wholesale Buyers * Wholesale buyers include restaurants, caterers, retail food stores, independent produce distributors, food manufacturers, florists, and landscapers. From a 2003 New York State Department of Agriculture and Markets feasibility study.

8. GrowNYC’s Approach to Connecting Farmers to Local Markets Mission Driven Non-profit with 35 years of experience helping family farms and ensuring a supply of fresh, healthy produce for all New Yorkers Multi-channel strategy ranging from promoting urban food production, community gardens, school gardens, farmers markets, wholesale distribution, new farmer development, composting and food education. Operates Greenmarket Famers Market and Youthmarkets, national models for creating direct marketing opportunities for farmers and delivering healthy, fresh, local produce to low income communities through FMNP and EBT. Now expanding to wholesale distribution.

9. Greenmarket 53 Farmers Markets 230 Participating Producers 30,000 Acres in Production 43 Greenmarkets Accept SNAP/EBT 640K in EBT Sales & $2.5 million in FMNP GrowNYC by the Numbers 2010 Youthmarkets 13 teen run farm stands in all boroughs 200K lbs local produce purchased 70 youth jobs created $90,000 wholesale purchases from farmers Wholesale Greenmarket @ 2 million in annual sales GrowNYC facilitated $23,000 direct sales to grocers 119K lbs fresh produce donated to City Harvest Fresh Pantry 34 pantries/soup kitchens partnered with Greenmarkets Over 500K pounds donated from Greenmarkets to pantries/soup kitchens Fresh Bodegas 3 month pilot in Harlem and Central Brooklyn 11 coolers installed in bodegas $19,000 in sales of local produce Fresh Pantry 34 pantries/soup kitchens partnered with Greenmarkets Over 500K pounds donated from Greenmarkets to pantries/soup kitchens YUM Food Box 70,000 lbs produce 20 senior volunteers activated Average 50 boxes per week @ 3 sites

10. The USDA definition of a “Food Hub” Organizations that act in the following manner: Carry out or coordinates the aggregation, distribution, and marketing of primarily locally/regionally produced foods from multiple producers to multiple markets. Consider producers as valued business partners instead of interchangeable suppliers and committed to buying from small to mid-sized local producers whenever possible. Work closely with producers, particularly small-scale operations, to ensure they can meet buyer requirements by either providing technical assistance or findings partners that can provide this technical assistance. Utilize product differentiation strategies to ensure that producers can get a good price for their products. Examples of product differentiation strategies include identity preservation (knowing who produced it and where it comes from), group branding, specialty product attributes (such as heirloom or unusual varieties), and sustainable production practices (such as certified organic, minimum pesticides, or “naturally” grown or raised). Aim to be financially viable while also having positive economic, social, and environmental impacts within their communities, as demonstrated by carrying out certain production, community, or environmental services and activities.

11. What we will accomplish in NYC Act as a public interest broker and distributor of local produce by coordinating the aggregation, distribution, and marketing of regionally produced wholesale produce. Develop relationships with large wholesale growers by negotiating a fair price for their products and creating a value chain distribution model. Help producers meet packing, grading and food safety requirements so they can compete in the marketplace. Aggregate produce from multiple producers and distribute under the Greenmarket brand. Expand GrowNYC’s programs in low income neighborhoods (Youthmarket, Fresh Bodegas, YUM Food Box, etc) by increasing distribution efficiencies. Provide quality branded product for retail outlets that tells a story behind the products and communicates the benefits of selling Greenmarket Wholesale produce.

12. The Past

14. GrowNYC’s Food Hub GrowNYC’s Programs Institutional Buyers Restaurants & Grocers Food Rescue Organizations Consumers

15. How can we scale up and deliver more local food? Challenges & Opportunities Interim: Create a “Food Hub” (aggregation and distribution center) at the Long Island City, City Harvest facility. Invest in human capital to recruit farmers and buyers. Invest in transportation infrastructure (vehicles and storage). Long Term: Plan for a new space as we outgrow the LIC facility. (Oak Point or Hunts Point?) Work with processors to create value added products (e.g., wash, chop and bag) to supply hospitals, schools, restaurants and other institutional buyers. Build distribution chains between NYC and local and regional food hubs to broker product in the city.