1. Value Chain and Food Hub Development in Southeast WA
Chris Iberle Farm to School & Value Chains Specialist
agr.wa.gov/marketing/Regional/RegionalMarkets.aspx
USDA & WSDA represented

2. MEP Supply Chain Management
Customer Value Chain
What is a value chain?
Serve customer needs and work backwards
Traditional supply chain: develop a product, convince customers they need it
Leads to lots of problems
Including each partner exploiting lack of transparency
Information asymmetry
Waste, sustainability, customer disengagement
Value chain approach
How is value added for end customer?
Not simply in terms of price or $$
though that may be one outcome (customer willing to pay more)
Often more transparency and information is key strategy
Could be adding convenience, eco-friendly, higher quality, “cool”
Term is used to mean a lot of different things
MEP Supply Chain Management

3. Food values chain
can be confusing
Food value chain is one form of a value chain
Way to add value for the end customer is because of values
Farm viability, transparency, healthy food, sustainable
Satisfying a customer demand for a values-based supply chain
USDA’s Agricultural Marketing Service and the Wallace Center at Winrock International

4. Food Values Value Chain
Might call it a Food Values Value Chain
What’s the point of this distinction?
Accomplished through partnerships and collaborative supply chains
Also an investment strategy and opportunity
Value chains help business and farms increase profits or market position
Working to support that, value chain strategies
Hope some of this info can build that momentum
Good to keep in mind that value can be added in ways other than values – convenience, price, volume, logistics, processing
Food hubs and farmer co-ops play a key role
Partnerships with other food businesses to add value, satisfy need
Processors, distributors
USDA’s Agricultural Marketing Service and the Wallace Center at Winrock International

5. What is a “food hub”?
“A business or organization that actively manages the aggregation, [processing,] distribution and marketing of source-identified food products primarily from local and regional producers to strengthen their ability to satisfy wholesale, retail, and institutional demand.”
United States Department of Agriculture
This can mean a lot of things

6. What needs or problems would participating in a “food hub” in Clark Co solve for you?
When scoping and visioning this food hub
Important to think about how that vision would serve your needs as a grower
Could be in any of these elements
Can’t do all the things – what are the most valuable and important

7. Possible benefits for farmers
Reach new markets
Transportation
Invoicing & administration
Increase sales
Spend more time farming
Capture value & fairer prices
Save time & money
Marketing & branding
Language or cultural barriers
Infrastructure & technology
SOME but rarely ALL of the above
Depends on what’s most important
And what the food hub decides to take on

8. Possible benefits for buyers
Meet demand for local food
Better, fresher product
Save time & money
Variety & volume
Convenience
Increased availability
Access & delivery
Education
Know & support your farmers

9. Benefits for the community
Local food access
Boost local economies
Food access & security
Lower carbon footprint
Healthier foods in more places
Keep farmers farming

10. What do food hubs do? Basics: Aggregate from multiple producers
Actively coordinate supply chain(s)
With suppliers & sellers
With buyers
In the simplest form
“Coordination” can mean so many different things
Products in this supply chain can be adding value and looking a lot of different ways
Tasked with today and through the project, your mission
Start refining and scoping

11. What might food hubs do? Crop & market planning Distribution
Food safety
Product storage
Product development
Marketing
Processing
Brokering
Education
Aggregation
Promotion & branding
Ordering & Invoicing
Community engagement
Packing
Sales
…and more
SOME but rarely ALL of the above
Coordinating supply chain

12. Strategic Actions Supposed to talk about strategic interventions
So, what are some things producers need?
NOT exhaustive
Policy, land management and preservation, new farmer education, funding/financing
Increasing local production
Top overall need from Clark Co Community Needs Assessment Report
64% - food assistance
Supply chains & marketing (WSDA Regional Markets)
Need help accessing customers - Information
Connecting with buyers: restaurants, grocery
Tapping into local, direct markets
Marketing and sales
Access for farms to current direct marketing opportunities
Need help accessing customers – physical infrastructure
Delivery to customers, CSA, access points
Cooler space & freezer space
Value-added, diversifying & developing products
Meat processing

13. Clark Co. Farmer Interest in New Markets
Source: WSDA Farm to School Farmer Survey N=13

14. Clark Co. Needs for Value Chain Support
Source: WSDA Farm to School Farmer Survey N=13

15. Buyer Demand for Processing
What portion of the food your school district purchases needs to be minimally processed?
Source: WSDA Farm to School Survey 2018
One thing that we’ve looked into is the need for processing
This is not manufactured frozen pizza or granola bars
Minimally processed is fresh cut, sliced, diced, chopped, frozen, dried
Market demand for local processed products: schools one example
Need for processing
74% need some, most, or all of their produce prepped

16. Processing Capacity Regionally
Minimal Produce Processing Businesses
Fresh Cut
Frozen Fruit
Frozen IQF 
Frozen Vegetables
Dried
Clark Co. 4 1 3
N. Central WA 8
King Co. 2 6
Whatcom/Skagit 14
Yakima Co.
Thurston/Lewis
What about hiring a processor?
“co-packing” your product for you to sell?
Something we’ve seen is a decrease in businesses
Not many companies available with processing equipment
Those that do exist (reflected here) often can’t process for others
Source: WSDA Food Processor Permits

17. Buyer Demand for Processing
What portion of the food your school district purchases needs to be minimally processed?
Source: WSDA Farm to School Survey 2018
One thing that we’ve looked into is the need for processing
This is not manufactured frozen pizza or granola bars
Minimally processed is fresh cut, sliced, diced, chopped, frozen, dried
Market demand for local processed products: schools one example
Need for processing
74% need some, most, or all of their produce prepped

18. Farmer Demand for Processing
Are farmers trying to fill this gap?
One way to look at it: What’s limiting farmers from selling more to schools?
Seasonality a limit, can be solved by processing
Budget is a limit, can be addressed by processing
Volume requirements, can be solved by shelf stable processing
Processing itself
Aligns with
Source: WSDA Farm to School Farmer Survey N=216

19. Processing Capacity Regionally
Minimal Produce Processing Availability
Region
Fresh Cut
Frozen Fruit
Frozen IQF 
Frozen Vegetables
Dried
N. Central WA 3 1 8
King 4 2 6
Snohomish
Pierce
Whatcom/Skagit 14
Spokane/Stevens
Yakima
Thurston/Lewis
What about hiring a processor?
“co-packing” your product for you to sell?
Something we’ve seen is a decrease in businesses
Not many companies available with processing equipment
Those that do exist (reflected here) often can’t process for others
Source: WSDA Food Processor Permits 2016

20. Second Mile Food Hub & Marketplace Clark County, WA
Development stages
Feasibility study & organizing
Stage 1: Basic infrastructure for producers: cold, frozen, dry storage
Stage 2: Commercial kitchen space truck for basic distribution, networking producers & buyers
Stage 3: Increased marketing services, retail space, account management, wider distribution

21. Second Mile Food Hub & Marketplace Clark County, WA
Partners & customers
Consumers of local foods
Farmers & producers
Kitchen users (chefs, food trucks)
What are your priorities? What components would you use or participate in?

22. Chris Iberle Farm to School & Value Chains Specialist
agr.wa.gov/marketing/Regional/RegionalMarkets.aspx
Thanks!
I’ll be here all afternoon
WSDA Regional Markets is looking forward to continuing to support your efforts in the SE WA area