2ND Annual Locavore Challenge

UPEI School of BusinessExecutive MBA Program

February 6, 2010‘A Bioregional Approach to

a Local (Food) Economy’

The Mission of The Institute for Bioregional Studies Ltd.

"To foster community and regional development through research, consultation and educational programs that encourage the adoption of technologies and practices which are socially, economically and ecologically sustainable."

The Institute for Bioregional Studies Ltd. (IBS) is a non-profit, charitable organization.

(Charitable Status # 88980 9737 RR0001)

www.ibspei.ca

WHY YOURWORLD

IS ABOUTTO GET A

WHOLE LOTBETTER

PHIL FERRARO

BUT……………… the transition will not be easy.

Local Food – NOT for Market Opportunity, but because it is one step toward a more sustainable (i.e. ‘Bioregional’) economy.

Bioregionalism is a framework for building sustainable systems that are physically and culturally unique.

Shifting Economic Paradigms

Conventional Model

• Innovative

• Competitive

• Efficient

Engages in activity that is

deemed valuable by other

people - a “winner take all”

attitude and a “culture of

desire.”

Emerging Bioregional Model• Secure• Accessible• Fair• Ecological

Works to assist and unite, the work of others for a collaborative, harmonious, and self-reliant future.

PEI’s EconomyShifting away from an agrarian based economy to one diversified in the sciences, information technologies, aerospace, tourism and finance.

However, a vibrant and the sustainable economy and the sovereignty of a region remains dependent upon its ability to maintain a vibrant agricultural sector that can feed itself, protect its environment and provide a ‘good life’ for future generations.

• Projected Global Population = 10 Billion in 2050.• N. American diet of 800 Kg grain/person/year - 2.5 billion people• Italian diet of 400 Kg grain/person/year - 5 billion people• Indian diet of 200 Kg grain/person/year - 10 billion people

(A decrease of .5 births per family in developing countries can reduce the peak global population to 7 billion.)

How Many People Can We Feed?

Why the I.C.E. Corps are not S.A.F.E.

• “Monopolization shifts competition from a horizontal plane to a vertical plane. Rather than competition between companies we get competition between the monopoly and all the people under its power (i.e. workers, suppliers and customers).”

• "The privatization of government services and functions results in the growth of corporate power into a political form, which systematically dismantles social programs.”

Barry Lynn, ‘Cornered: The New Monopoly Capitalism and the Economics of Destruction’

Multinational corporations are now operating in developing countries that lack sufficient regulations.

• Menu Foods announced a recall of pet food .

• Toothpaste makers had used diethylene glycol, a component of brake fluid and antifreeze, as a sweetener.

• Toy makers had coated their products with lead-based paints.

• Farmers had fed unapproved drugs to catfish that were bound for N. America.

• Jan, 2010, Global recall of children’s jewellery laced with cadmium.

• January 2010• January 15, 2010 -

Hines Nut Company Announces Recall of Pine Nuts Because of Possible Health Risk

• January 15, 2010 - MuscleMaster.com Conducts a Voluntary Nationwide Recall of Body Building Products

• January 15, 2010 - Parkers Farm, Inc. Expands Recall to Include All of Its Products, Regardless of Code Dates, Because of Possible Health Risk

• January 15, 2010 - McNeil Consumer Healthcare Announces Voluntary Recall of Certain Over-The-Counter (OTC) Products in the Americas, UAE, and Fiji

• January 14, 2010 - FDA Health Alert for Merrick Beef Filet Squares Dog Treats Packaged and Distributed by Merrick Pet Care

• January 14, 2010 - PEO Chapter FO Recalls Roasted Hazelnuts Because of Possible Health Risk

• January 13, 2010 - HAPPYTOT Stage 4 and HAPPYBABY Stage 1 & Stage 2 Pouch Meals - Recall

• January 13, 2010 - Nurture, Inc. Issues Voluntary Recall on select HAPPYTOT Stage 4 and HAPPYBABY Stage 1 & Stage 2 Pouch Meals Due to a Packaging Defect that could cause a Possible Bacterial Contamination

• January 11, 2010 - Heluva Good Recalls Cold Pack Cheese Products Because of Possible Health Risk

• January 09, 2010 - Rudolph Foods Issues Allergy Alert on Undeclared Milk in Product

• January 08, 2010 - Parkers Farm, Inc. Recalls Several Products Because of Possible Health Risk

• January 06, 2010 - Bao Ding Seafood Recalls Boiled Horse Mackerel

• January 05, 2010 - ev3 Endovascular Inc. Trailblazer Support Catheter: Class I Recall

• January 04, 2010 - Harry London Candies, Inc. announces a voluntary and limited recall of Harry London Chocolate Pecan Caramel Stars due to an undeclared allergen

March 2007, US Food and Drug Administration (FDA) announced that cheap and adulterated Chinese products are poisoning us, our children, and our pets.

We have mirage of infinite choice which is really a hall of standard-issue products that are distinguished only by the words and colours on their labels.

Concentration is not the exception but increasingly the rule.

Colgate-Palmolive and Procter & Gamble split more than 80 percent of the market for toothpaste.

Campbell’s controls more than 70 percent of the shelf space devoted to canned soups.

Frito-Lay has captured half the business of selling salty corn chips and potato chips.

Nine of the top ten brands of bottled tap water are sold by PepsiCo (Aquafina), Coca-Cola (Dasani and Evian), or Nestlé .

Our economy is filled with hidden monopolies that control, restrict, and determine what we buy, with little or no regard for any real market forces.

•We have never seen such power to govern our industries concentrated in so few hands.

•We have never seen such physical concentration of production.

•We have never seen such top-down competition and thus the destruction of so many of the real assets, skills, and products .

•We have never before faced such a lack of real options.

‘When food brands operated their own factories they were able to isolate a supply problem far more swiftly and with far less disruption at the point of sale.’

‘The most disturbing revelation is not even the fragility of our food systems, but that some of our most cherished beliefs about how the economy works appear to no longer be true.’ Barry C. Lynn, senior fellow New America Foundation, business and political journalist. Author, of: Cornered: The New Monopoly Capitalism and the Economics of Destruction.

Wal-Mart sells over half of all the groceries in many big metropolitan markets.

It provides 30 percent and sometimes more than 50 percent of N. American consumer products.

Wal-Mart registers nearly $20,000 profit every minute of every day. Wal-Mart annual profit exceeds $10.3 billion.

A WAL-MART CONTAINER ARRIVES IN THE U.S. AT A RATE OF 1 EVERY 45 SECONDS

•5 of the richest 13 people in the world are members of the Walton family.

•28 hours a week is considered fulltime work at Wal-Mart. The average Associate earns $10.84/hour. = $19,165/year.

•2/3 of Wal-Mart’s workers cannot afford the company’s insurance plan.

•Wal-Mart may be the most Innovative, Competitive and Efficient corporation in the world.

I.C.E. Corps Have Homogenized Big MediaFive corporations -- Time Warner, Disney, Murdoch's News Corporation, Bertelsmann of Germany, and Viacom (formerly CBS) -- now control most of the media industry in the U.S. General Electric's NBC is a close sixth.

Independent, public and local news services are being dismantled.

I.C.E. Corps have created the ‘Military Industrial Complex’

"Our military organization today bears little relation to that known by any of my predecessors in peacetime, or indeed by the fighting men of World War II and Korea.

We have been compelled to create a permanent armaments industry of vast proportions.

We must not fail to comprehend its grave implications.

We must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex.“

- President Dwight D. Eisenhower in his farewell address; January 17, 1961.

I.C.E. Corps. have taken control of our food system. Dean Foods controls 40% of the fluid milk supply in the USA, and almost 70% of fluid milk in New England-causing prices to fall faster than since the Great Depression.

Cargill, Archer Daniels Midland (ADM), and Conagra control 80% of pork and beef production, and the most the world's grain .

Monsanto, owns patents to 93% of the world’s soybean crop and 80 percent of corn.

Three companies, Bayer, Syngenta, and BASF control about half of the global agrochemical market.

Monopolies result in tremendous negative consequences on our food security, and ultimately on consumer choice.

These firms often mandate the use of a certain technologies. If producers stray from the prescribed methods, they may find their contracts terminated.

I.C.E. Corps block scientists from independent research on GMO crops

• If you buy genetically modified (GM) seeds you may not save the seeds from your harvest.

• You are also prohibited from using the seeds for research. That means research into GM crops can be done only by the biotech companies or with their approval.

Our current food system, is not sustainable.Global:

• Foreign interests control 15 to 20 million hectares of farmland in developing countries. Equivalent to 50X the size of Prince Edward Island.(Beware of the ‘Gates-Rockefeller Alliance for a Green Revolution.’)

• Food prices soaring due to manufactured constraints.

• Food distribution accounts for 10% of annual CO2 emissions.

• Avian Influenza, H1N1 Swine Influenza, MRSA, BSE are diseases that entered human populations from industrial agricultural operations.

• Fertilizer run-off created a 7,000 square mile dead zone in the Gulf of Mexico.

• In the event of a ‘food shock’ North American cities only have only a three day supply of fresh food.

• From 1987 to 1997, consumer expenditures for U.S. grown food increased by $185 billion.  Nearly 85 percent resulted from an increase in marketing costs.

• In 1997, the farm-to-retail price spread rose by an average of 4.7 percent while farmers received 4.4 percent less for the food they produced

• Average return on equity (1986 and 1991) for farmers was roughly 2 percent.

The average return for food manufacturers was roughly 17 percent. (US Dept. Agriculture).

• Declining Farm Share of Food Dollar1980 – 30%, 1987 – 30%, 1997 – 23%, 1998 – 21%, 1999 – 20%

Our current food system, is not sustainable.Canada:

• Tens of thousands of farmers sell to only 1 or 2 corporations.

• Food travels 2400 kilometres from field to plate.

• 38% of food available for retail sale is wasted.

• Adverse affects of industrial farming on water, soil and air quality linked to decline in nutritional value of food.

• 8 of 10 leading causes of death are diet related (Statistics Canada, 1997).

• Increasing reports food contaminated with pathogens and foreign substances including listeria, E. Coli, salmonella, melamine, pieces of glass, Bisphenol A.

• Simultaneously export & import same product.• Canada’s average ecological footprint is 7.25 ha/person.

Beware of the nutritionists and food scientists who want to extract, genetically modify, make ‘functional,’ ‘enrich’ and ‘medicate’ junk food to pass it off as ‘health food.’

‘Eat Food. Not too much, Mostly plants,’ Michael Pollan, author ‘In Defence of Food.’

Our current food system, is not sustainable.Prince Edward Island

Growing the Island WayThe Next Chapter for the Agriculture and Agri-Food Economy of Prince Edward IslandCommission on the Future of Agriculture

• Until the 1960s, small mixed farms provided local food under a low-intensity agricultural model, with relationships forged at the community level.

• Since then, the number of farms in PEI dropped from more than 10,000 to fewer than 1,700.

• Conversely, between 1986 and 2006, farms with gross revenues of over $500,000 increased fivefold, from 44 to 240.

• 637 farms reporting gross income of over $100,000 occupy over 80% of our agricultural land and generate about 80% of PEI’s farm cash receipts.

• In the 1970s, one in seven Island farmers was under 35 years of age. Today it’s less than one in 10 and there is no sign that the trend will reverse any time soon.

Our current food system, is not sustainable.Prince Edward IslandGrowing the Island WayThe Next Chapter for the Agriculture and Agri-Food Economy of Prince Edward IslandCommission on the Future of Agriculture

• “Farmers are fighting a losing battle of mere economic survival. The industry cannot thrive by competing in globalized, efficiency driven commodity markets where the largest scale, lowest operating cost, and least regulated operations win the day.”

• “The commodity system has created a “vicious circle” in PEI, where ever-declining profit margins have forced farmers to consolidate and intensify their operations, resulting in negative environmental impacts that lose farmers the respect of the community and, in turn, costs them their own self-respect.”

Our current food system, is not sustainable.Prince Edward Island

Growing the Island WayThe Next Chapter for the Agriculture and Agri-Food Economy of Prince Edward IslandCommission on the Future of Agriculture

• “Today, globalized industrial agriculture is on the verge of a third wave.”

• The trend toward fewer but more specialized farms, along with a concentration of processing and retail, resulted in declining economic viability, and environmental degradation.

• “ This third wave will feature a global agricultural response to energy and environmental issues. It will include new technologies like customized, satellite-based weather forecasts, genetic improvements in crops that allow for reduced pesticide and nutrient inputs, and foods with improved health benefits to consumers.”

Which economic paradigm does the Commission endorse; the I.C.E ‘winner take all’ model or the emerging S.A.F.E. bio-regional model which supports collaboration and self-reliance?

ISO 26000 - ‘Social Responsibility’

is important to a S.A.F.E. economyConscious of what we buy, and how it is produced.

• Environmentally harmful production, • Child labour, • Dangerous working environments and other inhumane

conditions.

Companies aiming at long-term profitability and credibility are starting to realize that they must act in accordance with norms of right and wrong.

Why Localizing the Economy is S.A.F.E.

Enhances consumer trust .

Provides icons of local identity and pride.

Greater community welfare, less social strife, and greater equality.

Local jobs and reinvest profits in the community.

Local businesses attract tourists and future entrepreneurs, promoting creative economies, and stimulating charitable contributions.

A community that cannot sustain itself places burdens on the ability of other communities to sustain it.

S.A.F.E. businesses that meet local needs sustainably can, teach communities in other parts of the world to be sustainable.

A bioregional, S.A.F.E., economy is not exclusively a geographically ‘local’ economy.

It aims to serve the bio-region first; creating self-reliance and then exporting surplus to ‘niche markets,’ (i.e. specific customers with whom we enjoy a special relationship).

Not only about price, quality, safety, reliability, nor consistency.

It is about the intangible qualities of trust, security, fairness, ecological sustainability and friendship.

It is about collaborating with partners rather than competing with rivals.

Growing awareness and demand from consumers to eat differently for both health and economic reasons.

• 42% of Canadians regularly purchase locally grown food (Ipsos Reid, 2006)

• 71% of Canadians say benefit of local food is that it helps your local economy (Ipsos Reid, 2006).

• 30% spending increase at Farmer’s Markets between 2004-8 .

• 90% of households indicate they had purchased local food in the past 12 months.

• 1/3 of Canadian households say they will buy more local food next year.

• Over 75% of Canadians identify taste, nutrition, security, environment and economy as very important reasons for buying local foods.

While dollars spent with large corporations almost immediately leave the community, dollars spent on local food products circulate within the community 8 to 15 times, drastically improving the value of your purchase. (BALLE, 2009)

Shifting to a more local economy creates jobs and increased output, earnings and business taxes. For example,

• A 20% shift to local foods in Detroit and five surrounding counties results in 35,822 jobs and $3.4 billion in increased output, $900 million in increased earnings, and $155 million in increased business taxes (Shuman, 2009).

• 20% shift of food dollars to local food in King County in Seattle, Washington would result in nearly $500 million annual income increase (Sontag, 2008).

In early 2009, 2000 Edmontonians, committed to shift 40% of their current food dollars to local food. The result was a shift of $2.3 million dollars annually to purchasing local foods.

If 25% of residents responded similarly, this would mean over $330 million would be shifted to local foods. The multiplier effect would bring the economic impact to over $2 billion.

On Prince Edward Island, a 20% shift in local food purchases would infuse an additional $3.6 million into the local economy. The multiplier effect would bring the economic impact to over $22 million, annually.

Can local food jump-start the economy? December 9, 2009

“All locally owned businesses can help the economy grow. But food businesses are the gateway for many people to rethink their relationship with local stores. ……….. food is at the forefront of local businesses' driving of economic growth, providing a model for other kinds of entrepreneurs.”

Weaver Market. Carrboro, North Carolina 12,000-members, includes three grocery stores, a commissary and an Italian restaurant, an affordable housing cooperative and a locally owned radio station.

It donates more than $60,000 each year to local schools and other nonprofits.

Zingerman's in Ann Arbour, Michigan It began as a 1,200-square-foot deli in 1982 and now includes a catering company, bakery, mail-order business, creamery, a full-service restaurant, a coffee roastery and a consultancy called ZingTrain that teaches customer service to other small businesses. Zingerman's employs 525 people, with revenues of $27 million.

Food Trends to Watch in the Next Decade:

Source: The Way We Eat: Creating a Vibrant & Sustainable Local Food Economy Greater Edmonton Alliance

A resurgence of family dinners and dinner parties. Research confirms that families benefit emotionally as well as nutritionally. Children who eat meals with their families do better in school and are less likely to fall into substance abuse.

Voluntary Simplicity is now trendy even in food. Foodies will seek simple preparations with few ingredients.

Farmers' markets will gain even more prominence. And locally produced food will be more and more sought after.

Snack foods and prepared meals. Childhood obesity may slow down but will remain throughout the decade. Thanks to the food processing lobbies and HFC.

1 billion people are malnourished; 1 billion are obese.

A trend away from restaurants and toward dining trucks, street vendors, informal and authentic ethnic food.

The restaurant chains will fight this with scare tactics over food safety.

Increase in programs, initiatives, and even legislation to improve our health, especially diabetes and heart disease.

Plant a garden Urban agriculture, Edible landscaping,Permaculture design.

Food First Institute for Food and Development Policy Forging Food Sovereignty

for Human Rights and Sustainable Livelihoods

• End the injustices that cause hunger, poverty and environmental degradation throughout the world.

• A world free of hunger is possible if farmers and communities take back control of the food systems presently dominated by transnational agri-foods industries.

• People have a right to healthy and culturally appropriate food produced through ecologically sound and sustainable methods, and their right to define their own food and agriculture systems—at home and abroad.

Incubator Farms and Agricultural Entrepreneurship programs can help new and young farmers, and develop practical as well as entrepreneurial skills.

“Injustice anywhere is a threat to justice everywhere.” Martin Luther King Jr.

Prince Edward Island’s economy will be sustainable when it is SAFE:

» Secure, » Accessible, » Fairly traded , » Ecologically responsible.

www.ibspei.ca