Anish Agriculture Module 8

7/30/2019 Anish Agriculture Module 8

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TOPICSModule 8: Re-envisioning Tribal Economics

Stopping the Leakage of the Tribal Food Economy

From December 2007 to March 2008 the White Earth Land Recovery Project (WELRP) conducted a survey1 of

individuals living on the White Earth Indian Reservation including 264 households representing 839

individuals, or nearly 10% of the total reservation population.2 It was conducted by a team of 3 surveyors

going door-to-door, principally in public housing areas. At least 240 of the households had one enrolled tribamember, and at least 571 of the individuals surveyed were enrolled members of the tribe. 3 The size of

surveyed households ranged from 1 to 10 people, but the average size was 3.1 individuals.

Food Expenditures

Food purchases account for a large proportion of households income. 15% of surveyed households report

contributing 10% of their income toward food, 32% report contributing 20%, another 32% report contributin

30%, and 21% report contributing 40% or higher. By and large, this trend is found across the reservation. The

mean reservation household spends $90 per person per month for food, although Ogema and White Earth

township households tended to spend significantly more: around $120 per person per month. 4

However, most people do not spend their food money on the reservation. Less than half (49%) of household

reported making any amount of purchases at any reservation store. However, this varied by community: onl24% of Rice Lake residents and 33% of Pine Point residents shopped on the reservation, while 64% of

Naytahwaush and 67% of Waubun residents did so. However, even though 49% of reservation households

shopped locally at least some of the time, their purchases tended to be relatively small.

For those households that noted that they shopped locally, the average amount they spent was $102 per

household, per month. So only 14% of reservation households food dollars stayed on the reservation. This

varied by community as well: 27% of Naytahwaushs households total food expenditures go to the

reservation, with a number of individuals noting that they shopped in Mahnomen. However, only 9% of

Callaway and Pine Point dollars stayed on the reservation, and the percentage in Rice Lake was even lower. 5

In all reservation communities the number of individuals shopping on the reservation was always below thatshopping off reservation. Almost 100% of households reported shopping off-reservation, with88% shopping

in Detroit Lakes alone. 100% or nearly 100% of Callaway, Ogema, Waubun, and White Earth households mad

food purchases there. Although 89% of Mahnomen households and 83% of Naytahwaush households

shopped in Detroit Lakes, a significant number (36% and 40%, respectively) also shopped in Bemidji. Pine

Point households tended to shop in both Park Rapids (86%) and Detroit Lakes (72%). Rice Lakers were the

only ones who did not generally shop in Detroit Lakes: they tended to shop in Bagley (86%) and Bemidji

(66%). However, the total percentage of households surveyed who reported shopping in Park Rapids (16%),

Bagley (9%), and Bemidji (19%) is comparatively low. Surprisingly, 10% of households, including 31% of

Mahnomen residents, reported shopping in Fargo/Moorhead, about an hour away by car from the nearest

point on the reservation. A few households, especially in Naytahwaush, also reported shopping in Fosston,

and at least 1 reservation household reported Richwood or farmers markets as other places they shop.6

Off-reservation food purchases accounted for 86% of the reservations food expenditures: 64% went to

Detroit Lakes, 9% to Park Rapids, 4% each to Bagley, Fargo, and Bemidji, and 1% to other locations. Purchase

at these stores tended to be larger, averaging $251 per household per month in Detroit Lakes, and between

$140 and $175 per household per month in the other locations.7 If this survey is representative of the

American Indian population on the reservation as a whole, then the total value of the reservations food

economy measured by the amount purchased in a store equals $362,803 a month or $4,353,634 a year, of

which $3,765,893 a year goes off-reservation.8 The food economy is even larger when federal dollars from


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food assistance programs and local food sources are considered.

Food Assistance

There is a wide variety of state and federal food assistance programs on the reservation.9

Commods

First and foremost there are the commods, a federal program that serves as an alternative to food stamps,

providing direct food assistance to individuals living on Indian reservations. White Earths FDIRP commodity

program serves around 1000 individuals a month, and provides a variety of food including canned and fresh

vegetables and fruits, juice, beans, powdered eggs, vegetable oil, cheese, rice, spaghetti, flour, cereal, and

dry/evaporated/UHT milk. Bison meat, bison stew, and cranberry sauce are provided on a limited basis. Mos

families must come to the Food Distribution headquarters to pick up their food but home delivery is provided

for about 50-60 homebound elders.

To be eligible, households cannot earn more than 135% of the federal poverty line, but only household size,

not income, is a factor in determining the amount of food provided. 10 According to the WELRP survey, 37% o

households use commodities, with 25% receiving up to 25% of their monthly food from commodities, 7%

receiving from 25% to 50% of their food from commodities, and 5% receiving more than 50% of their foodfrom commodities. The amount households received tended to be about the same from community to

community, except in Callaway and Rice Lake. In Callaway, only one of the 19 households surveyed used

commodities, and then for only up to 25% of their food. In Rice Lake, nearly 30% of survey respondents

received more than 50% of their food from commodities, accounting for almost half of the total number of

reservation households who did so.

Children and Parents Programs...

Local educational institutions also provide free or reduced price meals. The 180 Head Start classroom

students receive free breakfast, lunch, and afternoon snacks every school day, while the 60 served by the

home visits program receive a free snack at every weekly visit as well as some type of food at the bimonthly

socializations.11

At the tribes two schools, Circle of Life and Pine Point, all 225 students receive free breakfasand free lunch, and the same is true for the 74 students served by the charter school in Naytahwaush. 12 In th

areas other public schools, students receive free meals only if their household makes 130% of the federal

poverty line or below and reduced price meals (at no more than 40 cents a meal) only if their household

makes 185% of the federal poverty line or below.

Of the 630 students served at Mahube Head Start and Mahnomen pre-K through 12 schools, 60% qualify for

free lunch and breakfast, 13% qualify for reduced price lunch and breakfast, and 27% pay full price, while of

the 653 students attending the WaubunOgemaWhite Earth pre-K through 12 schools, 54% qualify for

free lunch and breakfast, 13% qualify for reduced price lunch and breakfast, and the remaining 33% pay full

price. Not all students choose to go through the lunch line, of course, and so at Mahnomen an average of

190 students eat free breakfast a day and 32 eat reduced price breakfast while 319 eat free lunch and 83 eat

reduced price lunch. The numbers are virtually the same at Waubun: about 180 students a day eat free

breakfast and 34 eat reduced price breakfast, while 305 eat free lunch and 68 eat a reduced price lunch. 13 In

addition, all kindergarten students on the reservation are provided an extra pint of milk a day through the

Special Milk program.

Food is also available during weekday summer months to school-aged children. Circle of Life offers the

Seamless Summer Option during summer break, which serves free breakfasts to about 60 students a day and

free lunches to about 175 students a day. Patty Straub, the COL Business Manager, notes that although


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providing free meals to parents and caretakers is not officially part of the federally-funded program, COL has

begun to do so this year because of the high demand. During the summer, WaubunOgemaWhite Earth

Schools also provide free breakfast and lunch to all children, and adults can purchase meals for $3.00. They

serve about 60 breakfasts and 90 lunches a day for children, and average about 4 adult meals a day.14

Feeding so many children costs significant amounts of money, although state and federal reimbursements

cover the majority of costs. Head Start spends $80,000 a year on food products and non-food related items

like napkins or aprons, Circle of Life spends $56,845, Pine Point spends $41,000, Mahnomen spends

$193,000, and WaubunOgemaWhite Earth spends 127,000.15 At all schools, upwards of 90% of the food

and related non-food items are provided through large private venders such as Food Services of America and

US Foods, although Pine Point School in conjunction with WELRP has begun a Farm to School Program to

provide local and culturally appropriate foods and Circle of Life also buys some local foods. Children who are

not yet school-aged also have access to food assistance.

The reservations WIC program, which is available for pregnant and nursing women and children 5 years of

age or under, serves 597 households consisting of 920 mothers and children. To be eligible, households must

earn below 280% to 185% of the federal poverty level depending on the age of the child. Vouchers, which ar

accepted at most reservation stores and off-reservation stores in the area, provide about $135-$168 a montfor infant formula and around $45 a month per child for a limited set of food items including milk, cereal,

eggs, peanut butter, and juice. The WIC office issues about 2,655 vouchers a month.

In addition, an unknown number of households participate in the Commodity and Supplemental Food

Program, which is an alternative to WIC and provides direct food assistance rather than vouchers. The close

offices are in Bemidji and Detroit Lakes, so statistics for reservation households are not available, but becaus

children are eligible for the Commodity and Supplemental Food Program until age 6 rather than 5, the White

Earth WIC office directs households to consider signing up if they earn 185% of the poverty line or below and

want continued assistance. 16

Elders Programs

Specific programs are also available for the elderly. Minnesota Chippewa Tribes directly runs nutrition

programs on the reservation at Pine Point, serving about 35 individuals, and the White Earth Reservation

Tribal Council (White Earth RTC) runs programs at Congregate Housing and Biimaadiiziiwiin in White Earth, a

well as in Rice Lake, Naytahwasuh, Elbow Lake, and through a home delivery program, serving an additional

216 individuals. At each location the program provides up to one hot meal a day for individuals living on the

reservation who are aged 55 or older and are earning 100% or less of the federal poverty level. In addition, 2

hot meals a week are provided via contract to elders in Ogema through Nutritional Services Incorporated.

Over 75% of participants are American Indian identified, so culturally appropriate and local food like buffalo

and wild rice is provided on occasion. White Earth RTC estimates 85% to 90% of the $245,000 a year spent o

food goes to US Foods. Minnesota Chippewa Tribes uses Apperts Foodservice, a St. Cloud based company.17

Another food program for elders is Mino Miijim, operated by WELRP. Mino Miijim serves 180 American

Indian individuals, home delivering nutritionally and culturally appropriate food to diabetic elders once a

month. Mino Miijim food includes donated and homegrown deer meat, buffalo meat, hominy, wild rice, fres

vegetables and fruit, and packaged products from the Food Bank, as well as other traditional and seasonal

products.

County Programs

In addition, there are a number of assistance programs run on the county level, including Food Shelves, the


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Minnesota Family Investment Program (MFIP), and Food Stamps. Information for these programs is available

for Mahnomen county residents only.18Approximately 55 households go to Mahnomen Countys Helping

Hands every month, although the reservation is also served by Becker County Food Pantry and Clearwater

County Food Shelf. In addition, Pine Point township is also looking into starting its own food shelf.19

Helping Hands provides a box with enough food to last for about three days, but households are allowed to

come no more than three times over a six month period. At Helping Hands, boxes include canned vegetables

canned fruits, soups, stews, meat, and whatever else is available from the North Country Food Bank, which

services the Northwestern Minnesota region including the White Earth Reservation. Households are eligible

to participate in Food Bank programs if they earn 200% of the federal poverty level or below or are

participating in a select set of other assistance programs like WIC, Food Stamps, etc. 20

Mahnomen Countys Minnesota Families Insurance Program (MFIP) serves around 190 households and 530

individuals a month, with an average payout of $720 per household per month and $258 per person per

month. It includes food support, cash grants, and job counseling, and some households may be eligible for

health care and child care support, as well. Eligibility is based on earned income and a complex asset formula

Households may stay on the program for no more than 60 months.21

Mahnomen County Food Stamp program serves around 303 households and 642 individuals a month, with a

average payout of $217 per household per month and $103 per person per month. Eligibility fallows a

complicated formula involving gross income (no more than 130% of poverty), net income (no more than

100% of poverty), and total resources, with a whole slew of deductions. In addition, non-disabled individuals

between the ages of 16-60 must either be in a certified job training program, actively looking for work, or

working. Payout is provided in the form of vouchers for use at certified food stores (including most

reservation and off-reservation stores). The amount of a households voucher is adjusted by income level.

Individuals who are on Food Stamps are not allowed to receive commodities in the same month. The total

monthly benefits given in the form of food stamps is $65,851. 22

Total Food Economy

As mentioned above, reservation residents spend at least $362,803 a month or $4,353,634 a year in grocery

food purchases, of which $3,765,893 a year goes off-reservation.23 Add to this the amount spent through WI

vouchers, conservatively estimated at $1,433,700 a year, Food Stamps, conservatively estimated at

$1,399,465 a year, pre-K through 12 institutional food at $535,770, and the elderly nutrition program at

$284,699, and the total is an additional $3,653,634 a year through food assistance for a total (largely)

American Indian reservation food economy of $8,007,268.24 Less than $1,000,000 stays on the reservation.25

Local Food

The potential to regain some of the food economy and possibly to reduce the number of households

receiving food assistance exists. If households planted gardens and were able to access more venison and fis

and if local reservation stores stocked more items families wanted at prices they could pay, the reservation

could regain some of its food sovereignty.

In terms of gardens, currently 24% of households on the reservation have a garden and 76% do not. But 68%

of those that do not have one are interested in having one, while only 32% are not. These numbers are

relatively stable across the reservation except in Callaway, where 67% of households had a garden already. I

addition, in Mahnomen, only 47% of households that did not have a garden wanted one.

There is also potential to increase the consumption of fish, venison, and other locally gathered or hunted


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foods. 11% of surveyed households responded that they never eat fish, 57% eat it a few times a year, 26% ea

it monthly, and 6% eat it weekly. This pattern generally held across the reservation except in Pine Point and

White Earth township. In Pine Point, households were more likely to eat fish only a few times a year (71%)

and less likely to eat it once a month (9%).

In White Earth township, an unusually large 14% of respondents ate fish weekly. But regardless of current fis

consumption levels, when asked whether they would like to eat more fish if it was available, 86% of

households across the reservation said they would. A few households, however, expressed concerns about

the safety of the local fish stock. Many reservation households also eat deer and other local products: in the

past year, the tribe issued 1939 natural resource harvest permits and 3000 deer tags. 26 But when asked abou

whether they would eat more deer meat if it was available, 80% in general, and 96% in Ogema in particular,

said they would.

Households also expressed interest in buying more food in local stores if it was available. 89% would buy

fruits and vegetables, 88% would buy meat, 86% would buy bread and baked goods, 78% would buy dairy,

and 59% would buy grains or hot cereals. Survey respondents were also asked to write down other things

that they would like to see sold locally. Two or three individuals each mentioned canned goods, health food,

homegrown and/or local products, juice, organic foods, and wild rice. In addition, at least one individualwould also like to see the following items sold: buffalo, elk, fresh eggs, junk food, moose, seafood, salmon,

toiletries, and cleaning products. There was also some mention of having a farmers market or a community

co-op on the reservation. However, a few people noted that the determining factor would be price. They

pointed out that the current options available on the reservation were a rip-off or too expensive and tha

they would buy on the reservation only if the prices were competitive with off-reservation prices.

Transportation

For White Earth reservation families, food is not the only food-related expense. Because so many individuals

travel off-reservation to shop, transportation costs associated with food shopping tend to be high.27

Households usually use private vehicles for transportation, and travel times are long. 28 For example, it is

about 25 miles for a White Earth township or Waubun resident to get to Detroit Lakes, where nearly 100%report shopping. Naytahwaush residents must travel about 45 miles to reach Detroit Lakes where 83% shop

and 55 miles to Bemidji where 40% shop. The 33% of Mahnomen residents that travel to Fargo/Moorhead

have around 70 miles to go. When asked how much their household spent on transportation per month, a

number of households simply said, a lot and left it at that. For those who provided a numerical value, the

average amount was $217, with a few households spending upwards of $1000 a month. 29 Callaway residents

spent nearly double any other community, at an average of $416, while Rice Lake, removing one outlier at

$1,500, spent $138 per household.

Export Potential Case Study of Native Harvest Marketing Plan:

This business plan has been developed as a strategy to increase maple syrup and wild rice

production within the reservation and through an association with neighboring Ojibwe

producers. The strategy outlines the long-term potential of tripling White Earths maple syrup

and wild rice production. Maple syrup production in particular provides an untapped

opportunity to grow White Earths economy exponentially. In 2003, we undertook a study of

this potential with the Institute for Trade and Agricultural Policy and the Center for Community

Forestry. According to this study, even using the higher production data of 33,000 gallons

annually, White Earths 100,000 gallon potential capacity dwarfs current state production. The

value of this scenario in the marketplace is significant, as Minnesota could go from an unknow

maple syrup producer to a more relevant production force. This potential, combined with the


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fact that most syrup consumed in Minnesota is transported over long distances from the

Canadian and U.S.s East Coasts, could transform White Earth into a major local producer and

open new market opportunities locally, regionally and internationally.

Native Harvest, the food production and distribution business of the White Earth Land

Recovery Project, will soon engage in a 3 year capacity building and capital investment strateg

to position Native Harvest in high value and niche local and international markets. The strateg

will involve enabling producers to access low interest capital loans and/or grants in order to

scale current levels of production. Through an essential focus on research and development, a

valued added international export program will be implemented to optimise potential growth

opportunities in key international markets to increase Native Harvests brand presence and

distribution networks worldwide.

This plan includes an extensive marketing strategy which has been developed to build Native

Harvests marketing capacity in order to facilitate growth in other areas of the business from it

food harvesting activities to its value added processing capabilities. The overall objective of th

plan is to double Native Harvests current sales of maple syrup, wild rice and heritage food

products in year one by modernizing current marketing channels, initiating an aggressive onlin

marketing campaign and securing a loyal following of corporate gift buyers, niche distributorsand retail outlets. Year two will focus on working with White Earth harvesters to increase the

scale of current yields by enabling their access to low interest capital loans, providing focused

production workshops and implementing the Native Trade value added labeling program. Yea

three will focus on building Native Harvests export potential through a mix of research and

development as well as reorienting marketing efforts to focus on building distribution channels

in niche international markets.

1 VISIONThe vision of Native Harvest is to facilitate the recovery of traditional indigenous foodsystems. Currently most White Earth producers have little control of local value chains and

have yet to position and scale for high value returns due to their lack of capacity to market and

build awareness of the unique features of the traditional foods they harvest. Native Harvest's

parent organisation, the White Earth Land Recovery Project, has operated for 23 years and

specialises in marketing Ojibwe specialty and heritage foods to local and national markets. We

effectively provide the only existing central marketing channel for indigenous made products i

Minnesotaa vital platform that has the potential to aggregate harvesters under one

indigenous owned and controlled brand.

The overall marketing strategy outlined in this plan will help to achieve our vision by increasing

sales and channelling profits into Native Harvests Sustainable Communities program which

includes 3 key projects (1) Ojibwe Wind and Energy Project (2) Niijii Broadcasting Initiative (3)

WELRP's Indigenous Seed Restoration Program. A key aspect of Native Harvest's efforts from

2011-2012 will be to generate much needed income through donations from high net worth

individuals and customers to support this program. Much of the fundraising activities over the

next year will focus on securing funds to complete the Native Harvest wind turbine in Callaway

which will be fundamental to achieving more economic self reliance. We will also work

regionally and internationally over the next two years, to secure the Native Trade label - a valu

added program to be launched by Native Trade International in the Fall of 2012. The intention

of this label will be to aggregate marketing with allied organizations and Indigenous producers


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in strategic regions.

2 KEY INDUSTRY ANALYSISThere are two major industries that Native Harvests is currently focussed upon: maple syrup

and wild rice. An analysis of the wild rice industry is only briefly included below, as the key

business strategy of Native Harvest will be to focus on working to aggregate Maple Syrup

producers as well as increase access to capital needed to increase the scale of tapping that is

presently occurring on the White Earth reservation.

4.1 Wild Rice Industry

The wild rice industry is the most competitive. This largely stems from the fact that often the

products provenance and origin is not clearly understood. As a result, some 85% of all that is

marketed as wild rice actually originates in California wild rice paddies. Another large market

segment is Canadian Lake rice, which shares very similar qualities to the product sold by Native

Harvest, except that it is primarily airboat harvested, and is often harvested by Non Natives

who lease lakes from the Canadian government, and have the capital to market which is not

accessible to the Ojibwe people. Our wild rice is hand harvested and wood parched, a unique,and heritage set of choices, which also directly benefit Native people.

Wild rice is able to be stored for many years, if it is cared for properly. This has been a great

benefit to the Anishinaabeg over time. However, the Leech Lake tribe, which has a similar

product, although most of it is propane parched, which is not a heritage method, has over

20,000 pounds of wild rice which is being sold in similar markets. As well, Red Lake Natural

foods from the Red Lake Ojibwe reservation produce a paddy grown wild rice, which is

nevertheless marketed as Native American in origin.

4.2 Maple Syrup IndustryNative Harvest maple syrup producers have a geographical advantage over East Coast based

U.S. and Canadian producers. From distribution to marketing and customer service, the

reservation has the capability to compete with other maple producers. Even with current poo

production, quality control and managerial conditions, White Earth has been able to market

more than the syrup it can produce. A well developed implemented business plan for an

association based on the establishment of strategic alliances with regional producers as well a

natural (food cooperatives, CSAs and non-profits in MN) and already established markets

could position White Earth at the forefront of the maple syrup market both in MN and in othe

states in the Midwest.

Maple syrup is produced in 14 northern U.S. states and four Canadian provinces with the

province of Quebec producing 70% of all syrup in the world. Minnesota is a very minor player i

the maple syrup industry, representing roughly 1-2% of U.S. maple syrup production. This leve

of production amounts to between 12,000 and 33, 000 gallons annually with a value ranging

between $328,000 and $990,000. According to Statistics Canada, there are over 12,000 maple

syrup producers and 9,500 maple farms in Canada. The main maple producing trees are sugar

maples (Acer saccharum), red maples (Acer rubrum) and silver maples (Acer saccharinum).

In 1998, the annual production of maple syrup in Canada was 25,455 tonnes (56.1 million lbs),


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decrease of 10.5% from 1997, with an estimated average farm gate value of $115 million, an

important decrease from 1997 where its value was $133.4 million. In total, Canada accounts

for 80% of the world production of maple syrup while the United States accounts for the

remaining. The main producing provinces are Qubec with 92% of the national production,

Ontario (4%), New Brunswick (3%) and Nova Scotia (1%).

Vermont (31%), New York (20%) and Maine (15%) remain the main producers of maple syrup i

the US. According to USDA, the average 1998 price for a US gallon was estimated at $US 27.20

($US 2.46/lb), unchanged from 1997. Prices varied considerably among eastern states, from

$US 28.5 in Vermont compared to $US 43.00 in Connecticut. Note that those prices are

weighted average across retail, wholesale and bulk sales.

Maple Syrup Exports

About 90% of total production from both Canada and the US is exported to more than 25

countries. For the 1997/98 season, export value reached a record of $108.6 million and

quantity exported also reached a record of 23,447 tons (51.7 million lbs). Major export market

are the United States with 89% of total exports, Europe with 5% and Asia with 5%. Qubec is

the major exporter with 89% of total exports. For the 1998/99 season, exports are stillexpanding (value and quantity) despite the decrease in production. Maple products are mostly

exported in retail sizes (60%) and in bulk (40%).

As Canadas export markets continue to grow in demand at the same time that production is

shrinking, the opportunity for better prices is feasible. Indigenous people enjoy a well-known

reputation in European countries, contacts made by White Earth in Germany for example have

produced very positive results. The possibility of developing niche markets for indigenous

maple syrup products in Europe is very real.

Exports of maple syrup are growing steadily with new trade opportunities emerging in places

such as Europe (Germany and France) and Asia. The maple industry recently presented a

strategy to double its exports by the year 2002 to $240 million and 48 million kg (104 millionlbs). The strategy includes mainly the development of a common generic trademark, promotio

and the development of a specification book (from processors to the final customer). Exports

have gone from $35 million to more that $100 million in less than 10 years. In Canada, this

industry is only surpassed by frozen French fries in single commodity exports.

Maple products are marketed all year long and have gone from being shipped in bulk size

containers to retail size in only a few years. The industry is working on more promotion and an

updated version of quality standards that should help penetrate new markets and sustain

actual markets. In the past, maple products have been sold for as syrup products alone. Now

the industry is looking to expend in the market of ingredients.

Export Markets (in $000)

Country 1995 1996 1997 1998North Am. $62,208 $73,339 $81,131 $88,046

Europe $10,363 $15,916 $14,376 $16,758

Asia $4,649 $6,699 $6,632 $5,975

Oceania $1,666 $1,560 $1,847 $1,321

Africa - - - -

South Am. - - - -


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TOTAL $80,422 $98,608 $104,496 $112,735

Source: Statistics Canada Census

Qubec remains the largest exporter in Canada with 90% of total sales at $ 101.6 million in

1998, while Ontario accounted for 7% and NB exported $2.1 million (1.8%) worth of maple

products. Most of non-Qubec exports are processed by Qubec packers.

3 MARKET ANALYSISBuying Native made is now synonymous with buying natural or organic products. This leave

substantial room for future expansion in the production and processing of locally produced,

authentic heritage commodities which are able to achieve both organic certification as well

as indigenous certification or labelling programs such as Native Trade. Native Harvest currently

markets its products to the natural, organic & heritage food market. Below is an analysis of

this market segment.

5.1 Vertical Market NATURAL ORGANIC & HERITAGE FOODS MARKET

The worldwide market of natural foods is reported to be US$55 billion and it is this market

segment that will become Native Harvests primary target market by 2012. The greatest

market share is in Europe and North America. In these nations, people have increasing

concerns about health and environment, making certified organic food a natural solution. The

also have aggressive promotion and supportive government policies to address the desire for

greater organic food consumption. The markets considered to have the greatest value include

1. USA at US$26.6 billion 50% of consumers buy organic at least once per month;2. Europe at US$25.5 billion large importers of product because of poor growing conditions;3. Germany at US$5.8 billion considered the heaviest organic consumers within Europe;4. Minnesota at US$69 million considered one of the fastest growing markets in the US.

Typically, a survey of processing markets by the USDA shows that for most organic

commodities, a producer can obtain between two and three times the conventional market

price. Market opportunities for natural and organic food are assisted by the proximity of the

Canadian market in addition to the expanding US and Minnesota markets. European markets

are also accessible through the organic food processors and selling product in Europe may ne

good premiums of up to three times the conventional price.

Total Market Size (US$ Turnover):

The combined annual turnover of this market worldwide in 2010 is estimated to be

approximately US$55 billion. Minnesota currently ranks 7th in the number of farms producing

natural and organic foods and over 122,428 acres are certified organic. Minnesota reported

106 operations with land in transition to organic production. The total for all organic sales from

Minnesota was $69,053,000.


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Market Growth Rate:

The growth of natural organic industries has been very significant in the past decade. This now

global industry has been experiencing rapid and continuous rates of growth of between 20

35% a year, with consumer demand currently outstripping supply.1 This growth is driven out of

a strong demand for products that meet health and food safety concerns, and natural foods arvalued for their utilisation of food production system that ensure food integrity.

Market Micro-Segmentation:

There are four horizontal market segments that Native Harvest will target in year one. These

are (1) Retail to specialized customers of gift baskets and continued internet sales, 2) Natural

Organic and Fair Trade Stores and Distributors (3) Farmers Markets (4) Native American

"friendly" Corporations, Museums & Casinos.30

ReadingsSession 8: Re-envisioning Tribal Economics

Module Topics Readings

8From the text:

AssignmentsTOPICSModule 8: Re-envisioning Tribal Economics

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DAY 3:

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Bibliography:

Takoko, Mere. Native Harvest Marketing Plan. Callaway: White Earth Land Recoveryproject, 2011.

1Laduke, Winona. WELRP Food Sovereignty Report 2008. Callaway, MN, 2008.

2The survey included the following breakdown of respondents by township: Bejou (0 households, 0individuals), Callaway (19 households, 87 individuals), Elbow Lake (3 households, 5 individuals),Mahnomen.3 1 households had no enrolled members and 14 did not specify.4 This number is likely a gross underestimate. Because of the way the survey was designed, manyhouseholds simply said that they spent $300 or more, rather than providing the exact amount of theirfood expenditures which were sometimes upwards of $1000. this number should not be interpreted tomean the amount that reservation households contribute to the economy through their food purchases, sincemany households use food stamps.5Of the 5 Rice Lake households who reported shopping locally, only 2 provided information, which wasnot enough to be statistically valid. The percentage of their purchases in the local food economy was noteven 1%.6The number who shop in Fosston may be significantly higher than reported since households had to write

it in rather than select if off a prepared list.7These numbers, like that for local expenditures, were averaged only across those families that stated that

they shopped in the particular location and provided an estimate of their expenditure.8 A partial listing of state and federal programs includes: the Food Stamp Program, the SpecialSupplemental Nutrition Program for Women, Infants, and Children (WIC), the Commodity SupplementalFood Program (CSFP), the National School Lunch Program, the School Breakfast Program, the Child andAdult Care Food Program, the Special Milk Program, the Summer Food Service Program, NutritionPrograms of the Elderly Program of the USDHHS, the USDAs Food Distribution on Indian ReservationsProgram (FDIRP), and the Minnesota Families Investment Program (MFIP).9 Information provided by the White Earth Food Distribution Program office and usda.gov.10 Information provided by the White Earth Head Start office.11 Information provided by the COL and Naytahwaush school offices.12

Information provided by the Mahnomen and WaubunOgemaWhite Earth school offices andfns.usda.gov.13Information provided by the COL school office, WaubunOgemaWhite Earth school office andfns.usda.gov.14 Information for Naytahwaush was not available, but based on the budgets of the other schools, aconservative estimate would be about $500 per student, or $37,000 per year.15

Information provided by the White Earth WIC office.16Information provided by the Minnesota Chippewa Tribe office and the White Earth Elderly NutritionPrograms office.


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17Although Becker and Clearwater counties include reservation land and serve reservation communities,social service agencies in these counties were only able to provide county wide statistics. However,because 5,190 individuals, or 56% of the reservation population lives in Mahnomen county where thefollowing statistics are gathered, a good estimate of the reservation total would be to multiply all numbersby a factor of 1.771, keeping in mind that this is likely an underestimate as Mahnomen County includes

more communities with a higher per capita income (3 of the 5) and fewer communities with lower percapita income (1 of the 5).18Anishinaabeg Today. Vol. 13, No. 7. Wednesday, May 21, 2008. White Earth, MN.19 Information provided by Helping Hands.20 Information provided by Mahnomen County Human Services department.21

Information provided by Mahnomen County Human Services department.22

Calculated for the whole reservation that is 827,720 a month or $9,932,638 annually of which$8,550,251 goes off the reservation.23

Because the amount distributed of each type of voucher (infant at $135-$168,000 or child at $45) wasnot available, estimates for WIC numbers were arrived at by multiplying the total number of vouchersissued per month (2,655) by the number of months (12) by the lowest possible voucher value (45).Because Food Stamp information was available only for Mahnomen county which represents 56% of thereservation population, estimates for total food stamp dollars were reached by multiplying the total value ofstamps distributed in Mahnomen county ($65,851) by the number of months (12) by a factor of 1.771.Because the total budget for Naytahwaush charter school was not available, the total pre-K through 12budget was arrived at by multiplying the number of students at Naytahwaush (74) by the amount spent perstudent per year at a similar school ($512.5), Pine Point not counting the Farm to School budget, and thenadding that to the total for the other schools ($497,845). Because the total budget for Minnesota ChippewaTribes elderly nutrition center was not available, an estimate was arrived at by taking the per person peryear budget for White Earths program ($1134) and multiplying that by the number of elders servedthrough the MCTs program (35) and adding that to the White Earth numbers ($245,000). That numberdoes not count direct food assistance through the commodities programs or food shelves.24This assumes the same 86% percent of individuals shopping off-reservation with WIC and Food Stampsas with cash/check/credit. Because most institutions estimated they spent around 85-100% of their fooddollars on national companies and then another 5-10% at Minnesota or North Dakota-based but notreservation-based food and supply companies, I estimated at 5% for the amount of institutional purchases

made on-reservation.25 Information provided by White Earth Natural Resources Department.26 The survey asked only about transportation costs in general, not transportation costs for shopping trips.However, especially given the high unemployment rate, shopping trips are likely responsible for asignificant proportion of transportation costs.27According to the 2000 Census, of the individuals on the reservation that worked, 81% (and 86% ofAmerican Indian respondents) drove alone or carpooled using a private vehicle to their place ofemployment. Their average commute time was 26.5 minutes one way. There is no reason to believe thatthe number of people driving and their driving time would be substantially different for grocery trips.28 The results tended to vary quite a bit household to household because some respondents calculated theamount they were spending solely on gas while others included car insurance and car loan payments.29

Shepherd,K., Gunner,E.,Brown,H. 2010, The Market Opportunity for Global Organic Products,Department of Primary Industries and Resources SA, Adelaide.30Takoko, Mere. Native Harvest Marketing Plan. Callaway: White Earth Land Recovery project, 2011.

Anish Agriculture Module 8

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Transcript of Anish Agriculture Module 8