Beyond FreshExpanding Markets for Sustainable

Value-Added Food Products in Texas

Presenter Sue Beckwith, Texas Center for Local Food

Conference Texas Hispanic Farmers & Ranchers McAllen, Texas December 7, 2018

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Local Food Value Chain Coordination Develop markets for local food in Texas

The Beyond Fresh Project (2015-18)

This material is based upon work that is supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture, under award number 2014-38640-22155, through the Southern Sustainable Agriculture Research and Education program under subaward number LS14-264. USDA is an equal opportunity employer and service provider.

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Thanks to our funder

• Sue Beckwith, Robert Maggiani, Mike Morris

• Alex Bernhardt, Erin Flynn, Cameron Molberg (Grower Lead Team)

• Timothy Bowser, Rebekka Dudensing, April Harrington, Rodney Holcomb, Judith McGeary

• And many others!

Collaborators

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If demand for local food is going up, how come my farm income

keeps going down?

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Today’s food dollar: 11 cents to the farm

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“If no mistake you have made, yet losing you are, a different game you should play.”

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• Reduced perishability. • Something you can sell in the off-season. • A way to sell your imperfect produce (number twos). • Potentially higher profit margins: 2+2=5. • Can sustainable growers to get a triple price

premium: Local + sustainable + value-added?

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Could value-added products be the answer?

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1. Texas is a great place to develop these products, but infrastructure lags behind other states.

There are 30 million people in Texas and they all eat… hopefully every day.

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2. Take a Farmer-First approach.

• What can you grow easily and in excess? What can you make out of these crops?

• Core Question: “Does the value I get make sense for my farm?”

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3. Product development is iterative, based on prototyping.

Start small, fail early.

Go shallow, go cheap.

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4. Products need to be chosen carefully because few are profitable.

(And there’s probably no triple price premium.)

Product

Percentage Gross Margin (Sale Price vs. Production

Cost)Cucumber Relish 13.8%

Sauerkraut 42.7% Green Garlic Pesto - 4.1%

Zucchini Relish 31.6% Pickled Okra 27.9%

Spicy Cucumber Relish 12.3% Sweet Potato Puree I - 62.1% Sweet Potato Puree II - 23.5% Peach Jalapeño Jam 53.6%

Green Garlic Chimmichuri -115.4%

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5. Regulations will limit products you can make.

County Health DepartmentOther

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Take a Farmer-First approach.

Let’s go through a couple of key steps together

• What can you grow easily and in excess? What can you make out of these crops?

• Core Question: “Does the value I get make sense for my farm?”

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Take a Farmer-First approach

What can you grow easily and in excess? What can you make out of these crops?

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Take a Farmer-First approach

Core Question: “Does the value I get make sense for my farm?”

• What are your farm’s values? • Why did you choose farming? • What do you hope to gain by

creating value-added products?

What you can do

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Take full advantage of Texas Cottage Food Law

• Allows you to make certain foods at home without inspections or a license from the state.

• You and your employees must have food handler’s certificates.

• Foods may only be sold directly to the consumer. • You may not sell more than $50,000 worth of these foods

per year. • Many rules apply to what, where, and how foods are sold,

packaging, labeling, etc. • Brainstorm products you can make, with crops you have

available.

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Some foods you can legally make in a home kitchen (considered “non-potentially hazardous”)

Breads, rolls, biscuits Sweet breads, muffinsCakes PastriesCookies CandyCoated & uncoated nuts Unroasted nut buttersFruit butters (not all fruit) Canned jams or jellies (not all

fruit)Fruit pies Dehydrated fruit or vegetablesPopcorn & popcorn snacks Cereal, including granolaDry mixes VinegarPickles (cucumber only) MustardRoasted coffee or dry tea Dried herb & dried herb

mixtures

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Some foods you may NOT legally make in a home kitchen

Fresh or dried meat or meat products, including jerkyCanned fruits, vegetables, vegetable butters, salsas, etc.Kolaches with meatFish or shellfish productsCanned pickled products such as corn relish and sauerkrautRaw seed sproutsBakery goods requiring refrigeration, e.g. containing cream or custardMilk & dairy products, including hard & soft cheeses and yogurtFresh fruits dipped or coated in chocolate or similar confecturesJuices made from fresh fruits or vegetablesIce or ice productsBarbeque sauces & ketchupsFoccacia-style breads with vegetables or cheesesChocolate-covered graham crackers or Rice Krispy treatsDried pastaSauerkraut, relishes, salsas, sorghum

Resources for You!

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New area of the ATTRA website (attra.ncat.org)

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Resource Directory (texaslocalfood.org)

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Prototyping Costs and Sales

Cost Calculators (attra.ncat.org or texaslocalfood.org)

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About the Beyond Fresh workbook

• A decision-making guide. NOT a comprehensive how-to manual on processing food.

• Takes a Farmer-First approach throughout. • Tables, charts, forms, 16 exercises. • Covers self-assessment, product development, market

trends, profitability, regulations, labels, packaging, seeking funding, marketing, storage and distribution.

• A draft: Expect publication in February 2019. • Your stories also welcome.

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Get to know people who can help. Start early. Build relationships.

USDA Rural Development • Value-Added Producer Grant and others • Texas Rural Cooperative Center

USDA Farm Service Agency • Microloan and others. • Sign up for the FSA newsletter.

Your county health officials

Lenders • Banks, Capital Farm Credit, private investors • Foodshed Investors, others

Local & regional economic development officials

Thank You! Questions?

Sue Beckwith SueB@TexasLocalFood.org