Food Aggregation Centers: An OverviewPresented by Claire ThompsonWisconsin Local Food NetworkNovember 22, 2013

Mainstreaming Local Food - assumptions Economic Stimulus Job Creation Increased Farmer

Income Environmental

Impact Improved Food

Access & Health

Source: Building Successful Food Hubs; A business planning guide for aggregating and processing local food in Illinois, January 2012

Consumer Interest Consumers are interested in:

Local Sustainable Authentic Innovative Organic Healthy Safe

Proximity is a proxy for some or all of these attributes

Consumers first notice local fruits and vegetables as an indicator of store quality

Source: Networking Across the Supply Chain: Transportation innovations in Driftless local and regional food systems. Michelle Miller, University of WI – Madison, Center for Integrated Agricultural Systems 8/7/13

Wholesale Market Segmentation

wholesale buyer typeRed = institutional market Green = grocery Blue = restaurant

Meal serviceMegabox

Fast food

Private cafeteria

Gourmet retail

White table cloth restaurants

Grow your own

reso

urc

es

Source: Networking Across the Supply Chain: Transportation innovations in Driftless local and regional food systems. Michelle Miller, University of WI – Madison, Center for Integrated Agricultural Systems 8/7/13

USDA Definition of a Food Hub A business or organization that actively

manages the aggregation, distribution, and marketing of source-identified locally or regionally grown food from primarily small to mid-sized producers.

A food hub may provide the core services of a packing house and/or aggregate and distribute farm-packed produce.

Business Models & Services

Service/FunctionAggregation

Facility Packing HouseWeb-Based Aggregator

Aggregation * * *Washing * Cooling * *Grading, Sorting, Packing * Re-packing *Sales and Marketing * * *Distribution * * *

Ancillary services: Harvesting, Merchandising, Labeling, FinancingTechnical Assistance – GAPs, GHPs, HACCP

Source: Building Successful Food Hubs; A business planning guide for aggregating and processing local food in Illinois, January 2012

Business Entities Cooperative For-Profit Nonprofit Public-Private Partnership

Thank you!

Discussion Questions In thinking of who is in attendance

today, where do our mutual interests lie?

What are some ways we can work together to advance those mutual interests?

Discussion Questions Are there some specific next steps

that some or all of us can work on to advance our mutual interests?

What is the best way to keep each other informed of future developments?