Entrepreneurship Through
Local Food Systems
2011 Wisconsin Conference on Downtown Revitalization
Thursday October 20, 2011
Fond du Lac, Wisconsin
Photo credits:
Left: “Deering Oaks Farmers Market” by Corey Templeton
Middle: “Le Cordon Bleu Ottawa Culinary Arts Institute" by Ottawa Tourism
Right: “Michael Pollan at UBC Farm-In Defense of Food-IMG_3043” by Roland Tanglao
Today’s Presentation
•
The Wisconsin Local food Economy
Laura Brown, UW-Extension Center for Community and
Economic Development
•
A Retail Perspective on Food Entrepreneurship
Michelle Schry, General Manager, People’s Food Co-op
•
The Role of Business Incubators,
Mary Pat Carlson, Executive Director, Farm Market
Kitchen
Today’s Presentation
• Learn how food production systems,
incubators, coops and local eateries can
take root downtown and create new
entrepreneurial opportunities.
• Also learn how these ventures support the
local food economy, encourage local
healthy living, and attract culinary tourism
dollars.
What is local?
• What is local? No formal definitions
May be based on geography or socio-political
boundaries (i.e. county lines)
• Foodshed - “A foodshed is everything between
where a food is produced and where a food is
consumed.”
• 2008 Farm Act- A “locally or regionally produced
agricultural food product” is less than 400 miles
from its origin, or within the state in which it was
produced.
Who is involved?
• Producers and other entrepreneurs
– Higher prices, direct feedback, consumer support,
social connections, support for local economy
• Consumers
– Freshness, nutrition, safety, appearance & taste,
connection to food source
• Communities
– Local economy, community building, health and
wellness, maintaining rural character, ecological
health (soil, water, habitat, biodiversity)
(http://www.entrepreneur.com/article/220357 )
According to a USDA literature
review…
• Local foods account for a small but growing share of total US
agricultural sales
• Production of locally marketed foods is more likely to occur on
small farms in or near metro counties
• Consumers who value high quality foods produced with low
environmental impact are willing to pay more for locally
produced food
• Federal, State, and local government programs increasingly
support local food systems
• As of 2010 there were few studies on the impact of local food
on economic development, health, or environmental quality.
Martinez, Steve. et al. Local Food Systems Concepts, Impacts, and
Issues. ERR, 97, USDA. Economic Research Service, May 2010
The Big Picture
Economic Development- “Process of
retaining, expanding, and attracting jobs,
income and wealth in a manner that
improves individual economic opportunities
and the quality of human life.”
How do we typically measure the economy?
Jobs * Income (Labor as well as total income) * Industry
Sales
The Big Picture
Slide courtesy Steve Deller, Department
of Agricultural and Applied Economics,
UW Madison.Extension. “The Role of
Agriculture in the Wisconsin Economy.”
Presented October 2011.
Wisconsin’s Local Food System
Entrepreneurship Opportunities
FARMERS- Urban & rural
COMPOST/SOIL PRODUCERS
Waste
Management
Production
PROCESSORS
FOOD PRODUCT
ENTREPRENEURS
MARKETS
RESTAURANTS
SPECIALTY RETAIL
FOOD & CULINARY
TOURISM
Consumption
NETWORKERS
AGGREGATORS
DISTRIBUTORS
TRANSPORT
Distribution
Processing
Wisconsin’s Local Food System
A look at the data..
Waste
Management
Production
Restaurant trends
Culinary tourism trends
Direct sales
Numbers of farmers
markets
Consumption
Employment in farming
Size and type of farms
Number farms selling for
local markets
Processing
Sales of value-added
products
Distribution
Size and Types of Farms
Status of Wisconsin Agriculture 2011, Wisconsin’s Farm Economy Accessed at
http://www.aae.wisc.edu/pubs/status/docs/status2011.pdf
Farmers Markets
Number of Farmers Markets in Wisconsin and US
250
8000
Wisconsin
United States
7000
200
6000
5000
150
4000
100
3000
2000
50
1000
0
0
1994
1996
1998
2000
2002
2004
2006
2008
2009
2010
2011
Farms Selling Direct
Number of Farms Selling Direct to Consumers
Wisconsin
United
States
2002
% Total
2007
% Total
% Increase
4,918
6.4%
6,243
5.5%
26.0%
116,733
5.5%
136,817
6.2%
17.0%
Value of Products Sold Direct to Consumers ($1000)
33,433
% Total
Sales
0.52
934,035
0.40
2002 (adj)
Wisconsin
United
States
43,491
% Total
Sales
0.48
Overall %
Change
30%
1,211,270
0.40
30%
2007
Value of agricultural products sold directly to individuals for human consumption. This item represents the value of agricultural products
produced and sold directly to individuals for human consumption from roadside stands, farmers‟ markets, pick-your-own sites, etc. It
excludes non-edible products such as nursery crops, cut flowers, and wool but includes livestock sales. Sales of agricultural products by
vertically integrated operations through their own processing and marketing operations were excluded.
Value-Added Products
Farms Selling Value-Added
Products
% Total
2007
Farms
Wisconsin
2,821
3.6
United
States
78,418
3.6
USDA Agricultural Census 2002-2007
Restaurant Trends
Top culinary themes: Local, sustainable, fresh, healthy
2011 What’s Hot survey• locally sourced meats and seafood
• locally grown produce
• sustainability
“Americans are looking for more healthful options at restaurants and other
foodservice outlets but define healthy eating based on quality features rather
than fewer calories.”
“Consumers place a high importance on taste regardless if they are eating
healthfully or not, and some consumers equate healthier foods as not being
as tasty. The majority of consumers expect to pay the same for healthier
foods as those considered less healthy.”
National Restaurant Association What’s Hot Survey, 2010. Accessed at
http://www.restaurant.org/pdfs/research/whats_hot_2011.pdf
Consumers Define Healthy Eating When They Go Out to Eat,
Culinary Tourism Trends
Culinary destinations may be businesses, business districts,
communities, or geographic regions that attract people
interested in unique and memorable food and eating
experiences.
•
•
•
•
Dining out
Retail establishments (e.g. wine, spice, or candy shops)
Food tours, wine trails, tastings, cooking classes,
Food related events, farmers markets, community meals).
2007 Travel Industry Association Study:
• 27 million travelers, or 17% of American leisure travelers, engaged in
culinary or wine-related activities between 2004 and 2007.
• Culinary travelers are younger, more affluent and better educated
• Motivated by a desire for unique experiences.
• The study found that 90 % of culinary travelers 83% of non culinary
travelers were under the age of 65.
Photo credits:
“"Wine Tasting" by Yaniv Ben-Arie
Travel Industry Association (TIA), in partnership with Gourmet and the International Culinary Tourism Association conducted a study of 2,364
leisure travelers in the United States.
Impact on Local Economies
• Does shifting consumer spending from imported to local
foods and shifting to local processing allow producers to
retain more of the food dollar?
• Farmers markets – generally found to have positive
impacts on the local economy
• Iowa study- each $1.00 spent generates .58 cents in additional
indirect and induced sales.
• Labor and sales benefits but may be offset by losses to
mainstream retail sales
• Help larger businesses expand
• Act as an incubator for smaller businesses
• Spillover effects- spending at other downtown businesses
Martinez, Steve. et al. Local Food Systems Concepts, Impacts, and Issues. ERR, 97, USDA. Economic Research Service, May 2010
Otto, D. and T Varner. 2005 Consumers Vendors and the Economic Importance of Iowa's Farmers Markets . Leopold Center for Sustainable
Agriculture. Accessed October, 2011 at http://www.leopold.iastate.edu/pubs-and-papers/2005-05-farmers-markets
Feenstra, G.W. 2003. “Entrepreneurial Outcomes and Enterprise Size in US Retail Farmers Markets,” American Journal of Alternative Agriculture,
Vol 18, pp46-55.
Lev, L.l. Brewer and G Stephenson. 2003. How do Farmers Markets Affect Neighboring Businesses? Oregon Small Farms Technical Report No 16,
Small Farms Extension Program, Oregon State University, Corvallis, OR.
Local Food Entrepreneurship
Resources
Downtown Business Market Analysis- Restaurant and Culinary
Opportunities http://fyi.uwex.edu/downtown-market-analysis/analysis-ofopportunities-by-sector/restaurants/
Food & Value Added Ag Resources
http://fyi.uwex.edu/aic/
Business Incubation Network
http://fyi.uwex.edu/foodbin/the-food-bin-network/
Wisconsin Local Food Marketing Guide
http://datcp.wi.gov/Business/Buy_Local_Buy_Wisconsin/BLBW_Food_Ma
rketing_Guide/index.aspx
Laura Brown
University of Wisconsin-Extension
Center for Community & Economic Development
Laura.brown@ces.uwex.edu