FOOD HUBS

A Viable Economic Development
Option For Distressed Areas

March 10,
2016

Environmental Issues Impacting Urban Areas
1.
2.
3.
4.
5.

Air Pollution
Industrial Sites/Waste Dumping
Mercury Exposure
Water Safety
Transit Justice

6.Food Deserts
7. Urban Green Space
8. Lead Poisoning
9. Climate Change

The Grio, April 22, 2010

THE FOOD ECONOMY



World food economy - 4.8 trillion; 10%
global GDP, Forbes.com, 2007
US food economy, 835 billion; 4.8%
USGDP, USDA ERS 2014
MI 101.2 billion, 24% SGDP
Detroit 5.8 billion, 59k jobs
Neighborhood???

What is a Local (Regional) Food
System?
The activities
involved in
producing,
processing,
transporting,
storing,
selling, eating, and
disposing of food
locally.

Resource
Recovery

Productio
n

Consumpti
on/Retail

Processin
g

Distribution

Local Food System
Model

What is a Food Hub?
A food hub is a business or organization that manages the
aggregation, distribution, processing and marketing of products
from local producers to strengthen their ability to satisfy
wholesale, retail, and institutional demand.”

Food Hub Network Innovation
Network
Project collaboration in Michigan with the objectives of:
• Identify existing and/or potential hubs across State
• Provide technical assistance and increase learning
• Encourage dialogue among businesses, hubs and
organizations regarding food systems and agriculture
• Increase healthy food access to low income
communities, specifically children





Core Food Hub
Components

Aggregation (unprocessed/packaged) packhouse
Distribution
Full Processing and Packaging; Flash freezing
Commercial Kitchen(prepared/value added)
Storage (Dry and Cold)

Food Hub in a Local Food
System

Food Hub Advantages and Challenges
Advantages
• Local farmers participate (collectively)
• Local buyers
• Local relationships enhanced
• Coordination creates opportunities
Challenges
• Requires extensive coordination
• Must maintain consistency in quality
• Must maintain capacity
• Competitive pricing and cost controls

Recommended Food Hub Markets



Larger Volume
Smaller Volume
Buyers
Buyers
Restaurants, Caterers  Pre K- 12 Schools
(Public/Charter)
Small Grocers, Food
 Colleges/Universities
Co-ops
 Medical and Assisted
CSAs
Living Facilities
Mobile Food Markets
 Correctional Facilities

Requirements for General Markets




Food Safety
Food Safety Plan
State Certification
Group GAP
GAP


Classifications
Conventional
Organic/Naturally
Grown
Certified Naturally
Grown
Certified Organic

Alternative Food Hub Uses For Revenue



Retail Operation
Processing, Packaging and Distribution
Services
Commercial Kitchen Incubator/ Value Added
Entrepreneurs
Storage (Dry and Cold) Services
Office Space (Food Related Businesses)
Community Room - Training and Workshops

Food Hub – ALBA Organics, Salinas,
CA

Est. 1972, 265 producers, 130 acres, $ 5 million

Food Hub – Common Market,
Philadelphia, PA

Est. 2008, 75 producers, 212 customers, $12 million

Food Hub - Cherry Capital Foods, Traverse City,
MI

Est. 2006, 45 producers, 20 customers, $ 22 million

12 Members (16 Interested)
300 Acres
Build capacity, reproduce idle
land and develop new farms
Establish transition plans
Utilize USDA programs
No Markets
Lack confidence in
Government
Former truckers,
wholesale/resellers
Idle land surplus
No generational interest

A Detroit Collaboration

NEW URBAN FARM COOPERATIVE
Member Advantages
• 46 potential Members
• Organically certified
• Experienced vending at farmers
markets
• Grassroots/community and
“vulnerable” residents
Member Challenges
• No Land access
• No Markets
• No entrepreneurial
encouragement

A Detroit Collaboration

Elevation
Floor Plan
Aerial
Sanborn
SEMPA Hub and Market

SEMPA Local Food Hub Objectives


Service the local produce demand
Secure surplus/Grade B produce for retail
Support start up/existing neighborhood produce
markets and restaurants
Secure postseason and culture specific products
through Southern cooperatives
Provide educational, training, employment and
entrepreneurial opportunities for the underserved.

Video
Website

SUSTAINABLE AGRICULTURE +
NUTRITION +
ECONOMICS =

FOOD SOVEREIGNTY

Cherry Capital
Food Hub

New West MI
Farmer Coop

Urban
Farm
Coop
Food Hub

Resources



www. foodsystems.msu.edu
www.ngfn.org
www.sempafarmers.com
www.learn.uvm.edu/program/f
ood-hub-management/

THANK YOU !!!

ecoguy2@netzero.net
Food subsector
Production
Manufacturing/processing
Packaging/warehousing/distribution
Food Service
Grocery
Restaurants