Coordinator: National Good Food Network
http://ngfn.org/resources/ngfn-cluster-calls/food-hubs-viable-regional-distribution-solutions/webinar
Food Hub Definition
- "A centrally located facility with a business management structure facilitating the aggregation, storage, processing, distribution, and/or marketing of locally/regionally produced food products."
- Core components: 1) Aggregation/Distribution- Wholesale, 2) Active Coordination, 3) Permanent Facilities
- Many different types of models: 1) Non-profit. 2) Producer/entrepreneur, 3) Retail driven, 4) Consumer driven (online buying clubs), 5) "Hybrid" market model (wholesale/retail), 6) "Virtual" Food Hubs (online matchmaking platforms)
- Hubs have goal of working with small size farmers/producers
Supply Chain vs. Value Chain
Transaction vs. Relationship
Short-term vs. Long-term
Commodity vs. Highly differentiated products
Communication only with next step vs Transparency & Communication throughout
"Everyone for themselves" vs. "We're in this together"
Pricing
- Prices set in wholesale market
- Provides opportunity for processing to reduce high-low price risk
Funders' Perspective
Existing Foundations
New Philanthropists
Opportunities
USDA: Rural Business Enterprise Grant (RBEG), Value-Added Producer Grant (VAPG), Farmers Market Promotion Program (FMPP)
How to start
- Definitely need a business plans
- Be weary of buyers (requires building relationships)
- Investors, start-up capital
- Requires more than $300,000 (compare to Local Food Hub)
- Best legal model: majority non-profit or partnered with non-profit, multi-stakeholder co-ops (producer, processors and buyers) dependent on mission and funding streams
- Logistics software (Local Orbit, etc.)
- Personal connections are important for upsale
Resources:
** http://www.ngfn.org/resources/food-hubs
https://sites.google.com/site/mgfwpublic/conference-resources
http://localfoodhub.org/our-food/how-we-work-with-buyers/
http://www.detroiteasternmarket.com/
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