Market Trends

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Regional Food Economic Impact Quotes

Tim Crosby, Puget Sound Food Network’s Network Coordinator, gathered some interesting quotes from States around the US. Each quote gives us a glimpse into the economic climate of each State’s food cycle. All follow a similar trend, that if State spending is shifted to local farms and produce, there is a dramatic increase in jobs and economic output.

King County, WA

A shift of 20% of our food dollars into locally directed spending would result in a nearly half billion dollar annual income increase in King County alone and double that in the Central Puget Sound region.

Source: Viki Sonntag, “Why Local Linkages Matter: Findings from the Local Food Economy Study,” Sustainable Seattle, April 2008, http://sustainableseattle.org/Programs/localfoodeconomy

Oregon

For every food dollar spent locally by the two school districts, an additional 87 cents was spent in Oregon, generating a multiplier of 1.87 for farm to school spending.

Dollars spent in Oregon agriculture reverberated into 401 of 409 of the state’s economic sectors.

Source: Ecotrust, ” Farm to School Investment Yields a Healthy Return into State Coffers”, March 18, 2009, http://www.ecotrust.org/press/f2s_investment_20090318.html , viewed March 19, 2009

Iowa

If Iowans purchased a quarter of their produce from Iowa farmers, it would create $139.9 million in new economic output and more than 2,000 jobs for the state.

Source: Sarah DeWeerdt, “Local Food: The Economics”, Worldwatch Magazine, Worldwatch Institute, July/August 2009

Iowa State University research showed that if that region’s consumers ate five locally-grown fruits and vegetables each day for only the three months when they are in season, it would create $6.3 million of labor income, and 475 new jobs within the locale.

Secondary Source: Ken Meter, “Local Food as Economic Development” Crossroads Resource Center October, 2008, http://www.crcworks.org/lfced.pdf

Primary Source: Swenson, David (2008). “Economic Impact Summaries” covering Black Hawk County region. March. University of Northern Iowa Center for Energy and Environmental Education.

Illinois

Even small increases in the amount of food grown for local consumption can generate an enormous amount of new economic activity, all of it within the state, for farmers and others in food-related businesses … generating $20 to $30 billion in economic activity and thousands of new jobs in farming and the food industry each year.

Source: Illinois Local and Organic Food and Farm Task Force, ” Local Food, Farms & Jobs: Growing the Illinois Economy: A Report to the Illinois General Assembly By The Illinois Local and Organic Food and Farm Task Force”, March 2009, http://www.foodfarmsjobs.org/ , viewed May 14, 2009

Detroit, MI

Just in the city of Detroit, shifting twenty percent of food spending would increase annual output by nearly half a billion dollars. More than 4,700 jobs would be created, paying $125 million more in earnings. The city would receive nearly $20 million more in business taxes each year.

Source: Michael Shuman, “Economic Impact of Localizing Detroit’s Food System”, Fair Food Foundation, http://www.fairfoodnetwork.org/pdf/handout070617.pdf , viewed May 18, 2009

New Jersey Fresh, NJ

The study showed that each dollar spent on the Jersey Fresh program increased farm revenues by $31.54 … and $54.49 of increased economic output in the State. With a current budget for Jersey Fresh being about $800,000, this means an increase in farm revenues of $25.2 million, and a total increase in economic output for the state of $43.6 million.

Source: New Jersey Dept. of Agriculture, 2004 Annual Report: Agricultural Statistics, http://www.state.nj.us/agriculture/04AnnualReport.pdf

Posted by Elliot on January 11th, 2010

Ecology of Food

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In a recent article, the Hartman Group predicts future trends of how American will obtain and consume food. The study suggests a number of notions including the advent of private label foods, like Trader Joe’s, growth of Farmer’s Markets and smaller to medium sized retail outlets which will lead to increased diversity.

[S]uch evolving needs for quality food experiences prove an opportunity for retailers willing to make bold moves and stake out clearly delineated positions in the marketplace of the future.

Read the full article here.

Posted by Elliot on November 19th, 2009

Safe to Eat?

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An insightful event is coming up in December about the science, politics and economics of food. Featuring Thomas Besser, PhD, DVM and Bill Sischo, DVM, MPVM, PhD (Professors, School for Global Animal Health, College of Veterinary Medicine), discussions include food safety and food related disease.

Check out the neat event preview video here.

Thursday, Dec. 3, 2009
Registration: 11:30 a.m.
Lunch program: noon
$45 per person (includes lunch)
Guests welcome

Fairmont Olympic Hotel
Spanish Ballroom
411 University Street, Seattle

Food- and water-borne illnesses are growing concerns for people in the United States and abroad. Disease-causing microbes can spread easily from animals to people through contaminated meat, water, and produce, while the processes and interventions to prevent their spread often differ. Although Americans may be relatively unaware of the ways our food is grown, harvested, and brought to market, people in less-developed countries often interact closely with food-producing animals. How do the laws, customs, and economic realities involved in our food-production system affect the things we eat? What is the science behind our on-farm food safety efforts? How can we ensure a safe, affordable, and sustainable supply of food for ourselves while respecting the needs of our global community?

Professors Thomas Besser and Bill Sischo are among innovative WSU scientists leading international efforts in food safety through their research into the detection, prevention, and control of the causes of food-borne illness. Their investigation of the science, politics, and economics of food—from farm to fork—is crucial to the health and well-being of people and animals across Washington and worldwide.

Posted by Elliot on November 5th, 2009

Eco-Label Programs for Michigan Farmers

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Lia Spaniolo, a graduate student at Michigan State University, has recently put together a brochure, “Eco-Label Programs for Michigan Farmers,” to assist farmers in determining which, if any, are appropriate and beneficial for their operations. It describes some more established labels, as well as some that are in development. It also has a checklist that summarizes the broad criteria embodied in each label.

Most of the 13 eco-labels summarized in this brochure are also available to farmers in other US states. These include: American Grassfed, American Humane Certified, Animal Welfare Approved, Certified Humane Raised & Handled, Certified Naturally Grown, Demeter Biodynamic, Domestic Fair Trade, Family Farmed, Food Alliance, Predator Friendly, Protected Harvest, Select Michigan, USDA Organic.

Here is a link to the brochure in pdf format:

http://www.msu.edu/%7Ehowardp/ecolabelspamphlet.pdf

Posted by Elliot on November 5th, 2009

Washington's Agricultural Statistics/ Top 10 Commodities

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800px-Washington_state_flag

Today, the USDA’s National Agricultural Statistics Service released the 2008 figures for Washington State’s agricultural value and the top forty commodities.

What’s changed since 2007?

Overall, Washington State’s agricultural production value has decreased from $8.32 billion in 2007 to $7.88 billion in 2008. While this is a significant drop, compared to other states, Washington has remained strong seeing record increases in the value of production of both potatoes and hay.

Topping the list once again is apples even though since 2007 it has dropped in value by 28% . This indicates that while we are still an apple state, perhaps new trends in our production are arising.

Here’s last year’s list of top 10 commodities:

Apples
Milk
Wheat
Potatoes
Hay
Cattle & Calves
Nursery & Greenhouse Products
Cherries
Hops
Grapes

Take a look at the full report (including the top 40 commodities and detailed statistics) here.

Posted by Elliot on October 6th, 2009

Food Behemoths Jump on "Buy Local" Campaign

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In a recent article from The Globe and Mail, Sarah Elton discusses how big brand companies and supermarket chains are adopting the “‘buy local’ zeitgeist with marketing efforts aimed at capturing this audience.” Elton refers to several ad campaigns from companies like Frito Lay and Hellmann’s mayonnaise (a Unilever brand) utilizing depictions of farms that suggest a refusal of “big brand” products. Somewhat of a hypocritical suggestion perhaps, but questions arise as to whether or not we’re dealing with a wolf in sheep’s clothing or a genuine interest in appealing to consumers with actual local products.

Elton’s article begins to answer that question by noting that local, for a lot of these big businesses, means produced in the same country, or grown locally but processed somewhere else. This infirm ground may be the break in the big business “buy local” marketing campaigns, but some are optimistic.

Jennifer Story of the Friends of the Greenbelt Foundation, an organization dedicated to preserving Ontario’s farmland states. “There are many examples of businesses who have taken up the rhetoric and used it to green-wash themselves and there are a number who have actually made substantial changes,” she says. “We would love to see companies like Unilever take up the local food challenge and start contracting with greenbelt farmers.”

Read more about the growing desire for local food and the rise of “buy local” marketing.

Posted by Elliot on October 2nd, 2009

Basis: Farm to Chef

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PSFN Team Member Lucy Norris just passed on this interesting tidbit about the formation of a new organization in New York called Basis.

The brainchild of former management consultant Bion Bartning, Basis is a newly formed company that recently acquired (and greatly expanded) Farm to Chef, a wholesale distributor connecting small local farms to haute New York kitchens. This fall, Bartning plans to open Basis Market, a 2,000-square-foot prototype grocery stocking the same farm-fresh produce, locally raised meats, and farmstead dairy that Basis supplies to places like Gramercy Tavern and Mas, as well as hot and cold prepared foods made from those stellar ingredients. “No Twinkies, no toilet paper,” says Bartning, who describes his wares as “traditional, localized, and 100 percent traceable”—and, since he’s taking a lower-than-average profit margin, affordable. In fact, although his first shop will occupy the former premises of a law office on the fringes of the meatpacking district, Bartning believes the concept will work everywhere from Princeton, New Jersey, to Bed-Stuy. “Traceability means provenance,” says Bartning. “I think it is the future.”

It’s a great thing to see that from coast to coast people are taking steps and forming ideas on how to better unite healthy, sustainable argiculture. We’ll continue to follow Basis’ new grocery store concept and see how it progresses.

Read more about Basis on their website: http://www.basisfoods.com/

Posted by Elliot on September 30th, 2009

Food Pricing and Reports

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In the constant search for accurate market pricing for regional fruits and vegetables we want to share some valuable resources.

The USDA Agricultural Marketing Service is the Big Kahuna for information. They have a Fruit and Vegetable Market News website deep with information. Of particular interest are the periodic updates on terminal market traffic, Shipping Point Highlights, and a Retail Report. You can customize the terminal traffic report and retail pricing information to assist you in accurately pricing your specific products.

Let me know if you have found other links that you use on a regular basis.

Posted by nabctim on February 13th, 2009

Puget Sound Ag Stats

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As I continue to research the potential market size of the Puget Sound Food Network, I dove in to the USDA Ag Census tables and WSDA data and came up with these numbers:

In the 12 Puget Sound counties there are over 10,000 farms on over 600,000 acres selling $1.1 Billion of agricultural products. Regional food processing is a $6.3 Billion industry and creates almost 20,000 jobs.

I compiled the farm data of the 12 Puget Sound counties in to a pdf, the Puget Sound Ag Census. The 2007 USDA Ag Census is scheduled to be released in early February and we expect that while there may be fewer overall acres they may be even more economic value to these products since the market for local food has taken off over the last 3-5 years.

WSDA data comes from some great maps they periodically update. Below are the two main maps.