Post on 12-Aug-2020
FINDINGS OF THE 2017 NATIONAL FOOD HUB SURVEY
AN NGFN WEBINAR
April 19th, 2018
PRESENTATION OUTLINE Technical Orientation
WelcomeWallace Center at Winrock
International
Introductions
History of the Food Hub Survey
Methods and Results
National Context
Questions
About the Wallace Center
The Wallace Center develops partnerships, pilots new ideas, and advances solutions to strengthen communities through
resilient farming and food systems.
▪ National Focus • Systems Change
▪ Multi-Sector Partnerships • Market-Based Solutions
Key StrategiesPeer Networking and Outreach
Capacity Building, Training and Technical AssistanceDocumenting and Sharing Replicable Models and Innovations
Applied Research and Knowledge Development
INTRODUCTIONS AND SURVEY HISTORY• Rich Pirog and Kathryn Colasanti
• Michigan State University Center for
Regional Food Systems
#FoodHubSurvey@MSUCRFS
SHOUT-OUTS
Co-authors
• Jill Hardy
• Jeff Farbman
• Rich Pirog
• John Fisk
• Michael Hamm
Reviewers
• Jim Barham
• Laura Goddeeris
• Steve Warshawer
• Noel Bielaczyc
Graphic Design
• Julia Fiorello, Happy
Strategy
MSU Center for Regional Food Systems
#FoodHubSurvey@MSUCRFS
SURVEY METHODS
MSU Center for Regional Food Systems
http://www.canr.msu.edu/resources/2017-
national-food-hub-survey-questions
#FoodHubSurvey@MSUCRFS
SURVEY RESPONDENTS
MSU Center for Regional Food Systems
#FoodHubSurvey@MSUCRFS
CAVEATS
• Represents one-third of hubs
• May overrepresent wholesale and hybrid; may
underrepresent direct to consumer
• Respondents drop-off
• More profitable hubs complete more of the survey
MSU Center for Regional Food Systems
#FoodHubSurvey@MSUCRFS
FINDINGS: 2017 NATIONAL FOOD HUB SURVEY
MSU Center for Regional Food Systems
#FoodHubSurvey@MSUCRFS
NAVIGATION
Findings by Topic
1. Operational
Characteristics
2. Food Safety
3. Finances
4. Values and Mission
5. Networks, Challenges,
Opportunities, and
Barriers to Growth
Findings by Core Concepts
1. Food hubs contribute to
the economy
2. Food hubs are becoming
an established sector
3. Food hubs still face
viability challenges
4. Food hubs support
farmers
5. Food hubs support the
triple bottom line
6. Capacity to meet food
safety certification
demands is increasing
MSU Center for Regional Food Systems
#FoodHubSurvey@MSUCRFS
OPERATIONAL CHARACTERISTICS
MSU Center for Regional Food Systems
Photo by Randall Davis, KVCC ValleyHUB, Kalamazoo, MI
#FoodHubSurvey@MSUCRFS
YEARS IN OPERATION
MSU Center for Regional Food Systems
In all three survey years, revenue was significantly correlated
with the age of the food hub.
Food Hubs by Years in Operation
#FoodHubSurvey@MSUCRFS
TYPOLOGIES
MSU Center for Regional Food Systems
Business
Model
Legal
Structure
Enterprise
Type
#FoodHubSurvey@MSUCRFS
EMPLOYEES & VOLUNTEERS
MSU Center for Regional Food Systems
Percentage of Hubs Using Unpaid Staff
Number of Food Hub Employees
#FoodHubSurvey@MSUCRFS
BACKGROUND OF FOOD HUB MANAGERS
MSU Center for Regional Food Systems
Newer hubs are attracting managers with more formal
education.
• 53% of managers at food hubs established AFTER 2012
had a graduate degree.
• 35% of managers at food hubs established BEFORE
2012 had a graduate degree.
Food Hub Managers’ Experience by Area
#FoodHubSurvey@MSUCRFS
PRODUCERS AND SUPPLIERS
Support for Beginning and Mid-Sized Producers
• An average of 46% of a hub’s producers and
suppliers began business in the last 10 years (n =
66)
• 89%, (n = 89) of hubs indicated that most (55%) or all
(34%) of their farm and ranch suppliers were small or
mid-sized
• 62% of hubs have increased their purchases from
small and mid-sized farms in the last two years
MSU Center for Regional Food Systems
#FoodHubSurvey@MSUCRFS
PRODUCT MIX
MSU Center for Regional Food Systems
Total Food Hub Sales as a Percentage of $1
#FoodHubSurvey@MSUCRFS
SERVICES AND ACTIVITIES
MSU Center for Regional Food Systems
Marketing Services
Value-Added Services
#FoodHubSurvey@MSUCRFS
MSU Center for Regional Food Systems
Average Percentage
of Hubs Selling to
Customer
Types by Year
#FoodHubSurvey@MSUCRFS
FOOD SAFETY
MSU Center for Regional Food Systems
Photo by Noel Bielaczyc, Flint Fresh, Flint, MI
#FoodHubSurvey@MSUCRFS
FOOD SAFETY
MSU Center for Regional Food Systems
Food safety
requirements for
producers and
suppliers
Preferences for
producer and
supplier
food safety
certification
#FoodHubSurvey@MSUCRFS
FOOD SAFETY SUPPORT
MSU Center for Regional Food Systems
Hubs’ food safety services for suppliers and producers
#FoodHubSurvey@MSUCRFS
FINANCES
MSU Center for Regional Food Systems
Photo by Kayla Koether, FarmTable Procurement and Delivery, Harlen, IA
#FoodHubSurvey@MSUCRFS
GROSS REVENUE
MSU Center for Regional Food Systems
Gross revenue
by category
and by year
#FoodHubSurvey@MSUCRFS
GROSS REVENUE OVERALL
MSU Center for Regional Food Systems
#FoodHubSurvey@MSUCRFS
GROSS REVENUE BY YEARS
MSU Center for Regional Food Systems
#FoodHubSurvey@MSUCRFS
GROSS REVENUE BY LEGAL STRUCTURE
MSU Center for Regional Food Systems
#FoodHubSurvey@MSUCRFS
GROSS REVENUE BY BUSINESS MODEL
MSU Center for Regional Food Systems
#FoodHubSurvey@MSUCRFS
Average Percentage of Hubs Selling to
Customer Types
Average Percentage of Total Gross
Sales by Customer Type
#FoodHubSurvey@MSUCRFS
GRANTS & PROFITABILITY
MSU Center for Regional Food Systems
Operating Expense Ratio (n = 78)
Food Hub Reliance on Grant Funding
#FoodHubSurvey@MSUCRFS
TREND TOWARDS PROFITABILITY
MSU Center for Regional Food Systems
Operating Expense Ratio by Years in Operation
#FoodHubSurvey@MSUCRFS
OER OVER TIME
MSU Center for Regional Food Systems
Operating Expense Ratio by Year for Same Hubs
#FoodHubSurvey@MSUCRFS
CAPITAL TO BEGIN OPERATIONS
MSU Center for Regional Food Systems
Primary Revenue
Sources to Begin
Food Hub
Operations for New
Hubs (Less Than 2
Years Old)
#FoodHubSurvey@MSUCRFS
VALUES AND MISSION
MSU Center for Regional Food Systems
Photo by Randall Davis, KVCC ValleyHUB, Kalamazoo, MI
#FoodHubSurvey@MSUCRFS
HUBS SOURCE AND SELL LOCALLY
MSU Center for Regional Food Systems
Proportion of hubs
using processes to
communicate
product origin
Distance from hub
where the majority of
customers are
located
#FoodHubSurvey@MSUCRFS
MSU Center for Regional Food Systems
Percentage of Hubs
With Missions
Related to Select
Nonfinancial Goals
#FoodHubSurvey@MSUCRFS
SOCIAL MISSION ACTIVITIES
MSU Center for Regional Food Systems
Percentage of Hubs Engaging in Social Mission Activities
#FoodHubSurvey@MSUCRFS
CHALLENGES & OPPORTUNITIES
NETWORKS, CHALLENGES, OPPORTUNITIES,
AND BARRIERS TO GROWTH
MSU Center for Regional Food Systems
#FoodHubSurvey@MSUCRFS
TOP CHALLENGES FOR FOOD HUBS
MSU Center for Regional Food Systems
#FoodHubSurvey@MSUCRFS
TOP CHALLENGES CONT.
MSU Center for Regional Food Systems
#FoodHubSurvey@MSUCRFS
VALUE OF INFORMATION
RESOURCES
MSU Center for Regional Food Systems
Most and Second Most
Important Information
Resources
Photo by Noel Bielaczyc, Country View Dairy, Hawkeye, IA
#FoodHubSurvey@MSUCRFS
UTILITY OF COMMUNICATION MECHANISMS
MSU Center for Regional Food Systems
Perceived Utility of Various Means of Information Delivery
#FoodHubSurvey@MSUCRFS
FUTURE COMPETITION
MSU Center for Regional Food Systems
Percentage of Hubs Expecting Competition by Source (n = 64)
#FoodHubSurvey@MSUCRFS
MARKET OUTLOOK
MSU Center for Regional Food Systems
Two-Year Market Intentions for Wholesale Hubs
#FoodHubSurvey@MSUCRFS
AS HUBS MATURE
Older hubs:
• Larger mean and median number of employees
• Larger median number of suppliers
• More likely to sell to wholesale customers,
particularly distributors and processors
• Higher median revenue
• Trend towards greater profitability
MSU Center for Regional Food Systems
#FoodHubSurvey@MSUCRFS
SUMMARY: CORE CONCEPTS
MSU Center for Regional Food Systems
https://search.ams.usda.gov/foodhubs/googleMapFull.aspx
NATIONAL CONTEXT
QUESTIONS?
John Fisk
jfisk@winrock.org
Rich Pirog
rspirog@anr.msu.edu
Kathryn Colasanti
colokat@anr.msu.edu
2018 FOOD HUB BENCHMARK STUDY
Help us understand where the sector is headed and build long-term financial success for individual hub
operators.SDF
Participate Today!WWW.BIT.DO/FOODHUB
Co-Sponsored by:
Non-Profit Boot Camp▪ Share nuts-and-bolts strategies and best practices in non-profit
management and operations
▪ Taught by peers deeply grounded in food systems
▪ 4 courses in Spring 2018:
▪ February: Demystifying Strategic Planning with Tamara Jones
▪ March: Fundraising Fundamentals with Diana Abellera and Aimee Retzler
▪ April: Outcomes-based HR with Peggy da Silva
▪ May: Legal and Financial Essentials with Poppy Davis: https://register.gotowebinar.com/register/8277850699388663553?source=fsln
▪ 30-45 minute webinars followed up by 1 hour group office hours on Zoom
▪ One-on-one coaching available to participants at end of course
THANK YOU!Study Available for Download at:
https://www.canr.msu.edu/resources/2017-food-hub-survey
Webinar Recordings Available at:
http://ngfn.org/webinars