findings of the 2017 national food hub survey · peer networking and outreach capacity building,...

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


SURVEY METHODS


http://www.canr.msu.edu/resources/2017-

national-food-hub-survey-questions


SURVEY RESPONDENTS



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



FINDINGS: 2017 NATIONAL FOOD HUB SURVEY



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



OPERATIONAL CHARACTERISTICS


Photo by Randall Davis, KVCC ValleyHUB, Kalamazoo, MI


YEARS IN OPERATION


In all three survey years, revenue was significantly correlated

with the age of the food hub.

Food Hubs by Years in Operation


TYPOLOGIES


Business

Model

Legal

Structure

Enterprise

Type


EMPLOYEES & VOLUNTEERS


Percentage of Hubs Using Unpaid Staff

Number of Food Hub Employees


BACKGROUND OF FOOD HUB MANAGERS


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


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



PRODUCT MIX


Total Food Hub Sales as a Percentage of $1


SERVICES AND ACTIVITIES


Marketing Services

Value-Added Services



Average Percentage

of Hubs Selling to

Customer

Types by Year


FOOD SAFETY


Photo by Noel Bielaczyc, Flint Fresh, Flint, MI


FOOD SAFETY


Food safety

requirements for

producers and

suppliers

Preferences for

producer and

supplier

food safety

certification


FOOD SAFETY SUPPORT


Hubs’ food safety services for suppliers and producers


FINANCES


Photo by Kayla Koether, FarmTable Procurement and Delivery, Harlen, IA


GROSS REVENUE


Gross revenue

by category

and by year


GROSS REVENUE OVERALL



GROSS REVENUE BY YEARS



GROSS REVENUE BY LEGAL STRUCTURE



GROSS REVENUE BY BUSINESS MODEL



Average Percentage of Hubs Selling to

Customer Types

Average Percentage of Total Gross

Sales by Customer Type


GRANTS & PROFITABILITY


Operating Expense Ratio (n = 78)

Food Hub Reliance on Grant Funding


TREND TOWARDS PROFITABILITY


Operating Expense Ratio by Years in Operation


OER OVER TIME


Operating Expense Ratio by Year for Same Hubs


CAPITAL TO BEGIN OPERATIONS


Primary Revenue

Sources to Begin

Food Hub

Operations for New

Hubs (Less Than 2

Years Old)


VALUES AND MISSION


Photo by Randall Davis, KVCC ValleyHUB, Kalamazoo, MI


HUBS SOURCE AND SELL LOCALLY


Proportion of hubs

using processes to

communicate

product origin

Distance from hub

where the majority of

customers are

located



Percentage of Hubs

With Missions

Related to Select

Nonfinancial Goals


SOCIAL MISSION ACTIVITIES


Percentage of Hubs Engaging in Social Mission Activities


CHALLENGES & OPPORTUNITIES

NETWORKS, CHALLENGES, OPPORTUNITIES,

AND BARRIERS TO GROWTH



TOP CHALLENGES FOR FOOD HUBS



TOP CHALLENGES CONT.



VALUE OF INFORMATION

RESOURCES


Most and Second Most

Important Information

Resources

Photo by Noel Bielaczyc, Country View Dairy, Hawkeye, IA


UTILITY OF COMMUNICATION MECHANISMS


Perceived Utility of Various Means of Information Delivery


FUTURE COMPETITION


Percentage of Hubs Expecting Competition by Source (n = 64)


MARKET OUTLOOK


Two-Year Market Intentions for Wholesale Hubs


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



SUMMARY: CORE CONCEPTS


https://search.ams.usda.gov/foodhubs/googleMapFull.aspx

NATIONAL CONTEXT

QUESTIONS?

John Fisk

[email protected]

Rich Pirog

[email protected]

Kathryn Colasanti

[email protected]

mailto:[email protected]



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:

http://www.bit.do/foodhub

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

https://register.gotowebinar.com/register/8277850699388663553?source=fsln

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

https://www.canr.msu.edu/resources/2017-food-hub-survey

http://ngfn.org/webinars

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