retail ready for local food s. gary bullen north carolina state university
TRANSCRIPT
Retail Ready Retail Ready For Local For Local
Food Food S. Gary Bullen S. Gary Bullen
North Carolina State University North Carolina State University
Local Food Market
•Interviewed 87 buyers
•Focused on fruits and vegetables
•Business Skills needed
What is local food?
Little agreement regarding distance and political boundaries
Defining Local in North Carolina
• Locally sourced is highly variable Grocery stores define local as within state
• Coop groceries stated “closer is better”
• Specialty food hubs define as within or a joining county
Why Local Foods Survey of National Restaurant Association
Locally Grown produce is perceived as hot by 84%
Chefs want products that are raised locally and are harvested right form the farm and go right to the restaurant within one day
We shake hands with the people we get our food from. How many people can say they know the people from where there food come from?
Think Like a Buyer• To be able to reach producers directly
for their product needs just as easily as they reach wholesaler
• Producers to understand how a restaurant grocery store or distributor operates
• Producers to be acquainted with the types of food their customers prefer
• You need to understand their customers and how you can provide them with a remarkable product and experience
Market Channels for Local Foods• Restaurants
• Coop Groceries
• Supermarket and Grocery Chains
• Wholesale Buyers
• Food Service Distributors
• Specialty Distributors
• Institutional Suppliers
• Child Care Center
• Private Schools
• Colleges and Universities
• Hospitals
Business Skills• What are your business goals and
capabilities• This will determine the market channel
that is the best fit for you• What products do you offer? •Quality, quantity, timing
Skills Needed by Farmers
•Reliability–Farmers must delivery product type and quantity as agreed to
–Buyer are planning on this and should be told of any changes
–Consistent with all buyers
Skills Needed by Farmers
• Professionalism– Many buyers made a distinction
between professional farmers versus hobby farmers
– Not as concerned about size but intent and investment
• Appreciation of the buyers business activity and availability (Ask about best time to contact)
Restaurants
•Only restaurants promoting local
•Questions for restaurants– Chef/owner philosophy and restaurant
identity – Size (size of kitchen, storage space,
number of meals served per week– Price: how expensive are items on menu– Menu: is it fixed or flexible, is local staple
or specialty– How formal or informal are their system
Restaurants
• Local chefs like to visit the farm, are interested in sustainable practices
• Want food that consistently tastes delicious and is very fresh
• Written information is much easier for them
• Need regular communications
• Perhaps most relationship driven market channel
• One chef describe it as a long-term journey
• Farmers are usually able to sell at retailish prices
Coop & Specialty Grocery
•Company Stores Market, Hendersonville Community Coop, Chatham Marketplace Coop, Tidal Creek Coop, Deep Roots Market, French Broad Coop
•Very engaged in local sourcing and often mention it as part of their mission and vision
•Purchased all product categories and identify origin in the stores
Coop & Specialty Grocery
•Some coops were moving to 100% organic while others favor local over organic
•Some of the coops required farmers to sign affidavit about growing practices
•May be able to accommodate a wide range of products and a wider range of volumes
•Some have restaurants or kitchens
Specialty Distributors & Brokers
Feast Down East, Madison Farms, Pilot Mountain Pride, Produce Box, Sand hills Farm to Table Coop, Mint Market, East Carolina Organics, Farmhand Foods, Piedmont Local Foods
• Buy 100% local, were created to supply local products
• Establish a brand for local food and aggregate products.
• Some process sales on line, some CSA like
Specialty Distributors & Brokers
• Capable management skills critical for the success of these of organizations
• Work closely with farmers, some provide financial support of improvements, usually willing to work with smaller farmers, provide training on quality, all required liability insurance
• Distinctive philosophy “neighbors feeding neighbors”
Specialty Distributors & Brokers
• Demand outpaces supply, more farmers are needed, want more products in fall and winter
• Lack of high value items such as fruits• Wants to deal with larger customers
who may be able to absorb occasional higher volumes
• Madison Farms emphasized need for stable partnerships amid market evolutions
Grocery Store Chains
•Many express interested in local foods
•Standards of appearance, quality and consistency are very important
•Local usually has a regional focus
Grocery Store Chains
•Retailers discussed how farmers should know quality, volume, and grading
•Retailers will buy at wholesale prices
•Volume is important as crops must be supplied in sufficient amount during the season
Grocery Stores Chains
•Getting in the door can be a challenge, need to understand the direct to store vs. selling to the entire chain may take some work
•Three grocery store chains in NC who are very interested in buying from local farmers are Ingles in West, Carlie C's IGA, Piggly Willey in eastern NC and Lowes in NC SC and VA
Wholesale Distributors
• Honeycutt Product, Ward Produce, Albert’s Organics, First hand Meats, Leading Green, Southern Foods
• Goal of this group is to provide consistent predictable products. Scale is usually large with crops sources in many locations.
• Buying local presents a logistics problem for many wholesalers
• Many companies are sourcing local but usually do not label as local
• Many expressed interest in sourcing local products, if they can make the logistics work
• Do not have the capacity to train farmers
• Working to keep the supply stream closer to origin
• Many products sold to distributors are sold retail ready, (clean, and boxed) very exact specifications.
• Scale is usually large and fast paced
Wholesale Distributors
Wholesale Distributors
• Will pay wholesale prices• Need exacting food safety and other
requirements, GAPS and liability coverage is generally required
• May be difficult to break into market, finding the right person
• With the market expansion of local, may provide marketing opportunities
Food Service•Foster Caviness, Bon Appetite,
Fresh Point, Ford Produce, Mountain Food Products, US Foods, Compass, Aramark, Sodexo
•Very similar to whole distributors sell mainly to restaurants and other companies serving food to public
•Food service is divided into commercial and institutional, schools, hospitals, nursing home
Food Service
•Very specific purchasing guidelines
•Increasingly provides more ready to cook or ready to heat
•Schools have less space/staff/ equipment to prepare foods
Evaluating the Institutional Market Channels
• Advantages
• Can offer a steady and large market less vulnerable to economy
• Understanding the procedures and working of the institution is critical for the farmer
• Challenges
• GAP certification and liability insurance required
• High volume and very consistent quality over longer period of time
• Becoming vendor may be long and tiresome process
• May take 30 days or more to be paid
• Gov. institutions may use low bid procurement system
Institutional Market Channels
• The place of food, institutional culture
• Population characteristics
• Kitchen characteristics• Can they prepare fresh food
• Does staff have kitchen skills
• Management of operations• Some are self operated
• Others are contracted by food management company EX: Compass, Aramark, Sodexo
Evaluating the Institutional Market Channels
• What is level of interest in local foods
• Do they cater for special events
• Do they have multiple dining venues
• Do they have the ability to process and freeze
• Interest in specific crop for seasonal menus
• See the nutritional and maybe ed. value of local foods
Hospitals
• Interviewed Carolina Medical Center (Charlotte) Wake Med, UNC Health Care are very interested in fresh, local foods rooted in wellness programs
• Food safety and emergency recall program must be in place
• Direct sales are very rare, and hampered by complexities of becoming vendor and providing adequate supply and quality
• Some hospitals food services may be contracted or self operated, either case will rely on large scale suppliers
• Some distributors have separate price sheets (local, state, regional) items that meet the price points.
Retirement and Continuing Care Retirement
Communities• Interviewed Southminster Retirement Community, Carol Woods
Retirement Community, Salemtowne Retirement Community which are using the dining services as a way to distinguish themselves. One dining room director mentioned “hospitality not hospital”
• Some CCRC are hiring restaurant chefs with local food experiences for their institutional kitchens
• Food safety including GAP certification is a priority
• Food and dining plans may focus tightly on nutritional strategies
• Menus are planned months ahead, often quarterly to incorporate nutritional planning
• Some distributors have separate price sheets (local, state, regional) items that meet the price points.
Opportunities
• Products: goat cheese, beef and pork some vegetables broccoli and celery, and onions, and fruit
• Shoulder season crops by season extensions. Greenhouse tomatoes and greens
• Valued added processed foods such as jams and jellies
• Honey was mentioned by several buyers
Farmers Survey
• Why are selling to retail buyers
• market you can count on weekly • Set price no worry of price fluctuation• Price, get higher price from retail instead of
wholesale• Value added product, supply of a local
product• Local food movement
Farmers Survey • What are your challenges of working
with retail buyer• Cooling and transportation • Need for constant supply and lower price• Getting orders filled in a timely fashion• GAP certification, cooling truck • Increased expenses while getting commodities
prices• Need a way to sell to larger buyers like a
dedicated salesman for small farmers
