Economics a sustainable regional food system
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Economics & a Sustainable Regional Food System. Jim Bower Blue Planet Partners Planting Seeds for our Future Conference March 26, 2007. Scoping Partners for Regional Food Strategy Project. Blue Planet Partners Michael Fields Agricultural Institute Center for Integrated Agricultural Systems

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Economics a sustainable regional food system

Economics & a Sustainable Regional Food System

Jim Bower

Blue Planet Partners

Planting Seeds for our Future Conference

March 26, 2007


Scoping partners for regional food strategy project

Scoping Partners for Regional Food Strategy Project

Blue Planet Partner

Blue Planet Partners

Michael Fields Agricultural Institute

Center for Integrated Agricultural Systems

DATCP

REAP

UW – Center for Cooperatives

Common Wealth Development, Inc.

UW College of Agriculture

Other key food systems leaders


Goal of regional food strategy project

Goal of Regional Food Strategy Project

Blue Planet Partner

Develop cohesive strategic framework for scaling up this region’s sustainable food system (Madison – Milwaukee – Chicago)

Strategies nesting both locally and regionally.

Goal: “Increase consumption of sustainable, regionally produced and processed food from 2% to 10% in 7 to 10 years.”


Anatomy of a scaling up a sustainable food system

Anatomy of a Scaling Up a Sustainable Food System

Blue Planet Partner

  • Values (Heart)

    • Local, organic, sustainable, environmentally sound, life giving for communities, healthfulness, freshness, taste, etc.

  • Economics (Blood in the bloodstream)

    • Financial viability

      Which is more important?

      Which is more capable of flexibility?


Regional food economies

Regional Food Economies

Blue Planet Partner

  • Not working

  • Outflow is greater than inflow

  • Northwest MN study (Ken Meter)

    • $851m revenue

    • $1092m cost

    • Losing $200m per year in production costs


Supply chain economics

Supply Chain Economics

Blue Planet Partner

Production

Processing

Distribution


Economics of distribution

Economics of Distribution

Blue Planet Partner

  • Tier 1 – direct from farm to consumer

  • Tier 2 – local / regional distribution – small scale

  • Tier 3 – regional distribution

    • Forklifts

    • Semi-trailer scale minimums

    • Regional warehouses

    • Just in time delivery


Punch line

Punch line

Blue Planet Partner

We as a society/region have not figured it out yet

If the economics worked then supply would increase in a proportion to demand at price points that worked


Changing economic ground

Changing Economic Ground

Blue Planet Partner

Fuel prices

Changing consumer demand

Major market makers redefining landscape (Wal-Mart)

Current market makers rapidly adjusting (Whole Foods)

New institutional buyers beginning to enter the market

Public policy – national, state & local

Environmental costs internalized

Food security

TIPPING POINTS???


What s next

What’s Next

Blue Planet Partner

Building 100s of viable businesses at all levels of the region’s food system

Driving innovation – new products, new/improved processes

Increasing consumers ready and able to consume a value-laden product at higher price points

Getting more efficient/effective at all levels of the supply chain

Encouraging the development of market makers

Building partnerships that can create new market opportunities

TIPPING POINTS???


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