Entrepreneurship Through Local Food Systems

1. Entrepreneurship Through Local Food Systems 2011 Wisconsin Conference on Downtown Revitalization Thursday October 20, 2011 Fond du Lac, Wisconsin Photo credits: Left: “Deering Oaks Farmers Market” by Corey Templeton Middle: “Le Cordon Bleu Ottawa Culinary Arts Institute" by Ottawa Tourism Right: “Michael Pollan at UBC Farm-In Defense of Food-IMG_3043” by Roland Tanglao

2. Today’s Presentation • The Wisconsin Local food EconomyLaura Brown, UW-Extension Center for Community and Economic Development • A Retail Perspective on Food Entrepreneurship • Michelle Schry, General Manager, People’s Food Co-op • The Role of Business Incubators, • Mary Pat Carlson, Executive Director, Farm Market Kitchen

3. Today’s Presentation • Learn how food production systems, incubators, coops and local eateries can take root downtown and create new entrepreneurial opportunities. • Also learn how these ventures support the local food economy, encourage local healthy living, and attract culinary tourism dollars.

4. What is local? • What is local? No formal definitions • May be based on geography or socio-political boundaries (i.e.county lines) • Foodshed- “A foodshed is everything between where a food is produced and where a food is consumed.” • 2008 Farm Act- A “locally or regionally produced agricultural food product” is less than 400 miles from its origin, or within the state in which it was produced.

5. YIKES!

6. Who is involved? • Producers and other entrepreneurs • Higher prices, direct feedback, consumer support, social connections, support for local economy • Consumers • Freshness, nutrition, safety, appearance & taste, connection to food source • Communities • Local economy, community building, health and wellness, maintaining rural character, ecological health (soil, water, habitat, biodiversity) (http://www.entrepreneur.com/article/220357 )

7. According to a USDA literature review… • Local foods account for a small but growing share of total US agricultural sales • Production of locally marketed foods is more likely to occur on small farms in or near metro counties • Consumers who value high quality foods produced with low environmental impact are willing to pay more for locally produced food • Federal, State, and local government programs increasingly support local food systems • As of 2010 there were few studies on the impact of local food on economic development, health, or environmental quality. • Martinez, Steve. et al. Local Food Systems Concepts, Impacts, and Issues. ERR, 97, USDA. Economic Research Service, May 2010

8. The Big Picture Economic Development- “Process of retaining, expanding, and attracting jobs, income and wealth in a manner that improves individual economic opportunities and the quality of human life.” • How do we typically measure the economy? • Jobs * Income (Labor as well as total income) * Industry Sales • Sources of data • United States Department of Agriculture • Agricultural Resource Management Survey • http://www.ers.usda.gov/Data/ARMS/ • NASS Agricultural Census Data • http://www.agcensus.usda.gov/

9. The Big Picture Slide courtesy Steve Deller, Department of Agricultural and Applied Economics, UW Madison.Extension. “The Role of Agriculture in the Wisconsin Economy.” Presented October 2011.

10. Wisconsin’s Local Food System Entrepreneurship Opportunities FARMERS- Urban & rural COMPOST/SOIL PRODUCERS PROCESSORS FOOD PRODUCT ENTREPRENEURS MARKETS RESTAURANTS SPECIALTY RETAIL FOOD & CULINARY TOURISM NETWORKERS AGGREGATORS DISTRIBUTORS TRANSPORT

11. Wisconsin’s Local Food System A look at the data.. Employment in farming Size and type of farms Number farms selling for local markets Restaurant trends Culinary tourism trends Direct sales Numbers of farmers markets Sales of value-added products

12. Size and Types of Farms Status of Wisconsin Agriculture 2011, Wisconsin’s Farm Economy Accessed at http://www.aae.wisc.edu/pubs/status/docs/status2011.pdf

13. Farmers Markets

14. Farms Selling Direct

15. Value-Added Products

16. Restaurant Trends • Top culinary themes: Local, sustainable, fresh, healthy • 2011 What’s Hot survey- • locally sourced meats and seafood • locally grown produce • sustainability • “Americans are looking for more healthful options at restaurants and other foodservice outlets but define healthy eating based on quality features rather than fewer calories.” • “Consumers place a high importance on taste regardless if they are eating healthfully or not, and some consumers equate healthier foods as not being as tasty. The majority of consumers expect to pay the same for healthier foods as those considered less healthy.” • National Restaurant Association What’s Hot Survey, 2010. Accessed at http://www.restaurant.org/pdfs/research/whats_hot_2011.pdf • Consumers Define Healthy Eating When They Go Out to Eat,

17. Culinary Tourism Trends • Culinary destinations may be businesses, business districts, communities, or geographic regions that attract people interested in unique and memorable food and eating experiences. • Dining out • Retail establishments (e.g. wine, spice, or candy shops) • Food tours, wine trails, tastings, cooking classes, • Food related events, farmers markets, community meals). • 2007 Travel Industry Association Study: • 27 million travelers, or 17% of American leisure travelers, engaged in culinary or wine-related activities between 2004 and 2007. • Culinary travelers are younger, more affluent and better educated • Motivated by a desire for unique experiences. • The study found that 90 % of culinary travelers 83% of non culinary travelers were under the age of 65. • Travel Industry Association (TIA), in partnership with Gourmet and the International Culinary Tourism Association conducted a study of 2,364 leisure travelers in the United States. Photo credits: “"Wine Tasting" by Yaniv Ben-Arie

18. Impact on Local Economies • Does shifting consumer spending from imported to local foods and shifting to local processing allow producers to retain more of the food dollar? • Farmers markets – generally found to have positive impacts on the local economy • Iowa study- each $1.00 spent generates .58 cents in additional indirect and induced sales. • Labor and sales benefits but may be offset by losses to mainstream retail sales • Help larger businesses expand • Act as an incubator for smaller businesses • Spillover effects- spending at other downtown businesses • Martinez, Steve. et al. Local Food Systems Concepts, Impacts, and Issues. ERR, 97, USDA. Economic Research Service, May 2010Otto, D. and T Varner. 2005 Consumers Vendors and the Economic Importance of Iowa's Farmers Markets . Leopold Center for Sustainable Agriculture. Accessed October, 2011 at http://www.leopold.iastate.edu/pubs-and-papers/2005-05-farmers-markets • Feenstra, G.W. 2003. “Entrepreneurial Outcomes and Enterprise Size in US Retail Farmers Markets,” American Journal of Alternative Agriculture, Vol 18, pp46-55. • Lev, L.l. Brewer and G Stephenson. 2003. How do Farmers Markets Affect Neighboring Businesses? Oregon Small Farms Technical Report No 16, Small Farms Extension Program, Oregon State University, Corvallis, OR.

19. Local Food Entrepreneurship Resources Downtown Business Market Analysis- Restaurant and Culinary Opportunities http://fyi.uwex.edu/downtown-market-analysis/analysis-of-opportunities-by-sector/restaurants/ Food & Value Added Ag Resources http://fyi.uwex.edu/aic/ Business Incubation Network http://fyi.uwex.edu/foodbin/the-food-bin-network/ Wisconsin Local Food Marketing Guidehttp://datcp.wi.gov/Business/Buy_Local_Buy_Wisconsin/BLBW_Food_Marketing_Guide/index.aspx Laura Brown University of Wisconsin-Extension Center for Community & Economic Development Laura.brown@ces.uwex.edu