Food Hubs Feasibility Study [DRAFT] - Indiana

Thomas P. Miller & AssociatesSales of Fruit, Tree Nuts, BerriesLaPorte County 1,537,000Total Sales 1 Million 501k— 1 million 200k— 500k 100k— 200k 50k— 100kThe highest concentration of 2012 sales infruit, tree nuts, and berries is in LaPorteCounty in Northwest Indiana with 1,537,000 in sales. There are a number ofblueberry and strawberry farms in thearea (e.g. Blueberries of Indiana, Blue SkyBerry Farm, and Blossoms Blueberries).Neighboring Starke County and MarshallCounty have over 100,000 in sales.Morgan County ranks second in the statein sales with 546,000. It is home to anumber of orchards including AndersonOrchards and Gregory Orchards. 25k— 50k 25kSales of Nursery, FloricultureTotal Sales 5 million 3 million— 5 million 1.5 million— 3 million 1 million— 1.5 millionIndiana had over 110.8 million in 2012sales in Nursery, Greenhouse,Floriculture, and Sod. The largestconcentration is in Central Indiana.Hamilton County led the state with 26,755,000 in sales due to thepresence of large wholesale nurseryand greenhouse operations includingHeartland Growers in Westfield.Madison County ranked second with 7,803,000 due to the presence ofoperations such as Blue Grass Farms inAnderson. 50k— 100k 25k— 50k 25kHamilton County 26,755,000Madison County 7,803,0009

ISDA Food Hubs Feasibility Study2015LaPorte County 9,973,000Knox County had the highestamount of 2012 sales invegetables, melons, potatoes, andsweet potatoes with 25,055,000.There is a high concentration ofmelon farming with largeoperations such as J&J FarmingCo., Melon Acres, and Williams.These three farms collaborate andjointly own the Oaktown ProduceDepot, a cleaning and packingplant for cantaloupes. Thecantaloupes are marketed underthe Hoosier Fresh Farms nameand sold to major grocery chainsincluding Kroger and Meijer (seelink:http://hoosierfreshfarms.com/).Total Sales 10 Million 5 million— 10 million 2.5 million— 5 million 1 million— 2.5 million 500k— 1 million 250k— 500k 100k— 250k 100kSullivan County 5,641,000Knox County 25,055,00010Sales of Vegetables, Melons

Thomas P. Miller & AssociatesPublic InputA statewide survey of consumers, producers, and wholesalers in Indiana was conducted to assess severaldata points with respect to specialty crops and food hubs. Survey invites and participation requests weredistributed through regional input sessions, social media and web-based platforms, and through handoutsat local farmers’ markets and the Indiana State Fair. Questions in these surveys were in the form ofmultiple choice and open response.ConsumersAt just over 800 responses, consumers byfar had the greatest response rate of thethree surveyed groups. Many of theNumber ofconsumer responses were sourced from Respondentsfarmers’ markets and the state fair, and100 provided a significant amount of data75—100surrounding several important areas. Thechart to the right illustrates the spread of50—74responses by county, and helps to provide25—49visualization of which areas were moreactive in their response.15—24Marion County had the most responses bya large margin, but this can be attributed tothe large number of surveys distributed atthe State Fair. It only stands to reason thatthere was likely a higher number of MarionCounty residents that received these flyers.To that note, however, the State Fair settingwas instrumental in providing surveyexposure to residents across most of theIndiana counties. Interestingly enough,Vanderburgh – one of the southernmostcounties – had the second greatestresponse rate, with Whitley County – anorthern county – having the third greatest.10—145—91—40Consumer Data PointsThe consumer survey provided a large amount of information that illuminated consumer purchasinghabits as they relate to locally grown specialty crops. Consumers were asked a number of differentquestions relating to specialty crops that they purchase, their definition of locally grown, their preferredmethod for making purchases, and their perspective on priorities for food hub design.11

ISDA Food Hubs Feasibility Study2015LocalityTo establish what it means to choose local food, it was necessary to first assess what consumers definedas local. 39.9 percent of respondents indicated that local meant within 50 miles of its source.When you think of 'local food,' how do you define local?5.9%13.6%39.9%12.0%Within 50 milesWithin 100 milesWithin 200 milesWithin CountyWithin StateOther (please specify)5.1%23.6%Respondents listing “Other” were asked to specify what their definition for local was. Several respondentsidentified that they defined local low as within 10 - 20 miles, but frequently cited that it is dependent onthe crop that is being purchased. A large theme seemed to be the concept of regionalism, as severalindividuals stated that state lines shouldn’t make a difference on ‘locality’ – Illiana, Michiana, andKentuckiana being examples of this.Specialty CropsSurvey data shows that many Hoosiers identified purchasing a broad variety of Indiana specialty crops.This variety could play heavily into regionalism as some areas specialize in particular crops to a greaterdegree than others. The highest response rates (over 80 percent) were for apples, strawberries, sweetcorn, and 0.0%0.0%12AsparagusBeans (snap)CabbageCucumbersOnionLettucePeppers (bell)Peppers (other PotatoesPumpkinsSquash (Summer)Squash (Winter)Sweet esCherriesGrapesPeachesPearsPlumsNuts (Pecans)Nuts (Walnut)RaspberriesStrawberriesCut FlowersFoliage PlantsPotted Flowering Vegetable HoneyMaple hristmas TreesOther (please Which specialty crops do you currently purchase?

Thomas P. Miller & AssociatesWhen looking at the challenges of buying local, consumers ranked price as the highest factor (32.2percent) followed by not a good selection (31.4 percent), and not sure where to buy (30.0 percent).What challenges do you have in buying local?40.0%30.0%31.4%20.0%Not surewhere to buyNot a goodselection32.2%24.6%30.0%28.3%13.3%10.0%0.0%No place tobuyNot aconvenientlocationYes, I'd be more likelyto buy25.1%63.9%Yes, but it wouldn'tnecessarily affect mybuyingNo, doesn't matter, Ijust want freshproductsPurchasing HabitsPreferred Method of PurchasingAccording to the consumer survey,approximately half of Indiana consumerspurchase a majority of their vegetables, fruits,nuts, herbs, and flowers through a nationalchain. A quarter of the respondents statedthat they purchase a majority of these itemsat local farmers’ markets, and 15 percent ofrespondents were those who purchased atlocal grocery co-ops. The smallest pool ofrespondent said that they purchase theirvegetables, fruits, nuts, herbs, and flowers atlocal convenience stores.Other (pleasespecify)Consumers were also asked if it wouldmatter if products are actually grown inIndiana. Sixty-four percent of therespondents identified that it does matter,and that they would be more likely to buy ifthey knew that the products were sourcedwithin the state. One quarter of therespondents stated that it would matter,but wouldn’t affect their buying, andanother 11 percent said that they don’t careas long as the products are fresh.Would it matter to you if products areactually grown in Indiana?11.0%PriceWhere do you do a majority of yourshopping for vegetables, fruits, nuts,herbs, and flowers?2.0%6.9%15.0%2.6%Local Grocery Co-opDelivery ServiceFarmers’ Market49.2%24.2%National ChainConvenience StoreDirectly from Farm13

ISDA Food Hubs Feasibility Study2015Purchasing OnlineSome food hubs, such as the Hoosier HarvestMarket in Central Indiana, incorporate an onlinepurchasing system to conduct their food huboperations. When asked if they ever purchasespecialty crops online, 90 percent responded ‘No’.Those that answered yes did so mostly out ofconvenience and supporting the local economy –a large benefit that regional food hubs couldprovide. Of those that do purchase produceonline, 75 percent indicated that they were awareof where the products were sourced from.Why do you purchase online?ConvenienceSupport local economy11.1%2.2%4.4%8.9%35.6%Get fresher productsGood service37.8%Better/lower priceValue for money (goodquality for price)Price and AccessConsumers were somewhat likely (41.7 percent) or likely (30.7 percent) to pay more for locally specialtycrops.Rate your willingness to pay more for fresh, locally grown vegetables, fruits,nuts, herbs, or flowers.Highly Likely11.9%Likely30.7%Somewhat Likely41.7%Once or Twice a %35.0%40.0%45.0%When looking at a willingness to drive further for specialty crops, 41.4 percent were somewhat likely,21.9 percent likely, and 21.8 percent likely once or twice a year.Rate your willingness to drive farther to buy locally grown vegetables, fruits,nuts, herbs, or flowers.Highly LikelyLikelySomewhat LikelyOnce or Twice a 0%20.0%25.0%30.0%35.0%40.0%45.0%

Thomas P. Miller & AssociatesFood Hub FamiliarityOnly 30 percent of Indiana consumers were familiarwith the term “food hub” prior to taking theconsumer survey. This indicates a need forinformation sharing and “educating” on a statewidelevel if a food hub system is to be feasible. Withfurther education, the below responses could changeas well.Were you previously familiarwith the term "Food Hub"?Yes, 29.6%When asked about the importance of a food huboffering specialty crops at a lower price, 33.6 percentindicated it was somewhat important, 27.0 percentindicated it was very important and 25.9 percentindicated it was important.No, 70.4%I’m more likely to buy vegetables, fruits, nuts, herbs, or flowers at a food hub ifproducts were cheaper than in stores.Very Important27.0%Important25.9%Somewhat Important33.6%Doesn't 0.0%When looking at the presence of a food hub in a nice retail area, 40.6 percent of consumers indicated thatit didn’t matter and 36.1 percent said it was somewhat important.I’m more likely to buy vegetables, fruits, nuts, herbs, or flowers at a food hub if itis located in a nice retail area with amenities.Very Important4.9%Important18.4%Somewhat Important36.1%Doesn't 0.0%45.0%15

ISDA Food Hubs Feasibility Study2015When asked about the importance of knowing that specialty crops are locally grown through a food hub,40.9 pecent indicated it was important and 35.7 percent said it was very important.I’m more likely to buy vegetables, fruits, nuts, herbs, or flowers at a food hub ifI know that they were locally grown.Very Important35.7%Important40.9%Somewhat Important20.5%Doesn't .0%45.0%When asked about specialty crops being inspected to a certain quality, 38.8 percent indicated it wasimportant, 26.5 percent indicated it very important and 26.5 percent indicated it was somewhatimportant.I’m more likely to buy vegetables, fruits, nuts, herbs, or flowers at a foodhub if I know food was inspected to a certain quality.Very Important26.5%Important38.8%Somewhat Important26.5%Doesn't 40.0%45.0%

Thomas P. Miller & AssociatesProducersA total of 70 producers represent 43different counties across the state withtheir responses to the producer surveythat was distributed. Though fewer innumber of respondents than that of theconsumer survey, the producersprovidedvaluableinsightandinformation about their currentoperations, where they typically selltheir products, and their opinions ondistributing through local and regionalfood hubs.17

ISDA Food Hubs Feasibility Study2015Characteristics of FarmsOf producers who responded, 35.7 percent had operations of 1-10 acres, followed by 27.1 percent with11-50 acres, and 12.9 percent with operations over 1,001 acres. Of those operations, 64.3 percent werededicating 1 to 10 acres to specialty crops with 14.3 percent dedicating 11-50 acres.What is the size of your farm?1 to 10 acres11 to 50acres12.9%2.9%7.1%7.1%51 to 100acres35.7%251 to 500acres14.3%51 to 100acres101 to 250acres64.3%501 to 1,000acres27.1%1 to 10 acres11 to 50 acres7.1%0.0%4.3%2.9%101 to 250acres5.7%8.6%How many acres are dedicated tospecialty crops?251 to 500acres501 to 1,000acres1,001 acresOther (pleasespecify)When asked about sales of specialty crops, 65.7 percent of producers who responded indicated sales wereunder 25,000.What are your sales of specialty crops as defined by USDA?1.4% 25,0008.6%4.3% 25,001- 50,0007.1% 50,001- 100,00012.9%65.7% 100,001 250,000 250,001 500,000 500,000 When asked if farming was their full-time occupation, 60.0 percent indicated no and 40.0 indicated yes.When asked how many additional staff they employ, 45.7 percent indicated they employ 1-5 additionalstaff and 38.6 percent indicated they do not employ additional staff.18

Thomas P. Miller & AssociatesWhen asked to define local, 40.0 percent of producers indicated that they defined it as within 50 milesfollowed by 32.9 percent within 100 miles.When you think of 'local food', how do you definelocal?Within 50 miles11.4%Within 100 miles2.9%8.6%40.0%4.3%Within 200 milesWithin CountyWithin State32.9%Other (pleasespecify)Specialty crops grown by a high number of producers included tomatoes, peppers (bell), peppers (others),pumpkins, squash, cucumbers, and lettuce.What specific specialty crops do you grow and sell to Beans (snap)CabbageCucumbersOnionLettucePeppers (bell)Peppers (other than PotatoesPumpkinsSquash (Summer)Squash (Winter)Sweet esCherriesGrapesPeachesPearsPlumsNuts (Pecans)Nuts (Walnut)RaspberriesStrawberriesCut FlowersFoliage PlantsPotted Flowering Vegetable TransplantsHoneyMaple hristmas TreesOther (please specify)10.0%19

ISDA Food Hubs Feasibility Study2015When asked about specialty crops being currently sold to wholesalers, 31.4 percent indicated they wereselling direct to grocery stores and 15.7 percent to regional or statewide fruit/vegetable wholesalers. 72.9percent responded “other” which included lots of participation in farmers markets and some direct salesto restaurants.Are you selling your specialty crops to any wholesalers now? If 7%20.0%10.0%2.9%0.0%Direct to grocery stores Regional or statewidefruit/vegetablewholesalersOther food hubsOther (please specify)Indiana Grown – when asked about familiarity with the Indiana Grown program, 40.0 percent ofproducers were aware of the program and 60.0 percent were not aware of the program.Term ‘Food Hub’ – when asked about familiarity with the term Food Hub, 64.6 percent indicated they hadheard the term and 35.4 percent indicated they were not familiar with it.Currently Selling to a Food Hub – when asked if they currently participate in a food hub, on 7.7 percentof those who responded to the question indicated they were.Best Way to Sell to a Food Hub –When asked about selling specialtycrops to a food hub, 36.9 percentindicated that they would like toparticipate in a regularly scheduleddrop-off at one location and 23.1percent indicated they would like aregularly scheduled pick up from afarm.20How would you like to sell specialty crops to afood hub?36.9%40.0%23.1%Regularly scheduleddrop-off at onelocationRegularly scheduledpick-up from farmOther (pleasespecify)

Thomas P. Miller & AssociatesWhen reviewing the other comments on how producers would like to participate, key items thatemerged included: Regularly scheduled drop-off and pick up.No interest in food hub.Have trucks that pick-up from farms and drop off to retailers and wholesalers on a daily ba

The purpose is to assess the needs of growers and consumers regarding the potential of regional food hubs operating as part of a statewide network to facilitate the marketing and purchase of specialty crops, defined as fruits and vegetables, tree nuts, dried fruits, horticulture, and nursery crops (including . ISDA Food Hubs Feasibility Study