COMMUNITY FOOD HUBS - Food Hub Resources

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COMMUNITY FOOD HUBS COMMUNITY FOOD SECURITY AND ECONOMIC DEVELOPMENT EDWARD J. BLOUSTEIN SCHOOL OF PLANNING AND PUBLIC POLICY RUTGERS UNIVERSITY MAY 2012

PREPARED for ELIJAH’S PROMISE, THE RUTGERS FOOD INNOVATION CENTER, and NEW JERSEY COMMUNITY CAPITAL MANY THANKS TO Alena D’Auria, Rutgers Undergraduate Margaret Brennan-Tonetta, Rutgers FIC Lou Cooperhouse, FIC and F&S Produce Co., Inc. Michael duBois, Rutgers FIC Lisanne Finston, Elijah’s Promise Douglas H. Fisher, NJ Secretary of Agriculture Lorena Gaibor, Unity Square Partnership Kristina Guttadora, Farmers Against Hunger Paul Helms, Elijah’s Promise Diane Holtaway, Rutgers FIC Shoufiul Islam, Rutgers FIC Albert Kelly, Mayor of Bridgeton Wes Kline, NJ Agricultural Experiment Station Stephanos Koullias, Western Queens Compost Initiative Richard Ludescher, Rutgers SEBS Tom Manning, NJ Agricultural Experiment Station Jean Mahoney, Rutgers FIC Bruce Master, Rutgers FIC New Brunswick Community Gardening Coalition New Brunswick Food Alliance Christina Palassio, The Stop Glen Patterson, City of New Brunswick Planning Jack Rabin, NJ Agriculture Experiment Station Mark Robson, Rutgers SEBS Jaymie Santiago, New Brunswick Community Farmers Market Skylar, Rutgers FIC Tyler & Scott Thompson, XS Smith Terry & Patrick Viggiano, First Fields Frank Wong, Rutgers Facilities and Capital Planning PREPARED BY Edward J. Bloustein School of Planning and Public Policy, Rutgers University Spring 2012 Community Development Studio Max Azzarello Anthony Capece Michael Cassidy Laura Chamberlain Benjamin Faust Sarah Franklin Joshua Jensen Emily Joiner Benjamin Logue Jacklyn McFarlane Brandon McKoy Matthew Sarsycki Darius Scott Charlene Sharpe Carolyn Worstell FACULTY Kathe Newman Associate Professor Director of the Ralph W. Voorhees Center for Civic Engagement May 2012 For more information, contact knewman@rutgers.edu

TABLE OF CONTENTS Introduction Food Hubs 101 Core Food Hub Functions Food Supply Chain Coordination Aggregation Marketing Distribution Permanent Facilities Other Services Organizational Structure and Focus Retail Food Hubs Consumer Food Hubs Producer Food Hubs Non-profit Food Hubs Community Food Hubs Components of a Community Food Hub Two Food Hubs – in Detail The Context for Creating a Food Hub in NJ Left Over Produce & Gleaning Food Processing and Manufacturing in New Jersey First Field Profile A Food Hub in New Brunswick Existing Community Food Infrastructure Potential Community Partners Potential Buyers Related Services and Activities Potential Food Hub Locations Next Steps ICES Definitions Acronyms Works Cited Image Credits 5 7 7 7 8 8 8 10 13 13 13 13 14 14 15 15 20 23 26 27 27 28 28 28 30 30 31 31 33 35 36 42

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SPRING 2012 COMMUNITY DEVELOPMENT STUDIO, RUTGERS UNIVERSTIY COMMUNITY FOOD HUBS: COMMUNITY ECONOMIC DEVELOPMENT AND FOOD SECURITY IN NEW BRUNSWICK Max Azzarello, Laura Chamberlain, Sarah Franklin, Emily Joiner, Benjamin Logue, Jaclyn McFarlane, Darius Dante Scott, Carolyn Worstell INTRODUCTION The Spring 2012 Community Development Studio worked with Elijah’s Promise, the Rutgers University Food Innovation Center, and New Jersey Community Capital to increase food-related community development and to improve food security1. The studio explored the potential to create a community food hub in New Brunswick. As the USDA defines it, a food hub is a “a centrally located facility with a business management structure facilitating the aggregation, storage, processing, distribution, and/ or marketing of locally/regionally produced food products” (USDA: Food Hubs, 2011). While there are many variations in practice, the core idea is to help Rosie’s Farm Stand small and medium-sized farmers reach wholesale and/or retail customers within their region and to increase access to locally grown fresh food. There are at least 170 existing food hubs around the country and each looks slightly different depending on the context in which it emerged. Some food hubs focus on the core activities of food aggregation and distribution to streamline the food supply chain. Others provide a wealth of services to farmers to grow their businesses. Community food hubs provide a slight variation on this theme by adding services to achieve social, educational, community economic development, and community food security outcomes. They may provide education and job training, courses in food preparation and processing, summer internship programs, health classes, and some providing training on adjacent urban agriculture projects that include urban farms, high tunnels, and aquaculture. 1 Elijah’s Promise is a community based organization in New Brunswick that seeks to alleviate poverty and hunger by providing job training, small business development, education, jobs, and services. The Rutgers Food Innovation Center is an award winning food processing business incubator located in Bridgeton, New Jersey. The center provides an array of services to food related entrepreneurs and helps local communities and the state to grow food-related business through value-added production. New Jersey Community Capital is a community economic development financial intermediary that helps community organizations access capital to revive neighborhoods. Ag in the City is a new statewide urban agriculture organization. 5

COMMUNITY FOOD SECURITY AND ECONOMIC DEVELOPMENT The interest in food hubs comes amidst an explosive demand for locally grown fresh food, a desire to improve food security, interest in improving public health outcomes by improving what people eat, and creativity about reviving local economies through food. On the production side, the number of small farms has been growing. To ensure stability and increase production and sales, smaller growers need larger markets (Diamond & Barnham, 2012). Virtually all food distribution occurs through large distributors, food brokers, and grower agents which and it is often hard for smaller farmers to access these networks (Illinois Department of Commerce and Economic Opportunity, 2012). Since produce is often sold to buyers at large terminal markets, food may travel vast distances from farms to wholesale markets, and then again from markets to stores (Swedson, 2008). While farmers’ markets enable farmers to directly reach consumers, farmers markets are often focused on small retail buyers and farmers find that moving the produce to the market and spending the day at each market is an expensive time consuming affair. Food hubs expand these efforts to reach larger scale wholesale consumers and provide services that farmers need. They work to get local produce to market to meet the increasing demand by the consumer. Crafted with community goals, they can improve community food security and enhance community economic development. More and more people are concerned about what they eat and many demand locally grown foods and/or access to fresh produce. Ninety percent of consumers would buy local produce if it were readily available (Illinois Department of Commerce and Economic Opportunity, 2012). While some communities and regions have reoriented food markets to consume food closer to where it’s grown, others have not. More than 23 million people in the United States lack access to fresh food and more than half of those people are low income (USDA: Food Deserts). Lacking access to fresh affordable food can contribute to obesity, diabetes, and heart disease, among other health concerns and there is growing interest in improving access to healthy produce for all and especially for those who most need it. Addressing these issues can provide an array of local and regional economic benefits. The challenge is to organize the food supply chain in ways that facilitate the connection between consumers and growers to maximize benefits for all. A shift toward greater production of fresh market vegetables can yield greater revenues for local farmers (Illinois Department of Commerce and Economic Opportunity, 2012). The benefits of increasing local production extend beyond the farmers. Small-scale farms circulate money nearly twice as much as larger farms (Swenson, Eathington, & Chase, 2007). If consumers increase their consumption of local foods, they can return economic benefits to their communities. In a population of 130,000, for instance, if everyone consumed five locally-grown fruits and vegetables each day for the three months they are in season that would create 475 jobs and more than 6 million dollars of labor income (Swedson, 2008). Consuming more fresh produce may provide health benefits and reduce health costs. And reorienting the networks between farmers and consumers may reduce environmental costs of moving food over long distances and reduce the wear and tear on local highways as food is moved from place to place through complex distribution networks. In this report, we outline the food-related problems facing farmers and cities alike, examine the existing food economy in New Jersey, explore what food hubs and community food hubs are, and consider how they might work in New Jersey. The studio team reviewed reports and explored existing food hubs. We identified food hub challenges and benefits and researched the process communities use to create their food hubs. Since what a food hub is and how it works is context specific, in the second half of the report, we examine the existing food infrastructure in New Jersey, specifically addressing the state’s food economy challenges and opportunities. We conclude by highlighting ideas that emerged through the research process and suggest some next steps. 6

SPRING 2012 COMMUNITY DEVELOPMENT STUDIO, RUTGERS UNIVERSTIY FOOD HUBS 101 Food hubs are local or regional wholesale/retail markets that connect farmers to consumers. While existing food hubs provide a variety of services, they are oriented around a core effort to streamline local food supply chains to help small and mid-sized farmers (that often lack resources to access to or compete in larger distribution networks), and to increase local access to fresh food. The number of food hubs grew exponentially increasing from 45 in 2000 to 170 by 2012. There are food hubs in 34 states (USDA: Overcoming Barriers, 2012). While there are none in New Jersey, there are five in New York: GrowNYC-Hunts Point Wholesale Farmers Market in NYC, Hudson Valley Fresh in Poughkeepsie, Regional Access in Ithaca, Central New York Bounty in Morrisville, Central New York Regional Market Authority in Syracuse, and the Good Food Collective-Head Water Foods in Rochester. And there are three in Pennsylvania: Common Market in Philadelphia, Lancaster Farm Fresh Cooperative in Leola, and Tuscarora Organic Growers in Hustontown (Wallace Center). Food hubs come in a variety of sizes. Local food hubs work with a few farmers in a small area; regional food hubs may work with growers in a large regional food shed that spans several hundred miles. The main idea is that the food is grown close enough to the hub so that fresh produce can be consistently delivered to consumers via ground vehicle. Core Food Hub Functions Food hubs may aggregate and distribute food, offer a variety of processing services, and host retail markets. To be called a food hub, the USDA includes three core components: active coordination, aggregation and distribution, and permanent facilities. Below we discuss each of these components and examine how they work in existing food hubs. Figure 1: Supply Chain Coordination, 2012 CD Studio Food Supply Chain Coordination Food hubs coordinate food supply chains, moving food from field to table more directly. They facilitate relationships between farmers and wholesale buyers to return a greater economic return to farmers and lower prices for consumers. Food hubs widen the opportunities for small and medium sized farmers to deal with institutional buyers like schools and hospitals by creating the networks and markets linking the two. Historically, agricultural cooperatives coordinated supply chains for farmers. In the cooperatives, farmers own shares and funnel their produce through the cooperative. Cooperatives are designed to help established farmers aggregate, market and distribute their produce. Food hubs use a more informal network, which gives farmers flexibility in deciding what to sell. Farmers can use a diverse market channel mix to balance risk. The food hubs are not obligated to take all of their members’ production, and can balance their stock based on their customers’ needs and preferences (Diamond & Barnham, 2012). 7

COMMUNITY FOOD SECURITY AND ECONOMIC DEVELOPMENT Aggregation Food hubs aggregate (bring the produce to a central location) locally and regionally produced food, which facilitates its sale to wholesale buyers. This helps smaller farmers because they may not provide the diversity of food on their own, have time to develop relationships with buyers, and they may lack resources to wash, pack, and grade their products, or move product from place to place. Some food hub aggregators allow buyers to see the produce themselves while others facilitate direct buying over the Internet. Food Hubs bring food together from many farmers, which makes it more attractive for large scale buyers. For example, a large university system, school district, or even soup kitchen would have a hard time building relationships with all of the individual farmers that could sell them produce. It would be difficult to get that produce from the farmers, process it in the ways the institutions need it, and ensure that the food is safe. Food hubs offer a bridge between the farmer and consumer by aggregating the produce and providing services that help purchasers and sellers alike. The Food Hub as aggregator can build the relationships with farmers and with buyers. They can learn the needs and limitations of each and build relationships that help farmers expand their production while ensuring that buyers get the products that they seek to purchase. Marketing Hubs help to brand and market locally produced food. Some ensure traceability, the ability to accurately identify the location and even the farmer who grew the food which is critical to driving buyer and consumer demand. Food hubs can help small farmers market their produce and preserve the links from farm to table through signage and individualized packaging such as stickers, stamps, or twist ties. Red Tomato, a nonprofit run food hub, markets its Eco Apple brand of apples through individualized packaging; each bag of apples describes the farm that grew the apples. The Oklahoma Food Cooperative Jersey Fresh branding (OFC) maintains identity preservation through labels that include farmers names, and links to farmers websites where they can read about the farmer and sometimes even the farm animals (Diamond & Barnham, 2012). Distribution Distribution is the process of moving goods and services from one location to another using some form of transportation such as truck, rail, or boat and it is one of the biggest challenges to re-connecting local food producers with consumers (Diamond & Barnham, 2012, p. 4). For food hubs to move food from farm to consumer more directly, they need an efficient and effective distribution system to get the food from the farms to the hub and from the hubs to the consumers while maintaining food quality. To get the food to the hub, farmers can bring produce themselves, pay someone to come to the farm, pick up the product and deliver it, or the food hub can run a service to pick-up food from farmers. Refrigeration throughout this process is important especially during hot summer months. 8

SPRING 2012 COMMUNITY DEVELOPMENT STUDIO, RUTGERS UNIVERSTIY Food hubs use multiple means to distribute food to a wide variety of customers. Large buyers and restaurants may want their orders delivered. A distribution service is one of the most important requirements to making fast, on time, affordable deliveries from the farmer to the public (The Common Market, 2008). Food hubs can create their own distribution network like the Local Food Hub in Charlottesville, VA which has its own fleet of refrigerated trucks and delivers food from its hub to buyers (USDA: Overcoming Barriers, 2012). Other hubs might distribute through existing companies. But some institutional and/ FIC distribution or retail buyers may want to select their own food onsite. Some food hubs sell retail at small markets within the hub or through small farmers’ markets. Hubs may also use a traditional Community Supported Agriculture (CSA) approach, allowing consumers to purchase produce shares. Co-op Partners Warehouse in Minnesota aggregates local fruit which it delivers to regional CSAs to supplement their shares (Diamond & Barnham, 2012). As discussed earlier, food hubs require aggregation and distribution. There are several strategies implemented to achieve these means. For aggregation, there are basically four means of transporting locally-grown foods to the central hubs. Farmers can deliver their goods to the market, hire a trucking company to transport the goods, sell to an independent food distribution company, or have the food hub purchase the products directly. Today, many farmers use their own privately-owned vehicles to transport their products to the market. This system allows the growers to personally oversee the marketing and sales of their goods at the market, but costs them time away from their farms, frequently equating to reduced productivity in the long run. This situation is less than optimal for many small- and medium-sized farms that do not produce enough to make frequent trips to central hubs profitable. The lack of an economy of scale makes other options more desirable for many growers. The next option is for a trucking service to come to the farm and pick up the products for delivery to the market. This option frees the growers of the need to personally transport the food, allowing them to tend to their farms without interruption. This benefit does not always outweigh the cost, however, and can make this option infeasible, especially for farmers who need to ship their goods over large distances to reach the hub. The third option is to use an independent intermediary company. This company purchases the foods from several farms in a given area and combines it to serve the bigger buyers. It typically pays the farmers more than they are able to get from the wholesale market while remaining price conscious of what food hub visitors are willing to pay. This method increased demand for locally-grown foods as it enables small-sized farms to partake in sales to large institutions that they would otherwise by unable to provide for. 100km Foods Inc. works in this way to serve The Stop Community Food Centre in Toronto (100km Foods Inc). Finally, we noted that some food hubs purchase the produce that they sell directly from the buyers, picking up the food as part of the arrangement. The local Food Hub in Charlottesville, Virginia is one such hub. They state that they are a source of consistent sales for the local farms, stabilizing the market while alleviating the farmers of the burden of transporting food (Local Food Hub, 2010). Veritable Vegetable in California performs a similar role, aggregating from numerous farms and shippers in order to fill orders from small family needs to university and hospital demands (Veritable Vegetable). 9

COMMUNITY FOOD SECURITY AND ECONOMIC DEVELOPMENT Permanent Facilities Larger food hubs provide the permanent facilities necessary for the aggregation and distribution of food as well as space for other services such as storage, processing, meetings, and education. These facilities enable the food hub to better coordinate the food supply chain, getting food from small farmers to large institutions. While important, facilities often develop aggregation and distribution networks before developing physical facilities. Freezer and Cold Storage Freezer and cold storage is a crucial element in a permanent facility. Storage allows for an extended season and creates an off-season revenue stream for farmers. Unlike value added production, the proper use of storage allows for fresh produce well after the growing season has ended. Freezing is a more extreme form of cold storage. With freezing, produce is first blanched and then immediately flash frozen. The process essentially halts any natural breakdown of the food, extended the use of the produce. With cold storage and freezing, many farmers do not have immediate access to such facilities, due to lack of space and expensive equipment. Another issue is the intensity of the storage. For cold storage and freezing to succeed and keep proper temperatures and humidity, constant observation is a must. Many farmers simply do not have the time and resources for such storage and a separate facility is needed (Illinois Department of Commerce and Economic Opportunity, 2012). In a separate facility most storage is rented based on the service provided. Rates are broken down by dry, cold and frozen storage. Since cold storage and freezing requires more energy and is more expensive, the rates reflect this with higher fees for this storage (Mad River Food Hub, 2012). Processing Hubs can incorporate two distinct forms of processing. First, cold line processing is the post-harvest handling of produce and its packaging. This might include washing, sorting, and packaging. Consumers, including large institutions, demand that produce is processed. For example, lettuce needs to be washed, cut and packaged to make it appealing to buyers. Despite a growing desire to buy local produce, many are turned off by the lack of consistency in grading and packaging (Market Ventures, Inc., 2007). But most small farmers lack the resources to prepare food for market in this way and many farmers lack access to facilities and/or resources to transform their raw produce into products that wholesale purchasers seek. There is a lack of centralization in facilities making it difficult to grade, handle and package all in one facility. Decentralization also means that while some farmers can package or wash, but do not have a grading line (The Common Market, 2008). Second, value added production allows farmers to transform raw produce into other products. They might extend the harvest by freezing, canning, or dehydrating food for the winter. Or they might create entirely new products using their produce. If food hubs incorporate a sufficient amount of refrigerated space, they may be able to process food at a large scale for sale in the off season. They can do this through freezing food or canning it. The freezing option is considerably less expensive and requires a less cumbersome processing facility than canning (Illinois Department of Commerce and Economic Opportunity, 2012). Dehydration reduces the moisture, which causes microbial growth, in produce. With less risk of rot, dehydrated produce has a longer shelf life. Other benefits of dehydration include reduced weight and shipping costs, and an eliminating for refrigeration. Most fruits and vegetables can be dehydrated as well as meats, dairy (powdered milk) and edible flowers. The process can involve a simple batch dryer, that includes fans and ventilation or a more costly freeze drying system, which requires vacuum sealing and freezers (Illinois Department of Commerce and Economic Opportunity, 2012). Canning, jarring and pickling, like dehydration, increases the longevity of produce. Although effective in preservation, there 10

SPRING 2012 COMMUNITY DEVELOPMENT STUDIO, RUTGERS UNIVERSTIY is a higher risk of contamination, especially when compared to other processing methods. Requirements and regulations are much stricter for such preservation processes (Endres, Tarr, Endres, & Johnson, 2011). Canning can be done on two scales. Small-scale preservation may use traditional methods, such as water baths, while large commercial canning requires a continuous system of pressure cooking and quick cooling (Illinois Department of Commerce and Economic Opportunity, 2012). Food hubs might also incorporate baking. Baking is the processing of grains into goods such as breads FIC bottling and baked goods. Despite having a short shelf life than other processed goods, there are fewer restrictions on baked goods (Endres, Tarr , Endres, & Johnson, 2011). A food hub can incorporate a processing facility to meet these different needs. They can create a space to prep food for farmers to make it ready for wholesale clients. But they could also create a space for value added production creating and marketing entirely new products much like the Rutgers University Food Innovation Center. The New York City Farmers’ Market Survey asked farmers in the New York metropolitan area about their interest in using a wholesale produce market in the city. Farmers were considerably more interested in using the facility if it included processing, cold storage or a full processing line. They view processing as a chance to “increase sales ” (Market Ventures, Inc., 2007, p. 58). The needs for processing can be as simple as extra storage space and freezers to use of a commercial kitchen, allowing access to proper equipment. Food Processing and Food-related Economic Development Food hubs can also incorporate technical assistance and facilities to grow food processing businesses. They can host food based business incubators, incorporate commercial kitchens, provide co-packing services, or do all of those things. We begin with the food incubators, which provide business and food technical assistance and the physical space and equipment to create value added products. Innovation centers can be organized as non-profit organizations, run by universities or government, or they can be for profit enterprises. Non-profit and university sponsored approaches are best for low-income businesses with initial starting fees. For profit structures allow for marketing strategy and business consultation, along with access to equipment but only with the right amount of resources (Sanders & Shattuck, 2011). Because of the wealth of services provided, food innovation centers create a higher potential success rates in new businesses. With a higher potential, there is a greater attraction to use the facility. The facility is not limited to only farmers and can attract other users. With local business growing, the community as a whole can benefit from more potential jobs (Illinois Department of Commerce and Economic Opportunity, 2012). Some food hubs incorporate commercial kitchens. Most commercial kitchens do not offer the technical support that is available at an innovation center but rather allow farmers and small businesses access to a certified kitchen with equipment. The commercial kitchen allows for a low-rent space but there are other considerations. Some existing commercial kitchens lack storage space for ingredients and finished products. Ingredients usually have to be moved from farm to facility every time the facility will be used. Finished products need to be stored in a Board of Health approved facility. So farmers or businesses that lack approved space often struggle to find such space. Products that need refrigeration 11

COMMUNITY FOOD SECURITY AND ECONOMIC DEVELOPMENT or freezing also suffer from lack of space and resources (Scully, 2009). To make local produce appealing to wholesale buyers, many food hubs offer packing and repacking services which include refrigeration and frozen storage, grading, tables and a system to prep and pack food that includes washing and a system to ensure food safety, and provide traceability so that consumers know which farm the food came from. The Illinois study (2012) suggests that food hubs may create a competitive position for themselves by opting to FIC storage maintain the highest level of food safety. “The USDA offers the Good Agricultural Practices and Good Handling Practices audit verification program, which focuses on the practices used to produce, handle, and store fresh fruits and vegetables with the utmost safety precautions to help minimize microbial food safety hazards” (Illinois Department of Commerce and Economic Opportunity, 2012, p. 19). The Rutgers Fall 2011 Food Studio (RU Community Development Food Studio, 2011) found that Rutgers food buyers follow a strict safety protocol for purchasing food. A food hub can work with growers to ensure that their food meets these guidelines, maintain those standards through the aggregation and distribution systems thus making them more appealing to wholesale buyers. Enhancing this system by ensuring traceability will further enhance the competitive position since many buyers want to assure their customers that the products are indeed from local growers. Co-op Partners Warehouse in Minnesota found that restaurants turned to them knowing that they reliably sourced local produce (Diamond & Barnham, 2012). Food Hubs may wash and pack or re-pack the produce into containers based on consumer needs. Some food hubs are reluctant to grade produce because they do not want to increase waste. Food grading requirements a stringent and food that might be ok to eat but does not meet precise size or other requirements won’t be sold. It will likely depend on the needs of purchasers. If grading is a requirement for selling, then it might be possible to incorporate a processing facility within the food hub with plans to transform produce that isn’t sold into other products and to ensure other produce’s movement through the emergency food system. Food hubs might operate as co-packers or support the development of co-packers near the hubs. Copackers reproduce what a client wishes – they make more of a product. A hub that focused on co-packing that ensured food product traceability and worked

Food hubs may aggregate and distribute food, offer a variety of processing services, and host retail markets. To be called a food hub, the USDA includes three core components: active coordination, aggregation and distribution, and permanent facilities. Below we discuss each of these components and examine how they work in existing food hubs.

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