Envisioning a Local Food Economy in the Kansas River Valley (Lawrence, KS)

Envisioning a Local Food Economyin The Kansas River Valley

Lawrence, Kansas2009

Saturday, December 12, 2009

What’s so special about food?


“I begin with the proposition that eating is an agricultural act.”

Wendell Berry

Whatever else you do, if you eat, you are involved in agriculture.


“The pleasure of good eating is not about fast, convenient, and cheap, but about memory, romance, and trust. To be successful in today’s food market requires offering products so good that customers will

say ‘Wow, where did that come from? I want that again’ (memory).

We also need to provide customers with a genuine food story so they can feel good about eating that good-tasting product. Increasingly,

customers want to know who produced the food; what kind of environmental stewardship was practiced in growing, processing, and

transporting it; how the animals were treated; and so on (romance).

And customers want to be active participants in the food chain - to be able to access information and to have a relationship that reaches all

the way back to the farmer (trust).”

Rick Schnieders, president & CEO of SYSCO - one of the country’s largest food distributors


Converging reasons for increased demand for fresh, local, sustainably-produced food

• Profitability & quality

• Saving small family farms & rural economic development

• Health & nutrition

• Food safety and accountability

• Oil depletion & increasing fuel costs

• Urban land use concerns

• Cuisine & taste

• Environmental stewardship

• Cultural diversity


2009 Restaurant & Industry Forecast(survey of chefs and restaurants)

Top 20 Food Trends

1. Locally grown produce

2. Bite-size/mini desserts

3. Organic produce

4. Nutritionally balanced children’s dishes

5. New/fabricated cuts of meat

6. Fruit/vegetable children’s side items

7. Superfruits

8. Small plates/tapas/mezze/dim sum

9. Micro-distilled/artisanal liquor

10. Sustainable seafood

11. Nutrition/health

12. Gluten-free/food-allergy conscious

13. Non-traditional fish

14. Artisanal cheeses

15. Exotic fruit

16. Custom culinary cocktails

17. Micro-vegetable/micro-greens

18. Organic wine

19. Dessert flight/combos/platters

20. Free-range poultry/pork


Can local food make money?Saturday, December 12, 2009

Wal-Mart thinks so.

Wal-Mart spent more that $400 million on locally grown food in 2008.

• Reducing food waste• Cutting transportation costs• Customer demand

They intend to increase that amount aggressively year-over-year, starting with produce (fruit & vegetables)

but including meats and dairy products as soon as possible.


U.S. News and World Report - July 24th, 2008

Idaho's Director of the Department of Agriculture Celia Gould says one farmer in that state saw a doubling of his asparagus sales and a 30 percent increase in organic grape sales over the past two years due to Wal Mart contracts. Gould says the revitalization in farming is great for the region's economy. "We haven't had that kind of demand until recently," she says.


According to a study by Capgemini, a New York business consultancy, only 9 percent of shoppers buying perishable foods are satisfied with the stores at which they bought them.

U.S. News and World Report - July 24th, 2008


Small farms are the most productive on earth. A four-acre farm in the United States nets, on average, $1,400 per acre; a 1,364-acre farm nets $39 an acre. Big farms have long compensated for the disequilibrium with sheer quantity. But their economies of scale come from mass distribution, and with diesel fuel costing more than $4 per gallon in many locations, it’s no longer efficient to transport food 1,500 miles from where it’s grown.”

Dan Barber - chef and co-owner of Blue Hill and Blue Hill at Stone BarnsFor the New York Times Editorial BoardMay 11, 2008

The Good News


$1400 x 4 acres = $5600$39 x 1364 acres = $53,196

But...actual revenue from small farms in the U.S. ranges from about

$1400/acre up to about $9,000/acre.

The Bad News


Sustainable, Local Agriculture as Economic Development:There are Challenges

• Labor requirements• Capital costs and rate of financial return

• Adding value, access, and “experience” to food production

• Distribution and quality assurance

• Coordinated, sustained marketing

• Availability of quality land and planning conflicts

• Loss of skills and of experienced producers

• Prevailing agricultural model is resistant to scale reduction

• Image of and ignorance regarding food production


An example of lost/potential revenue: Tourism


connects people to places in which they do not live through

memory, romance, and trust

for the benefit of the people who do live there.

Tourism

Following figures cited courtesy of:- Travel Industry Association of America- Tourism Division-KDOC- Fermata Inc.- 2002 - 2006


Tourism Snapshot

• Shopping and dining are consistently two of the top three experiences travelers seek out (worldwide), whatever else may motivate their travel decisions.

• Whatever else we do when we travel

• everybody eats

• everybody shops

And that’s where much of the revenue comes from.


12Copyright 2006 © Global Insight, Inc.

Industry Distribution of Expenditures

Shopping accounts for the largest share of tourism expenditure

in the state of Kansas. Combined with food and transportation,

these three components represent nearly 75% of visitor expenditures.

Millions

Entertainment 1,132

771

Transportation 1,225

Food 1,609

2,119

6,855

Accommodation

Shopping

Total *

* Tourism expenditures except investment

Numbers may differ due to rounding

Entertainment

17%

Accommodation

11%

Transportation

18%Food

23%

Shopping

31%


7Copyright 2006 © Global Insight, Inc.

Kansas

Industry Structure: Definitions

Tourism goods &

services from

outside the state.

E.G.: KS t-shirts made outside KS.

Industries directly

providing goods &

services to core

tourism providers.

E.G.: Agriculture.

Industries directly

providing goods &

services to the

visitor.

E.G.: Restaurants.

Tourism

Expenditures$7.3 billion

Total Impact$5.6 billion

Import Leakage$1.7 billion

Core Tourism

(Direct)$4.2 billion

Non-Core Tourism

(Indirect)$1.4 billion

All visitor-related spending

Economic Value to KS


Cultural and Heritage Travel

• 81% of U.S. adults who traveled in 2003 (118 million) were considered historic/cultural travelers.

• A significant number of “historic/cultural trips” are made by college graduates (60%) of the Baby Boom generation (40%) with a household income of more than $75,000 (30%).

• 49% prefer to experience the local culture and support local businesses.

Memory. Romance. Trust.

• These tourists are willing to make additional purchases - ($202/visitor/trip) mainly for products and services - but only if these items are made or offered by local businesses using local materials.

Shopping. Dining.


How many visitors? How much revenue?


• 20,000 new visitors x $138/day x 2.5 days/trip =$6.9 million new net dollars annually from direct spending

• Double that (conservatively) for indirect and induced economic impacts =

$13.8 million annually in economic impact

• 10,000 cultural/heritage travelers x $202/visitor/trip =$2.02 million in additional revenue

(Shopping. Dining.)

• IF quality, indigenous products and services are available

(Memory. Romance. Trust.)

• $15,820,000 in new revenue annuallyJust from experiential tourism.


Follow the

food$...


• Schools

• Hospitals

• Nursing homes

• Corporate offices

• Grocery stores

• Restaurants

• Regional delivery and distribution

• Export

• You fill in...

Not Just TourismFresh, quality, healthy local food for


Our Reach

Local Food Guide users pick up the Guide looking for

exactly what you o!er: the "avor of locally-grown

food; a connection with our rich farming heritage; and

the experience of interacting with local farmers and

the products they grow. Guide users want to support

businesses that support local farms. How Many Copies?

90,000 copies will be picked up during the 2008-2009

season, representing one for every #ve households in

western North Carolina. The Local Food Guide is a refer-

ence with a long shelf life—users tell us “I keep it next to

my phone book.”

When is the Guide Distributed?

The Local Food Guide is released annually on May 1 with

completely updated information. The Guide is distrib-

uted weekly throughout the year, so that each distribu-

tion spot is kept fully stocked at all times.

Where is the Guide Distributed?

The Local Food Guide is distributed to more than 300 lo-

cations, including:

Independent grocery stores and Earth Fare and Ingles

stores throughout the region.

Bookstores, health practicioners, natural foods stores,

libraries, and other community businesses.

All major county visitor centers and NC Highway wel-

come centers.

The Asheville Regional Airport.

Distribution is clustered in the most populated areas of

the NC mountains (Asheville/Hendersonville/Boone/

Waynesville/Sylva), but includes some locations through-

out the area featured in the Guide, shown below.

•

•

•

•

729 Haywood Rd.

Asheville, NC 28806

(828) 236-1282

asapconnections.org

NC

SC

GA

TN

VA

The Appalachian Grown Region

North Carolina and

the other mountain

counties within 100

miles of Asheville,

The Local Food Guide is

researched, produced,

and sustained by ASAP,

a non-pro!t organiza-

tion working to build

local food systems that

support the survival of

family farms.

www.asapconnections.orgSaturday, December 12, 2009

http://www.asapconnections.org

http://www.asapconnections.org

Not just fresh food High quality, value-added products

• Specialty foods

• Gifts

• Prepared foods

• Pre-prepared meals

• Agritourism

• Regional/local branded products

• Compost

• E-commerce

• Mail order

• You fill in...


The Intervale Center, Burlington, VTwww.Intervale.org

• 354 acres of farmland, nursery, compost production, trails, and wildlife corridors along the Winooski River in Burlington, Vermont.

• Mission: to develop farm-and land-based enterprises that generate economic and social opportunity while protecting natural resources.

• Goals are to grow viable farms, preserve productive agricultural land, increase access to local, organic food, compost and other soil amendments, and protect water quality through organic waste management and stream bank restoration.

• Projects:

Agricultural Development Services - land access and grower training/consultingConservation Nursery - natives trees and shrubs for riparian conservation

Healthy City - youth entrepreneurship farm and food gleaning/distribution

Calkins Farmstead - historic, interpretive farm site

Compost Products - retail compost and soil amendments businessFood Enterprise Center - fresh food production, value-added food processing


http://www.Intervale.org

http://www.Intervale.org

Not just food Coordinated branding & retail

• Regional art and artists• Quality local and historic crafts• Cooking classes• Guided tours• Artisan demonstrations

• Hands-on experiences• Interpreters/guides• Outdoor recreation• Entertainment• Boutique lodging

• Events• You fill in...(Santa Fe, Napa Valley...)


Imagine...Local Retail & Dining Experience

❖ Retail distribution and branding for a wide variety of products

• Kansas River Valley brand on Art, Craft, and Food”• High-quality, unique, indigenous products• Local food dining experience(s)• Mother Earth News flagship store as anchor?• E-commerce and catalogue opportunities

❖ Tourism, educational, and community experience✤ Regional Nature, Culture & Heritage

• retail products• education and information• participatory, hands-on experiences

❖ Tamarack, WVA as the model


• Centralized retail environment featuring the best of West Virginia arts, crafts, and food along the interstate - includes studios, gallery, performance venue

• Approximately 475,000 annual visitors

• In first 8 years of operation:

• 3.9 million visitors• $52 million in sales• $2.7 million in state sales tax collected• $43.9 million in goods and services purchased from every county in the

state• Over 2,500 state artisans represented - price pointed $5 - $25,000 per item

• Partnership with The Greenbriar for food service

• Juried selection process becomes artisan development program.

• “Best thing we’ve done for the image of West Virginia.”

Tamarack, West Virginiawww.tamarackwv.com


http://www.tamarackwv.com


Here? In Kansas?Saturday, December 12, 2009

How Many People Live in the How Many People Live in the

Kansas River Valley?Kansas River Valley?

1.06 Million People in 7 counties.From a presentation by KSU Horticulture professor Rhonda Janke.


Ken Meter, 2008© Ken Meter,

2005

44

• Loses $28 million raising crops, &

All told, Eastern Kaw River region...

• Buys $2 billion of outside food

Potential wealth lost each year

• Buys $95 million of outside inputs

From a presentation by agricultural economist Ken Meter, Crossroads Institute


• No travel dollars included• Just the local region

• Just local residents• Findings were prior to recent explosion in EIP market share and demand

• Lawrence sits between J.C. and K.C. with• river, highway, rail and air access;

• extraordinary soils and ample water;

• diverse food-producer community;

• expanding local foods awareness and market;

• cultural and hospitality capacity;

• hub of developing FFNHA; and

• outdoor recreation/nature experiences.

A 1999 KU study found an unmet demand for Environmentally Identified Products

(organic/natural/local/sustainable food items) of about $100,000,000 annually in the Kansas River Valley

from Junction City to Kansas City.


Eating is a cultural experience strongly tied to other cultural (and economic) experiences.

Many travelers, residents, and employers want and will pay for quality, healthy, local food products and services.

Production of that food requires good land, skilled producers and entrepreneurs to bring products to market.

Production of quality local food provides a unique, valuable, and sustainable economic driver IF we protect, develop, and invest in the fundamental natural and human resources.

Experiential

travelers &

engaged

residents

Quality, local artisan

products & services

(shopping & dining)

Good land, skilled

producers & entrepreneurs

An attractive, unique place

to live, work & play

Revenue, capital,

services & enhanced

quality of life


ExamplesIntervale - Vermont

• Mixed-use, entrepreneurial local food and sustainable agriculture project• www.intervale.org

Tamarack - West Virginia• Centralized retail environment featuring the best of West Virginia arts, crafts, and food

along the interstate - includes studios, gallery, performance venue.• www.tamarackwv.com

Various Michigan projects• Cherry Republic, www.cherryrepublic.com• www.mlui.org/farms/index.asp• www.gtrlc.com

Siouxland and Blackhawk County, Iowa• “Organic Market Project” declaring Woodbury County, IA as the Midwest capital of

organic food production and processing• www.siouxlandchamber.com/economic_development/organic/index.php

Zingerman's Community of Businesses - Ann Arbor, Michigan• Mail Order, Delicatessen, Coffee Company, Bakehouse, entrepreneurial Training,

Catering, Creamery, Roadhouse, several mail-order food clubs and occasional culinary study tours.

• www.zingermans.com

Local Burger - Lawrence, KS

• Garnering national attention for offering local, healthy, fast food and providing a market for local farmers and ranchers

• www.localburger.com


http://www.intervale.org

http://www.intervale.org



http://www.cherryrepublic.com

http://www.cherryrepublic.com

http://www.mlui.org/farms/index.asp

http://www.mlui.org/farms/index.asp

http://www.siouxlandchamber.com/economic_development/organic/index.php

http://www.siouxlandchamber.com/economic_development/organic/index.php

http://www.zingermans.com

http://www.zingermans.com

http://www.localburger.com

http://www.localburger.com

Scott AllegrucciThe Far Shore, LLC

[email protected]

Original drawings by Lisa Grossman


Education

Envisioning a Local Food Economy in the Kansas River Valley (Lawrence, KS)