Iowa State report sheds light on local food systems (click here)
December 27, 2013 - 9:32pm
By Gavin Aronsen
Staff Writer
garonsen@amestrib.com
Locally produced foods may have more of an impact on Iowa’s economy than previously realized, but more can be done to support farmers and expand access to the foods as their popularity increases, according to a report released last month by Iowa State University’s Leopold Center for Sustainable Agriculture....
...“We know that it’s a small snapshot, but the limitations are also its strength,” said Corry Bregendahl, an assistant scientist at the Leopold Center, who coauthored the report.
The report estimated there are more than 22,000 such markets in the state. They could potentially generate upward of $2 billion in annual local food purchases, although 43 percent of 35 markets responding to the surveys said local foods currently made up no more than 5 percent of their budgets.
Still, the 103 farmers included in the Leopold Center data reported $10.5 million of sales, both direct and to intermediate and institutional markets, in 2012.
The most recent available data from the United State Department of Agriculture’s Census of Agriculture, from 2007, reported only direct sales of $16.5 million from 3,000 Iowa farmers....
I am impressed there is 5 percent of the income from local interests. Iowa produces many products marketed through 'commodity' markets, so there would be only a small amount of the market to local interests.
The challenge is for the "Organic Food Market" to build national and possibly internatioal networks that provide products. Basically, it is building a product market in parallel to what currently exists. The products are the same, but, the sources are different. No GMO market can grow and probably rapidly with networking. Of course, transportation adds cost because of fuel and it also adds carbon to the products food print. Such concerns could spawn 'hubs' to transportation.
In the past, wholesale farmer markets is where products came for auction to local interests. The wholesale market then was the hub where local retailers would gather to purchase and transport.
The wholesale markets I am thinking of were primarily seasonal catering to produce. Grains were handled through the local elevators, which is the global prices. Pork, beef, chicken, etc. is usually large commodity markets, but, the potential for local butchers to purchase at a farmer's wholesale market is more than a viable opportunity. The intricacies of livestock handling can be a bit of an obstacle because of USDA inspections. But, if the private, local markets were significant enough to dictate the concern of the government in the volume handled to consumers, the inspections to them would take priority.
The NO GMO Market is no joke and growing. It is time to take it seriously. While the industry is identifying their share of the local market accounts for 5% of their product sales, that doesn't mean only five percent of the population purchase them.
Iowa Economy (click here)
In terms of revenue generated, Iowa's top five agricultural products are corn for grain, hogs, soybeans, cattle and calves, and dairy products....
From the same article above:
...Larger markets have recognized the increased focus on local foods, too.
“Now that people are really attuned to it, we are devoting more time and more resources to telling the story of our food products and where they come from,” said Ruth Comer, a Hy-Vee spokeswoman.
Hy-Vee has 235 grocery stores in Iowa and seven other Midwestern states. It boasts annual sales of about $8 billion from all its products, although Comer said she didn’t have data on exactly how much of that comes from local foods.
“Whenever we can source products here in the Midwest, we try to do that, because customers like it, it helps our local economies, which is good for our business, and it reduces transportation expenses and delivery times,” Comer said. “It’s a win for everybody.”...
Wants and needs. That is the very basic beginnings of markets. It is completely doable if the larger marketers are seeking to maintain their customers by measuring themselves against the success of the growing NO GMO markets. The larger markets would not bother if the impact was little to none of these new highly sought after products.
This past Thanksgiving, our local supplier could not produce enough turkeys to satisfy the 'last minute purchaser.' So, while the farmer manages the supply to demand closely, this year it would have paid them to grow at least 5% to 10% more turkeys in anticipation of the 'last minute' purchaser. In taking less risk and more profit it means sustaining the operation, but, also inhibits it as well. It a very fine balance. So much can go wrong with agricultural commodities, but, for these farmers their markets are guaranteed and they set their price for their products, not global commodity prices. These operations are farm for profit and it works for everyone.
I might add, the stores that sell NO GMO products weren't in existence 15 years ago and now they can't stock their shelves with enough merchandise for their consumers. They employee many people where there was no need for them before. It is all working and it is a good thing.
December 27, 2013 - 9:32pm
By Gavin Aronsen
Staff Writer
garonsen@amestrib.com
Locally produced foods may have more of an impact on Iowa’s economy than previously realized, but more can be done to support farmers and expand access to the foods as their popularity increases, according to a report released last month by Iowa State University’s Leopold Center for Sustainable Agriculture....
...“We know that it’s a small snapshot, but the limitations are also its strength,” said Corry Bregendahl, an assistant scientist at the Leopold Center, who coauthored the report.
The report estimated there are more than 22,000 such markets in the state. They could potentially generate upward of $2 billion in annual local food purchases, although 43 percent of 35 markets responding to the surveys said local foods currently made up no more than 5 percent of their budgets.
Still, the 103 farmers included in the Leopold Center data reported $10.5 million of sales, both direct and to intermediate and institutional markets, in 2012.
The most recent available data from the United State Department of Agriculture’s Census of Agriculture, from 2007, reported only direct sales of $16.5 million from 3,000 Iowa farmers....
I am impressed there is 5 percent of the income from local interests. Iowa produces many products marketed through 'commodity' markets, so there would be only a small amount of the market to local interests.
The challenge is for the "Organic Food Market" to build national and possibly internatioal networks that provide products. Basically, it is building a product market in parallel to what currently exists. The products are the same, but, the sources are different. No GMO market can grow and probably rapidly with networking. Of course, transportation adds cost because of fuel and it also adds carbon to the products food print. Such concerns could spawn 'hubs' to transportation.
In the past, wholesale farmer markets is where products came for auction to local interests. The wholesale market then was the hub where local retailers would gather to purchase and transport.
The wholesale markets I am thinking of were primarily seasonal catering to produce. Grains were handled through the local elevators, which is the global prices. Pork, beef, chicken, etc. is usually large commodity markets, but, the potential for local butchers to purchase at a farmer's wholesale market is more than a viable opportunity. The intricacies of livestock handling can be a bit of an obstacle because of USDA inspections. But, if the private, local markets were significant enough to dictate the concern of the government in the volume handled to consumers, the inspections to them would take priority.
The NO GMO Market is no joke and growing. It is time to take it seriously. While the industry is identifying their share of the local market accounts for 5% of their product sales, that doesn't mean only five percent of the population purchase them.
Iowa Economy (click here)
In terms of revenue generated, Iowa's top five agricultural products are corn for grain, hogs, soybeans, cattle and calves, and dairy products....
From the same article above:
...Larger markets have recognized the increased focus on local foods, too.
“Now that people are really attuned to it, we are devoting more time and more resources to telling the story of our food products and where they come from,” said Ruth Comer, a Hy-Vee spokeswoman.
Hy-Vee has 235 grocery stores in Iowa and seven other Midwestern states. It boasts annual sales of about $8 billion from all its products, although Comer said she didn’t have data on exactly how much of that comes from local foods.
“Whenever we can source products here in the Midwest, we try to do that, because customers like it, it helps our local economies, which is good for our business, and it reduces transportation expenses and delivery times,” Comer said. “It’s a win for everybody.”...
Wants and needs. That is the very basic beginnings of markets. It is completely doable if the larger marketers are seeking to maintain their customers by measuring themselves against the success of the growing NO GMO markets. The larger markets would not bother if the impact was little to none of these new highly sought after products.
This past Thanksgiving, our local supplier could not produce enough turkeys to satisfy the 'last minute purchaser.' So, while the farmer manages the supply to demand closely, this year it would have paid them to grow at least 5% to 10% more turkeys in anticipation of the 'last minute' purchaser. In taking less risk and more profit it means sustaining the operation, but, also inhibits it as well. It a very fine balance. So much can go wrong with agricultural commodities, but, for these farmers their markets are guaranteed and they set their price for their products, not global commodity prices. These operations are farm for profit and it works for everyone.
I might add, the stores that sell NO GMO products weren't in existence 15 years ago and now they can't stock their shelves with enough merchandise for their consumers. They employee many people where there was no need for them before. It is all working and it is a good thing.
