Distribution: The Missing Link Jill Clark, Jeff Sharp and Shoshanah Inwood

1. Distribution: The Missing LinkJill Clark, Jeff Sharp and Shoshanah Inwood Ohio Local Foods Roundtable November 12, 2009 Reynoldsburg, Ohio Funded by 2009 ODA Specialty Crop Block Grant

2. Why study fruit and vegetable distribution to retail outlets in Ohio? Distributor Retail

3. The Importance of Distributors & Retail Outlets in Local Food Systems Distributor Retail

4. Distribution Challenges for Small and Medium Farms Difficult to break into larger grocery stores, chain restaurants and institutions due to their: • procurement systems • price point • volume requirements • need for year round supply A general lack of infrastructure to support small and medium farm products through: • aggregation • processing and • distribution

5. What are distributors? (types) Exports Direct Markets Customers General line Grocery Wholesalers Growers & Grower-Shippers Retail Specialty Produce Wholesalers Foodservice Establishments General line Institutional Wholesalers Imports Brokers

6. What services do distributors provide? Exports Direct Markets Customers General line Grocery Wholesalers Growers & Grower-Shippers Retail Specialty Produce Wholesalers Foodservice Establishments General line Institutional Wholesalers Imports Brokers

7. Relationships/Strategies betweenSupplier/Grower and Distributor Exports Direct Markets Customers General line Grocery Wholesalers Growers & Grower-Shippers Retail Specialty Produce Wholesalers Foodservice Establishments General line Institutional Wholesalers Imports Brokers

8. What Do We Currently Know? The Farmers Perspective Exports Direct Markets Customers General line Grocery Wholesalers Growers & Grower-Shippers Retail Specialty Produce Wholesalers Foodservice Establishments General line Institutional Wholesalers Imports Brokers

9. What Do We Currently Know? The Wholesalers Perspective Exports Direct Markets Customers General line Grocery Wholesalers Growers & Grower-Shippers Retail Specialty Produce Wholesalers Foodservice Establishments General line Institutional Wholesalers Imports Brokers

10. What Do We Currently Know? The Retailers Perspective Exports Direct Markets Customers General line Grocery Wholesalers Growers & Grower-Shippers Retail Specialty Produce Wholesalers Foodservice Establishments General line Institutional Wholesalers Imports Brokers

11. Trends in Retail Market Fresh Produce

12. Examples of Innovative Distribution Models • Good Natured Family Farms, MS and KS • Red Tomato, MA • Farmers Market Hub, Los Angeles, CA • La Montanita Co-op, NM

13. Scaling-up Connections between Regional Ohio Specialty Crop Producers and Local Retail Markets: • Schedule and conduct background interviews with 7 Ohio retailers • Design and Execute a total population survey to all distributors in Ohio (an estimated 1,100) • Provide meaningful outputs for • Ohio specialty crop farmers • Local distributors • State-level decision makers

14. Traditional Fruit and Veggie Marketing Channels Exports Direct Markets Customers General line Grocery Wholesalers Growers & Grower-Shippers Retail Specialty Produce Wholesalers Foodservice Establishments General line Institutional Wholesalers Imports Brokers

15. Small Co-opLocal = statewide CA & out-of-state organic growers Mid-size distributor Large for produce CA & out-of-state organic growers Mid-size distributor Large for produce local growers Auction Small Co-op Private Individual local growers Very small Distributor local growers Farmers Market local growers

16. Mid-size Independent Local = statewide CA & out-of-state organic growers Mid-size distributor Large for produce CA & out-of-state organic growers Broker Small produce distributor Mid-size Independent local growers local growers Farmers Market local growers

17. Mid-size Chain Local = Statewide local growers Store Mid-size distributor Large for produce local growers CA & out-of-state grower-shippers Store Corporate Warehouse local growers Store Auction local growers Local Farm Co-op Store local growers

18. Large Natural Food ChainLocal = 4-hour drive Store local growers Store Mid-size distributor Large for produce local growers Ohio Store relationship local growers Store Corporate Warehouse Out-of-state CA & out-of-state grower-shippers Store

19. Large Chain (some franchise) Local = statewide + neighboring state Independently-Owned Store local growers Store Distributors Out-of-state growers Store Centralized Corporate Warehouse local growers Store CA & out-of-state grower-shippers Store

20. Large Vertically-Integrated Chain Local = ?? Store local growers Different Store Name Out-of state growers Regional Corporate Warehouse An Ohio Store Store CA & out-of-state grower-shippers Store

21. Opportunity? Small and medium size farms Sm & mid size distributor Grower-shipper

22. Preliminary Survey Question Topics* • Types of products distributed • Product sourcing • Market Cues • Service area • Trip logistics • Food safety requirements • Third party certifications • Product point of entry • Marketing strategies • Pricing (margins of profit) • Turn around time from delivery at warehouse to delivery at retailer • Services provided to suppliers (shipping, warehousing, transportation, packaging) • Sourcing geography, with specific focus on Ohio • How have past marketing campaigns affected your business and the products you carry e.g. Buy Local Campaigns, OH Proud • Processing facility and capability • Washing; Cutting; Bagging;  Value Adding • Volumes currently going through warehouse • Which customers are you serving? • Income • Ethnicity • Scale • Locale/Geography *Please provide feedback!

23. Next Steps • What is the role of our research? • Are we asking the right questions? • What is the role of local food policy councils? • And the state food policy council? • What are other “missing links?”

24. Thank you. http://cffpi.osu.edu/distribution.htm