Linking Producers to Consumer Markets

1. Linking Producers to Consumer Markets Hawaii Agriculture & Landscape Conference — October 16, 2003 Ken Meter, Crossroads Resource Center (Minneapolis)

2. Why an economist from Minneapolis? Food & farm economy study of Southeast Minnesota David Cole Sunnyside Farms Institute August tour of Hawaii farms

3. “Finding Food in Farm Country” Southeast Minnesota Partners: Community Design Center & University of Minnesota

5. Southeast Minnesota’s Food & Farm Economy • 303,000 residents • $10 billion purchasing power • 8,436 farm families • 1.4 million farm animals

6. Southeast Minnesota’s Food & Farm Economy • Stable farm community • Lasting social bonds • Leaders in conservation tillage • Many small farms • One of most diverse farm economies in U.S.

7. Southeast Minnesota’s Food & Farm Economy However… Houston, MN spent 2 years with no grocery store Fragile, small food businesses are springing up all over How to explain this?

8. Southeast Minnesota’s Food & Farm Economy • Region’s farmers produce $866 million of food per year (1997) • Spend $947 million to raise it • Lose $80 million in production costs Yet…

9. Southeast Minnesota’s Food & Farm Economy So… • Farm families require $129 million of other farm-related income to cover their costs • This includes $42 million in federal supports

10. Finding Food in Farm Country Moreover… • The region’s consumers spend $500 million buying food each year • Most bought from outside region

11. Finding Food in Farm Country In fact… • The average food item in the U.S. travels 1,500 miles from farmer to consumer • Over 60% of the cost of food is an energy cost

12. Finding Food in Farm Country All told, Southeast Minnesota... • Loses $400 million raising food, & • Loses $400 million buying food • Potential wealth lost each year

13. Finding Food in Farm Country Total loss is: • $800 millioneach year! • Totals 92% of the value of all food raised in the region

14. Finding Food in Farm Country If local consumers bought only 15% of their food locally: $45 millionof new farm income earned each year

15. Finding Food in Farm Country Impact of the study... Southeast Minnesota Farm Network 45 farms & processors work together Goal: $250,000 sales in 2003

16. Community-Based Food Systems: Map courtesy of www.FoodRoutes.org

17. Meanwhile, in Hawaii...

18. Victories • 49% self-sufficient in fresh fruits • 42% self-sufficient in fresh vegetables • 80% bananas • 80% cantaloupe • 80% melons • 80% tomatoes • 50% onions

19. Hawaii has... • Leaders in food production & storage technology • Plantations working with smaller producers • New immigrant farmers able to work the land • Groups of producers working to create a new sustainable vision for agriculture

20. Potential crop opportunities Veal Lamb Pork Goat Chickens Asparagus Broccoli Potatoes Frozen produce? Lemons Limes Oranges Grapefruit Native Tropicals Goat cheeses Eggs

21. Each year, Hawaii residents consume $2.3 billion of food Tourists buy another $2.2 billion Not including cruise ships, air passengers, etc.

22. All told, food is a $4.5 billion industry in Hawaii This is 10% of the Gross State Product Tourists spend 1 of every 5 dollars on food & beverages

23. Hawaii’s farmers earn perhaps $200 million of this This is 4% of total sales

24. Hawaii farms buy an estimated $200 million of farm inputs per year outside the state.

25. This is one-third the value of all farm production

26. Every input that can be purchased locally cycles more of these dollars into the state economy

27. Residents consume each year: millions Cereals & Bakery $196 Meat, Poultry, Fish & Eggs $334 Dairy Products $124 Fruit & Vegetables $262 Other food at home $407

28. Kurt Hirabara

29. Farms gain little income from tourism:

31. Farm assets increasing Debt is relatively low

32. Still, taking inflation into account... Assets steady / declining since 1983

33. Monty Richards

34. Prime farm acreage is declining

36. Loss of sugar production drives 63% fall in real value of farm products

37. Alec Sou

38. Farm production expenses outpace sales since 1992

39. Cumulative loss1992-2000 for all farms is $171 million

41. Number of farm owners increases Despite falling farm income

43. Dean Okimoto

44. Sales for very small- & medium-sized farms fall the least

45. Direct food sales rising

46. Rick Habein and Hayden