Linking Producers to Consumer Markets

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Linking Producers to Consumer Markets
Hawaii Agriculture Landscape Conference
 October 16, 2003
Ken Meter, Crossroads Resource Center
(Minneapolis)
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Why an economist from Minneapolis?
Food farm economy study of Southeast
Minnesota David Cole Sunnyside Farms
Institute August tour of Hawaii farms
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Finding Food in Farm Country
Southeast Minnesota
Partners Community Design Center University of
Minnesota
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(No Transcript)
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Southeast Minnesotas Food Farm Economy

• 303,000 residents
• 10 billion purchasing power
• 8,436 farm families
• 1.4 million farm animals

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Southeast Minnesotas 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.

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Southeast Minnesotas 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?
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Southeast Minnesotas Food Farm Economy

• Regions farmers produce 866 million of food
  per year (1997)
• Spend 947 million to raise it
• Lose 80 million in production costs

Yet
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Southeast Minnesotas 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

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Finding Food in Farm Country
Moreover

• The regions consumers spend 500 million
  buying food each year
• Most bought from outside region

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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

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Finding Food in Farm Country
All told, Southeast Minnesota...

• Loses 400 million raising food,
• Loses 400 million buying food
• Potential wealth lost each year

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Finding Food in Farm Country
Total loss is

• 800 million each year!
• Totals 92 of the value of all food raised in
  the region

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Finding Food in Farm Country
If local consumers bought only 15 of their food
locally
45 million of new farm income earned each year
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Finding Food in Farm Country
Impact of the study...
Southeast Minnesota Farm Network
45 farms processors work together Goal
250,000 sales in 2003
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Community-Based Food Systems
Map courtesy of www.FoodRoutes.org
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Meanwhile, in Hawaii...
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Victories

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

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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

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Potential crop opportunities
Veal Lamb Pork Goat Chickens
Asparagus Broccoli Potatoes Frozen produce?
Lemons Limes Oranges Grapefruit Native Tropicals
Goat cheeses Eggs
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Each year, Hawaii residents consume 2.3 billion
of food
Tourists buy another 2.2 billion
Not including cruise ships, air passengers, etc.
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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

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Hawaiis farmers earn perhaps 200 million of this
This is 4 of total sales
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Hawaii farms buy an estimated 200 million of
farm inputs per year outside the state.
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This is one-third the value of all farm production
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Every input that can be purchased locally cycles
more of these dollars into the state economy
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Residents consume each year
millions Cereals Bakery 196 Meat,
Poultry, Fish Eggs 334 Dairy
Products 124 Fruit Vegetables 262 Other
food at home 407
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Kurt Hirabara
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Farms gain little income from tourism
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(No Transcript)
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Farm assets increasing
Debt is relatively low
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Still, taking inflation into account...
Assets steady / declining since 1983
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Monty Richards
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Prime farm acreage is declining
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(No Transcript)
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Loss of sugar production drives 63 fall
in real value of farm products
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Alec Sou
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Farm production expenses outpace sales since 1992
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Cumulative loss1992-2000 for all farms is 171
million
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(No Transcript)
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Number of farm owners increases
Despite falling farm income
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(No Transcript)
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Dean Okimoto
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Sales for very small- medium-sized farms fall
the least
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Direct food sales rising
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Rick Habein and Hayden