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

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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

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Why study fruit and vegetable distribution to
retail outlets in Ohio?
Retail
Distributor
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The Importance of Distributors Retail Outlets
in Local Food Systems
Retail
Distributor
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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

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What are distributors? (types)
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What services do distributors provide?
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Relationships/Strategies betweenSupplier/Grower
and Distributor
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What Do We Currently Know? The Farmers
Perspective
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What Do We Currently Know? The Wholesalers
Perspective
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What Do We Currently Know? The Retailers
Perspective
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Trends in Retail Market Fresh Produce
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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

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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

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Traditional Fruit and Veggie Marketing Channels
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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
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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
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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
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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
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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
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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
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Opportunity?
Small and medium size farms
Sm mid size distributor
Grower-shipper
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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!
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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?

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Thank you.

• http//cffpi.osu.edu/distribution.htm