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Indiana Ag examining viability of food hubs to better market

 

By SUSAN BLOWER

Indiana Correspondent

 

INDIANAPOLIS, Ind. — The Indiana State Department of Agriculture (ISDA) is surveying Hoosier interest in regional food hubs for specialty crops, such as fruits, nuts, vegetables, horticulture and nursery.

Food hubs offer logistical support for producers to get their products in front of consumers. The exact structure for Hoosier food hubs will be subject to consumer demand, said Ted McKinney, ISDA director. "This is an emerging request that has been coming our way. There’s no doubt that consumers are asking for these kinds of things. But we need to plan properly to validate that idea with feedback," he explained.

Hoosier wholesalers who buy and sell specialty crops can complete the online survey about their operations and opinions by visiting www.in.gov/isda/3109.htm and clicking on the survey. Hoosier consumers, whether individuals, restaurants or retailers, are also encouraged to complete a survey about their needs. The study will help determine what kinds of produce are available and what consumers desire in terms of products, price, location and convenience. While ISDA is spearheading the study, McKinney foresees this potential program as being organized by local people around the state, although he said much is yet to be determined.

Whether the food hubs exist as local farmers’ markets or as online ventures, what kinds of produce are sold and where are all up for debate. "We seek to make sure this is a big tent for all of agriculture, letting the marketplace decide what succeeds. It’s an opportunity for producers and consumers that is well worth our time and effort," McKinney said.

Regional meetings throughout the state are planned to discuss the market for locally grown food. This week meetings will take place in Valparaiso, Columbus and Evansville. Next week meetings will be in Muncie and Lafayette. Visit www.in.gov/isda/3109.htm for dates and locations.

Hoosier Harvest success

 

McKinney said Hoosier Harvest Market in Greenfield is a good model for future regional food hubs. Hoosier Harvest allows its customers to order online from local farmers and pick up at 12 different sites within a 60-mile radius, said Mike Hoopengardner, co-op president.

He equated the Internet with the "wild, wild West" because of its unlimited potential. "Customers who don’t want to go to a farmers’ market can go online to order and pick up near their house. We have created a model that can be used anywhere," he said. In its first full year, the co-op had nearly $200,000 in sales, in 2014, Hoopengardner said. That’s up from last year’s $15,000, when the website came online in June 2013. He said co-op farmers keep most of their profits. They pay 10-15 percent commission and an annual fee of $150 to the co-op.

He is not only an organizer but a producer and consumer of Hoosier Harvest. His family owns Caprini Creamery in Spiceland. "For our business, the co-op is not our strongest market, but we see a huge potential and constant growth ... Those producers who were impatient with the first year’s sales weren’t here for 2014, and I believe next year (Hoosier Harvest) could double its sales," Hoopengardner said.

Hoosier Harvest plans to expand pickup sites and infrastructure to keep up with demand regionally, he said. "There is a huge local food movement in Indiana. The local papers wanted to do articles on us, and customers began calling us," he said. Food hubs on the West Coast boast 50,000 customers, he added.

In Indiana, sweet corn is a top seller seasonally, but the difficulty is finding local goods year round. "The struggle in Indiana is can you grow produce in a greenhouse when it hits minus-10 degrees like it did last year?" he said.

Hoosier Harvest has solved some of that by offering apple cider, preserves, meats and cheeses in the winter months. Hoopengardner also said one of the co-op’s producers grows produce year-round hydroponically. As a producer, he said his involvement with the online market is much simpler than going to actual farmers’ markets. "For a local farmers’ market, we have to feed and milk 200 animals and load our goat cheese by 6 a.m. We might talk to 3,000 to 5,000 people in the course of the day and come home exhausted. It’s a long day.

"For Hoosier Harvest, we can drop off our ordered products by noon on Thursday, and someone else takes them to a dropoff site. There are benefits."

Hoopengardner said finding the right people to spearhead future local food hubs is essential. He said Roy Ballard, Purdue University extension educator in Hancock County, has been the "driving force" in getting the co-op started. Ballard is also an advisor for ISDA’s food hub project.

Visit www.HoosierHarvest.com for more information on the Greenfield-based food hub. See www.in.gov/isda/3109.htm for more information on the statewide initiative, funded by a USDA grant.

9/10/2014