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Central Oregon Food Hub Feasibility Study

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Central Oregon Food Hub Feasibility Study Central Oregon Food2011 Hub -2012 Feasibility Study Conducted and Prepared by: Central Oregon Intergovernmental Council Katrina Van Dis, Program Administrator [email protected] | 541.504.3307 Funded by: | 1 Author, Researcher and Project Coordinator Central Oregon Intergovernmental Council Katrina Van Dis, Community and Economic Development Natural Resource Program Administrator Steering Committee Bend‐LaPine Schools Nutrition Services and Bend Farmers Market Katrrina Weist, Wellness Specialist and Bend Farmers Market Manager Cascadia Enterprise Brad Hunter, Business Lender Central Oregon Community College Business Development Center Beth Wickham, Director Central Oregon Intergovernmental Council Andrew Spreadborough, Community and Economic Development Manager City of Redmond, Oregon James Lewis , Long Range Planner Economic Development of Central Oregon Jason Carr, Crook County Manager FoodHub Amanda Oborne, Director NeighborImpact Steve Murray, Food and Winter Energy Manager Oregon State University Crook County Open Campus Jeff Papke, Campus Coordinator, Crook County Oregon State University Extension Service Mylen Bohle, Forage & Cereals and Forage & Alfalfa Specialist Sysco Randy Gehrig , Northwest Operational Manager | 2 Table of Contents EXECUTIVE SUMMARY ....................................................................................................................................... 5 INTRODUCTION.................................................................................................................................................. 6 PURPOSE OF THE STUDY ................................................................................................................................................... 6 METHODOLOGY ............................................................................................................................................................. 6 TIMEFRAME .................................................................................................................................................................. 7 NEXT STEPS ................................................................................................................................................................... 7 SECTION 1: PROFILE OF CENTRAL OREGON ......................................................................................................... 7 DEMOGRAPHICS ............................................................................................................................................................. 8 AGRICULTURE: FARM AND RANCH LAND AND PRODUCTION ................................................................................................... 9 LAND USE ................................................................................................................................................................... 13 HEALTHY FOOD ACCESS ................................................................................................................................................. 14 CONCLUSION ............................................................................................................................................................... 15 SECTION 2: CENTRAL OREGON FOOD SYSTEM ................................................................................................... 17 AGRICULTURE AND THE ECONOMY ................................................................................................................................... 18 Trends in Local Food Sales .................................................................................................................................. 18 Oregon’s Agricultural Economy .......................................................................................................................... 18 EXISTING INFRASTRUCTURE ............................................................................................................................................ 20 Occupation and Processing ................................................................................................................................. 20 Manufacturing .................................................................................................................................................... 21 Agricultural Support Services .............................................................................................................................. 22 Farm Expenses .................................................................................................................................................... 22 Transportation, distribution and warehousing ................................................................................................... 23 Commercial Kitchens ........................................................................................................................................... 24 Local Food Marketplace ...................................................................................................................................... 24 SUPPLY ....................................................................................................................................................................... 24 Commercial Crops ............................................................................................................................................... 24 Specialty Crops .................................................................................................................................................... 26 DEMAND .................................................................................................................................................................... 27 Consumer Demand and Education ...................................................................................................................... 27 Institutional ......................................................................................................................................................... 28 Food Businesses .................................................................................................................................................. 30 BARRIERS AND OPPORTUNITIES TO BUYING LOCALLY ........................................................................................................... 32 CONCLUSION ............................................................................................................................................................... 33 SECTION 3: FOOD HUB ...................................................................................................................................... 35 DEVELOPMENT OF FOOD HUBS ....................................................................................................................................... 35 OPPORTUNITIES & BENEFITS .......................................................................................................................................... 37 OWNERSHIP STRUCTURE ................................................................................................................................................ 39 BUSINESS RISKS ........................................................................................................................................................... 42 SERVICES PROVIDED ...................................................................................................................................................... 43 Core Services ....................................................................................................................................................... 43 Ancillary services ................................................................................................................................................. 43 FACILITY AND LOCATION ................................................................................................................................................ 44 FINANCE AND REVENUE OPTIONS .................................................................................................................................... 44 TYPOLOGY OF A FOOD HUB ............................................................................................................................................ 45 CONCLUSION ............................................................................................................................................................... 45 | 3 SECTION 4: CASE STUDIES.................................................................................................................................. 47 FoodHub, Portland OR ........................................................................................................................................ 48 Local Food Hub, Charlottesville, VA .................................................................................................................... 49 Farm Fresh Connection, Portland ME ...................................................................................................................... 50 Okanogan Producers Marketing Association, Okanogan, WA............................................................................ 50 Western Montana Growers Cooperative, Arlee, MT ..........................................................................................
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