Common Misconceptions about Local Food Production

Steve Bosserman's picture

The October 24th edition of the Denver Post featured an article entitled, "Agriburbia" sprouts on Colorado's Front Range.  It is about Matthew "Quint" Redmond, co-founder of the TSR Group in Golden, CO, and his concept to integrate food production operations within existing neighborhoods and planned communities in order to supply local residents and restaurants with seasonal fresh food.  His bold agenda for urban farming encompasses the conversion of no less than all 31 million acres of lawn in the U.S. to food production.  While his vision as laid-out in the article has considerable merit, the business model that stems from it may not be sustainable.  At least it invites an introduction to th common misconceptions about local food production. 

Misconception 1: Local food production is profitable.
  Only if your operation is subsidized or you have a captive market or some degree of both does this work.  In the article, Mr. Redmond talks about the integration of crop production operations within existing urban lots and planned housing subdivisions whereby they supply fresh food to residents and neighborhood restaurants (captive market).  Furthermore, his planned communities involve changes in land and water use through re-zoning, easements, tax abatement, water rights, etc., which are forms of subsidy.  Other popular ways to subsidize food production not mentioned in the article include the possibility of low, deferred, or no-interest loans, the exchange of garden care (or equipment, tools, support services, etc.) by home owners or renters for discounted or no-cost food, and the formation of a non-profit 501(c)(3) organization--perhaps as a consumer-owned food cooperative--in order to qualify for grants and tax-free donations, encourage volunteerism, and establish a community currency to facilitate trading without money among members.  While there is nothing inherently bad about subsidies, it is important to recognize that they are necessary to support local food production.  This suggests a business model for such operations must consider subsidy in its design.

Misconception 2: Plant it and it will grow. 
Unfortunately, it doesn't work that way.  Many urban and suburban areas are pocked with the aftermath of various industrial operations, covered with asphalt and concrete roadways and parking lots, left with abandoned and vacant buildings still standing, and skinned of any topsoil.  Nothing grows under these conditions.  The article is not clear about Mr. Redmond's plan to source all the soil that's necessary for the level of food production he projects.  Since soil production precedes food production, such shortfall could be a show-stopper, especially if the answer entails intensive soil testing, removal, remediation, or restoration.  Obviously, a convenient solution would be to place a thick layer of rich, fertile soil on top of any surface such that whatever the condition below it is not an issue.  This suggests that the use of local raw materials and recycled waste to scale-up soil production presents a substantial business opportunity, not only for Mr. Redmond's planned community, but almost any neighborhood that wants to support local food production.  Want to know more about how to do this?  Attend one of Will Allen's Growing Power workshops in Milwaukee and you will be off to a good start.  And success with soil brings another business opportunity--fabricating the containers the soil goes in so that almost any location no matter its shape, size, or proximity becomes a candidate for food production.  The multiplier effect is alive and well!

Misconception 3: Everyone wants to buy locally grown, fresh fruits and vegetables.
  When local food production only delivers fresh fruits and vegetables in season, it falls short in two ways: first, there are insufficient calories in seasonally available fruits and vegetables to meet daily requirements, even at a subsistence level; and second, the output of fresh fruits and vegetables goes to a narrow market niche that favors those products on menus at home and in restaurants.  The majority of consumers are either unfamiliar with the products, can't afford them, or do not know how to prepare them.  Whether a matter of calorie count or elitism, only a select subset within the larger population benefits from locally sourced foods and that subset must pay a premium for the privilege.

Purpose of a local food system: 
Everyone NEEDS to buy sufficient calories each day to survive.  If the local food system doesn't provide those calories, the default is the consumer turns to the global food system.  As a result, the purpose of a local food system is to supply a requisite level of healthy, affordable, convenient, quick, and tasty calories to sustain those who live within the same area.  When seen from this perspective, the business model for a local food system operation begins with the consumer and works backwards to fulfill it.  This may seem to be counter-intuitive as the global food system wants you to start with the point of production and work forwards.  Once you see the local food system as a source of sustainability for ALL people within a given area rather than a way to deliver a narrow selection of preferred foodstuffs the alternatives are wide open.

Business opportunities within local food systems:  Know how to cook?  Like to prepare simple, tasty, nutritious meals made from fresh or freshly processed ingredients?  Don't mind coming in direct contact with customers in close proximity to where they live?  Imagine that:

  • You could use those skills as a chef at your own food cart in a neighborhood or housing subdivision.
  • You prepared and served nutritious, good-tasting, ready-to-eat, and affordable meals that took advantage of locally-sourced foods.
  • You had access to food processing equipment whereby you canned, dried, irradiated, cured or froze surplus foods in season to have available for year-round use in your menus.
  • You influenced local producers to grow non-commodity staple seeds and grains that you milled, if necessary, and prepared so that your menu offered a subsistence level of locally-sourced calories.
  • You encouraged others to go into aquaculture, hydroponics, and year-round greenhouse operations to give you access to more calories through fish, freshwater prawns, etc. and a variety of choices in vegetables.

The bottom line: People have to eat.  Focus on food preparation since that is where consumers pay the most to get the calories they need and the profit margins are best.  If you offer a quality, knock-out meal for an affordable price and you draw upon subsidized (low-cost) locally sourced fresh and freshly processed foods, profitability is assured.

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Comments

Re: Common Misconceptions about Local Food Production

isidore's picture

Steve:

Well said.  One thing you do not mention is shipping and handling.  Even the proposed model in Colorado, if successful, will run into the costs of cooling, packing, storage and shipping.  Who is going to pay for that capital investment and then its ongoing maintenance?

Now about your bottom line theory.  At the local level (at least here in Pittsburgh), it is still hard for anyone to "offer a quality, knock-out meal for an affordable price" especially when the ingredients are locally-sourced and freshly processed.  I just read an email today from a Pittsburgh based local food business offering soup for $14 per quart with a minimum order of two quarts.  That's just too expensive for me.

My customers will be getting flash frozen sweet corn, tomatoes, green beans, squash, and value-added items like sauerkraut and apple butter in their boxes this fall and winter.  That's the best we can do right now for affordable food preparation.

David Eson

Isidore Foods

 

 

 

Let's also think about how to

webadmin's picture

Let's also think about how to leverage the following:

  • Open source software, knowledge, and technology which can cut the operating costs tremendously
  • Collaboratively collecting and building knowledge about how to prepare foods in ways that people are desireable for people interested in purchasing (this is part of forthcoming library building application from Forward Foundation/Future Forward Institute
  • Leverage network architectures so that people can see where the constantly evolving markets are

Great blog let me tell you

alexunder's picture

Great blog let me tell you some thing about local food production.The current 5% level of food consumed from local sources is increased to 25%, which is not quite half of Ohio's maximum capacity. Food systems can operate at any level. Top 10 Superfoods The local food system has very different characteristics compared to the global food system as depicted in the slide below.