1. Food Hub Pilot Concepts

2. Overview What is a Pilot Purpose Concept Need Goals Term
Components/Requirements/Conditions

3. Purpose
Pilot concepts are current ideas based on limited data and input from producers
Intended to be a starting point for discussions
Goal is to test concepts and collect real world data
Assisting in the production of the Business Plan for a NNY Food Hub implementation

4. Refrigerated/Frozen Warehouse with shipping and cross docking services
Pilot Concept One
Centralized
Refrigerated/Frozen Warehouse
with shipping and cross docking services
Term: 12 months

5. Concept
A centrally located refrigerated/frozen warehouse with dock level loading bays
Available to multiple producers in the four counties
To include warehousing, shipping, and cross docking services at a subsidized fee

6. Need
Producers have limited cooler/freezer storage, distribution capacity and financial resources
Initial producer interviews indicated that producers need at a minimum a centralized/shared refrigerated/frozen warehouse, with shipping and cross docking services in order to expand markets.
Wholesale Ready Educational/Growers Academy

7. Goals
Investing Food Hub grant funds and CCE staff resources will allow facilitation of warehouse and cross docking services in a much shorter timeframe than would otherwise be achievable
Producers will be able to focus on production and marketing of their products vs distribution

8. Recruit at least 6 producers to participate in the Pilot
Collect production and financial data from all producers participating in the Pilot
Transition to 100% producer funded when the Pilot ends
CCE project staff will closely monitor the project

9. Components/Requirements/Conditions
Locate a suitable facility and one refrigerated truck which could be leased as determined by local commercial rates
The terms of the lease will be on an all-inclusive basis to include but not limited to cooler space, freezer space, utilities, truck rental, insurance, etc.
Hire one fulltime warehouse/driver/marketing staff supported by CCE Food Hub Staff, Vista and Interns
Create new legal entity owned/operated by the participating producers

10. Proportional use of the cooler or freezer space
Participants will pay for services used as outlined below
Proportional use of the cooler or freezer space
Flat monthly fee for warehouse services based on total fixed costs
Flat fee for cross docking services
Transportation fee for each haul based on distance traveled.
Food Hub dollars will subsidize a percentage of the fixed costs including facility/truck lease and staff costs for 12 months

11. What questions do you have ?

12. Producer(s) wholesale market readiness trial
Pilot Concept 2
Producer(s) wholesale market readiness trial
Term: 2017 Growing season

13. Concept
Assist at least one producer to grow (on contract from a distributor) one or two crops each for sale upon harvest to the distributor
Assistance will include mitigating risks to producer such as crop failure, substandard product, breach of contract and lost opportunity costs

14. Need/Challenge
Producers in our four counties have had very limited opportunity to sell their products into wholesale markets
There is perceived resistance to paying a premium for local products in the regional market

15. Goals
Determine local producer ability/readiness to transition into wholesale markets
Determine producers capacity to compete in a low-premium or non-premium market for local products
Determine the markets ability to establish a premium for local

16. Components/Requirements/Conditions
Written contract to produce an acre or half acre of specified crop and a distributor will purchase that product at prevailing market prices for local products
Terms of contract will include crop type, delivery terms, payment terms, and Food Safety requirements
CCE will help develop the contract

17. Food Hub dollars will partially indemnify producers from potential losses due to crop failure, substandard product, breach of contract
Producer(s) will provide CCE production costs and sales data which will assist in the evaluation and analysis of the Pilot.
CCE project staff will closely monitor the project

18. Takeaways
The Food Hub Model presents opportunities for a wide variety of producers
Retail and Wholesale
Warehouse/Cross docking
Subsidies
Pilot Projects
Testing and Answering Questions about the Market
Multi-faceted Approach

19. Implementation Plan for Pilot Projects
What Next ?
Implementation Plan for Pilot Projects

20. What questions do you have ?