food hub business plan

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A Sample Food Hub Business Plan Template

A food hub business as defined by the USDA is “a centrally located facility with a business management structure facilitating the aggregation, storage, processing, distribution, and/or marketing of locally/regionally produced food products.

Food hubs also fill gaps in food system infrastructures, such as transportation, product storage, and product processing. Available data shows that there are about 212 food hubs in the United States and industry data indicates that local food sales totaled at least $12 billion in 2014 and estimates that the market value could hit $20 billion.

Steps on How to Write a Food Hub Business

Executive summary.

Kansas Maestro™ Food Hub, Inc. is a standard and registered food hub that will be located in a farming community in Overland Park, Kansas. We have been able to lease a facility that can fit into the kind of food hub we intend to launch.

We chose Overland Park, Kansas because nearly 90 percent of Kansas’ land is devoted to agriculture. The state’s agricultural outputs are cattle, sheep, wheat, sorghum, soybeans, cotton, hogs, corn, and salt. As of 2018, there were 59,600 farms in Kansas, 86 (0.14 percent) of which are certified organic farms.

The average farm in the state is about 770 acres (more than a square mile), and in 2016, the average cost of running the farm was $300,000. John Abraham is the founder and CEO of Kansas Maestro™ Food Hub, Inc.

Company Profile

A. our products and services.

• Aggregation: Compile products from different suppliers/farms to distribute through a single channel
• Distribution: Store products and transport them to the customer
• Marketing and sales: Find buyers, sell and advertise farm produce, and promote farms’ brand identities.

At Kansas Maestro™ Food Hub, Inc., we also offer a single drop-off point for multiple farmers that also serves as a single pick-up point for distributors and customers.

b. Nature of the Business

Kansas Maestro™ Food Hub, Inc. will operate a Retail or Farm to Consumer (F2C) business model. This model gives farmers more access to high-value markets by distributing products directly to consumers online, in a retail space.

c. The Industry

Kansas Maestro™ Food Hub, Inc. will operate in the agribusiness industry.

d. Mission Statement

Our mission is to establish a food hub business that will benefit farmers by connecting them with additional (often larger) markets and providing services like marketing, accounting, sales, and education.

e. Vision Statement

Our vision is to build a top-flight food hub business; we want to be listed among the top 3 food hubs in the United States of America.

f. Our Tagline (Slogan)

Kansas Maestro™ Food Hub, Inc. – Farmers’ Trusted Business Partner!

g. Legal Structure of the Business

Kansas Maestro™ Food Hub, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s assets from claims against the business, including lawsuits.

h. Our Organizational Structure

• Chief Executive Officer (Owner)
• Warehouse/Storage Facility Manager
• Merchandise Manager
• Accountant (Cashier)
• Salesgirls and Salesboys

i. Ownership/Shareholder Structure and Board Members

• John Abraham (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
• Tim Jeffery (Board Member) 18 Percent Shares
• Roland Patrick (Board Member) 10 Percent Shares
• Mark Heinsen (Board Member) 10 Percent Shares
• Mercy Freeman (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Ideal location for a food hub business
• Highly experienced and qualified employees and management
• Access to a wide range of farmers
• Access to a wide range of farm produce merchants in and around our city
• Well-equipped and modern warehouse and storage facility.

b. Weakness

• Financial Constraints
• A new business that will be competing with well-established and even government-owned food hubs.
• Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

• Kansas is an agriculture hub (nearly 90 percent of Kansas’ land is devoted to agriculture.)
• Increase the number of farmers who would want to work with food hubs
• Online market, new services, new technology, and of course the opening of new markets

i. How Big is the Industry?

The food hub industry is indeed a big and ever-growing industry because the agribusiness industry that the food hub is part of is responsible for employing about 7,195,078 employees and the industry rakes in a whooping sum of $2 trillion annually.

ii. Is the Industry Growing or Declining?

Yes, the agribusiness industry that the food hub is a part of is a growing industry. The industry is projected to grow at 0.5 percent annually.

iii. What are the Future Trends in the Industry

The future trends when it comes to the food hub business will revolve around technology. We would have software that is meant to predict what customers want from a food hub business and also create online markets where people can order the farm produce they want from the comfort of their homes and get it delivered to them with ease.

iv. Are There Existing Niches in the Industry?

Yes, there are existing niche ideas when it comes to the food hub line business. Here are some of them;

• Organic food hub
• Non-organic food hub
• Retail or Farm to Consumer (F2C) food hub
• Community-Supported Agriculture (CSA) subscription
• Wholesale or Farm to Business/Institution (F2B).

v. Can You Sell a Franchise of your Business in the Future?

No, Kansas Maestro™ Food Hub, Inc. has no plan to sell franchises in the nearest future.

• The arrival of a new food hub business or even agribusiness merchant within our market space
• Unfavorable government policy and regulations.
• Economic uncertainty
• Liability problems
• The U.S. Food and Drug Administration (FDA) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.

i. Who are the Major Competitors?

• Farm Fresh Rhode Island
• The Food Hub
• Local Food Hub
• Iowa Food Hub
• Organic Greens
• Iowa Food Coop
• Prudent Produce
• Field to Family
• Grinnell Farm to Table
• Central Texas Food Hub.

ii. Is There a Franchise for Food Hub Business? 

No, there are no franchise opportunities for food hub businesses.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Food Hub Business?

Yes, there are county or state regulations or zoning laws for food hub businesses. The regulation of the industry is shared by the FDA and the Treasury Department’s Tax and Trade Bureau. Every food hub business must register with the FDA, and therefore any food hub business is subject to random FDA inspections without warning.

Please note that in the United States, you are required to follow your own state’s foodservice code. Visit the FDA website for a list of food service codes by state. Use this to find the state authority handling food hubs and view the laws that apply in your state.

Marketing Plan

A. who is your target audience.

Our target market covers farmers, off-takers, wholesalers, and consumers

i. Age Range

Our target market comprises people of all ages.

ii. Level of Education

We don’t have any restrictions on the level of education of those who will purchase farm produce from us.

iii. Income Level

There is no cap on the income level of those we will sell farm produce to.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people who will purchase farm produce from us.

v. Language

There is no restriction when it comes to the language spoken by the people who will purchase farm produce from us.

vi. Geographical Location

Anybody from any geographical location is free to purchase farm produce from us.

vii. Lifestyle

Kansas Maestro™ Food Hub, Inc. will not restrict any customer from purchasing farm produce from us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Deliberately Brand All Our Vans and Trucks.
• Tap Into Text Marketing.
• Make Use of Bill Boards.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels into a Resource
• Develop Your Business Directory Profiles
• Build Relationships with players in the grocery retailing industry and the food services industry.

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our target market and potential target market.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Kansas Maestro™ Food Hub, Inc. will make sure it covers profits, insurance, premium, license, economy or value, and full package. All our pricing strategies will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the grocery retailing industry, and the food services industry, to help refer customers to us.

Kansas Maestro™ Food Hub, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will be selling different types of farm produce means that Kansas Maestro™ Food Hub, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse and storage facility.

Kansas Maestro™ Food Hub, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)

c. Payment Options for Customers

Here are the payment options that Kansas Maestro™ Food Hub, Inc. will make available to its clients;

• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

d. Return Policy, Incentives, and Guarantees

At Kansas Maestro™ Food Hub, Inc., our customers are our top priority hence if you receive farm produce that is different from your receipt, we will sincerely apologize. Please call us as soon as you notice that there was an error in your order you may come to pick up the correct farm produce.

For credit card payments, you will be refunded the sales price amount associated with the error and recharged for the new items’ price. For cash payments, you will be asked to pay the difference of the balance if the new farm produce has a greater value than the farm produce received in error. In some cases, we may offer you store credit.

Your order will be a priority if you come to pick it up. In all cases, please return the farm produce order in the original container(s) to our host. Please, if you have any questions regarding the Return & Refund Policy, please call our customer care officer.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to all our clients. We will work with effective CRM software to be able to achieve this. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainer deals that will enable the firm to boost our sales and support revenue growth.

a. What Happens During a Typical Day at a Food Hub Business?

• The business is open for the day’s work
• The storage facility and walking area are cleaned and ready for the day’s business
• Farm produce is received from farmers and arranged in the warehouse and storage facility
• Walk-in customers are attended to
• Customer’s orders are taken and their orders are delivered to them
• Cashiers collect cash and reconcile accounts for the day
• Administrative duties are carried out
• The store or warehouse is restocked when required.
• The business is closed for the day.

b. Production Process

There is no production process for the food hub business.

c. Service Procedure

Food hubs work with farmers by connecting them with additional (often larger) markets and providing services like marketing, accounting, sales, and education. Food hubs can offer a single drop-off point for multiple farmers that also serves as a single pick-up point for distributors and customers.

d. The Supply Chain

Kansas Maestro™ Food Hub, Inc. will rely on key players in the grocery retailing industry and the food services industry to serve as off-takers. So also, we have been able to establish business relationships with a wide range of farmers in and around our city.

e. Sources of Income

• Commission from selling farm produce for farmers.

Financial Plan

A. amount needed to start your food hub business.

Kansas Maestro™ Food Hub, Inc. would need an estimate of $250,000 successfully set up our food hub business in the United States of America. Please note that this amount includes the salaries of our staff for the first month of operation.

b. What are the Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $1,300.
• Marketing, Branding and Promotions – $1,000.
• Business Consultant Fee – $2,500.
• Insurance – $1,400.
• Rent/Lease – $75,000.
• Other start-up expenses like TV subscriptions, phone and utility deposits ($1,800).
• Operational Cost (salaries of employees, payments of bills et al) – $30,000
• Start-up Inventory – $55,000
• Store Equipment (cash register, security, ventilation, signage) – $1,750
• Furnishing and Equipping – $50,000
• Website: $600
• Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Kansas Maestro™ Food Hub, Inc. will build a new facility for our food hub business and it will cost us approximately $165,000.

d. What are the Ongoing Expenses for Running a Food Hub Business?

• Utility bills (gas, internet subscriptions, phone bills, signage and software renewal fees et al)
• Salaries of employees
• Delivery vans maintenance
• Marketing costs

e. What is the Average Salary of your Staff?

• Chief Executive Officer – $55,000 Per Year
• Warehouse/Storage Facility Manager – $38,000 Per Year
• Merchandise Manager – $37,000 Per Year
• Accountant – $35,630,000 Per Year
• Salespeople – $26,000 Per Year
• Cleaners -$24,000 Per Year

f. How Do You Get Funding to Start a Food Hub Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

Financial Projection

A. how much should you charge for your product/service.

We don’t have a specific amount to charge, it will depend on the type of farm produce, and the quantity.

b. Sales Forecast?

• First Fiscal Year (FY1): $280,000
• Second Fiscal Year (FY2): $540,000
• Third Fiscal Year (FY3): $750,000

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1) (Profit After Tax): $80,000
• Second Fiscal Year (FY2) (Profit After Tax): $180,000
• Third Fiscal Year (FY3) (Profit After Tax): $300,000

d. Profit Margin of a Food Hub Business 

The ideal profit margin we hope to make at Kansas Maestro™ Food Hub, Inc. will be between 20 and 40 percent.

Growth Plan

A. how do you intend to grow and expand .

Kansas Maestro™ Food Hub, Inc. will grow our food hub business by expanding our storage facility and of course, accommodating more farmers.

b. Where do you intend to expand to and why? (Geographical locations)

Kansas Maestro™ Food Hub, Inc. plans to expand to Little Rock, Arkansas, Idaho Falls, Idaho, Des Moines, Iowa, Wichita, Kansas, Brooklyn Park, Minnesota, Springfield, Missouri, North Platte, Nebraska, Grand Forks, North Dakota, Gresham, Oregon, and Dallas, Texas.

The reason we intend to expand to these locations is the fact that available statistics show that the agriculture industry is a major contributor to the GDP of the cities listed above.

The founder of Kansas Maestro™ Food Hub, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without hitches.

More on Food

Food Hub Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Agriculture Sector » Agro-Allied

Are you about starting a food hub business? If YES, here’s a complete sample food hub business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a food hub business.

We also took it further by analyzing and drafting a sample food hub marketing plan template backed up by actionable guerrilla marketing ideas for food hub businesses. So let’s proceed to the business planning section. It can be truly challenging starting any business, but one business that you could start with little challenges and wide market coverage is a food hub business.

A food hub business is a business that involves dealing with agricultural produce.  Food hubs are a part of the agricultural industry value chain model and often share common values relating to conservation, sustainability, healthy food access, and supporting local farmers in getting good returns for their produce.

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It is important to state that starting a food hub business comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business venture. An aspiring entrepreneur can either choose to start a food hub business on a small scale dealing with a few farm produce or on a large scale depending on their financial status.

So, if you have decided to open a food hub business, then you should ensure that you carry out thorough feasibility studies and also market survey. This will enable you properly locate the business in a good location and then hit the ground running.

Business plan is yet another very important business document that you should not take for granted in the bid to launch your own food hub business. Below is a sample food hub business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Food Hub Business Plan Template

1. industry overview.

The Agribusiness industry includes businesses that directly engage in or directly benefit from the agricultural value chain.

Businesses in this industry may produce agricultural commodities; buy agricultural produce or supply goods and services to farms and the agriculture industry. It is important to state the core aim of this industry is to focus on the food-supply chain from farmers to wholesalers and to retailers.

Basically, the Agribusiness industry is a combination of a wide variety of agricultural-based industries. These industries are either directly involved in the business of growing agricultural commodities, or directly benefit from these growers by buying from them or selling to them and that is where food hub business comes in.

A food hub, as defined by the USDA, is “a centrally located facility with a business management structure facilitating the aggregation, storage, processing, distribution, and/or marketing of locally/regionally produced food products. Food hubs also fill gaps in food systems infrastructure, such as transportation, product storage, and product processing.

There are 3 types of food hubs and they are Retail or Farm to Consumer (F2C): This model gives farmers more access to high-value markets by distributing products directly to consumers online, in a retail space, or via a community-supported agriculture (CSA) subscription.

Wholesale or Farm to Business/Institution (F2B): This model gives farmers access to high-volume markets such as schools, grocery stores, hospitals, and restaurants that they couldn’t normally obtain on their own due to lack of volume or consistency.

This method of gathering products to meet higher volume needs is more efficient for buyers and makes it easier for them to buy regionally throughout the year. And lastly the Hybrid: This model consists of both retail and wholesale operations. A food hub may be set up as a non-profit organization, for-profit business, or a cooperative.

The Agribusiness industry of which food hub line of business is subset of is indeed a very large industry and pretty much thriving in all parts of the world especially in countries such as China, Russia, Bulgaria, United States of America, Romania, United Kingdom, Germany, Australia and France et al.

Statistics has it that in the united states of America alone, there are about 2,752,324 licensed and registered standard Agribusiness companies (food hubs inclusive) responsible for employing about 7,195,078 employees and the industry rakes in a whooping sum of $2 trillion annually with an annual growth rate projected at 0.5 percent.

On the global stage, no player in this industry can boast of having a giant market share in this industry but Archer Daniels Midland Company and Cargill Inc. are the leaders in the United States of America.

In recent time, large multinational companies are increasingly getting in on the agribusiness act. These corporations are encouraging vertical integration in the industry and are actively boosting the industry’s profitability as a whole.

The Agribusiness industry has experienced increasing interest in biofuel, strong growth in the number of free-trade agreements signed by the federal government and a rise in the prevalence of genetically modified seeds. These trends are forecast to continue over the next half a decade.

Over and above, a food hub business is indeed a profitable business venture and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale without a storage / warehouse or you can choose to start on a large scale with standard storage facilities/warehouse, large business network, dozens of distribution trucks/vans and a strong online presence.

2. Executive Summary

Abraham Adamson Food Hub Company®, LLC is a standard and registered food hub company that will be involved in the distribution of farm produce to wholesale distributors and retailers. Our warehouse cum storage facility will be located close to one of the largest farming community in Lincoln – Nebraska.

We have been able to lease a warehouse cum storage facility that is big enough to fit into the design of the kind of food Hub Company that we intend launching and the facility is centrally located in the heart of town with easy delivery network.

Abraham Adamson Food Hub Company®, LLC will deal in a wide range of farm produce from various farmers all across Lincoln – Nebraska and neighboring cities.

We will engage in the wholesale distribution of farm produce such as soybean and corn, frozen foods, beef, margarine and cooking oil processing, corn and wheat wholesaling, dairy product and milk, fruit and vegetable wholesaling amongst others.

We are aware that there are several large and small food hubs and even well – established farm markets all around Lincoln – Nebraska that are also into farm produce wholesale, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering.

We have robust collection and distribution network, strong online presence and modern storage facilities and we are armed with the various payments of options available in the United States.

Beyond selling the farm produce of some of the leading farms in the United States, our customer care is going to be second to none in the whole of Lincoln – Nebraska and our deliveries will be timely and highly reliable. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they patronize our products.

Abraham Adamson Food Hub Company®, LLC will ensure that all our customers are given first class treatment whenever they visit our food hub. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large our customer base and distribution network may grow to.

We will ensure that we get our customers involved in the selection of farm produce that they want us to be involved in distributing and also when making some business decisions that directly affects them.

Abraham Adamson Food Hub Company®, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Abraham Adamson Food Hub Company®, LLC is a family business that is owned by Abraham Adamson and his immediate family members. Abraham Adamson has a B.Sc. in Business Administration, with over 8 years of hands on experience in the agribusiness industry, retailing and distribution industry, working for some of the leading brands in the United States.

Although the business is launching out by focusing on Lincoln – Nebraska, but there is a plan to expand our distribution network all across the state of Nebraska.

3. Our Products and Services,

Abraham Adamson Food Hub Company®, LLC is in an agribusiness industry cum food hub line of business and we will ensure we go all the way to be involved in the distribution of a wide range of farm produce such as, soybean and corn, frozen foods, beef, margarine and cooking oil processing, corn, soybean and wheat wholesaling, dairy product and milk, fruit and vegetable wholesaling amongst others from top farms in and around Lincoln – Nebraska.

We are in the agribusiness industry cum food hub line of business to make profits and we will ensure that we do all that is permitted by the law in the United States to achieve our business aims and objectives. Our products and services offerings are listed below;

• Aggregation: Compile products from different suppliers/farms to distribute through a single channel
• Distribution: Store products and transport them to the customer
• Marketing and sales: Find buyers, sell and advertise farm produce, and promote farms’ brand identities

4. Our Mission and Vision Statement

• Our vision is to become one of the leading brands in the food hub line of business in the whole of Lincoln – Nebraska.
• Our mission is to establish a food hub business that will distribute a wide range of farm produce from top farming brands at affordable prices to wholesalers and retailers in Lincoln and other cities in Nebraska where we intend marketing our services and products.

Our Business Structure

Abraham Adamson Food Hub Company®, LLC do not intend to start a food hub business like the usual mom and pop business around the street corner; our intention of starting a food hub business is to build a standard and one stop food hub cum farm produce distribution business in Lincoln – Nebraska.

We will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will make sure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders (the owners, workforce, and customers). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions that will be made available at Abraham Adamson Food Hub Company®, LLC;

• Chief Executive Officer (Owner)
• Warehouse/Storage Facility Manager
• Human Resources and Admin Manager
• Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants/Cashiers
• Customer Services Executive
• Drivers/Distributors

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Warehouse cum Storage Facility Manager:

• Responsible for organizing the safe and efficient receipt, storage and dispatch of warehoused goods (farm produce)
• Responsible for liaising with customers, suppliers and transport companies
• In charge of planning, coordinating and monitoring the receipt, order assembly and dispatch of goods (farm produce)
• Responsible for using space and mechanical handling equipment efficiently and making sure quality, budgetary targets and environmental objectives are met
• In charge of coordinating the use of automated and computerized systems where necessary
• Responsible for keeping stock control systems up to date and making sure inventories are accurate
• Responsible for producing regular reports and statistics on a daily, weekly and monthly basis
• In charge of overseeing the planned maintenance of vehicles, machinery and equipment
• Ensures that proper records of goods are kept and warehouse does not run out of products
• Ensures that the warehouse facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with third – party suppliers (farmers)
• Controls farm produce distribution and supply inventory
• Supervises the workforce in the warehouse floor

Merchandise Manager

• Manages vendor relations, farm cum market visits, and the ongoing education and development of the organizations’ buying teams
• Responsible for the purchase of farm produce directly from farmers for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget
• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company
• Manages the organization website
• Handles eCommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions
• Responsible for financial forecasting and risks analysis
• Performs cash management, general ledger accounting and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries

Distribution Truck Drivers

• Assists in loading and unloading farm produce
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assists the transport and logistics manager in planning their route according to a distribution schedule.
• Local-delivery drivers may be required to sell farm produce or services to stores and businesses on their route, obtain signatures from recipients and collect cash
• Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verify delivery instructions
• Reports defects, accidents or violations

6. SWOT Analysis

Our intention of starting out in Lincoln and work with farmers only within Lincoln – Nebraska is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open our food hubs in major cities throughout the United States of America.

We are quite aware that there are several large and small scale food hubs and even well – organized farm markets all over Lincoln and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Abraham Adamson Food Hub Company®, LLC employed the services of an expert HR and Business Analyst with bias in agribusiness industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Abraham Adamson Food Hub Company®, LLC;

Our location, the business model we will be operating on (robust collection and distribution network), varieties of payment options, wide range of farm produce from top farm brands and our excellent customer service culture will definitely count as a strong strength for Abraham Adamson Food Hub Company®, LLC. So, also our management team members are people who have what it takes to grow a business from start – up to profitability within a record time.

A major weakness that may count against us is the fact that we are a new food hub business and we don’t have the financial capacity to compete with leaders in the industry for now.

• Opportunities:

The fact that we are going to be operating our food hub business in Lincoln – Nebraska which happens to be among the top 5 food producing states in the US provides us with unlimited opportunities to sell our farm produce to a large number of wholesale distributors and retailers cum businesses.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they patronize our products and services; we are well positioned to take on the opportunities that will come our way. We are also aware that free-trade agreements and interest in biofuels benefit industry performance, and continued vertical integration of the farm process will open more opportunities for us.

Some of the threats and challenges that we are likely going to face when we start our own food hub business are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), unfavorable government policies and the arrival of a competitor (a new food hub or even well – organized farm market) within same location where we have our food hub.

7. MARKET ANALYSIS

• Market Trends

In recent time, large multinational companies are increasingly getting in on the agribusiness act. These corporations are encouraging vertical integration in the industry and are actively boosting the industry’s profitability as a whole. The Agribusiness industry has experienced increasing interest in biofuel, strong growth in the number of free-trade agreements signed by the federal government and a rise in the prevalence of genetically modified seeds. These trends are forecast to continue over the next half a decade.

Distribution of goods as wholesalers to retailers has been in existence for as long as humans started trading goods, but one thing is certain, the food hub line of business cum distribution industry is still evolving. The introduction of technology has indeed helped in reshaping the industry.

Lastly, it is now a common phenomenon for food hubs cum distribution companies to leverage on technology to effectively predict consumer demand patterns and to strategically position their business to meet their needs; in essence, the use of technology help businesses like food hubs to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help food hubs serve them better.

8. Our Target Market

The agribusiness industry cum food hub line of business has a wide range of customers; everybody on planet earth consumes different types of food and it is difficult to find people around who don’t.

In view of that, we have positioned our food hub company to service businesses In Lincoln – Nebraska who deal in food cum farm produce and every other location we will cover all over the state of Nebraska. We have conducted our market research and we have ideas of what our target market would be expecting from us.

We are in business to engage in wholesale distribution of a wide range of farm produce/food from different farmers to the following businesses;

• Retailers of farm produce
• Grocery Stores
• Super Markets
• Wholesale Distributors of Farm Produce

Our competitive advantage

A close study of the agribusiness industry cum food hub line of business reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are well prepared to compete favorably with other leading food hubs in and around Lincoln – Nebraska.

Abraham Adamson Food Hub Company®, LLC is launching a standard food hub business that will indeed become the preferred choice of retailers, wholesale distributors, grocery stores and supermarkets et al in Lincoln – Nebraska.

One thing is certain; we will ensure that we have a wide range of farm produce cum food products available in our warehouse/storage facility at all times. One of our business goals is to make Abraham Adamson Food Hub Company®, LLC a one stop food hub company. Our excellent customer service culture, timely and reliable delivery services, online presence, and various payment options will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups food hubs and related businesses) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Abraham Adamson Food Hub Company®, LLC is in business to engage in the wholesale distribution of a wide range of farm produce cum foods such as soybean and corn, frozen foods, beef, margarine and cooking oil processing, corn, soybean and wheat wholesaling, dairy product and milk, fruit and vegetable from top farmers in Lincoln – Nebraska. We are in the agribusiness industry cum food hub line of business to

• Aggregation: Compiling products from different suppliers/farms to distribute through a single channel
• Marketing and sales: Find buyers, sell and advertise farm produce, and promote farms’ brand identities.

10. Sales Forecast

One thing is certain when it comes to food hub business, if your business is centrally positioned coupled with an effective and reliable storage facility, robust collection and distribution network, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Lincoln – Nebraska and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the agribusiness industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Lincoln – Nebraska.

Below are the sales projections for Abraham Adamson Food Hub Company®, LLC, it is based on the location of our business and other factors as it relates to agribusiness cum food hub start – ups in the United States;

• First Fiscal Year-: $340,000
• Second Fiscal Year-: $650,000
• Third Fiscal Year-: $1 million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products, home delivery services and customer care services as we do within same location.

• Marketing Strategy and Sales Strategy

Before choosing a location for Abraham Adamson Food Hub Company®, LLC, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for farm produce wholesale distributors, retailers, grocery stores and supermarkets in and around Lincoln – Nebraska. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the retailing and distribution industry to help us develop marketing strategies that will help us achieve our business goal of winning a large percentage of the available market in and around Lincoln – Nebraska.

In other to continue to be in business and grow, we must continue to distribute farm produce which is why we will go all out to empower our sales and marketing team to deliver. In summary, Abraham Adamson Food Hub Company®, LLC will adopt the following sales and marketing approach to win customers over;

• Open our business in a grand style with a party for all.
• Introduce our business by sending introductory letters alongside our brochure to farm produce cum food wholesale distributors, retailers, grocery stores, supermarkets and other key stakeholders in and around Lincoln – Nebraska
• Ensure that we have a wide range of farm produce from different farm brands within and outside Lincoln – Nebraska at all times
• Make use of attractive hand bills to create awareness
• Position our signage/flexi banners at strategic places around Lincoln – Nebraska
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage in roadshows within our neighborhood to create awareness for our food hub business

11. Publicity and Advertising Strategy

Despite the fact that our food hub business is well structured and well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote the business.

Abraham Adamson Food Hub Company®, LLC has a long-term plan of opening distribution channels all around the state of Nebraska and key cities throughout the United States which is why we will deliberately build our brand to be well accepted in Lincoln before venturing out. As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand.

Here are the platforms we intend leveraging on to promote and advertise Abraham Adamson Food Hub Company®, LLC;

• Place adverts on community based newspapers, radio stations and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our business
• Ensure that we position our banners and billboards in strategic positions all around Lincoln – Nebraska
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact farm produce/food wholesale distributors, retailers, grocery stores and supermarkets by calling them up and informing them of Abraham Adamson Food Hub Company®, LLC and the farm produce we sell/distribute
• Advertise our food hub business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and distribution vans/trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to wholesale distributors and retailers, it is normal for retailers to purchase products from distribution companies at a cheaper price. We will work towards ensuring that all the farm produce in our food hub are distributed at highly competitive prices compared to what is obtainable in the United States of America.

We also have plans in place to discount our farm produce once in a while and also to reward our loyal customers from time to time.

• Payment Options

The payment policy adopted by Abraham Adamson Food Hub Company®, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Abraham Adamson Food Hub Company®, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via POS machines
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payments for farm produce purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a food hub business; it might differ in other countries due to the value of their money.

These are the key areas we will spend our start-up capital on;

• The total fee for registering the business in the United States of America – $750
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300
• Marketing promotion expenses for the grand opening of Abraham Adamson Food Hub Company®, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580
• The cost for a hiring business consultant – $2,500
• The cost for insurance (general liability, workers’ compensation and property casualty) at a total premium – $2,400
• The cost for payment of rent for 12 months of $1.76 per square feet warehouse facility in the total amount of $105,600
• The total cost for warehouse facility remodeling (construction of racks and shelves) – $20,000
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 )
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of farm produce) – $200,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs – $5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000
• The cost for the purchase of distribution vans/trucks – $25,000
• The cost of launching a website – $600
• The cost for our opening party – $7,000
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our food hub business in Lincoln – Nebraska. Please note that this amount includes the salaries of all the staff for the first three months of operation.

Generating Funds/Startup Capital for Abraham Adamson Food Hub Company®, LLC

Abraham Adamson Food Hub Company®, LLC is a private business that is solely owned and financed by Abraham Adamson and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start-up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the Bank

N.B:  We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all these factors are missing from a business (company), then it won’t be too long before the business closes shop.

One of our major goals of starting Abraham Adamson Food Hub Company®, LLC is to build a business that will survive off its own cash flow without the need of injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail/distribute our farm produce a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Abraham Adamson Food Hub Company®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry and they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of warehouse facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Application for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packagin, Marketing/Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Purchase of distribution vans: Completed
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party/launching party planning: In Progress
• Compilation of list of products that we will distribute: Completed
• Establishing business relationship with farmers within and outside of Lincoln – Nebraska: In Progress

Sustainable Agriculture Research & Education Program

Food hubs & values-based supply chains.

In the last decade, food hubs have firmly established their significance within the landscape of regional food systems. Defined by the USDA as “a business or organization that actively manages the aggregation, distribution, and marketing of source-identified food products primarily from local and regional producers to strengthen their ability to satisfy wholesale, retail, and institutional demand” 1  , food hubs are important sales channels for many small to medium-scale farmers, offering transportation efficiency and greater access to markets.

California Food Hub Network

In 2015, UC SAREP launched the California Food Hub Network, a learning network to coordinate technical assistance, collaborative learning and information sharing for and among food hubs in California. Activities include in person convenings, networking events between food hubs and potential buyers, food hub tours, and technical assistance on a diverse range of topics related to food hub operations.

Why a food hub network?

As values-based aggregators/distributors, food hubs face unique business and operational challenges within a highly competitive sales space.

Over the past several years, regional alliances or networks among food hubs have emerged across the U.S. to address shared challenges or develop mutually beneficial opportunities. These networks range from formal alliances characterized by transactional relationships or equipment sharing to informal, learning networks centered around technical assistance and information sharing.

In its present iteration, the CA Food Hub Network exists on the informal end of the spectrum. Our activities are informed by a spirit of collaboration and advancing the shared goal of a sustainable food system in California.

Significance of Food Hubs in Regional Food Systems

Food hubs are uniquely positioned to bridge the gap between farms in the local marketplace, which tend to be smaller with less product volume and less logistical capacity, and institutions, which require greater product volume, consistency and delivery capabilities. According to the USDA’s Regional Food Hub Resource Guide, “food hubs are key mechanisms for creating large, consistent, reliable supplies of mostly locally or regionally produced foods” offering transportation efficiency and greater access to wholesale markets. 1

Over the past decade, the number of food hubs in the United States has been on the rise. Between 2007 and 2014, regional food hubs grew in number by 288% 2  . In 2017, there were nearly 400 food hubs identified in the United States 3  . The 2017 National Food Hub Survey found that food hubs result in local jobs, create linkages between businesses and provide a stable sales channel for beginning, small and mid-size farmers 4  .

According to outreach conducted by UC SAREP, in 2017 California was home to approximately 20 food hubs, ranging in size, geographic scope, and type of business model. While some of these hubs are quite small, with gross annual sales under $500,000, on average food hubs in California reported increasing sales, indicating a positive growth trend. 5

Other Resources for Food Hubs

Resources from uc sarep.

Food Hub-to-Food Hub Transactions: Expanding and Strengthening your Value Supply Chain (Video Panel Discussion)

In this panel discussion and Q&A from June 18, 2024, representatives from three food hubs and one food hub network discuss how their food hubs engage in buying and selling with other food hubs, covering topics including transportation, logistics, pricing, and scaling their operations.

An Annotated Bibliography of Publications and Resources on Food Hubs and Values-Based Supply Chains

A literature review synthesizing recent reports, analyses, and how-to manuals and practical case studies geared towards practitioners developing food hubs, values-based supply chains and similar marketing channels.  

A Review of Scholarly Literature on Values-Based Supply Chains

A synthesis of existing research and scholarship on values-based supply chains in the United States.

Food Hubs and Values Based Supply Chains: A Toolkit for California Farmers and Ranchers

This report describes the variety of new values-based supply chains and food hubs in California and helps farmers and ranchers better understand the benefits and constraints of these new marketing opportunities so they can decide if and how they should participate. We provide an overview of benefits and considerations for producers participating in different types of enterprises. We also suggest some questions a producer might want to ask before participating in a particular enterprise. We hope that this effort will shed some light on the growing world of values-based supply chain enterprises so that farmers, ranchers, and consumers can all benefit.

Developing Values-Based Distribution Networks to Enhance the Prosperity of Small and Medium Sized Producers: California Case Studies

Summary and Key Findings

This document summarizes key findings from our values-based supply chain case studies. This project examines the financial, government regulations, industry business practices and entrepreneurial factors that influence the development of emerging distribution networks embedded in values-based supply chains.

Developing Values-Based Distribution Networks to Enhance the Prosperity of Small and Medium Sized Producers

This project examines the financial, policy and entrepreneurial factors that influence the development of emerging distribution networks embedded in food-based value chains. Such networks can enhance the sustainability of small- and medium-scale producers, in the broadest sense, by addressing their environmental, economic and social concerns through a focus on cooperation, to gain economies of scale in marketing services, efficiencies in common distribution activities and building food system communities.

An Annotated Bibliography of Publications and Resources on Food Hubs and Values-Based Supply Chains   With the generous support from USDA Rural Development, SAREP has compiled an extensive annotated bibliography   on food hubs and values-based supply chains.  The bibliography includes academic literature, reports and publications from non-profits and research firms, and articles in USDA publications and trade journals.  This resource is part of an ongoing SAREP project, also funded by USDA Rural Development, to provide tools and resources to California farmers and ranchers on this new and emerging field of values-based aggregation and distribution. 

Lessons Learned from a California Food Hub Network Pilot Final report from a UC-funded project to convene a learning network for California food hubs.

Resources from other sources

• National Food Hub Surveys from Michigan State University Center for Regional Food Systems (2015-2021)
• National list-serve facilitated by The Wallace Center: food hub community of practice
• Delivering More Than Food: Understanding and Operationalizing Racial Equity in Food Hubs (2020)
• A Manager's Guide to Food Hub Finances - How to Evaluate and Improve Your Food Hub Operations (2017)
• USDA Regional Food Hub Resource Guide: Food hub impacts on regional food systems, and the resources available to support their growth and development (2012)
• USDA Running a Food Hub: Lessons Learned from the Field (2015)
• USDA Running a Food Hub: A Business Operations Guide (2015)
• USDA Running a Food Hub: Assessing Financial Viability (2016)
• USDA Running a Food Hub: Learning from Food Hub Closures (2017)
• Wholesome Wave Food Hub Business Assessment Toolkit (2014)
• 1 Barham, James, Debra Tropp, Kathleen Enterline, Jeff Farbman, John Fisk, and Stacia Kiraly. Regional Food Hub Resource Guide. U.S. Dept. of Agriculture, Agricultural Marketing Service. Washington, DC. April 2012. <http://dx.doi.org/10.9752/MS046.04-2012>
• 1 Barham, James et al. 2012 Regional Food Hub Resource Guide. U.S. Dept. of Agriculture, Agricultural Marketing Service. Washington, DC.
• 2 Low, Sarah A. et al. 2015. Trends in U.S. Local and Regional Food Systems, AP-068, U.S. Department of Agriculture, Economic Research Service.
• 3 Colasanti, K. et al. 2018. Findings of the 2017 National Food Hub Survey. Michigan State University Center for Regional Food Systems & The Wallace Center at Winrock International.
• 5 UC SAREP California food hub survey. 2018. Unpublished.

• Project Managment

How to Develop a Comprehensive Food Hub Business Plan

Introduction.

Welcome to the Food Hub Business Plan! This plan outlines the steps necessary to create a successful food hub that will provide fresh, local, and sustainable food to the community. The food hub will be a one-stop shop for local farmers, producers, and consumers to connect and purchase food. The food hub will provide a platform for local farmers to sell their products, while also providing consumers with access to fresh, local, and sustainable food. This plan will discuss the goals, objectives, and strategies necessary to create a successful food hub. Additionally, this plan will discuss the financial considerations and resources needed to make the food hub a reality. We hope that this plan will provide a roadmap for creating a successful food hub that will benefit the community and the local economy.

Developing a comprehensive food hub business plan is essential for any business that wants to succeed in the food industry. A food hub business plan should include a detailed description of the business, its goals, and the strategies that will be used to achieve those goals. It should also include a financial plan, a marketing plan, and a risk management plan.

1. Describe the Business : The first step in developing a comprehensive food hub business plan is to provide a detailed description of the business. This should include the type of food hub, the size of the business, the location, the target market, and the services offered.

2. Set Goals : The next step is to set goals for the business. These goals should be specific, measurable, achievable, realistic, and time-bound. They should also be aligned with the overall mission and vision of the business.

3. Develop Strategies : Once the goals have been set , the next step is to develop strategies to achieve those goals. This should include a detailed plan for marketing, operations, finance, and risk management.

4. Create a Financial Plan : A financial plan should be created to ensure that the business is financially viable. This should include a budget, a cash flow statement, and a break-even analysis.

5. Develop a Marketing Plan : A marketing plan should be developed to ensure that the business is able to reach its target market. This should include a detailed plan for advertising, promotions, and public relations.

6. Create a Risk Management Plan : A risk management plan should be created to ensure that the business is able to manage any potential risks. This should include a detailed plan for identifying, assessing, and mitigating risks.

By following these steps, businesses can develop a comprehensive food hub business plan that will help them succeed in the food industry.

The Benefits of Establishing a Food Hub Business

Establishing a food hub business can be a great way to provide a valuable service to the community while also creating a profitable business. Food hubs are businesses that aggregate, store, process, and distribute food from local farmers and producers to consumers. By providing a centralized location for farmers to sell their products, food hubs can help to increase access to fresh, local food while also providing a valuable service to the community.

The benefits of establishing a food hub business are numerous. First , food hubs can help to increase access to fresh, local food. By providing a centralized location for farmers to sell their products, food hubs can make it easier for consumers to access fresh, local food. This can help to support local farmers and producers, while also providing consumers with access to healthier, more nutritious food.

Second , food hubs can help to create jobs in the local community. By providing a centralized location for farmers to sell their products, food hubs can create jobs in the local community. This can help to stimulate the local economy and create more opportunities for employment.

Third , food hubs can help to reduce food waste. By providing a centralized location for farmers to sell their products, food hubs can help to reduce food waste by ensuring that food is sold quickly and efficiently. This can help to reduce the amount of food that is wasted, while also helping to reduce the environmental impact of food production.

Finally , food hubs can help to create a sense of community. By providing a centralized location for farmers to sell their products, food hubs can help to create a sense of community by bringing together farmers, producers, and consumers. This can help to foster relationships between members of the community and create a sense of connection and belonging.

In conclusion , establishing a food hub business can be a great way to provide a valuable service to the community while also creating a profitable business. By providing a centralized location for farmers to sell their products, food hubs can help to increase access to fresh, local food, create jobs in the local community, reduce food waste, and create a sense of community.

Strategies for Sourcing Local Food for a Food Hub

1. Establish relationships with local farmers : Developing relationships with local farmers is a key strategy for sourcing local food for a food hub. Establishing relationships with local farmers can help to ensure a steady supply of fresh, locally-sourced food. Additionally, it can help to build trust and loyalty between the food hub and the local farmers.

2. Utilize local farmers markets : Local farmers markets are a great way to source local food for a food hub. Farmers markets provide an opportunity to meet local farmers and to purchase fresh, locally-sourced food. Additionally, farmers markets can be a great way to build relationships with local farmers and to promote the food hub.

3. Utilize online resources : Online resources such as local food directories and online marketplaces can be a great way to source local food for a food hub. These resources can help to connect the food hub with local farmers and to purchase fresh, locally-sourced food.

4. Develop relationships with local food distributors : Developing relationships with local food distributors can be a great way to source local food for a food hub. Local food distributors can provide access to a wide variety of locally-sourced food and can help to ensure a steady supply of fresh, locally-sourced food.

5. Utilize local food co-ops : Local food co-ops can be a great way to source local food for a food hub. Food co-ops provide access to a wide variety of locally-sourced food and can help to ensure a steady supply of fresh, locally-sourced food. Additionally, food co-ops can be a great way to build relationships with local farmers and to promote the food hub.

Analyzing the Financial Feasibility of a Food Hub Business

The financial feasibility of a food hub business is an important consideration for any entrepreneur. A food hub is a business that aggregates, stores, processes, and distributes food from multiple sources to multiple buyers. It is a complex business model that requires careful planning and analysis to ensure its success.

When analyzing the financial feasibility of a food hub business, there are several key factors to consider. First , the business must have a clear understanding of the costs associated with the operation of the food hub. This includes the cost of purchasing and storing food, the cost of processing and packaging the food, and the cost of distributing the food to buyers. Additionally, the business must consider the cost of marketing and advertising, as well as the cost of labor and other overhead expenses.

Second , the business must have a clear understanding of the potential revenue streams associated with the food hub. This includes the revenue generated from the sale of food to buyers, as well as any additional revenue generated from value-added services such as catering or delivery.

Third , the business must have a clear understanding of the competitive landscape. This includes an analysis of the current market conditions, as well as an understanding of the potential competitors in the market. Additionally, the business must consider the potential for new entrants into the market, as well as the potential for existing competitors to expand their operations.

Finally , the business must have a clear understanding of the potential risks associated with the food hub business. This includes an analysis of the potential for food safety issues, as well as the potential for financial losses due to mismanagement or other unforeseen circumstances.

By carefully analyzing the financial feasibility of a food hub business, entrepreneurs can make informed decisions about whether or not to pursue this business model. With a clear understanding of the costs, revenue streams, competitive landscape, and potential risks associated with the food hub business, entrepreneurs can make informed decisions about whether or not to pursue this business model.

Creating a Marketing Plan for a Food Hub Business

I. Executive Summary

This marketing plan outlines the strategies and tactics that will be used to promote the launch of a new food hub business. The food hub will provide a convenient and affordable way for customers to purchase fresh, locally-sourced produce and other food items. The marketing plan will focus on increasing awareness of the food hub, driving traffic to the store, and building customer loyalty.

II. Situation Analysis

A. Market Summary

The food hub market is growing rapidly, with an estimated annual growth rate of 8%. The market is highly competitive, with a number of established food hubs in the area. The target market for the food hub is primarily young professionals and families who are looking for convenient and affordable ways to purchase fresh, locally-sourced produce and other food items.

B. SWOT Analysis

• Convenient location • Wide selection of fresh, locally-sourced produce and other food items • Competitive pricing

Weaknesses: • Lack of brand recognition • Limited marketing budget

Opportunities: • Growing demand for locally-sourced produce • Potential for online ordering and delivery

Threats: • Established competitors • Potential for new entrants into the market

III. Marketing Objectives

• Increase brand awareness by 20% within the first six months of operation. • Increase store traffic by 10% within the first six months of operation. • Increase customer loyalty by 10% within the first six months of operation.

IV. Marketing Strategies

A. Product Strategy

The food hub will focus on providing a wide selection of fresh, locally-sourced produce and other food items at competitive prices. The store will also offer online ordering and delivery services to make it easier for customers to purchase their groceries.

B. Pricing Strategy

The food hub will offer competitive prices on all of its products. The store will also offer discounts and promotions to encourage customers to purchase more items.

C. Promotion Strategy

The food hub will use a variety of promotional tactics to increase awareness of the store and drive traffic to the store. These tactics include:

• Social media campaigns • Local print and radio advertising • In-store promotions and events • Online marketing campaigns

V. Implementation

A. Timetable

The marketing plan will be implemented over the course of six months. The following timeline outlines the key activities that will be undertaken during this period:

• Month 1: Develop marketing materials and launch social media campaigns. • Month 2: Launch local print and radio advertising campaigns. • Month 3: Launch in-store promotions and events. • Month 4: Launch online marketing campaigns. • Month 5: Monitor and evaluate the effectiveness of the marketing campaigns. • Month 6: Adjust marketing strategies as needed.

The total budget for the marketing plan is $10,000. This budget will be allocated as follows:

• Social media campaigns: $2,000 • Local print and radio advertising: $3,000 • In-store promotions and events: $2,000 • Online marketing campaigns: $3,000

VI. Evaluation and Control

The effectiveness of the marketing plan will be evaluated on a regular basis. The following metrics will be used to measure the success of the plan:

• Brand awareness: measured by surveys and online analytics. • Store traffic: measured by store sales and customer counts. • Customer loyalty: measured by customer surveys and repeat purchases.

VII. Conclusion

This marketing plan outlines the strategies and tactics that will be used to promote the launch of a new food hub business. The plan focuses on increasing awareness of the food hub, driving traffic to the store, and building customer loyalty. The plan will be implemented over the course of six months, with a total budget of $10,000. The effectiveness of the plan will be evaluated on a regular basis using a variety of metrics.

Developing a Logistics Plan for a Food Hub Business

Logistics are an essential part of any business, and a food hub business is no exception. A well-developed logistics plan is essential for the success of a food hub business. This plan should include the following components:

1. Inventory Management : A food hub business must have a system in place to track and manage inventory. This includes tracking the quantity of food items in stock, the cost of each item, and the expiration dates of perishable items.

2. Transportation : A food hub business must have a reliable transportation system in place to ensure that food items are delivered to customers in a timely manner. This includes selecting the most cost-effective shipping methods, such as ground or air freight, and negotiating the best rates with carriers.

3. Warehousing : A food hub business must have a secure and efficient warehousing system in place to store food items. This includes selecting the most suitable warehouse location, ensuring that the warehouse is properly maintained, and implementing a system to track and manage inventory.

4. Distribution : A food hub business must have a system in place to ensure that food items are distributed to customers in a timely and efficient manner. This includes selecting the most cost-effective distribution methods, such as direct-to-consumer or third -party distribution, and negotiating the best rates with distributors.

5. Customer Service : A food hub business must have a system in place to ensure that customers receive the best possible service. This includes responding to customer inquiries in a timely manner, resolving customer complaints quickly and efficiently, and providing customers with accurate and up-to-date information about food items.

By implementing a comprehensive logistics plan, a food hub business can ensure that food items are delivered to customers in a timely and cost-effective manner. This will help to ensure the success of the business and ensure customer satisfaction.

• A BUSINESS OPERATIONS GUIDE
• SACRAMENTO VALLEY FOOD HUB BUSINESS PLAN
• SAN JUAN COUNTY FOOD HUB BUSINESS PLAN

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Running a Food Hub: A Business Operations Guide

James Matson, Jeremiah Thayer, and Jessica Shaw

THIS REPORT is part of a multi-volume technical report series entitled Running a Food Hub, with this guide serving as a companion piece to other United States Department of Agriculture reports by providing in-depth guidance on starting and running a food hub enterprise.

In order to compile the most current information on best management and operations practices, the authors used published information on food hubs, surveyed numerous operating food hubs, and pulled from their existing experience and knowledge of working directly with food hubs across the country as an agricultural business consulting firm.

The report’s main focus is on the operational issues faced by food hubs, including choosing an organizational structure, choosing a location, deciding on infrastructure and equipment, logistics and transportation, human resources, and risks. As such, the guide explores the different decision points associated with the organizational steps for starting and implementing a food hub. For some sections, sidebars provide “decision points,” which food hub managers will need to address to make key operational decisions.

Download the Report

• Food System Assessment
• Food System Plan
• Feasibility Study
• Business Planning
• Growth Strategy
• Training & Speaking
• Community Food Centers
• Food Incubators
• Food as Medicine
• Food Processing
• Food for Placemaking & Revitalization

Sixty-two percent of consumers are more likely to buy food and beverages described as local, and 57% seek out restaurants offering locally sourced products, according to Technomic. More than half of consumers say local foods taste better, and nearly as many agree local foods are higher in quality and less processed. Meeting this demand is challenging. Connecting small to medium sized growers with the buyers who are looking for local produce can be complex. Farmers and buyers grapple with everything from pricing strategy, distribution, food safety, seasonality, availability of supply, quality and consistency of product.

Food hubs have emerged to help address these challenges and connect farmers to markets seeking their products. Food hubs aggregate, distribute, and market source-identified food products from local and regional producers into wholesale, retail, and institutional buyers. No two hubs look the same. They can focus on any number of farm products – fruits, vegetables, proteins, grains, specialty goods and/or value added products. They range from large warehouse facilities to online marketplaces to processing facilities to technical assistance providers.

A food hub is often launched because a farmer, buyer, nonprofit, community organization or planning group has a vision of strengthening the local supply chain in their region. We help these groups conduct studies to determine the optimal operating model for a food hub given their goals and regional context, assess the financial viability of these potential food hubs, and develop robust business plans to launch these enterprises.

New Venture Advisors is a team of business consultants specializing in local food system planning and new enterprise development.

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Food Hub Projects

Food Network Project Feasibility Study

The Newark Alliance and its Members work collaboratively to cement Newark, New Jersey’s status as one of America’s most diverse, prosperous, exciting, and equitable cities. An aspect of its mission is to promote inclusive economic growth, entrepreneurship, quality job development, better health and environmental health outcomes through the food sector. The Alliance has a vision to create a central hub that anchors many of the functions needed for a thriving and equitable Newark food system, with additional locations that meet the needs of the communities in which they reside, and that support new and improved family-sustaining jobs. New Venture Advisors Is conducting a feasibility study to determine the most strategic approach to this development in terms of its components, facilities, programs, partners, and operating structure. (2024)

Santa Clara County Community Food Hub Feasibility Study

San jose, ca.

Veggielution partnered with NVA to assess the feasibility of opening a food hub and determine the location, operating model, and components that could best serve the diverse groups of food entrepreneurs and farmers in the region surrounding San José. The project led to dual outcomes, supporting Veggielution in developing a plan to build additional assets at their park location and supporting Veggielution in collaborative work with regional partners to identify the structure and long-term objectives of a true regional food hub. (2024)

Tulsa Cooperative Food Hub Feasibility Study

A collaboration of organizations including RG Foods, Food on the Move, Fresh Rx, the Tulsa Farmers’ Market, and Oasis Fresh Market have identified that supply chain challenges present significant obstacles for small grocery stores and food outlets in and around Tulsa County. These organizations are spearheading an effort to develop a regional food hub to meet these needs and enhance the local food system. New Venture Advisors conducted a feasibility study to evaluate the potential of a food hub and cooperative buying group and design a facility to meet the needs of its future members and the stakeholders they serve. (2023)

Southern Illinois Mobile Market Feasibility Study

Chicago, il.

Faith in Place empowers people of diverse faiths and spiritualities to be leaders in advancing environmental and racial justice, providing resources to educate, connect, and advocate for healthier communities. The organization has a history of working with sustainable food systems throughout the state of Illinois and is leading an initiative to develop a network of mobile markets in the southernmost 17 counties to assess the feasibility of a mobile market. The program will be a collaboration with Food Works and LEAF Food Hub to improve access to food while also supporting local food producers in these rural areas of the state. New Venture Advisors conducted a feasibility study to assess the needs, partners, and locations necessary for this mobile market network and  created a plan and toolkit to support the expansion of the network. (2024)

Roaring Fork Valley Regional Food Facilities Feasibility & Design

In 2008, Pitkin County purchased and renovated the Emma Store Buildings – a historic site once used to store and distribute food. They are beloved by the community, and there is strong interest in examining the feasibility of returning them to use as a food hub serving agricultural producers, food access organizations, and other community needs. The County collaborated with LIFT-UP (a regional food bank and food pantry operator) and the Aspen Community Foundation to evaluate how these buildings could be repurposed, along with other facilities in the Aspen area, to provide a more comprehensive food system infrastructure supporting hunger relief, agricultural production, food entrepreneurship, economic development, and space for the community to come together over food. New Venture Advisors led a study to design a regional food infrastructure development strategy that will be responsive to the needs and aspirations of the community. (2023)

Download the report.

Bushel & Peck Food Hub Feasibility Study

Charles town, wv.

Jefferson G.A.P. Coalition launched Bushel & Peck in 2017 to provide better access to healthy foods for all people in Jefferson County, to boost the farm and food economy, and to drive downtown revitalization in historic Charles Town, West Virginia. The store is successful and sustainable with a solid customer base. It plays a critical role in supplying healthy foods to local families during the pandemic, and the Coalition sees the potential to reach an even larger customer base by expanding beyond its retail business into wholesale, serving institutional customers, restaurants and other grocery chains with fresh produce sourced from across the region. New Venture Advisors is exploring the viability of occupying vacant and under-utilized downtown buildings and lots to site food enterprises that may include indoor and outdoor food markets, community gardens, bulk food distribution, and a commercial kitchen, based on the needs identified and prioritized by the community. (2023)

Food Bank Council of Michigan Senior Food Access Pilot Program

Lansing, mi.

Food Bank Council of Michigan (FBCM) is the partner state association for the seven Feeding America-affiliated food banks across the state of Michigan. FBCM’s mission is to create a food secure state through advocacy, resource management, and collaboration among stakeholders and Michigan’s unified food bank network. The COVID-19 pandemic illuminated that many seniors experience barriers to food access because they have limited access to transportation or are located in remote areas. In partnership with its partner food banks, FBCM seeks to increase food access to seniors and test a model whereby fresh food and shelf-stable groceries can be home-delivered to residents throughout the state. New Venture Advisors assisted in designing a pilot program in southern Michigan to demonstrate the viability of this model, in partnerships with local food banks, partner agencies, and last-mile delivery partners. (2023)

NMU Food Hub Feasibility Study

Marquette, mi.

The Northern Michigan University Center for Rural Health and several project partners aspire to create a shared use aggregation, distribution, and light produce processing facility serving Michigan’s Upper Peninsula (U.P.). There is currently limited food system infrastructure in the U.P.; therefore, most food consumed in the region is dependent upon transport from Lower Michigan and Wisconsin. The facility would increase the resiliency of the U.P. food system and support the health and wellness of residents by increasing sales and accessibility of locally-grown and value-added foods, and decreasing costs to do so through charitable distribution networks. New Venture Advisors conducted an expanded feasibility study that explored whether a collaborative aggregation and distribution system network across the U.P. and a central warehouse facility could support solutions to existing system stressors and could be economically viable for the participating organizations. (2022)

McHenry County College Food Hub

Crystal lake, il.

The Center for Agrarian Learning (CAL) at McHenry County College offers a non-credit community education in farm viability, an Entrepreneurial Agriculture degree program, and operates a greenhouse and farm as part of its programming. CAL has a vision for adding a food hub to aggregate products grown on campus and from area farms to create a year-round sales channel for local producers looking to increase production or venture into wholesale markets. The program will be one of the few campus-based food hubs in the U.S., training the next generation of food system professionals with real-world experience from production to wholesale, and potentially retail. New Venture Advisors conducted a feasibility study to determine how this college-based food hub can serve small-to medium sized producers in the region. (2022)

Appalachian Harvest Herb Hub Business Plan

Duffield, va.

In 2017, Appalachian Sustainable Development (ASD) founded the Appalachian Harvest Herb Hub (AHHH), a social enterprise that aims to create a thriving herbal economy in Central Appalachia, while conserving at-risk plants through profitable cultivation. The AHHH seeks to build a network of forest farmers and medicinal herb farmers, who can sustainably cultivate these botanicals to meet growing demand. New Venture Advisors assisted ASD in developing a financially viable business model for AHHH to reduce long-term dependencies on grant funding. (2022)

East End Food Hub Facility Plan

Southampton, ny.

Since 2010, East End Food Institute has supported, promoted, and advocated for the farmers, vintners, fishermen, and other food producers and providers on the East End of Long Island. Since New Venture Advisors completed a food hub feasibility study in 2015, the organization has operated a cafe, workshop space, commercial kitchen, and processing space at Stony Brook University while building the foundation for a more integrated food system. New Venture Advisors also assisted the Institute in establishing the East End Food Hub as a centralized point of aggregation, processing, and distribution for produce and products from regional farms and food businesses. (2021) 

Oahu Food Hub Expansion Planning

Honolulu, hi.

The Oahu Food Hub is a multi-use facility serving entrepreneurs, agricultural producers and organizations in the good food space on the island of Oahu. This new development will house Oahu Fresh, a well-known local produce distributor, and several businesses in the Ke Nui Kitchen group including their rapidly-growing bagel brand and direct-to-consumer food box program. The facility will contain private and shared commercial kitchen spaces, dedicated storage, a local produce aggregation and distribution hub, and private and shared office, meeting, and related spaces. New Venture Advisors assisted the owners in developing operating model alternatives and designing a facility that meets their needs today and plans for future growth. (2021)

Kane County Food Hub

Kane County Planning engaged New Venture Advisors to assist in the development of a food hub that serves Kane County residents as well as the greater Chicago foodshed. A feasibility study identified a multi-million dollar opportunity to aggregate from Kane County farmers and distribute to customers across the region. A unique business model ensured the hub’s products will reach Kane County low-income residents and institutions that serve these communities. An owner/operator was selected and the food hub piloted operations in 2018. New Venture Advisors developed a strategic plan and roadmap to guide the food hub’s first full year of operations. (2019)  Read the report here.

Northwest Kansas Food Hub

Bird city, ks.

The Greater Northwest Kansas Community Foundation and Northwest Kansas Economic Innovation Center, Inc. assessed the viability of a food hub to be located in Northwest Kansas. The project was instrumental in discerning whether a permanent food hub is a viable option for bringing more fresh produce to the Kansas market. The project team conducted this study on its own, using NVA’s Do-It-Yourself Feasibility Study Toolkit that features coaching from NVA through a 10-step work plan. (2018)

Wyoming Statewide Food Hub Network

New Venture Advisors worked with Bould Development and the Rocky Mountain Farmers Union to assess the strategy and feasibility of a network of food hubs across the state of Wyoming. The study evaluated potential hubs in six distinct clusters across the state, and recommended how the hubs would transact with each other. (2016)

 Whatcom County Food System Plan

In 2021, the Whatcom County Food System Committee conducted a community food assessment that pointed to key opportunities to build a more robust and resilient regional food system. New Venture Advisors partnered with Whatcom County staff and the Food System Committee to draft a Whatcom County Food System Plan that builds upon these findings. This Plan focuses on five key goals for building a more equitable, sustainable, and resilient food system, and was informed by an inclusive community engagement process. The Food System Plan will provide the county with a policy roadmap that will strengthen the local food system for years to come. (2023)

 Whatcom Local Food Campus

The Whatcom Community Foundation invests in activities and organizations that improve the ability of people to help themselves, increase connections among people, and take cooperative approaches to community issues. WCF is exploring the development of a local food campus on a waterfront property that would become a multi-tenant site, anchored by a collaborative production kitchen benefitting food access, school system, and community organizations. The goal is strengthening Whatcom County’s local food system by promoting health equity, forging tangible strategic connections between food production organizations, and helping farmers connect with institutional markets. The facility will also feature an incubation kitchen, demonstration kitchen, event and classroom space, collaborative office and conference facilities, and housing.  New Venture Advisors developed the business case for this ambitious project and continues to support its development through engagement and operational development. (2023)

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Local food hubs: the next revolution in urban planning.

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Dave Dinesen is the CEO of CubicFarms , a local-chain agtech company specializing in automated, commercial-scale indoor farming technology.

New York, Toronto, Los Angeles, London — all major cities have robust plans to organize how we commute, use infrastructure and minimize our environmental impact. But there’s one area noticeably absent: how we feed our citizens.

Consider this: By 2050, nearly 70% of the world’s population will be concentrated in major cities, and that’s a problem for the future of food security. Climate change is making it progressively more difficult for farmers around the world to increase food production, and the long supply chains we’ve become reliant on to feed a growing population are breaking at the links.

The reality is we cannot build resilient, climate-smart cities without planning to feed the people who populate them efficiently. It’s time for local food production to be a staple of urban planning and for businesses to get involved.

Rooftop Gardens: Romantic, But They Won’t Feed Cities

First, let me commend cities for the work they’ve done confronting issues like climate change and food security in recent years. Local governments are on the frontlines of global problems and have led the way on policy, with higher levels of government following behind. It’s been encouraging to see places like New York City and Boston develop urban agriculture departments within city hall, but we have to make sure their aim is in the right place.

When cities do address food sources in their urban planning, it often looks like New York City’s pledge to create more community gardens or Toronto’s bylaw that mandates new buildings to include green spaces on their roofs. While these rooftop gardens are beautiful communal spaces, they cannot meet the scale needed to feed our growing population. The World Resources Institute estimates we need to increase agricultural production by 593 million hectares of agricultural land by 2050 to support the global population adequately. That’s about twice the landmass of India. It’s impossible to build a network of rooftops and vacant lots that could reach this scale of growth.

To create reliable local food chains, we have to think bigger. The goal should be to shorten supply chains and make nutritious food more accessible. To do that, I believe that we need sustainable, commercial-scale food hubs that leverage land on the outskirts of urban centers and are capable of supporting all residents with fresh, locally grown food. As the CEO of an agriculture technology company, I can tell you that agtech has come a long way in a short time. Highly automated systems already exist that allow massive amounts of food to be grown in controlled environments, using a fraction of the land and water required by traditional agriculture.

In my opinion, the future of feeding cities lies in food being shipped short distances to shoppers soon after being harvested. It has all the convenience of the "just in time" (paywall) logistics we’ve grown accustomed to without the vulnerability of long supply chains.

A Local Solution To A Global Problem

Food security is an issue that concerns everyone — all levels of government, all citizens of this planet. While the challenges in feeding a growing population are global, I believe that the most effective pathway to a stable food supply is growing locally.

This is where businesses, investors and governments can act now. Governments around the world have shown they can solve complex problems through smart, effective planning, but they can’t do it without private partners. The Netherlands, for example, has historically been a hub for sustainable development in all sectors and has grown to become the second-largest food exporter in the world . The country has put significant funding into sustainable agriculture since WWII, but private companies like Duijvestijn Tomatoes have taken that work to the next level by developing massive operations built on clean technologies that can boost food security, provide economic benefits and reduce emissions tied to farming.

As far as business cases go, developing these sorts of food hubs is a no-brainer. Investment in agriculture technology is booming , with giant players like Walmart making massive moves in indoor growing. In my opinion, this investment cannot come at a better time, and we need to see the boom in venture funding spill over into major financial institutions. Growers we work with often report they have difficulty getting loans for innovative technology because it doesn’t have the same proof of concept as a tractor, for instance. Many watch as banks and governments pump billions into other industries but struggle to come up with the financing needed to weather-proof their crops. Investing in accessible and sustainable options like food hubs could normalize local food production and inevitably create a flywheel of funding that would trickle down to more and more growers.

If we agree we need to future-proof our cities to reduce our environmental footprint and increase food security, then we have to confront the fact that the way we eat today is not sustainable. And while rooftop gardens are a romantic idea, the reality is they won’t feed the millions of people who are at risk of food insecurity. Our urban centers need to focus on reliable, commercial-scale and local opportunities, and we need all the help we can get from private and public sources to make it happen.

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KAPA Project Detail | Food Hub Business Plan

• by KAPA Admin
• Update mission and vision statements to articulate need
• Suggest business model, legal structure, and operating structure
• Identify key consumer segments in local marketplace; assess demand for local food and customer purchasing threshold; and recommend strategies for targeting each customer group
• Identify new distribution channels for KAPA products (greenhouse/ hydroponic and farm produce, animal proteins, and value-add food products)
• Prospect for new sales channels regionally (retail and wholesale), including community food program food sales.
• Analyze COGS and appropriate margins for products that are price competitive within the wholesale marketplace.
• Develop price structure, intake process, and outbound order platform for the food hub to connect KAPA producers to low-income communities seeking equitable access to local foods.
• Build capacity and supply chain for KAPA regional growers and protein producers to utilize the KAPA food hub to increase sales of products to low-income and other communities/consumers (food banks, retailers, etc.)

Deliverable: Business report to include financial structures, partnership and collaboration opportunities, and contract and other templates. 

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Launch Your Business

Starting a food business can be a daunting task. the food hub is here to help with business planning, food safety training, hourly kitchen rentals, and market access..

Step 1 - Set Up A Meeting With Us

Email us at [email protected] to set up a meeting. The best time to reach out is now, regardless of how much planning you have done. We will discuss your food business idea and how to move forward. If using the Food Hub kitchen is appropriate, we will give you a tour to discuss equipment and storage options. Kitchen rental is just $25 to $30 per hour plus dry or cold storage fees. We use The Food Corridor for our kitchen scheduling and information hub. You can create an account to access needed documents.

Step 2 - Plan and Prepare

Based on our initial meeting, we will set a course of action to get your business ready. This may include writing a business plan, getting your ServSafe Manager and Allergen Awareness certifications, getting products tested, writing standard operating procedures, selecting packaging, designing labels, preparing records, and obtaining liability insurance. We will guide you though all appropriate steps.

Step 3 - Permitting

When ready, you will apply for a City of Worcester and/or Massachusetts wholesale food permit. Once your permit is in hand, you will be ready to make and sell your food!

Step 4 - Make and Sell Food!

Now comes the fun part! We are here to help connect you with buyers whether in retail or by us selling through our wholesale channels. We host numerous events to get you started. We can also provide ingredients from our network of local farmers.

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Kemerovo Oblast

DOI link for Kemerovo Oblast

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This chapter presents history, economic statistics, and federal government directories of Kemerovo Oblast. Kemerovo Oblast, known as the Kuzbass, is situated in southern central Russia. Krasnoyarsk Krai and Khakasiya lie to the east, Tomsk Oblast to the north, Novosibirsk Oblast to the west, and Altai Krai and the Republic of Altai to the south-west. Kemerovo was founded in 1918 and became the administrative centre of the Oblast upon its formation on 26 January 1943. The city is at the centre of Russia's principal coal mining area. In 2015 Kemerovo Oblast's gross regional product (GRP) amounted to 842,619m. roubles, equivalent to 309,637 roubles per head. The Oblast's main industrial centres are at Kemerovo, Novokuznetsk, Prokopyevsk, Kiselyovsk and Leninsk-Kuznetskii. Kemerovo Oblast's agriculture consists mainly of potato and grain production, animal husbandry and beekeeping. The sector employed 3.6% of the workforce and contributed 4.0% of GRP in 2015.

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