Resources Required By Different Types of Food Hubs

Aggregation and access to supply chains have been identified as a limiting factor to increasing scale and availability of local foods; food hubs have been identified as one solution.  The objectives of this study were to 1) review the types of local food aggregation entities found regionally and nationally and 2) document financial, tangible, human, and information resources needed to operate at different scales and structures. To complete these objectives we developed a 52-question survey divided into questions about financial, physical, human, and information resources needed to operate a food hub and general questions about operating practices.

We compiled a list of 97 food hubs in the 12 state area North Central SARE region. Businesses on this list meet the USDA working definition of food hub, “a centrally located facility with a business management structure facilitating the aggregation, storage, processing, distribution, and/or marketing of locally/regionally produced food products”. Of these food hubs, 79 were surveyed online using Survey Monkey, 12 were surveyed through mail, and six were not surveyed due to insufficient contact information, or scopes of business outside the goals of this study. Of the 79 food hubs contacted through Survey Monkey 32 responded for a 41% response rate. Two produce auctions responded to mailed surveys for a response rate of 16%. The combined response rate for all collectors was 37%.

In general results of the survey exemplify the diversity of food hubs, customers, and business organization types including consumer or producer cooperatives, non-profit community organizations, for-profit businesses, retail stores, and consignment auctions. Due to the wide range size and scope, amounts of financial, physical, human, and information resources needed to operate also varied considerably. For example, refrigerated storage space ranged from 0 to 15,000 square feet and full time year round employees ranged from 1 to 500. More similarities can be found in questions pertaining to ideals, goals, and operating procedures. Sixty-four percent of food hubs indicated that they facilitate communication between growers, 73% between growers and customers, and 41% between growers and government or nongovernment organizations. Nearly all food hubs surveyed take physical possession and ownership of the produce, 86% and 73% respectively. Notable exceptions would be consignment produce auctions and brokers.  These differences are a result of niches each business is trying to fill and characteristics of their community.  Further analysis may lead to replicable conditions and practices that will help grow local foods industries.