UIUC Teleconference August 2013

8/12/2019 UIUC Teleconference August 2013

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Sustainable agriculture and food

systems research and outreach from

the University of WisconsinAugust 2013


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On-going food systems projects Production innovation

Grass-based animal husbandry

Organic production research

New cropshazelnuts, aronia

Terroir

Driftless region food and farming

Chicago as a market for regional foodraw milk cheese, perennial fruits andveggies, wine, culinary tourism

Great Lakes Farm-to-School Chicago school district support

Link to other school districts in the region and nationally

Harvest Medley project

Regional food transportation Wisconsin Food Hub

Food systems planning

Supply chain logistics and transportation infrastructure


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The 4-state Driftless region


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Networking Across the Supply Chain

February 20-21, 2013

La Crosse, Wisconsin

Transportation Services DivisionAgricultural Marketing Service

U.S. Department of Agriculture

This Project is supported by Cooperative Agreement No. 12-25-

A-5639 between the Agricultural Marketing Service/USDA and

the Center for Integrated Agriculture at the University of

Wisconsin-Madison.
http://upload.wikimedia.org/wikipedia/commons/a/ac/Barge.jpg


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Market outlook

Kymm Mutch, Regional Learning Lab, School FoodFOCUS, Milwaukee

Don Stanwick, Chartwells-Thompson Hospitality,

Compass Group, Chicago

Brad Smith, Peoples Coop, LaCrosse

Brandon Scholz, Wisconsin Grocers Association


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Connecting supply and demand


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Supply perspective

6/2/2014Footer Text 11

Wisconsin Meadows Grass-fed Beef


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Participant feedback n=42

2/3 made more than 5 new connections 70% made new contacts useful to their businesses

88% made connections useful for local foods development

79% learned useful innovations for transportation and

logistics

92% were interested in attending similar events

Comments:

Many respondents interested in more networking time Key issues were finding existing capacity, software for regional

routes, green transportation options, multi-modal

opportunities


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Definition of consumer interest

Consumers are interested in: Local

Sustainable

Authentic

Innovative Organic

Healthy

Safe

Proximity is a proxy for some or all of these attributes Consumers first notice local fruits and vegetables as an

indicator of store quality


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Wholesale market differentiation

Which products and price points are appropriate forwhich markets?

As the supply chain lengthens, it is a challenge to keep the

farm story firmly attached to the product.

There is a tension between consumer values and supply

chain efficiencies.

Available software for warehousing and logistics proving

inadequate for regional distribution efforts.


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Wholesale Market Segmentation

wholesale buyer type

Red = institutional market Green = grocery Blue = restaurant

Meal serviceMegabox

Fast food

Private cafeteria

Gourmet retail

White table cloth restaurants

Grow your own

reso

urces


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Maintaining product identity throughout longer

supply chains

QR codes

Knowledgeable product representatives

Jepsen Family, Grass Run Farms

Rufus Hauke, Keewaydin Organics


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Supply chain scale and ownership

Independently-owned supply chain businesses betterpositioned to develop logistical relationships with regional

producers than are vertically integrated companies.

Each wholesale market segment has different scalerequirements.

Impact of trucking regulations on metro marketsHours

of Service.


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First and last mile issues

Aggregation at first mile Product aggregation must be both at sufficient quantities and

meet quality standards to survive wholesaling.

Easiest to start with products that are already regional

commodities, then build capacity for other products.

Dis-aggregation at last mile

Key to improve urban congestion

Pushback from independents on establishing distribution hubs Multi-model innovations


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Logistics as a lynch pin for regional

infrastructure development

Product movement through the supply chain is dependenton good business relations.

Can I trust you to do as you said?

Are you loyal?

Will you give me good information?

Good business relationships supersede other systemefficiencies.

Regional supply chains require more complexrelationships to function than do mega-chains.

Opportunities to develop regional relationships arelacking.

Logistics drive infrastructure needs.


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Logistical challenges in regions with high

distributional capital

Twin Cities have a strong distributional tie to the Driftlessregion, while Chicagoland does not.

Chicagoland is one of four national logistical hubs for

grocery and highly reliant on existing production regionsand supply chains.

As food production varies in response to extreme

weather, larger distributional hubs are most vulnerable todisruption.


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Implications


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MWPVL International. http://www.mwpvl.com/html/grocery_distribution_network.html


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Power dynamic City dwellers are the market.

Rural landscapes and communities produce food.

Is the relationship equitable?

Kenneth Lynch (2005) Introduction & Chapter One: Understanding the rural-urban interface from Rural-Urban

Interaction in the Developing World Richard Blaustein (2008)


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Documents

UIUC Teleconference August 2013