USDA Releases Report on the Growing Importance of Food Hubs in Rural America
Yesterday, Agriculture Deputy Secretary Kathleen Merrigan announced the release of a report entitled The Role of Food Hubs in Local Food Marketing.
Here is an abbreviated version of the press release:
The Role of Food Hubs in Local Food Marketing “provides a comprehensive look at the economic role, challenges and opportunities for food hubs in the nation’s growing local food movement. The announcement was made during a visit to Hollygrove Market and Farm, a produce market, local distributor and farm in downtown New Orleans. In operation since 2009, Hollygrove Farm and Market sources from twenty local growers across southern Louisiana and Mississippi. Hollygrove’s mission includes increasing access to fresh produce for underserved New Orleans neighborhoods. The organization first began operations as part of the city’s post-Hurricane Katrina rebuilding efforts.
“At USDA we are committed to food hubs because we believe that they offer strong and sound infrastructure support to producers across the country which will also help build stronger regional food systems,” said Merrigan. “This report is an important addition to the ongoing research in this field and Hollygrove is an example of how it is done.”
With an increasing demand for fresh, local, foods, the report finds that the success of food hubs is rapidly expanding, with well over 200 food hubs now operating in the United States. They are a part of a distribution system designed to move locally produced food into mainstream markets by supplying chains for goods to go from farms to the table efficiently.
USDA’s working definition of a regional food hub is “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”. More information about USDA’s work on food hubs is available at www.ams.usda.gov/foodhubs.
USDA Rural Development’s Cooperative grants can be used to support building local food systems infrastructure. USDA programs like Rural Business Enterprise Grant, Rural Business Opportunity Grant, Value-Added Producer Grant, and the Business and Industry Guaranteed Loan Program have been used to support food hubs.
The Federation of Southern Cooperatives/Land Assistance Fund in Alabama received a grant to establish a vegetable processing and marketing cooperative and a regional goat processing and marketing cooperative. The Federation also trains and supports members involved in direct marketing activities, such as selling at urban farmers markets, redeeming nutrition assistance coupons and selling directly to schools. Part of the grant focused on business planning and training for community development credit unions.