Does it pay to grow local

1
Does it pay to grow local?

• Jo Hunt
• 7th March 2006

2

• Why do your customers want to buy local food?

3

• Scottish Grocer March 2006 customer survey
• 98 prefer to buy Scottish
• 56 say lack of availability is main barrier
• HILFN November 2004 consumer preference survey
• All consumer want to shift 20 of purchasing
  power
• 20 of all customers will pay upto 20 to do so

4

• How do producers in Highlands and Islands supply
  their customers?

5

• Farmers markets
• Farm shops
• Gate sales
• Local retailer
• National small retailer network
• Supermarket
• Local processor
• Co-op contract

• Box scheme
• Community Supported Agriculture
• Mail order
• Internet
• Restaurants
• School contract

6
Northern Greens
7

• What steps will you have to go through to produce
  and sell your finished product?

8

• Access to processing facilities
• Mobile abattoir?
• Local processing unit?
• On farm processing unit?
• Other solutions?

9

• Which steps can you do which will need help and
  training and which will you pay someone else to
  do?

10

• HILFN can help.
• Production adviser
• Processing adviser
• Business adviser
• Targeted help for 8 new CSAs in 2006
• Technical courses
• Local Food Apprenticeship
• Factsheets (and handbook)
• Website and consumer info

11

• Do a trial batch.

12
Coulmore Farm
13

• Cost it out to see if it pays to expand

14
Connage Farm Dairy

• Plan A supply organic wet milk to local milk
  co-op
• Plan B contract process all milk
• Plan C produce own cheeses for direct sales

15
So, does it pay.?

• 2003 study local food 20 businesses
• All investing in farm
• All already own/tenant their land
• 2/3rds taken on extra staff
• 12,400 average income per person
• Low but 40 better than most farms
• Main reason prices too low
• Half planning to expand

16
Summary six steps to get you started.

• Find out who your customers are and what they
  want
• Decide on the simplest way for you to supply your
  customers
• List all the steps will you have to go through to
  supply your finished product
• Decide which steps can you do which need help
  and training and which will you pay someone else
  to do?
• Do a trial batch.and learn the lessons
• Cost it out to see if it pays to expand

17
(No Transcript)