Food Hubs Bolstering Local Food Systems, Economies, Survey Finds

Food hubs — organizations that manage the aggregation, distribution, and marketing of food products and help small and midsize growers connect with restaurants, schools, grocery stores, and other wholesale customers — are growing nationwide and contributing to local economies, a survey conducted by the Michigan State University Center for Regional Food Systems and the Wallace Center at Winrock International Institute Agricultural Development finds.

Based on data from more than a hundred food hubs across the United States about their operational characteristics, finances, values, services, and challenges and opportunities, the report, Findings of the 2013 National Food Hub Survey (53 pages, PDF), found that food hub sales averaged more than $3.7 million in 2012, and that 66 percent of those surveyed operated independent of outside funding sources. The survey also found that food hubs employed nineteen paid employees on average and worked with eighty producers, primarily small or midsize; that nearly half of all food hubs had operational commitments to equity, increasing food access, and/or community development; and that more than half provided product storage, marketing services for producers, and donations to local foodbanks.

Supported in part by the Kellogg, Mott, Kresge, and Surdna foundations, the report also noted that a need for effective management skills seemed to be at the root of many of the challenges noted by food hubs, including managing growth, balancing supply and demand, and planning for appropriate staffing levels. In addition, many hubs identified accessibility to capital as a challenge, indicating a need for more funding opportunities and/or better outreach with respect to existing opportunities.

"It's really valuable to have this information," said David Fukuzawa, director of Kresge's Health Program. "In recent years, we've seen food hubs emerge as a model for bringing together buyers and sellers who want to provide and use healthy, locally grown food, but who've lacked marketplace supports."