Across key local and regional markets (i.e., farmers markets, farm to school, food hubs serving other institutions, and restaurants) we estimate a$3.9million decline in sales (the most conservative estimate for direct sales losses) leading to a payroll decline of up to $585,000, and a total loss to the economy of up to $6.7 million from March to May 2020. Without immediate mitigation (in addition to the innovation supply chain solutions our producers are already creating themselves), we may lose many small, socially disadvantaged, and beginning farms and the important markets they serve.
The entry of additional food hubs in a county may cannibalize sales of incumbent enterprises. Food hubs require more potential buyers in a market than traditional merchant wholesalers. Counties with a high level of social capital and that have small local food businesses may be able to lower the population threshold necessary for a food hub to be viable.
This publication provides a small glimpse of current trends, emerging issues and potential roles of the public sector in the organic agriculture sector.
There are a number of competitive strategic positions emerging in the food manufacturing sector. Consumer trends and new competitive factors have resulted in a bimodal structure in a number of food and beverage subsectors, several of which are presented as case studies here. Such restructuring may provide market access and economic development opportunities.
