APPENDIX G: CASE STUDIES

October 2014 Lane County Public Market & Food Hub Market Analysis

Prepared for:
City of Eugene
Lane County

Prepared by:
Community Planning Workshop
A Program of the
Community Service Center
 Special Thanks &
Acknowledgements
The Community Planning Workshop would like to thank the individuals and
organizations that funded and supported the Lane County Public Market and
Food Hub Market Analysis. Special thanks to Bill Ellis, (formerly with the City of
Eugene) and Sarah Case (Lane County) for their oversight of the project. We
also appreciate all of the local food experts and the Technical Resource Group
who took the time to interview with the CPW team and help guide this project.
This project was sponsored by the Economic Development Administration
University Center, the City of Eugene, and Lane County.

CPW Staff
Project Lead:
Leigh Anne Hogue CPW Graduate Research Fellow

Project Manager:
Bethany Steiner CPW Associate Director

Faculty Advisor:
Bob Parker CPW Director

CPW Research Team:

Stephen Dobrinich
Aniko Drlik-Muehleck
Somaly Jaramillo Hurtado
Alex Macfarlan
Evelyn Perdomo

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 The Community Planning Workshop conducted thirteen case studies of farmers’
markets, public markets, and food hubs across the United States. The purposes of
the case studies was to understand the range of operational models that exist,
identify the successes and challenges of existing operations, and document the
financial characteristics of successful public markets and food hubs. The case study
information informed the recommendations of what a public market and/or food
could be in Lane County.

CPW identified the thirteen case studies through an internet search and a review of
existing literature. CPW selected case studies for the Lane County market analysis
based on several characteristics: (1) similar population size as Lane County, (2) use
of the farmers’ market, public market, or food hub as a tourism destination, and (3)
range of products and services offered. CPW obtained the information for ten of
the thirteen case studies through phone interviews and three food hubs’
information through a literature review of existing case studies.

CPW obtained information from the case studies for the following topics

 Business structure: management model and characteristics of the building;

 Financial structure: types of financial sources used for operations;

 Products and services: the range of products, food sourcing, and services
for the community as well as for the vendors.

 Market characteristics: the business model, types of consumers, and

competitors in the area.

 Successes and challenges: what makes them successful and what

challenges they have faced.

Based on the study’s definitions of farmers’ market, public market, and food hub
(Figure 1), the team classified the thirteen case studies as:

 three farmers’ markets

 five public markets

 five food hubs

Additionally, eight of the case studies are non-profit businesses, three are publicly
owned, one is cooperative, and one is a for-profit.
Figure 1. Farmers' Market, Public Market, and Food Hub Continuum
Food Hub
Public Market
 Local food
Farmers  Local food
 Regional food
Market  Regional food
 Permanent structures
 Local food  Permanent
 Distribution,
 Temporary structures
aggregation,
structures  Additional services,
processing, and
 Some services such as cooking
outreach services
classes

APPENDIX G: CASE STUDIES October 2014 Page | C

 Farmers Markets
CPW identified three farmers’ markets as case studies. Although one of these
farmers’ markets name is a public market, CPW considers the market a farmers’
markets by this study’s definition.

In the context of this project, a farmers’ market is a market with a temporary

structure where vendors sell products. Additionally the farmers’ market provides
some services for the community, such as cooking demonstrations, and some
services for vendors, such as marketing the farmers’ market.

Boise Farmers’ Market Case Study

The Boise Farmer’s Market is based in the city of Boise, ID, and has a population of
205,671 people, and a metro population of 616,561 people.
Business Structure
The Boise Farmers’ market is a two years old non-profit market, held outdoors in
downtown Boise from April through December.

A seven member Board of Directors runs the market and hires the market’s
director. The board has five seats for farmers, one seat for specialty foods, and one
art seat. The elected board appoints an additional two community members.
Financial Structure
The Boise Farmers’ Market has a budget of about $60,000 dollars, which pays
salaries, rent for the lot used by the market, produce marketing materials, and
temporary infrastructure such as port-o-potties. Vendor fees other financial
sources , such as grants and donations, cover the cost of operating the market.
Products and Services
The Boise Farmer’ market offers a variety of products including meat, dairy, cheese,
fruits, and vegetables Vendors serving the market come from within a radius of
about 200 miles.
The Boise Farmers’ Market has begun to accept SNAP EBT cards as a way of serving
low-income shoppers. This effort extends as a pilot program for other markets
looking to incorporate EBT into their range of services. The market runs the Sprout
Kids Club where kids are encouraged to eat healthy by signing up and receiving
tokens for fruits and vegetables. Market Characteristics

Most market shoppers are from Boise or the greater Boise area.

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 Successes and challenges
The Boise Farmers’ Market attributes their success to three key reasons. First, the
market provides customers the ability to trust their food. For instance, the market
inspects farms every five years to ensure they are local and of high quality. Second,
the market gets involved with the community through services offered by the
market, such as the Sprout Kids Club. Finally, the market is invested in improving
nutrition in the Boise area as seen by their new SNAP EBT program.

This market has also overcome some challenges such as political pressure from
some community stakeholders because it broken off from the Capital City Public
Market and maximizing convenience for customers.

Boulder County Farmers’ Market

The Boulder County Farmers’ Market is based in the City of Boulder, CO, which has
a metro population of 294,567 people.
Business Structure
The Boulder County Farmers’ Market is a twenty-seven year old non-profit market
governed by a Board of Directors. The market employs an executive director,
market manager, a full time bookkeeper, and a market coordinator.
Financial Structure
Income from vendor fees covers cost of market operations. The market does not
have other financial sources such as grants or subsidies.
Products and Services
The market offers a variety of proteins, produce, and other foods, primarily
sourced from Boulder County and the surrounding region. The majority of the fruits
served at the market are from the western slope, outside of Boulder County.

The market accepts WIC and SNAP as well as the University of Colorado’s student
card. Other services provided by the market include marketing and outreach, chef
demos, music and entertainment, an ongoing art show, and ATM’s placed around
the market. In the future, the farmers’ market hopes to host conferences and food
events.
Market Characteristics
As a whole, the Boulder community is very supportive of the local food movement,
and it is one of the reasons of the success of this market. Customers represent a
wide demographic spectrum. On a typical market day, die-hard local food eaters
visit early in the morning. By mid-morning there are more families at the market
followed by students during the afternoon.

A specific focus is placed on outreach to low-income earners to break the stigma

that local food is more expensive.

APPENDIX G: CASE STUDIES October 2014 Page | E

 Successes and challenges
Boulder County Farmers’ Market runs three markets and there are two other
markets located in the area. In addition to this, there are a number of natural food
stores and co-ops, farm stands, CSAs, and restaurants, which emphasize local
agriculture. This growing number of markets and grocery stores in the area is one
of the challenges this farmers’ market faces. Others challenges include the weather
and climate conditions, such as the flood in late 2013 that lowered the availability
of fresh local food, and staff turnover.

Phoenix Public Market

Phoenix Public Market is based in Phoenix (AZ). The city has a metro population of
3.2 million people. It is a nine years old non-profit public market.
Business Structure
The Phoenix Public Market is a non-profit market. A Board of Directors governs the
market. The market employs four people: two market managers and two assistant
staff members. The employees handle market logistics including vendor
registration, finances, advertisement, set-up, clean up, and quality control.
Financial Structure
The financial sources if this market is the 10 percent vendors have to give of their
daily sales, which helps to cover the expenses for a special events permit from the
City of Phoenix, electricity bills, garbage bills, property taxes, and equipment
including tents, tables, and on-site storage containers. This market initially sought
out grant a funding to cover operational expenses, but in recent years, moved away
from seeking external funding sources.
Products and Services
Food sales, both produce and value-added, account for approximately 70 percent
of the market’s total sales, with the remaining 30 percent coming from a wide
variety of local non-food products such as flowers, potted plants, soaps, ceramics,
and other crafts.

Initially, the market would only host vendors selling exclusively Arizona-grown or
produced products, but recently, they have expanded the requirements to allow
“regional” produce as well. “Regional” includes produce from neighboring states
that Arizona farmers trade for (e.g. avocadoes from California). Arizona’s climate
and growing season make it difficult for farmers to meet food demand year-round.

The market accepts all federal food benefits and works closely with the state to
ensure that they can continue to offer these services as many customers take
advantage of them.

Some services the market provides include space for new businesses, such as food
carts, to test their products, market themselves, and create a customer base.

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 Occasionally, the market works with a local bank to offer microloans to vendors,
although this service has not been widely utilized. The market’s partnership with
the Phoenix Public Market Café further supports the goal to grow small local
businesses.

The market has considered taking a more active role in business development and
product marketing, but the staff and board ultimately felt that those services were
offered elsewhere (e.g. through the City or the Chamber of Commerce). For that
reason, rather than duplicate services, the market will refer vendors to these
existing resources.
Market Characteristics
The market’s patrons represent a wide demographic spectrum. A diversity of ages
and income levels shop at the market, which indicates that the produces offered
cater to many needs and are affordable.
Successes and challenges
The consistency of location and operational hours, the central and accessible
location, and maintaining good relationships with surrounding businesses are some
of the factors that lead to the success of this market.

On the other side, trying to grow too aggressively by establishing a 7-day per week
grocery store, which did not survive, maintaining a balance of products due to
Arizona’s climate, managing relationships between vendors, and vetting products
for quality source are some of the challenges faced by the Phoenix Public Market.

Public Markets
CPW identified five public markets as case studies. Although two of these public
markets names are farmers’ markets, CPW considers these markets as public
markets by this study’s definition.

For the purpose of this study, a public market is a year-round permanent

destination where local and regional food producers, artisans, and other businesses
interact directly with consumers and trade their products. A public market also
serves as a venue and gathering place for the community, and provides a variety of
services.

Western North Carolina Farmers’ Market

Western North Carolina Farmers Market is based in Asheville, NC, which has a
metro population of 85,712 people.

APPENDIX G: CASE STUDIES October 2014 Page | G

 Business Structure
The Western North Carolina Farmers’ Market is a thirty seven year old publicly
owned market, and is operated by the North Carolina Department of Agriculture &
Consumer Services.

The market has five permanent open-air truck sheds that provide 194 spaces for
farmers and dealers to display top quality produce at reasonable prices. One truck
shed is designated for certified farmers who sell what they grow direct to the
consumer. Other sheds are mixtures of independent farmers or resellers. Some
farmers designate someone else to sell their product. The marker does not lease
the sheds.

Furthermore, the market has a permanent small dealers building and two large
permanent wholesale buildings consisting of more than 38,000 square feet. These
buildings offer produce year round to grocery stores, restaurants, institutions, and
roadside markets. This area is open 24 hours, seven days a week.
Financial Structure
The operations are financed 75 percent through the market, and 25 percent
through appropriated funds from tax dollars.
Products and Services
The market’s retail area consists of small local shops, and displays high quality fruits
and vegetables, mountain crafts, jams, jellies, preserves, sourwood honey, fresh
baked breads, cookies and dozens of other farm fresh items. The market is “dead”
from January to March, but the retail shops remain open. During wintertime, they
sell plants, pumpkins, and Christmas trees.
Additional to selling food, the market provides services for different schools in the
area. The local community college participates in a “Chef School” with the other
schools.Market Characteristics

The primary customers at the market are Asheville residents and tourists that visit
the city.

Successes and challenges

Western North Carolina Farmers' Market faces challenges such as competition with
grocery stores, and farmers’ little knowledge about government regulations. On
the other hand, promotion of local North Carolina products is a main success.

Burlington Farmers’ Market

Burlington Farmers’ Market is based in Burlington (VT), a city with a metro
population of 213, 701 people.

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 Business Structure
The Burlington Farmers’ Market is a thirty eight year old non-profit farmers’ market
started by AmeriCorps volunteers.

The market rents space in a park in downtown Burlington, which includes a

permanent, large indoor auditorium. The summer market is half inside and half
outside, while the winter market is in the auditorium. The market is located in the
middle of downtown at a key intersection next to city hall where it is at capacity,
but there is opposition to continued growth.
Financial Structure
Financially, this market relies on annual membership fees paid by the market
vendors, and it does not have other sources such as grants.
Products and Services
The market offers three main types of products: agricultural produce, crafts, and
prepared foods. The market’s charter registered with the city regulates the
proportion of vendors to 55 percent agricultural, not more than 30 percent crafts
and not more than 30 percent prepared foods. The current percentages are 55
percent agricultural produce, 28 percent prepared foods and 12 percent crafts
(there are many extra crafts and prepared food vendors wanting to join but they
need to balance that with produce vendors).

Crafts and prepared foods get 70 percent of their sales from tourists and 30
percent from locals, for produce it is the opposite.
Market Characteristics
A market analysis of the clientele three years ago found that less than five percent
came from more than 10 miles away (except tourists), and most customers walk to
the market because there is limited parking. Moreover, the market gets a lot of
tourist business from visitors to Burlington in the summer, but not as many in the
winter.
Successes and challenges
The successes of this market are due to the buy local culture of Vermont that
makes the marketing and consumer education easier, and the support from the
City on every issue. On the other side, one of the challenges is the perception that
the farmers’ market is turning more into a street fair that wants to capitalize tourist
dollars by selling more prepared foods instead of produce products.

Central New York Regional Market Authority

Central New York Regional Market Authority is based in Syracuse (NY), a city with a
population of 145,170 people and a metro population of 662,577.

APPENDIX G: CASE STUDIES October 2014 Page | I

 Business Structure
The market is a seventy-six percent publicly owned public market.

The market is a wholesale and retail market with large facilities. The market has
three permanent commission houses that cover an area of 30,000 sq. ft. where
wholesale businesses are located. There is a 100,000 sq. ft. freezer and refrigerator
warehouse occupied by one tenant. There are several restaurants, shops, and
common areas located in the administration building. The market also has a bank,
Wendy’s store, and storage facilities located on site.

Retail farmers lease market space, and can deliver a product anytime to any of the
wholesalers.
Financial Structure
The market is a self-sustainable business. Ninety-five percent of the revenues come
from renting space, buildings, and land, but the market receives some grants from
the New York State Agriculture for promotions to implement projects, such as
installing solar systems or other energy efficiency measures.
Products and Services
The retail area displays high quality fruits and vegetables, crafts, jams, jellies,
preserves, honey, fresh baked breads, cookies, and dozens of other farms fresh
items. It also has a deli that offers sandwiches and ice cream.

Furthermore, the market offers public health outreach and programs. For instance,
the market does a lot of work with the Office of the Aging by serving as a meal site
every other week.. The market also works with a number of agencies including food
pantries and health departments. Additionally, the market operates a mobile
market that sells local products about five or six nights a week to places, such as
hospitals or senior centers. The mobile market also runs a demonstration kitchen
for customers.
Market Characteristics
The wholesale farmers’ market consists of 25 vendors during the growing season.
The primary customers of the wholesalers are small grocery stores, small farm
markets, people that go to other farmers’ markets, restaurants that buy directly,
and other institutions. The wholesale farmers’ market is on Tuesdays, Thursdays,
and Saturdays.

The retail market consists of 450 stalls that serve approximately 170 local farmers.
The retail market is on Saturdays and Thursdays, and the flea market is on Sundays.

The majority of the customers of this market come from a 30-mile radius. The
market is a very popular place for visiting and social activities. The market holds
concerts and other social events on non-market days.

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 Successes and challenges
The refocus on local products, the explosion of the popularity of public markets,
and people’s interest in knowing where their food is from has lead to the successes
of this market.

On the other hand, the weather, a large influx of chain grocery stores in central
New York, and the fact that some of the wholesalers left the market as it
deteriorated in the 60s and 70s have been some of the challenges faced by this
public market.

Oxbow Public Market

Oxbow Public Market is based in Napa (CA), a city of approximately 76,915 people.
Business Structure
The Oxbow Public Market is a seven-year-old for-profit public market managed by a
managing partner and a group of investors. The managing partner functions are to
control all of the operations and decisions of the market and report back to the
investor group.

The market leases space to tenants who can sub-lease the space to other people.

Oxbow Public Market’s physical structure is a mixed of a permanent main building

and a detached building. The main building is approximately 14,000 square feet
andis all inside under-roof. In the inside, the market is a mixture of tenants, who all
have open businesses booth. Additionally, the market has a common area in the
market to allow customers to eat and sit to enjoy the market. The detached
building is in very close proximity to the main building and shares a corridor with
the main building. The detached building consists of a stand-alone restaurant
revenue, which has 4,000 square feet per restaurant.

The Oxbow Public Market provides, by requirement of the Napa Valley Health
Department, cold storage for the restaurants and a common area food storage that
is used by different restaurants. Additionally, some of the restaurants were able to
build their own walk-in cold storage, as they need it.
Financial Structure
The profits for this market come from the tenants’ marketing fee, lease, and the
camp charges, which are a common area maintenance charge that covers
electricity, water, sewer, common area cleaning, and property taxes. The market
does not receive any grant or money from public agencies.
Products and Services
Oxbow Public Market is a mix of approximately 23 retail and restaurant stores. It
includes businesses such as bakery, beer, breakfast, charcuterie, cheese, coffee,
dessert, dining, diner, gift, housewares, lunch, meat, olive oil, produce, seafood,

APPENDIX G: CASE STUDIES October 2014 Page | K

 shopping, spices, spirits, and wine. The variety of products keeps the market as a
place where locals get all their products for a meal.

The vendors of the Oxbow Public Market source locally; however, the market has
never seen decreased in supply in the off-season because of the broad base of local
farmers that stock purveyors in the area.

The market does not offer health outreach or gardening, but it has a routine of
cooking demonstration. Additionally, the market does not receive Supplemental
Nutritional Assistant Program.
Market Characteristics
The primary customers are the locals that not only go to get the food for their
meals, but also to have breakfast, lunch, and dinner. The secondary customers are
the tourists that visit Napa Valley. During the winter season, the local population
heavily supports the sales at this market, and the market considers that its success
is due to this support.
Successes and Challenges
The mixture of tenants and high quality artisan products and food made this
market a tourist destination in the Napa area. Furthermore, the support of the local
people during wintertime is also part of the success of this market.

The challenges faced by Oxbow Public Market consist are the differences in the
operation hours between the restaurants and the retail businesses, the mixture of
businesses being opened and closed at different hours, and trying to maintain a
very steady and appealing experience for the customers during those times when
some of the business may be closed.. Additionally, the market regrets not having
space for social and private events.

Rochester Public Market

The Rochester Public Market is based in Rochester (NY), a city with approximately
210,532 people.
Business Structure
The Rochester Public Market is a publicly owned market managed by the City of
Rochester.

This market leases space to vendors, but vendors are independents from the City of
Rochester or the management office. Farmers have priority when there is a space
available for leasing.

The facility consists of two open-air sheds and one enclosed shed. Vendors utilize
the two open sheds are utilized year round and the larger shed has kerosene
heaters for the winter season. The indoor shed has 63 spots; however, it was built
in the 70s and lacks an efficient plumbing and drain system; for that reason, it is no
longer useful for vendors that sell products such as meat and fish.

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 Financial Structure
The Rochester Public Market has been very successful over the last 20 years. The
reasons for this success is the sale of food, the activities developed at the market,
and also the national trend about eating local and the human interaction
experience with the farmers and visitors at the market.

The market is self-supporting. The market’s operating budget is around $650,000

dollars annually. Additionally, the market has multiple financial sources, such as
grants through the city of Rochester and the state of New York, taxes, and city
bonds that help implement redevelopment projects.

Rochester Public Market boosts the economic development of the city. It has
encouraged the redevelopment in the surrounding buildings and vitality in the
public spaces.
Products and Services
The Rochester Public Market provides a variety of products and services. The
market has 300 vending stalls. The main products shoppers seek at the market are
first fresh produce, then meat, fresh cheese, baked goods, and, general
merchandize, and art and crafts. Vendors are local, estimated within 100 miles.

Amenities for the community include the flower city market, food truck rodeos,
summer concert, garage sale, market token program, nutrition outreach program,
healthy tasting and a nutritional information event, food demonstrations, school
tours, and the Women Health screening fair. Many of the activities are developed
in partnership with other organizations.
Market Characteristics
The Rochester Public Market is primarily a retail market. However, it has three
wholesale produce businesses based in front of the market. The main customers
that visit the market are residents from the city, the six surrounding counties, and
tourists.
Successes and Challenges
Parking and congestion, relationship with vendors, differences in the operation
hours between the vendors, and the participation process for the redevelopment
sites are some of the most important challenges this market has undergone.

Food hubs
CPW identified five food hubs as case studies. Food hubs are a new concept
introduced by the United States Department of Agriculture within the past five
year. Because of this, many definitions and types of food hubs exist.

For the purpose of this study, a food hub is a business that supports local and
regional small and mid-sized farmers, food producers, and small entrepreneurs,
through aggregating, distributing, and marketing their products to not only help

APPENDIX G: CASE STUDIES October 2014 Page | M

 them satisfy wholesale, retail, and institutional demand, but also to provide the
community with access to local food. Food hubs also aim to strengthen the local
economy.

GrowFood Carolina Food Hub

GrowFood Carolina is a food hub located in Charleston, SC, a city with a population
of 120,083 people.
Business Structure
GrowFood Carolina Food Hub is a three-year-old non-profit business.

GrowFood Carolina is an offshoot of the South Carolina Costal Conservation League

(CCL), but it functions as an entirely separate organization with its own Board of
Directors.
Financial Structure
This business began with approximately $600,000 dollars of initial capital
investment. $500,000 of this came in the form of a donated 5500 sq. ft. warehouse
building, with another $100,000 in the form of private monetary donations. The
food hub has one refrigerated truck and one van for distribution, which serve
approximately a 20-mile radius. The food hub also “back hauls” by dropping
products off with other distributors to be dispersed throughout the Southeast.

The food hub covers operational costs through a combination of fundraising (grants
and private/corporate donations), income from the rental of office space in the
warehouse, and a 20 percent operational fee retained from all grower sales
(growers are paid 80 percent of expected sales upfront).

Approximately 60 percent of sales come from restaurant purchases, 35 percent

from retail stores, and 5 percent from small institutions and caterers.
Products and Services
GrowFood provides four main services: (1) outreach to over 50 farmers to provide
assistance with growing practices and post-harvest handling of products, (2)
warehouse space for growers to aggregate their products, (3) distribution services
to buyers, and (4) marketing services, such as branding and marketing growers’
products to promote the consumption of local food.

The food hub also partners with many other organizations with related missions to
offer a wide range of local food related services, including nutrition and
environmental education.
Market Characteristics
The Charleston area does not currently have any other operations providing
services similar to GrowFood’s offerings. Since GrowFood began distributing food in
2011, interest surrounding local food has grown, and the “Local GrowFood
Carolina” label has become a familiar site in grocery stores.

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 Although GrowFood did not conduct a market analysis or feasibility study before
beginning their operation, those involved with the food hub’s development had a
solid understanding of what challenges prevented the local food movement from
growing.
Successes and Challenges
One of the reasons of the success of this food hub is the fact that farmers were
ready to sell local products and consumers were willing to purchase them.
Nevertheless, educating growers about post-harvest handling best practices has
posed a huge challenge.

Intervale Food Hub

Intervale Food hub is located in Burlington, VT, a city of approximately 213,701
people.
Business Structure
Intervale Food Hub is a six-year-old non-profit food hub, and an enterprise of the
Intervale Center. Intervale Food Hub was created as a response to the increased
demand for local food in the region, and it started out as a multi-farm CSA, which
then evolved into a direct to consumer food hub.
Financial Structure
This food hub relies mostly on revenue for its finances, and less on grants.
However, Intervale Food Hub receives grants from the USDA and a combination of
public and private grants.
Products and Services
Intervale Food Hub offers a variety of fruits and vegetables that are grown in the
area. Furthermore, it provides a variety of services:

1. Assistance to farmers with detailed production profiling so that they know

what to expect to grow;

2. Distribution services to businesses, work places, schools, and civic centers;

3. Educational outreach in partnership with schools and employers to build

relationships with them, and communicate the value of eating locally;

4. Marketing services, such as producer profiling, social media, and an e-

newsletter;

5. Negotiates its price list annually; and

6. Provides annual network meetings for farmers.

APPENDIX G: CASE STUDIES October 2014 Page | O

 The distribution services include delivering to small colleges nearby and the
University of Vermont. Additionally, students are able to order online and the food
hub delivers to approximately 150 students that live off campus.

In terms of seasonality, the food hub works to educate people about what is
seasonally available and how to eat and prepare available produce. It also works
with producers to supply during the winter months and increase availability.
Market Characteristics
The primary market is the Greater Burlington area is everything within a 75-mile
radius. Primary customers are those that work, live, and learn in Burlington.

This hub shares the market with two processing hubs in the greater Burlington area
as well as wholesale distributors.
Successes and Challenges
The food hub’s location, scale, model chosen for the community, the Intervale
Center’s support, and the farmers are the reason of the success of this hub. On the
other hand, to grow the demand, the energy spent to coordinate the supply, and
financing are the main challenges for this food hub.

La Montanita Co-op and Distribution Center

La Montanita Co-op and Distribution Center is located in Albuquerque (NM), a city
with a population of 555,417 people and a metro population of 902,797.
Business Structure
La Montanita Co-op and Distribution is a thirty-eight year old cooperative food hub.
The cooperative legal status means that it is owned by its consumers;
approximately 14,000 members in its six stores based in Albuquerque, Gallup and
Santa Fe1.

The food hub first began as La Montanita Cooperative, a retail store, and later in
the 2004, it opened its subsidiary La Montanita Distribution Center, a wholesale
distributor.

The La Montanita Co-op and Distribution Center operates a 17,000 square-foot

warehouse with refrigerated and frozen storage2, which is used for 400 out of 900
producers and suppliers selling to the cooperative3.

1 La Montanita Co-op Food Market. (2014). We love food! Retrieved from: http://lamontanita.coop/mission/
2 Cantrell P., Heuer, B. (March 2014). Food hubs: solving local. The Wallance Center at Winrock International. Retrieved from:
http://ngfn.org/solvinglocal
3 U.S. Department of the treasury. Financing healthy food options: implementation handbook case study, la montanita cooperative.
Retrieved from: www.cdfifund.gov/what_we_do/.../CS%20-%20La%20Montanita.pdf

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Financial Structure
La Montanita has multiple sources of funding, such as income generated from
operations, several loans from NCB Capital Impact, loans from a local community
bank, capital raised through community investment initiatives, and loans to Co-op
members serviced by State Credit Union4. The distribution center was funded
through a combination of operations income and loan capital5.

La Montanita estimates it captures approximately 20 percent of total purchases

and sales of local food in the state. The food hub generated $4.6 million in sales
during 20136.
Products and Services
La Montanita Co-op offers fresh organic produce, bulk foods, local organic beef,
lamb, and other meats and cheeses, fair trade products and a wide variety of
natural and organic groceries, freshly prepared deli foods, natural body care,
vitamins, and supplements.

This food hub sources locally from within a roughly 300-mile radius of
Albuquerque7

It provides:

 Support to local farmers through the Food-Shed Project, an initiative that

helps local farmers and producers get their products into more markets,
such as small community grocers, restaurants, and commercial kitchens as
a result of the Co-op Distribution Center8;

 Dry, refrigerated, and frozen product pick-up;

 Distribution system;

 Wholesale capacity building through purchasing food from farmers and

producers for resale;

 Sales brokering9;

 Micro-loans to local producers;

 Business development support through its in-house enterprise

development Staff10;

 Discounts (18 percent) on all purchases once a week, at the member’s

convenience, in exchange for one hour of donated time weekly11; and

4 Ibid.
5 Cantrell P., Heuer, B. (March 2014). et. al.
6 Ibid.
7 La Montanita Co-op Food Market. (2014). et. al.
8 Ibid.
9 Cantrell P., Heuer, B. (March 2014). et. al.
10 La Montanita Co-op Food Market. (2014). et. al.
11 Ibid.

APPENDIX G: CASE STUDIES October 2014 Page | Q

  Financial support through a pre-pay program in which the co-op advances
funds to vendors and deducts it from future invoices.
Market Characteristics
La Montanita Co-op and Distribution Center serves approximately 14,000 members
throughout New Mexico. Furthermore, wholesale buyers include Whole Foods, Bon
Appetite, small businesses, and other retail co-ops12.
Successes and challenges
The factors that have contributed to La Montanita success is the focus on selling
local products and its exclusive contract for many years with the Organic Valley
Company; a milk and milk-related products producer that helps this business in the
path to become a wholesaler13.

Hollygrove Market and Farm

Hollygrove Market and Farm is food hub based in New Orleans, LA, a city with a
population 378,715 people and a metro of 1,240, 977.
Business Structure
The Hollygrove Market and Farm is a six year old non-profit. It is an urban farm,
local produce market, and community garden space that operates as Community
Supportive Agriculture style cooperative, and retail market14.
Financial Structure
The literature did not provide financial information.
Products and Services
This farm sells a “box.”; a mix of naturally (organic methods, but not certified),
conventionally, and (occasionally) certified organic fruits & vegetables. The market
and farm source food from backyard growers, community gardens, urban micro-
farms in New Orleans, and rural farms throughout southern Louisiana and
Mississippi.

Hollygrove uses Good Eggs food hub platform to deliver food to its consumers.

This business supports the development of community gardens, provides training

programs, serves as a demonstration site for visitors interested in adopting
environmentally sustainable practices, and implements environmental programs
such as sustainable gardening and recycling15.

12 Cantrell P., Heuer, B. (March 2014). et. al.

13 Ibid.
14 Hollygrove Market and Farm. (2014). Who we are. Retrieved from: http://hollygrovemarket.com/who-we-are
15 Ibid.

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 Market Characteristics
This market serves both households and restaurants16.
Successes and Challenges
The literature did not provide information about successes and challenges.

Local Food Hub

The Local Food Hub Farm is located in Charlottesville, VA, a city with a population
of 43,475 people and a metro of 206,615.
Business Structure
The Local Food Hub is a five-year-old non-profit food hub governed by a six-
member Board of Directors17.

Its infrastructure includes a 3,500 square foot warehouse with multiple

temperature zones, a loading dock, limited office space, a large cold storage room,
a bathroom, a small kitchen area18, an 18-foot refrigerated delivery truck, and a
smaller refrigerated van.
Financial Structure
The operational budget of this food hub for the year 2011 was $580,000, of which
$75,000 reflects earned income while the remainder is raised through a variety of
sources, including local and federal government grants and foundations.

The Local Food Hub takes a percentage of the food sales and has received
numerous grants, including one to buy local meat for the Virginia Farm to School
Program19.
Products and Services
This food hub sells locally grown fruit, vegetables, meat, eggs, and value-added
items from more than 70 small family farms in Central Virginia. The difition of local
for this food hub is within 60-100 miles of Charlottesville, Virginia20.

The Local Food Hub provides the following functions and services:

 Provide technical assistance for farmers on topics such as food safety,

season extension, soil management, organic agriculture, and processing;

16 Beyond the plate. (2010). New Orleans: Hollygrove market and farm. Retrieved from: http://www.beyondtheplate.net/travel/hollygrove-
market-and-farm/
17 Future Harvest. (2011). Visit to the Charlottesville Local Food Hub. Retrieved from:
http://www.futureharvestcasa.org/index.php?option=com_content&view=article&id=133

19 Local Food Hub. (2014). How it works. Retrieved from: http://localfoodhub.org/howitworks/

20 Ibid.

APPENDIX G: CASE STUDIES October 2014 Page | S

  Aggregate food;

 Provide cold storage and marketing services to farmers21;

 Distribute to more than 150 locations;

 Distribute of local food into low-income neighborhoods and food banks and
hunger organizations;

 Participate in the program “Virginia Farm to School Week.” is an

opportunity for all schools to purchase, serve, and promote Virginia Grown
foods in their cafeterias during the week22

 Build connections between schools, students and agricultural producers

throughout Virginia;

 Run the “Local Food Hub’s Farm to School Fund” which funds through
community donations and foundations the “bridge gap” that prevent
schools to access local food23; and

 Run a 75-acre educational organic farm called Maple Hill, which was
donated by musician Dave Matthews, in Scottsville, Virginia. Part of the
produce of this farm goes for the food bank24.
Market Characteristics
The Local Food Hub has retail and wholesale customers. Wholesalers include public
schools, hospitals, institutions, and restaurants25. Furthermore, the hub worked
with a consultant to gauge what products customers want to buy to get farmers to
grow what consumers want.

The Local Food Hub delivers within a 40-mile radius of the hub26.
Successes and challenges
One of the most important components of the Local Food Hub’s success lies in its
relationships with farmers and buyers, affordability of products, and the direct
connection to local agriculture.

Some of the challenges pertain to the financial sustainability of the hub. To mitigate
the financial challenges the Local Food Hub has a part time grant writer.
Additionally, transportation for farmers was a challenge because the farmers did
not use to have the produce ready to pick it up, which delayed the distribution. Due
to the lack of transportation, the food hub developed a transportation system
regarding time and location with farmers27.

21 Ibid.
22 Future Harvest. (2011). Et al.
23 Local Food Hub. (2014). Farm to school. Retrieved from: http://localfoodhub.org/howitworks/
24 Future Harvest. (2011). Et al.
25 Local Food Hub. (2014). Where to find our food. Retrieved from: http://localfoodhub.org/howitworks/
26 Future Harvest. (2011). Et al.
27 Ibid.

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Case Study Main findings

Business Structure
 The mission of the businesses is to support agriculture through providing a
place not only to sell products, but also to serve as a gathering and meeting
place.

 A Board of Director is the common management model for these

businesses. The exception is Oxbow Public Market, which is a for-profit
market managed by a managing partner and a group of investors.

 Most of the markets and food hubs are located in the downtown of their
cities where they can be accessible to the community.

 Public markets have permanent buildings with open and enclosed sheds,
while farmers’ markets do not.

Financial Structure
 The lease and other fees paid by vendors, such as the percentage of the
sales, are the main financial sources of these three business models.

 Publicly owned markets have multiple financial sources such as taxes, city
or state grants, and city bonds.

Products and Services

 Farmers’ markets and public markets provide more variety of products
than food hubs. Farmers’ and public markets sell produce, other food
products such as meat, cheese, and fish, art and craft, and plants, while
food hubs sell mainly produce and other food products.

 Other services for the community complement the sale of food. Health and
educational services are implemented by farmers’ and public markets,
while food hubs provide environmental and educational services. Cooking
demonstrations is a common activity across markets and hubs.

 Partnerships with other organizations help markets and hubs provide many
of their services.

 Markets and food hubs make a big effort to source locally. Each market and
food hub has its own concept of “sourcing locally”. Additionally, seasonality
not only makes markets and food hubs to be flexible about sourcing locally,
but also to implement different strategies to adapt to seasonality.

APPENDIX G: CASE STUDIES October 2014 Page | U

 Market Characteristics
 Markets promote social cohesion; residents without distinction of income,
race, or other characteristic shop at these markets.

 Local residents’ support is relevant for the success of these businesses,

mainly during the winter season when the number of tourist shoppers and
variety of products decrease.

 Different from markets, food hubs have to develop strong marketing and
distributing services to look attract consumers.

 Retail is a main feature of farmers’ and public markets, but food hubs such
as La Montanita, also have a retail component.

 Publicly owned markets not only have retail, but also wholesale and
restaurants. However, wholesale at this market is not operated by the
market, but for the renters of the space.

Successes and Challenges

 Successes and challenges depend on the context of each market and food
hub. However, support of local residents and focus on local products are
the most common factors of success.

 Focus on local product seems like a contradictory idea due to the flexibility
on sourcing locally. Although, this is what CPW heard during the interviews.

 Building partnerships to provide services is relevant in the success of the

food hubs.

 Seasonality and sharing the market with a growing number of grocery

stores are the most common challenges between the markets. While,
getting financial sources is the most common between the hubs.

Page | V Community Planning Workshop

 Case Study Summary Tables
Business Structure Table
Western La
Boulder Central
Boise Phoenix North Burlington Oxbow Rochester GrowFood Montanita Hollygrove
BUSINESS County New York Intervale Local Food
Farmers’ Public Carolina Farmers’ Public Public Carolina Coop and Market &
STRUCTURE Farmers’ Regional Food Hub Hub
Market Market Farmers Market Market Market Food Hub Distribution Farm
Market Market
Market Center
FARMERS MARKET PUBLIC MARKETS FOOD HUBS
Legal status
Public X X X
Non-profit X X X X X X X X
For-profit X
Cooperative X
Years in operation
27 2 9 37 38 76 7 109 3 6 38 5 6
Management Model
Board of
X X X X X X X X X X X X
directors
Location
Downtown X X X X X X X No data X X
Area
different to X X X
downtown
Facility characteristics
Indoor X X X X X X X X X
Outdoor X X X X X X X
Owned
X X X X X X
facility
Rented
X X X
facility
Permanent
X X X X X X X X X X
facility
Non-
permanent X X X X X
facility
Opened Year Round
Yes No data X X X X X X X X X X
No X X
6-8 times
per
Days per
2 1 3 7 season 7 7 3 No data No data 7 No data 7
week
(october
to April)

APPENDIX G: CASE STUDIES October 2014 Page | W

 Financial Structure Table
Western La
Boulder Central
Boise Phoenix North Burlington Oxbow Rochester GrowFood Montanita Hollygrove
FINANCIAL County New York Intervale Local Food
Farmers’ Public Carolina Farmers’ Public Public Carolina Coop and Market &
STRUCTURE Farmers’ Regional Food Hub Hub
Market Market Farmers Market Market Market Food Hub Distribution Farm
Market Market
Market Center
FARMERS MARKET PUBLIC MARKETS FOOD HUBS
Source of funding
Fee for lease
X X X X X X X X X
space
Cut off sales,
grants,
X X X X X X X X X X X
donations, and
taxes
private sources
(sponsors, X X X
investors, loans )

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 Products and Services Table
Western La
Boulder Central
Boise Phoenix North Burlington Oxbow Rochester GrowFood Montanita Hollygrove
PRODUCTS AND County New York Intervale Local Food
Farmers’ Public Carolina Farmers’ Public Public Carolina Coop and Market &
SERVICES Farmers’
Market Market Farmers Market
Regional
Market Market Food Hub
Food Hub
Distribution
Hub
Farm
Market Market
Market Center
FARMERS MARKETS PUBLIC MARKETS FOOD HUBS
Products
Produce X X X X X X X X X X X X X
Other food
products (meat, X X X X X X X X X X X X X
cheese, dairy)
Prepared food X X X X X X X X
Art & craft X X X X X X
Services for the Community
Health programs X no data X X X
Educational
X X X X X X X X X X X
programs
Entertainment
X X X X X
activities
Environmental
X X X X X
programs
Services provided for vendors
Aggregation no data no data no data X X X X
Distribution X X X X X
Marketing X X X X X X X X
Storage X X X X
Cold storage X X X X
Technical
X X X X
Assistance
Sourcing locally
local/regional
X no data X no data no data X X no data no data X X
year-round
local /regional
X
part of the year

No local/regional
sourcing X
requirement

APPENDIX G: CASE STUDIES October 2014 Page | Y

 Market Characteristics Table
Western La
Boulder Central
Boise Phoenix North Burlington Oxbow Rochester GrowFood Montanita Hollygrove
MARKET County New York Intervale Local Food
Farmers’ Public Carolina Farmers’ Public Public Carolina Coop and Market &
CHARACTERISTICS Farmers’ Regional Food Hub Hub
Market Market Farmers Market Market Market Food Hub Distribution Farm
Market Market
Market Center
FARMERS MARKET PUBLIC MARKETS FOOD HUBS
Market Model
Retail X X X X X X X X X X X X
Wholesale X X X X X X X
Restaurants X X X
Consumers
wholesalers X X X X X X
Residents X X X X X X X X X X X X
Tourists X X X X X X X X
Competitors
Other farmers
markets in the X X X X X X no data no data no data
area
Other public
markets in the X
area
Other food hubs
X
in the area
Grocery stores X X X X X X

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