Small Bites
May 31, 2023
Creating opportunities to amplify & sell VT products to more buyers in the northeast & beyond
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Things in farm production, food distribution, & selling get complicated. As a regular reader, you know that Small Bites & the Farm to Plate Grocer Project shares tools & resources while highlighting Vermont & regional food producers, processors, distributors, & stores. The idea being that exposing the positive can drive creativity & improve operations. So far so good.
You also know we share information on the greater "food system". A term that is fraught with irony. (per Webster: a set of things working together as parts of a mechanism or an interconnecting network). To understand "local food" variables, we provide context that includes global supply chains, private equity financing, & consolidation of every aspect of production all the to retail shopping.
That, however, is not enough. The complexities are related to & integrated into government policies that have benefitted large corporations by leveraging their purchasing power & lobbying to weaken policies across the supply chain. This has muddled the understanding of the issues relying instead on ‘inflation’ as the cause of increased food prices. Independent foods stores & small businesses are most heavily crushed under this weight.
Are you tired of the new normal? Contact your state representatives about the pressures & impact of the fallout from the lack of regulation as the Robinson-Patman Act dissolved under industry pressure in the 1970's.
Read on for this month's info with lots to think about.
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VT Summer Food: Keeping it Easy
So many foods say, "Summer in Vermont". Of course, locally grown produce comes to mind this time of year. A plethora of greens, asparagus, radish, herbs & berries are the on ramp of fun, light, wholesome, fresh food.
Our stores are A+ when it comes to supporting our local economy. Many farms & area producers gain traction through one-on-one relationships with store buyers. The stores then promote these key suppliers with marketing strategies both instore & online. These promos link back to the community of suppliers that literally hail from the community & feed the local economy.
However, the economics of running a store are challenging at best. Buyers must balance their product mix which means juggling "national brands" often through 'national distributors" which inevitably favor larger stores. But you likely know that having read the Stacy Mitchell piece noted above.
The Grocer Project of Farm to Plate recognizes all our farms, distributors, suppliers, & stores working together to support each other as viable, for-profit businesses, in a sea of challenges.
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Full Belly Farm rings in summer with first of the season fresh strawberries for Memorial Day weekend.
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Woodstock Farmers Market is ready for summer. Both of their stores in Waterbury & Woodstock are high summer season areas. They have an ethos of supporting area businesses, selling loads of regional meat, produce & grocery items interspersed with regional & national brands.
To generate sales, they have perfected the art of the display with easy to shop, easy to restock while also exhibiting excellence in cross promotions & in-store marketing. They have always had a sense of theater in their stores along with a fantastic grab & go program to enhance meals for locals & travelers in all seasons.
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Cold Brewtus, great summer bevie available for chilling out & cooling down
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Category Mgt: Coffee
There are a notable VT producers in every corner of the state. We have some fabulous brands roasting beans & canning cold brews. Many fine coffee roasters ship through our regional distributors or DSD.
Farm to Plate has been updating our producer database to help buyers find local companies to round out product mix. Reach out to us- we can find VT products to fit your needs.
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Pay Attention
A handful of highly respected organic certifiers have been quietly meeting for the last two years, creating a position paper on why they refuse to break the law by certifying hydroponic production. Their refusal has not made the USDA happy.
The great debate on hydroponics in Organic has been going on for 13 years. 2010 was the first time that the NOSB seriously considered the issue. Their answer was clear. Hydroponics can NOT be considered organic. In fact, it was not even a debate. Read more to stay informed. All stores are welcome to join & support ROP. Here is the 2022 list of VT Real Organic Certified Farms.
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June is National Dairy Month
As May gives way to June, check your signage, clean out coolers & promote VT dairy at your store or farm stand. Our farms are counting on us working together to encourage sales, this of course includes our artisan cheese makers.
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Do you need HR help? Business skills support?
Business Sense, is a six-module series providing essential tools & resources for small businesses. The series accelerates growth while expanding leadership capacities. Check out the resources such as Human Resource skills development.
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Iturri Foods provides procurement services & operational consulting for farms, restaurants & food manufacturers. Need some help growing your operations? It's just a click away.
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Vermont Specialty Food Association's annual meeting is June 6th. This in-person event offers a chance for our food businesses to learn in B2B forums, take in the latest trends, while also meeting with companies that supply packaging & services for food manufacturing profitability in a competitive climate.
Each year there is a fantastic agenda along with collective freestyle engagement by participants. VSFA supports our local food businesses & we at F2P encourage our food stores & distributors to become members. Sign up here to become a member. To attend the June 6 event sign up here
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Things are Hard & Messed Up
Consolidation is one of our biggest challenges in moving the local & regional food economy. It is happening at every point in the supply chain, from farms through to retail that ultimately impacts shoppers under the guise of 'inflation'.
We have seen big changes impacting local food sales in Vermont. In 2016 the two owners of Black River Produce sold to Reinhart Food Service, which was sold to publicly traded Performance Food Group a 3.5 billion dollar company. (it's top-ten owners including mutual funds). Their policy changes at the procurement & sales levels have adversely impacted our farmers, manufacturers, & food stores with higher service fees, freight rates, & fewer shipping options.
Nationally, it wasn't that long ago the UNFI purchased a number of distributors to minimize competition & grab a hold on pricing. Then in 2018 it purchased Supervalu gaining 3000 stores, subsequently closing or selling dozens to leverage its power.
It is not unheard of for local food brands to sell to acquisition or private equity companies. In some cases, this has led to immediate closure. Remember Koffee Kup & VT Bread Company? They were bought by AIAC, (an investment firm that seeks to invest in the manufacturing, aerospace, automotive, trucking) which touts, it's Golden Rule for operating.
In addition, extreme market pressure comes from the large retail players. 'Powerful retailers are killing off small businesses by dominating supply chains. A report from ILSR explains that it’s time to revive the Robinson-Patman Act & restore antitrust enforcement against predatory buying.' Maintaining a competitive edge in a world of powerful money is challenging.
To really support the economic vitality of the Vermont & New England foodshed we ought to consolidate resources to disrupt & challenge this paradigm that can support small & local businesses.
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Inde Distributor's: Rhino Skin
The 'consolidation-foundation' of our food system includes every step: farm production, processing, distribution, & retail.
How do our local small distributors make it? By supplying curated specialty products on distinct routes & generally speaking to independent & coop stores. Think Kathy Killam, who is primarily focused on selling baked goods. Lesser Distribution sells VT brands mainly to independent stores on established routes. Wilcox specializes in the frozen sector while also shipping BOL freight around the region. Vermont Roots, Pumpkin Village Foods, and P & S target specialty stores & farmstands.
Each distributor comes up against the pressure of store buyers & their quest for profitability & the challenges of downward pricing on the full spectrum of products available through national distribution channels. These large scale operations are rife with charge-back payments that can cripple brands, including our local businesses hoping to scale their sales for wider distribution.
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Farmer as Retailer
Happy Bird Poultry Farm in the northwest (kingdom) of Vermont is hitting its stride with the wide variety of products at their farm store. Summer is a great season with may folks coming down from Canada to stock up. The wholesale operation sells direct to coops, inde stores, & farmstands throughout northern Vermont.
Mighty Food Farm are strong believers in participating in the local economy. They work with several local businesses packing up "retail-ready" bagged vegetables for grocery stores & delis. Superior quality, excellent customer service, & consistency in procedures are keys to success, as is flexibility to accommodate the needs of retailers. They deliver to Williamstown & North Adams, MA; and in Bennington, Manchester, Dorset, & Pawlet, VT.
Cedar Circle Farm in East Thetford had a banner weekend selling plants. The farm located along the Connecticut River has a robust retail farm store, PYO operation, abundant plant sales & a fantastic education center.
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What About that Frost?
The late frost in mid-May caused a big scare into fruit producers in Vermont & the northeast. With temperatures across the state in the 20's, depending on their flowering stage, fruit trees & berries took a hit. Assessments are still being made on the impact on the crops.
Vermont Agency of Agriculture has asked for data about the extent of crop loss or damage because of the frost to support their effort to obtain federal disaster payments for farmers. Fill in this short form describing crops lost, area affected, estimated value, & whether you have crop insurance. There is also a section to describe frost protection measures you may have taken, & how well they worked.
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“A merger of the nation’s top two grocery chains should raise serious questions about a single supermarket giant gaining unprecedented dominance over the nation’s food supply chain. A merger would not only put smaller competitors at an unfair disadvantage, but also increase anticompetitive buyer power over grocery suppliers, which ultimately would harm consumers. It is our expectation that this deal will receive rigorous scrutiny from federal antitrust enforcers.” -Greg Ferrara, National Grocers Association
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Small Bites comes to you via USDA & High Meadows grants. Content is created for farmers, food manufacturers, distributors, & grocers to increase VT food sales
Contact: Annie Harlow
smallbites802@gmail.com
Unless otherwise noted, photo credits are from company social media, websites or Annie Harlow
Photo & Artistic Credits:
Apple Blossom Howard Weiss-Tisman
All info is subject to change; thank you to all who contributed to this issue
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