Local Food

A Billion Dollar Opportunity for Berrien County, MI

By: Lee LaVanway

According to the U.S. Census Bureau and the U.S. National Agriculture Statistics service, Berrien County’s 63,569 households spend almost $375 Million for food annually. http://quickfacts.census.gov/qfd/states/26/26021.html

Yet the value of all agricultural products, produced and sold in Berrien County in 2002 (the latest period for which statistics exist), was about $97 Million, and that amount includes items such as field corn, soybeans, and sunflowers. (Almost 25% of the total value comes from those three commodities.) These data reveal a gap of at least $275 million between local production and consumption. http://www.nass.usda.gov/census/census02/volume1/mi/st26_2_002_002.pdf

Though no reliable data exists to identify the amount of locally-produced food actually being consumed in Berrien County, it is nonetheless safe to assume that a significant percentage of the county’s production is not being consumed by its citizens. This assumption is based on numerous fruit and vegetable brokers operating seasonally here; they frequently ship locally grown produce to distant markets, and they’re handling millions of packages.

Local Meat Facts

But there are credible sources for per capita food costs, by food type— USDA’s Economic Research Service. http://www.ers.usda.gov/Briefing/Consumption/

There we see useful information about meats consumed during 2005 (again, the last year for which data exists). Amounts consumed by weight volume (2000), may be found at http://www.usda.gov/factbook/tables/ch2table21.jpg

The figures below reflect average, per person consumption in 2000, by meat type, average retail cost, and amount consumed in pounds, per person:

66.5 lbs. Chicken @ $1.60/lb. = $17,237,000.00

66.4 lbs. Beef @ $3.80/lb. = $40,876,000.00

47.7 lbs. Pork @ $2.75/lb = $21,250,000.00

15.2 lbs. Fish @ $6.00 = $14,775,000.00

Total $94,138,000 spent on meats in Berrien County, MI 2005

But the market value of all livestock and poultry produced in Berrien County during 2002 was $12,138,000.00. So in the meat category alone, an $82 Million shortfall exists between what we’re consuming and what we’re actually producing. However, that shortfall also assumes all the meat produced in Berrien County is actually consumed in Berrien County—a highly unlikely scenario. Yet the assumption is useful because it represents the best case scenario (we cannot consume more local food than is produced locally).

The opportunities therefore, for farmers are obvious; they have a huge market potential, if consumers could somehow gain access to their increased production.

But for consumers, whom long ago lost access to locally-produced meats, and whom must make special efforts to access other locally grown food items, the benefits are not so obvious, but interesting nonetheless.

Consider food safety statistics from the U.S. Centers for Disease Control: about 80 million Americans are sickened every year from food borne illnesses; 300,000 are hospitalized, and 5,000 die. 30% of all retail chicken sold in the U.S. is tainted with Salmonella bacteria, and a whopping 62% with Campylobacter. http://www.aeshm.hs.iastate.edu/academy/exemplars/CoopLearnExamplars/food%20safety%20and%20sanitation.floriani.pdf , http://www.cdc.gov/ncidod/diseases/food/index.htm

Food safety therefore, is an obvious consumer benefit of local food systems, for it is a very rare occasion indeed when a local farm family is subject to a mass recall of their food production. Yet an impressive amount of evidence exists showing safety records of the industrialized food suppliers are very poor. http://www.recalls.gov/food.html

I believe it is a benefit to consumers when they know family farmers not only provide food to market, but are also feeding that same food to their own families. An even greater benefit results when consumers establish relationships with those families growing much of the food they eat. After all, what could be more important than the safety of the food we’re feeding ourselves and our families?

It is also a benefit to consumers when family livestock operations rely significantly on pasture for feed, and rarely, if ever, use growth hormones and antibiotics. Pastured beef for example, has been found to be a more nutritious and healthier alternative to CAFO beef (Confined Animal Feeding Operation). And it is widely known locally produced, pastured beef is much more flavorful, owing in part at least, to a much more diversified diet. Finally, for those consumers interested in reducing the carbon footprints of their purchasing, local meats are an excellent means to that end, as are local foods in general.

Fruits and vegetables

Taking a look at fruits and vegetables now, we see a similar shortfall between consumption and production. Yet we know from research and data from the Centers for Disease Control (CDC), that fewer than 20% of Michigan residents eat vegetables three or more times per day. http://www.cdc.gov/mmwr/preview/mmwrhtml/mm5610a2.htm We fare a little better with respect to fruit—about 30% eat fruit two or more times per day.

According to the latest government recommendations (2005), “…for adults, the recommended levels are three to five servings of fruit and four to eight servings of vegetables per day.”

Additionally, according to CDC, Michigan ranks #43 out of 50 states, for fruit and vegetable consumption. In other words, only the populations of seven states eat less fruit and vegetables than we do. It is frankly alarming that a state such as Michigan—a veritable powerhouse of fruit and vegetable production—should rank so dismally low among all states. http://apps.nccd.cdc.gov/5ADaySurveillance/compareChartV.asp?state=US&state_c=MI&group=0&grouping=0

Could it be our access to the best quality (freshest, most nutritious, and flavorful) produce is so poor that we refuse to do the extra work required to get it, yet also refuse to buy what’s offered inside chain store Super Centers, because we know it’s not fresh (in transit 10-14 days on average), and not flavorful?

Would an easily accessible, centralized, year-around marketplace for local foods make a difference in consumption? I think so.

Several key facts lead me to that conclusion. First, the trend over the past thirty years has been toward consolidation within numerous and broad business categories. National chains within the retail sector have targeted regional population centers and clustered development within and around those centers. Benton Township, Berrien County, Michigan is one such center of economic development. Niles, Michigan is another.

Retail food sellers (including chain restaurants); the home improvement segment; retail drugs; banking; appliances; and consumer electronics have set up shop there and draw extensively from the rural populations, small towns and villages within 20-30 miles from these so-called “hubs” of retail development. Thus, they are a model indicating clustered development draws people into a marketplace. A scale appropriate local foods venue should show a similar result.

Second, fruit and vegetable consumption is correlated to income groups. It is thus highly likely a significant number of Berrien County residents now consume far less food from those food groups than a healthy diet requires.

Households in the lowest income groups:

• Consume around 7% less fruit than average (which is already very low in MI)
• Consume 4% less vegetables than average ( “ “ “ “ “ )

Households in highest income groups:

• Consume around 14% more fruit than average
• Consume 3% more vegetables than average

http://www.igd.com/cir.asp?menuid=35&cirid=122

Moreover, as per capita money income for Berrien County residents is significantly lower than the average for all Michigan residents, it’s logical to assume fruit and vegetable consumption for the 13.8% of Berrien County residents below the federal poverty guidelines, reflect alarming deficiencies in recommended amounts of fruit and vegetable consumption.

So it is logical to project that an increase in consumption would occur if prices for fruits and vegetables in Berrien County, Michigan were lower than those prices found within primary channels. The logic is that lower prices might have the same impact as higher income; and higher incomes are correlated to greater fruit and vegetable consumption.

Hence, because the farmers’ share of the retail food dollar is now so low (nine cents from each retail dollar spent on food according to several sources), farmers selling to consumers presents an opportunity for both lower retail prices and higher returns to farmers, in theory at least.

Theoretically, one might argue that ready access, combined with producer pricing, would result in consumers choosing local food. This assumption is made even more reasonable through education; consumer awareness of differences between industrialized versus locally-produced food will very likely result in local choices by consumers: Local foods are safer, more nutritious, better tasting, and often less expensive. They’re also much more environmentally “green.” Still, education is the key to action.

Granted, the premise of local choices by consumers is made without much corroborating data. Yet it is based upon the experiences of others within the local foods movement, and from 30 years personal experience in local agricultural economies. For example, the farm gate average price for fresh apples in Michigan is between $6-8 dollars per bushel (42 lb. unit), while that same bushel of apples purchased at retail from almost all major chain store supermarkets is between $54-75 dollars per bushel ($1.29-$1.79 per lb). Clearly, farmer-priced apples sold at retail would likely be very significantly lower, a win/win for farmers and consumers alike.

What we’re eating now

So if we’re not eating much locally-produced food, what are we eating? Compelling evidence suggests Berrien County residents, like most other Americans, are consuming food produced out of state, and increasingly, off shore. 175 countries now export food to the U.S., and for the third consecutive year, the U.S. is a net importer of food. Prior to 2005, the only other time in American history when we were net food importers was 1959. http://www.ca.uky.edu/AGC/NEWS/2005/Feb/imports.htm

Even so, what’s available at the hub’s giant-sized Supercenters, is food from a heavily industrialized agriculture complex: Four corporations control over 80% of all beef slaughter in the U.S. Five corporations control over 80% of broiler chicken production and slaughter. One of these agri-firms has a place in both markets (IBP/Tyson). http://www.commondreams.org/news2004/0217-07.htm
http://www.ase.tufts.edu/gdae/Pubs/rp/CompanyFeedSvgsFeb07.pdf

And ninety percent of U.S. poultry is from a vertically integrated chain, where a firm such as Tyson contracts with a poultry grower and provides everything—chicks, feed, veterinary services, vaccines—and then buys the chickens at the end. http://www.tradeobservatory.org/library.cfm?refid=89014

And so it goes with many food items today, with just a hand full of conglomerates controlling the vast market share.

So even if it’s not food from off shore, it’s factory food nonetheless. And that’s what we’re eating in Berrien County, Michigan. The same as most every other county in America.

The most desirable solution to these and many other problems within the industrialized food system is to create easy access to locally produced food, and if we are determined to find ways to make that food easily available, then we would begin to see positive differences in food safety, food security, and food sovereignty.

We would begin to see changes for the betterment of our communities, as they once again showed signs of vibrancy and economic growth. For agriculture in Berrien County, Michigan is one very important key to both; and agriculture throughout our entire region contributes to quality of life.

Simply by changing the current marketing and distribution system for food, from one controlled by a giant industrialized agricultural complex, to one that benefits farmers and the local citizenry, we change our quality of life for the better. I predict such a change will dramatically increase consumption of local foods, and will help our citizenry opt for a healthier lifestyle in terms of what they eat. And the stimulus to their local economies from local food consumption is a big bonus.

Of course, I have written and preached for years that ready access to healthy, local food is all that’s needed to realize that change. But not only have we lost ready access, our production of food has declined as well. One simply cannot buy what isn’t on the shelf; and local food is rarely offered on the shelves of chain store supermarkets.

Thus, a double-edged sword has slashed the availability on the one side, while on the other, lack of markets has resulted in production cuts by farmers; they won’t produce what they cannot sell.

$275 Million Market in Berrien County

So totally, a $277 Million market potential exists for local foods, annually, in Berrien County--$75 Million for meats, and $202 Million for other food items.

What that means is if Berrien County, Michigan were truly food sovereign, and if we were committed to eating local food instead of the industrialized stuff (I have a hard time calling it food), then our local (County) economy would enjoy a big shot in the arm, in terms of local spending and then keeping that money in local circulation.

And, as many highly regarded economists suggest, a dollar first spent locally is likely to be circulated between four and seven times within the local economy before it finally leaves. More than a Billion dollars annually could thus circulate within our county, and one can only imagine what impact that kind of cash would have on our communities. Positive impact, no doubt.

http://lists.ifas.ufl.edu/cgi-bin/wa.exe?A2=ind0209&L=sanet-mg&P=15269 , http://www.ams.usda.gov/TMD/FSMIP/FY2000/IA0288brochure.pdf

So a fabulous opportunity exists for Berrien County residents to lift themselves up simply by supporting a local food system. Think about it: Fresher food items, food that tastes like it’s supposed to taste (as in good….); food without the deep carbon footprint of the industrialized stuff; safer, more secure food; and food that helps build strong local economies and vibrant communities.

The main obstacle

So what’s stopping us? In short, the lack of a modern, scale-appropriate retail venue is what’s stopping us. If we desire safer food, more secure food, and food that makes sense for our communities and the environment, then we must help in providing the access needed so that farmers will take the risk in growing it. We must raise food to a higher level of importance in our lives, and be willing to support the infrastructure needed to insure access.

But even though the questions before us may be simply stated; they are hardly simple: How do we organize an effort to provide a venue where locally produced foods are accessed year around by Berrien County residents? Where do we start? Whom do we include?

Having answers to those questions is akin to having great ideas undelivered; they may be great ideas, but ultimately, only the ideas put into practice are the ones that count. Likewise, only the answers that result in actions taken can make a difference.

In conclusion, I believe agriculture throughout S.W. Lower Michigan has always played an extremely important role in our communities. When agriculture thrives, so too does the rest of our rural economy. But agriculture is not thriving here.

Yet few would wish our region to lose completely that which made us famous in the first place…food. But that is precisely where we’re headed; and unless we act soon, as a community, we will soon reach that destination. I implore anyone with an interest in food safety, food security, food sovereignty, and thriving local economies throughout the Great Fruit Belt in Michigan, to take action now while there’s still time.

Finally, you only plant houses once. Once a farm is developed into a subdivision, it no longer produces food. If nothing happens to change the trend toward the continuing loss of farms and farmland in Berrien County, Michigan, then I predict within twenty years, we will have lost the chance to regain our food system, and our rural economies.