Homegrown, From Our Farms to Your Table: Growing a Farmers' Cooperative in East Tennessee

2004 Annual Report for CS02-004

Project Type: Sustainable Community Innovation
Funds awarded in 2002: $6,436.00
Projected End Date: 12/31/2005
Region: Southern
State: Tennessee
Principal Investigator:
Steve Hodges
Clinch Appalachian Farm Enterprises

Homegrown, From Our Farms to Your Table: Growing a Farmers' Cooperative in East Tennessee

Summary

In 2004 Jubilee Project and the Appalachian Spring Cooperative once again met or exceeded all but one of its goals for substantial progress in establishing the Cooperative and enabling it to begin serving its members. A variety of recruiting resulted in the growth of cooperative membership 44% from 45 to 65 members. Sixteen of these members (increased from 9 the year before) made 45 different food or farm products (increased 55% from the 29 products produced last year), most of which Jubilee Project and the Cooperative assisted with business and on-farm technical assistance; this included helping develop recipes and labels, and helping place their products in more local markets than the year before. A diverse Project Advisory Committee composed of farmers and agricultural professionals, local officials and representatives of local business, community, college/university and economic development groups, continued to meet.

Objectives/Performance Targets

1. Development of current member production of value-added products.
1a. Assist in production requirements for farmers already producing value-added items or in the development phase of production, including business plan development, recipe development, understanding and complying with legalities of production, obtaining product liability insurance and other requirements.
1b. Develop appropriate product presentation, from labeling to shelf-tags.
1c. Ensure adequate market placement of these products. .
1d. Development of additional market outlets and opportunities.
1e.Nurture and expand partnerships with agricultural professionals, Extension, farmers, entrepreneurs, businesses and community and religious organizations.
1f. Develop ASC outreach to include promotion of these products as show case examples.
2. Grow the Cooperative: Business Development and Membership Opportunity.
2a. Increase ASC membership through outreach to farmers and community.
2b. Direct farmer-to-farmer outreach, tours of the kitchen, brainstorming of value-added potentials with farmers and community members. Implementation of Kitchens and Cooperative business plans.
2c. Establish ASC as a formal network of producers marketing desirable value-added products.
3. Expand farmer and community use of the Jubilee Community Kitchen.
3a. Development of in-demand, value-added market products.
3b. Promotion of the Kitchen as valuable tool for use by the community, area churches, school
and others for bake sales, holiday gift ideas and more.
4. Development of the Jubilee Community Kitchen as a viable and sustainable opportunity for employment.
4a. The use of value-added production at the Kitchen as a means to provide employment for local residents and workforce development programs.
5. Promotion of ASC as an instrument for sustainable agriculture in East Tennessee, influencing local government policy, community development and family nutrition.
5a. Enhance relationship between Jubilee Project/Clinch Powell Community Kitchens and ASC, producers and local government, emphasizing the importance of sustainable agriculture and the role it can play in rural community development.
5b. Provide technical assistance to small farmers.
5c. Enhancement of “community food security” and nutritional awareness through promotion of homegrown farm products to help increase the intake of nutritional fruits and vegetables by at-risk families and the general population while supporting local farmers.
5d. Establish the long-term role of ASC and the Community Kitchen and the interdependence of farmers, the environment and the economy: linking ASC and the community through business incubation and growing self-sufficiency.
5e. Encouraging the development of farm plans to adopt new strategies to achieve farm viability through value-added production, farm diversification, niche marketing and sustainable practices.
6. Development of new value-added projects for ASC members and potential members: exploring the options that best fit the communities, sustainable agriculture and sustainable businesses.
6a. Some ideas: Frozen food entrées; Fruit-flavored honey; Food production for nursing homes, schools and other area institutions; value-added production for home use; gift-giving, holiday baskets and fund-raising items; private label food production for restaurants and chefs; production of high-value gourmet, natural and organic food products from vegetable and fruit over-production by area farmers.

Accomplishments/Milestones

-Current Cooperative member production of value-added food products increased from 45 different products sold through the Cooperative in 2003 , to 68 different products sold in 2004, a 51% increase in one year
- Regular wholesale and retail sales (excluding gift basket sales) by Appalachian Spring Cooperative member businesses producing commercial products in 2004 was 45% more than in 2003. However, sales of gift baskets declined by 38% because United Methodist Churches, the primary market for the gift baskets in 2002 and 2003, diverted money during the fall gift basket season to storm relief in hard hit areas of the southern U.S.
-The number of markets agreeing to carry products of Cooperative members increased from 5 to 34 in 2004
-Recruitment of new members to Appalachian Spring Cooperative raised membership 44% from 45 members in 2003 to 65 members in 2004
-The Clinch Powell Community Kitchens of Jubilee Project continued its close cooperation with Appalachian Spring Cooperative, including providing funding and management services, board training and leadership training for members, and free office space and other materials at the Kitchens location
-The one objective still not accomplished in 2004 was the promotion of the processing area of Clinch Powell Community Kitchens for non-commercial uses by the surrounding community; this was because ever stricter food safety and Homeland Security regulations greatly restrict use of the processing area and this objective will not be possible to fulfill. However, meeting spaces, computer lab, and office spaces in the building were once again used extensively for tours and some workshops
-Technical assistance provided to 56 members in the Appalachian Spring Cooperative in 2004, compared to 37 in 2003, an increase of 51%. (Technical assistance included product & recipe development, business planning, packaging & label development, assistance in finding sources of materials for production, assistance in finding financing, and/or on-farm technical assistance with beekeeping)
-Cooperative officially continued its 5% discount standard for Cooperative members to sell food products to each other, increasing access to nutritional foods
-Both Clinch Powell Community Kitchens and Appalachian Spring Cooperative further established their long-term roles in sustainable agriculture in east Tennessee, by making progress toward their goals for financial self-sustainability; the Cooperative also made progress toward building a self-sustaining organizational capacity
-Both Clinch Powell Community Kitchens and Appalachian Spring Cooperative encouraged plans for development of value-added food products aimed at niche markets, for sustainable practices including use of organic inputs, and compatible diversification of small farms (particularly the introduction of honeybees to 35 farms already growing fruits, vegetables, goats and other animals)

Impacts and Contributions/Outcomes

-16 different members of Appalachian Spring Cooperative making 468 different value-added food or farm products, a 135% increase over 29 different products in 2002
-The Cooperative continued to greatly exceed its membership goal by actually growing to 65 members by December 2004, a 150% increase over 26 members in 2002
-The Cooperative continued to place more different products of more members in more markets, increasing from 5 to 34 the number of different local markets willing to carry member products
-The Appalachian Spring Cooperative further developed its website which displays these products (www.apspringcoop.com) by adding shopping cart/credit card capability to the website, and selling $2000 worth during one month alone
-Several new value-added projects were continued, including a Tele-Guild Project that establishes e-commerce on the Cooperative website, loans notebook computers to qualifying members completing a business plan, and provides training in a range of computer business applications; and an Agri-Tour Project was held providing a glossy self-driving tour map advertising member farms and other collaborating food-related local businesses, with Spring and Fall Tour days featuring special events
-Outreach which shared information on the Project as a model for other areas, was shared in workshops in 2004 at 7 different conferences, including Southern SAWG (Regional) Conference in January in Gainesville, FL; the USDA Ag Outlook Forum (National) in February in Washington, DC; the Association for Enterprise Opportunity Rural Food Microenterprise Learning Cluster Gathering in Knoxville, TN in March; the Annual Conference (National) of the Association for Enterprise Opportunity in Philadelphia in May; the Community Food Security Annual Conference (National) in Milwaukee, WI in October; and at the Kentucky Women in Agriculture Conference (Statewide) held in Louisville, KY in November. Outreach also took place through sharing information on the Project at display tables at the AEO Rural Food Microenterprise Learning Cluster Gathering and the AEO Annual Conference mentioned above as well as at an Appalachian Regional Commission Conference(Regional) on Asset-Based Development held in Abingdon, VA in October.