2007 Annual Report for CS06-047
Value-added Sustainable Agriculture Initiative
Summary
Appalachian Sustainable Development (ASD) secured a two year, $40,000 grant from the Appalachian Regional Commission/SARE program beginning on March 1st, 2007. This report summarizes the progress we’ve made in the first year of this project.
Two months into this project, ASD’s Packing & Grading facility for Appalachian Harvest burned down, just as our season was beginning. This sent ripple waves throughout the organization, as a huge and unplanned effort was required to simply keep the project moving forward. Although much progress has been made in reaching our proposed objectives, the fire and subsequent recovery efforts impacted our ability to reach some of our stated targets.
The fire occurred on May 16th. By May 30th, we had found a temporary facility, had secured loans of two donated refrigerated trailers (from two of our buyers), replaced one grading line and begun shipping produce. In spite of the fire, our sales did increase by over 30% from 2006 to 2007.
During the fall and winter, ASD secured nearly $500,000 in funding for construction of a new packing house, including a large grant from the Virginia Tobacco Commission, along with smaller grants and donations. These funds, along with our insurance money will enable us to build a new facility, 50% larger than the prior one, on land more centrally located in our region. We have broken ground on the facility and expect it to be operational by late May, 2008.
ASD has held several community outreach meetings this past winter, along with the first grower trainings and workshops of 2008. The response has been excellent, with nearly twice as many people attending these meetings and getting involved with either Appalachian Harvest or other local marketing opportunities we have developed. We’ve learned that for most farmers, the transition to organic or free-range production often takes 2-3 years. But we are excited about this response and confident that the base of organic and sustainable growers will continue to increase rapidly.
Objectives/Performance Targets
Increase the number of organic and sustainable farmers from 40 to 60 in 2007, and 75 in 2008 including those selling certified organic produce and free range eggs through the Appalachian Harvest network.
Expand income opportunities for 40 existing AH farmers, leading to an overall increase in organic farm sales to at least $550,000 in 2007, and $750,000 in 2008. With current demand more than double our supply, existing organic growers will be encouraged to expand acreage and diversify their crops.
Strengthen existing ancillary businesses – organic greenhouses, organic inputs – and add 2-4 additional enterprises built around local sustainable agriculture. As the acreage under production increases, so too will the demand for certified organic plants and, potentially, seeds from local producers.
Solidify partnership with existing buyers, by increasing sales and the consistency and quality of supply of organic produce and free range eggs. The major partners include: Food City (Abingdon), Ukrops (Richmond), Earth Fare (Asheville, NC), Ingles (Asheville, NC), Whole Foods, South (Duluth, GA), Lancaster (Landover, MD) and Kroger (Roanoke, VA). These buyers represent nearly 500 individual stores and are the key to continued expansion of markets for high value farm products.
Develop partnerships with East Coast Fresh Cuts and possibly other food companies to produce fresh salsas from local, organic produce. This partnership was begun in 2006, leading to $7,300 sales of AH produce, most of it the “seconds” that are difficult to market. We project a tripling in this business in 2007, and continued increase in 2008, improving income for many of the farmers in AH. Unlike a previous attempt at a “salsa partnership”, this venture is simpler and lower risk for ASD, as East Coast is already in the salsa business and is expanding and transitioning to more local and organic ingredients.
Accomplishments/Milestones
1.Increase the number of organic and sustainable farmers from 40 to 60 in 2007, and 75 in 2008 including those selling certified organic produce and free range eggs through the Appalachian Harvest network.
• Expanded and strengthened ASD’s “Grower Resource Manual”, distributing to 75 growers. The manual includes practical information on: Farm planning, management and financial planning; organic production of produce, including weed, disease, pest and fertility management; list of approved inputs for organic production; free-range egg production; contact information for resource groups and material suppliers; and other information to reduce risk and improve productivity, and information on managing or reducing risks.
• A shorter version of the manual was excerpted for farmers just considering organic production and has been distributed to approximately 125 people.
• Six community outreach meetings were held in five different counties, from December through February, with 160 people attending. A number of these folks are now attending workshops or grower meetings. To date 20 new growers have committed to grow organic produce and/or free-range eggs through Appalachian Harvest in 2008.
• Practical, “farmer-friendly” workshops were developed to provide an overview and introduction to organic farming, which has been used at 5 of our 6 outreach meetings and at two agriculture seminars. A second, more in-depth organic workshop, including the organic certification process, was designed and has thus far been given 3 times. Phil Blevins, Virginia Cooperative Extension, and Annette Wzelaki, University of Tennessee Fruit and Vegetable Specialist, assisted with two of these workshops. To date, the total attendance at these workshops has been approximately 220 people (including some who’ve attended both the introductory and in-depth workshops).
• A free-range egg production workshop was designed and delivered to approximately 30 interested farmers in late February.
• The cucurbit disease control trial was completed by Dr. Allen Straw; results are being compiled.
2. Expand income opportunities for 40 existing AH farmers, leading to an overall increase in organic farm sales to at least $550,000 in 2007, and $750,000 in 2008. With current demand more than double our supply, existing organic growers will be encouraged to expand acreage and diversify their crops.
• ASD’s marketer has met with all current buyers and obtained weekly market demand projections. Most buyers are seeking more product than in 2007, with a total weekly demand now in excess of 9,000 cases of produce, and over 1,500 dozen free-range eggs.
• A new “Buyers Guide” was developed, providing pictures of our produce, specifications, season availability and other information. This has been distributed to all of our buyers.
• We are also working with one major buyer to develop consumer fact sheets on organic foods.
• To date, two new major accounts have been secured for the 2008 season: Fresh Market, based in Greensboro, NC, with 30 stores; and Emory & Henry College (student population 1,200). Five new smaller accounts have also been secured, including 3 health food stores and 2 small grocers.
3. Strengthen existing ancillary businesses – organic greenhouses, organic inputs – and add 2-4 additional enterprises built around local sustainable agriculture. As the acreage under production increases, so too will the demand for certified organic plants and, potentially, seeds from local producers.
• Worked with one local compost business to expand utilization and sales among local farmers, and are now working with a second local compost enterprise.
• Assisted one local grower who is starting a “custom soil preparation” business, doing plowing, tilling and bed preparation for new growers lacking equipment.
4. Solidify partnership with existing buyers, by increasing sales and the consistency and quality of supply of organic produce and free range eggs. The major partners include: Food City (Abingdon), Ukrops (Richmond), Earth Fare (Asheville, NC), Ingles (Asheville, NC), Whole Foods, South (Duluth, GA), Lancaster (Landover, MD) and Kroger (Roanoke, VA). These buyers represent nearly 500 individual stores and are the key to continued expansion of markets for high value farm products.
• Funds have been secured for a new, larger packing house and construction is getting underway.
• Produce samples and buyers guides were shared with three potential new buyers.
5. Develop partnerships with East Coast Fresh Cuts and possibly other food companies to produce fresh salsas from local, organic produce. This partnership was begun in 2006, leading to $7,300 sales of AH produce, most of it the “seconds” that are difficult to market. We project a tripling in this business in 2007, and continued increase in 2008, improving income for many of the farmers in AH. Unlike a previous attempt at a “salsa partnership”, this venture is simpler and lower risk for ASD, as East Coast is already in the salsa business and is expanding and transitioning to more local and organic ingredients.
• One new buyer of seconds – the Farmers Guild in Meadowview, VA – has been secured for 2008, and we are also in discussion with Washington & Lee University.
• In 2008, we will contract with a part-time outreach worker to help secure more support from church and civic organizations for Healthy Families. We will be using other funds for this purpose.
Impacts and Contributions/Outcomes
1. Increase the number of organic and sustainable farmers from 40 to 60 in 2007, and 75 in 2008 including those selling certified organic produce and free range eggs through the Appalachian Harvest network.
• Two growers have been selected as “farmer mentors”, and trained in insect and disease identification. They will be providing one-on-one assistance to approximately12 – 15 growers
• 18 new growers have been assisted with the organic certification process to date, helping them develop farm plans and complete certification applications. No minority producers have yet gone through this process, although many of the new growers are limited resource farmers.
• For 2007 there were 48 farmers in the Appalachian Harvest Network. For 2008, we have 65 raising produce and/or free-range eggs.
• Approximately 50 other growers transitioning from tobacco, other commodity crops, or new to farming, have been assisted with one-on-one planning help, and with workshops to discuss opportunities at farmers markets and through other direct markets. We anticipate that 15 – 25 of them will be beginning in 2008 or expanding sales of sustainable farm products.
2.Expand income opportunities for 40 existing AH farmers, leading to an overall increase in organic farm sales to at least $550,000 in 2007, and $750,000 in 2008. With current demand more than double our supply, existing organic growers will be encouraged to expand acreage and diversify their crops.
• Our sales for 2007 fell short of our goal of $600,000, reaching just under $500,000. This represented a nearly 30% increase over 2006, in spite of the fire that destroyed our packing house in May.
• Our free-range eggs co-op was formed, production standards agreed to, cartons printed with our logo and information about free-range eggs on them, and sales of eggs begun. Thus far we have sold 17,880 dozen eggs, primarily to a supermarket customer, Ingles, but also including 5 small grocers/health food stores. Farmers are receiving about $1.80 per dozen, an excellent wholesale price.
• At present there are four producers in the free-range egg producers group. Because of the very strong response we’ve had this winter, we expect that to grow to 10 – 15 farmers in the group in 2008 and 2009.
3.Strengthen existing ancillary businesses – organic greenhouses, organic inputs – and add 2-4 additional enterprises built around local sustainable agriculture. As the acreage under production increases, so too will the demand for certified organic plants and, potentially, seeds from local producers.
• At present, approximately 12 people now operate organic greenhouses as a result of working with ASD and Appalachian Harvest.
• Additionally, 4 new growers and 5 current growers built small hoop houses for season extension of crops, in the spring of 2008. ASD held hoop house construction workshops, attended by 30 people (March, 2008), and is also providing cost-sharing assistance to some.
4.Solidify partnership with existing buyers, by increasing sales and the consistency and quality of supply of organic produce and free range eggs. The major partners include: Food City (Abingdon), Ukrops (Richmond), Earth Fare (Asheville, NC), Ingles (Asheville, NC), Whole Foods, South (Duluth, GA), Lancaster (Landover, MD) and Kroger (Roanoke, VA). These buyers represent nearly 500 individual stores and are the key to continued expansion of markets for high value farm products.
• Several steps have been taken to improve packing and grading procedures in order to increase the supply of organic produce and improve it’s reliability, including purchase of an additional refrigerated truck – a 53 foot tractor trailer – last July and significant improvements in worker training, inventory procedures and overall management.
• Solid, precise weekly demand has been secured for more than two dozen organic produce items, along with free-range eggs, from all our buyers. They now represent over 600 stores.
5.Develop partnerships with East Coast Fresh Cuts and possibly other food companies to produce fresh salsas from local, organic produce. This partnership was begun in 2006, leading to $7,300 sales of AH produce, most of it the “seconds” that are difficult to market. We project a tripling in this business in 2007, and continued increase in 2008, improving income for many of the farmers in AH. Unlike a previous attempt at a “salsa partnership”, this venture is simpler and lower risk for ASD, as East Coast is already in the salsa business and is expanding and transitioning to more local and organic ingredients.
• Sales of produce seconds for salsa in 2007 did not meet expectations as East Coast Fresh Cuts was slow to develop it’s business. Sales totaled $2,291. However, ECFC continues to show interest in partnering with ASD to develop salsas and other value added products.
• Sales of seconds for in-store food service reached $5,400 in 2007 and are expected to continue growth in 2008.