FOOD BUSINESS RISK EDUCATION – ASSISTING WOMEN FARMERS WITH THE CHALLENGES OF DIRECT MARKETING AND ADDING VALUE

2014 Women in Agriculture Educators’ National Conference

Winifred W. McGee, Senior Extension EducatorLynn F. Kime, Senior Extension Associate

The Pennsylvania State University is an affirmative action, equal opportunity university.

This presentation includes material is based upon work supported by USDA/NIFA under Award Number 2010-49200-06201."

"This project supported [in part] by the Northeast Sustainable Agriculture Research and Education (SARE) program. SARE is a program of the National Institute of Food and Agriculture, U.S. Department of Agriculture."

Agenda• The Setting -- local foods marketplace• Farmers’ need for risk management info• The Food for Profit project

— Workshop— On-line— Fact sheets• KASA gains and impacts of the project

— End-of-session— Six-months out

Local Food in the Marketplace• Consumers–Demand fresher, more nutritious foods–Support for local economies/ farmers–Desire better food security–Reduce carbon footprint of food

• Responding trends–Farm markets/CSAs/community gardens–State buy-local programs–New emphasis on food security

USDA ERS Report – Local Foods“Growers often need education and training”– Meeting the market requirements– Respond to consumer-expectation issues:• Risk management• Postharvest practices• Recordkeeping• GAP certification• Liability insurance requirements

Source: Martinez, Steve, et al. Local Food Systems: Concepts, Impacts, and Issues, ERR 97. May 2010. U.S. Department of Agriculture, Economic Research Service.

Food for Profit ProgramBasic food business start-up instruction:• Realities of business

ownership• Legal requirements• Food safety• Developing a business plan• Niche marketing strategies• Packaging and labeling• Pricing your product

Incorporating Risk ManagementIn 2011, added these topics to the workshop:• Good Agricultural Practices (GAP)/Good Handling

Practices (GHP)• Hazard Analysis Critical Control Points (HACCP)• Adequate/correct Insurance Coverage• Allergen notification• Pro-active recall planning

In 2013, Good Management Practices (GMPs) joined the other five strategies.

Growing the Program• Massive updates/changes (since 1990s) • Focus changed from “pin money” to “serious

business”• Increasing percentage of farmers seeking

diversification of income• Increasing percentage of food entrepreneurs

seeking locally grown commodities

Workshop/Fact Sheets/On-line• “Annie’s Project” type class– Interactive/discussion-based

learning

• 10 Fact Sheets– Business development– Business growth

• On-line, self-paced class– 24/7 access– 2013 added 7th module on risk management

Client Response • Since the “renaissance” of FFP (fall 2010) 982

participants; 211 since October 2013• Train-the-trainers in PA, MD, WV, and TN• 171 respondents, 2013/14 post-survey tool:– 95% (147/155) rated “Needs Met” Good/Excellent– 99% (165/168) rated “Speakers” Good/Excellent– 96% (161/164) rated “Materials” Good/Excellent– 57% (85/149) said program Met Expectations; 36% (54/149) said program Exceeded Expectations

Knowledge Gain -- Starting a Food Business

10%

58%

31% No Change

1 step

2 or 3 steps

Knowledge Gain -- Legal and Liability Issues

18%

44%

38%No Change

1 step

2 or 3 steps

Importance: Having a Written Plan

somewhat important

moderately important

very important

1

11

150

Importance: Food Safety Protocols

moderately important

very important

10

152

Risk Mgt Strategies: Food for Profit

GAP/GHP

GMPs

HACCP

Insurance

Allergen

Recall

0

20

40

60

80

100

120

1st ExposureN/A> InfoWill adopt

Risk Management Steps: Intermediate Impact

GAP/GHP

HACCP

Allerge

n Notifica

tion

Recall

Plan

Insuran

ce02468

1012141618

Researched furtherAttended class or talked to consultantAdopted/expanded use of strategy

Future Opportunities• NE SARE funded Professional Development– Train/apprentice additional educators– Develop additional fact sheets/resources

• Beyond the original states (PA/MD/WV)• Training available for Extension Professionals– Webinar– Guided Application– Apprenticeships

Discussion/Questions