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by 1850 Production by Township Agriculture Industry Clusters Duncan Hilchey Duncan Hilchey New Leaf New Leaf Publishing and Consulting Publishing and Consulting [email protected] [email protected] / 607.342.0259 / 607.342.0259 Copyright Copyright © © 2008 by New Leaf Associates, Inc. 2008 by New Leaf Associates, Inc.

New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

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Page 1: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

by 1850 Production by Township

Agriculture Industry Clusters

Duncan HilcheyDuncan HilcheyNew Leaf New Leaf Publishing and ConsultingPublishing and [email protected]@newleafnet.com / 607.342.0259/ 607.342.0259Copyright Copyright ©© 2008 by New Leaf Associates, Inc.2008 by New Leaf Associates, Inc.

Page 2: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 3: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Workshop AgendaWorkshop Agenda

BackgroundBackgroundCase Study of Concord Grape Belt Case Study of Concord Grape Belt Cluster Development strategiesCluster Development strategiesSmall Farm Cluster ProjectSmall Farm Cluster ProjectDiscussionDiscussion

Page 4: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Industrial Cluster TheoryIndustrial Cluster Theory

Alfred MarshallAlfred MarshallMichael PorterMichael Porter

Page 5: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Clusters and Cluster Clusters and Cluster DevelopmentDevelopment

Clusters are geographic concentrations of Clusters are geographic concentrations of interconnected companies, specialized suppliers, service interconnected companies, specialized suppliers, service providers, and associated institutions in a particular field providers, and associated institutions in a particular field that are present in a nation or region. Clusters arise that are present in a nation or region. Clusters arise because they increase the productivity with which because they increase the productivity with which companies can compete. The development and companies can compete. The development and upgrading of clusters is an important agenda for upgrading of clusters is an important agenda for governments, companies, and other institutions. Cluster governments, companies, and other institutions. Cluster development initiatives are an important new direction in development initiatives are an important new direction in economic policy, building on earlier efforts in economic policy, building on earlier efforts in macroeconomic stabilization, privatization, market macroeconomic stabilization, privatization, market opening, and reducing the costs of doing business.opening, and reducing the costs of doing business.

Page 6: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Small Farm Cluster Small Farm Cluster ProjectProject

New York Certified Organic (NY)New York Certified Organic (NY)Chesapeake Fields (MD) Chesapeake Fields (MD) HmongHmong Farmers (MA)Farmers (MA)Mushroom Cluster, Chester County (PA) Mushroom Cluster, Chester County (PA) New Farmer Development Project Participants (NY)New Farmer Development Project Participants (NY)North Country Dairy Viability Initiative (NY) North Country Dairy Viability Initiative (NY) Pennsylvania WomenPennsylvania Women’’s Ag Network (PA)s Ag Network (PA)TuscaroraTuscarora Organic Growers (PA)Organic Growers (PA)

Stephen Goetz, PSUStephen Goetz, PSUInFlowInFlow 3.0 3.0 -- Social Network Analysis software for mapping and Social Network Analysis software for mapping and measuring human networks of all types.measuring human networks of all types.http://www.nercrd.psu.edu/Publications/rdppapers/rdp29.pdfhttp://www.nercrd.psu.edu/Publications/rdppapers/rdp29.pdf

Page 7: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Workshop ObjectivesWorkshop ObjectivesBy 10:30 YOU SHOULDBy 10:30 YOU SHOULD……

……be familiar with AIC concepts (e.g., be familiar with AIC concepts (e.g., structures, strengths and weaknesses)structures, strengths and weaknesses)

……understand the basics of understand the basics of ““cluster analysiscluster analysis””

……be familiar with cluster development be familiar with cluster development strategiesstrategies

Page 8: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

BackgroundBackgroundDefinitionsDefinitions

HistoryHistoryExamplesExamples

Page 9: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

What is What is ““FormalFormal”” Ag. Industry Ag. Industry Cluster (AIC)?Cluster (AIC)?

A group of farms and/or allied food and A group of farms and/or allied food and agricultural enterprises, individuals, agricultural enterprises, individuals, organizations, and agencies who work organizations, and agencies who work together on shared interests and toward a together on shared interests and toward a common goal.common goal.

Input Manufacturers

Input Suppliers

Producers

Distributors

Retailers

ConsumersAgencies/Organizations

Labor

Page 10: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

NYS Agricultural ClustersNYS Agricultural ClustersSome New York State Agricultural Clusters

Lake Ontario Apple Belt

Lake Erie Concord GrapeBelt

Blue Point Oyster Cluster

LI Duck Cluster

Black Dirt Cluster

Oswego Onion ClusterBatavia Agribusiness Cluster

NY Cabbage Cluster FL American ViticulturalAreasWyoming

Maple SugarCluster

North CountryMaple Sugar Cluster

NYC Watershed

Cayuga Co.Dairy Cluster

Plain SectCluster

Regional Farm andFood Project

LI Potato Cluster

Page 11: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

PotatoCluster

North Fork, LI

Cluster

Long Island Cluster

NYC Metro FoodshedPotatoCluster

North Fork, LI

Cluster

Long Island Cluster

NYC Metro Foodshed

Page 12: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

PRACTICALPRACTICALBenefits and AdvantagesBenefits and Advantages of of

Cluster DevelopmentCluster DevelopmentCredibility in Economic Development communityCredibility in Economic Development communityCombining Resources/Economies of ScaleCombining Resources/Economies of ScaleAchieving as a group what is difficult to do as individualsAchieving as a group what is difficult to do as individualsGood PRGood PRRegional identityRegional identity““Project packagingProject packaging””Political PowerPolitical PowerCommiseration and mutual supportCommiseration and mutual supportMultiple points of viewMultiple points of viewLarger scale networksLarger scale networks

Page 13: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Possible ProjectsPossible ProjectsJoint R&DJoint R&DJoint labor programsJoint labor programsJoint marketing initiativesJoint marketing initiativesJoint ventures, partnershipsJoint ventures, partnershipsJoint lobbyingJoint lobbyingAgricultural Impact studiesAgricultural Impact studiesEmpire zoneEmpire zoneCelebrationCelebration

Page 14: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

““Growing HomeGrowing Home”” Agriculture Agriculture Development ProjectsDevelopment Projects

Heritage areasHeritage areasFarm and food trailsFarm and food trailsCulinary Bounty ProgramsCulinary Bounty ProgramsSharedShared--use kitchensuse kitchensMobile processing unitsMobile processing unitsBuyBuy--local programslocal programsAg. Industry ParkAg. Industry ParkAg Ambassador programsAg Ambassador programsBienvenidoBienvenido programprogram

Page 15: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Cluster Organization StructuresCluster Organization Structures

Informal NetworkInformal NetworkWorking group or task forceWorking group or task forceLegislative committee or commissionLegislative committee or commissionNonNon--profit Associationsprofit AssociationsCooperativesCooperativesLegal partnershipsLegal partnershipsFor profit CorporationsFor profit Corporations

Page 16: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

CAUTION!CAUTION!

Proprietary interestsProprietary interestsOrganizational turfOrganizational turfCompetitionCompetitionPricePrice--fixingfixingToo many cooks spoil the brothToo many cooks spoil the brothGoing it alone can be more efficient and Going it alone can be more efficient and effective in some caseseffective in some cases

Page 17: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Why Are Agriculture Clusters Why Are Agriculture Clusters Located Where They Are?Located Where They Are?

Page 18: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Geographic DeterminantsGeographic DeterminantsSoil typesSoil types

Page 19: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Geographic DeterminantsGeographic Determinants

Page 20: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Geographic DeterminantsGeographic DeterminantsFrostFrost--FreeFree DaysDays

Page 21: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Black Dirt RegionBlack Dirt Region

Page 22: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Geographic DeterminantsGeographic DeterminantsHistory, culture, traditions and other human activitiesHistory, culture, traditions and other human activities

Page 23: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

What What AreAre the Geographical the Geographical Determinants of the Following Determinants of the Following

Agricultural Clusters?Agricultural Clusters?

Page 24: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Geographic DeterminantsGeographic DeterminantsHistory, culture, traditions and other human activitiesHistory, culture, traditions and other human activities

Elberta Peach(Samuel Henry Rumph)

Page 25: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 26: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 27: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 28: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 29: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 30: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 31: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 32: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 33: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 34: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 35: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Epping Plain, Maine, Blueberry Barrens

Page 36: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 37: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Great Lakes Wild RiceGreat Lakes Wild Rice

Page 38: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Kentucky Bluegrass RegionKentucky Bluegrass Region

Page 39: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Smithfield Smithfield HamHam

Page 40: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 41: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Brandywine Mushroom Region

Pennsylvania Dutch

Page 42: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 43: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Finger Lakes Finger Lakes AVAsAVAs

Page 44: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Long Island DuckLong Island Duck

Page 45: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Lake Ontario Lake Ontario Apple BeltApple Belt

Page 46: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 47: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

CroghanCroghan Maple Syrup DistrictMaple Syrup District

Page 48: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Cabbage/Sauerkraut ClusterCabbage/Sauerkraut Cluster

Page 49: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Hops Hops RegionRegion

Page 50: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

A Functional A Functional Agricultural Cluster Agricultural Cluster HasHas……

……a vision and missiona vision and mission……an organizational frameworkan organizational framework……strong leadershipstrong leadership……broad representation of stakeholdersbroad representation of stakeholders……regular meetingsregular meetings...identified and prioritized issues...identified and prioritized issues……productive project collaborationproductive project collaboration……no fear in addressing no fear in addressing differencesdifferences

Page 51: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

A Functional Cluster is NOTA Functional Cluster is NOT……

One large vertically or horizontally One large vertically or horizontally integrated integrated businessbusiness

–– VerticalVertical integration: when you own/control all integration: when you own/control all your your supplierssuppliers

–– HorizontalHorizontal integration: when you own/control integration: when you own/control all your all your competitorscompetitors

Page 52: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Anatomy of a Successful AICAnatomy of a Successful AIC

Cluster Members Commonly haveCluster Members Commonly have::Generally close geographic proximityGenerally close geographic proximityShared interestsShared interestsShared Sense of fateShared Sense of fateSignificant employmentSignificant employmentRespect of community and economic Respect of community and economic development communitydevelopment communityPolitical power (Political power (clout)clout)

Page 53: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Concord Grape Belt Concord Grape Belt AgribusinessesAgribusinesses

Vineyard inputs supply retailers (18)Vineyard inputs supply retailers (18)Farm Equipment (6)Farm Equipment (6)Vineyard equipment manufacturers (1)Vineyard equipment manufacturers (1)Agricultural services (15)Agricultural services (15)Agricultural agencies/programs (6)Agricultural agencies/programs (6)Trucking services (5)Trucking services (5)NonNon--CoCo--op Processors (4)op Processors (4)Cooperative Processors (3)Cooperative Processors (3)Wineries (14)Wineries (14)Food distributorsFood distributors (1)(1)Other Partners (including government, tourism) (8)Other Partners (including government, tourism) (8)

Page 54: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Anatomy of a Failed ClusterAnatomy of a Failed ClusterMission not well definedMission not well definedTurf issues not worked outTurf issues not worked outPoorly conceivedPoorly conceived projectsprojectsWeak leadershipWeak leadershipLack of resourcesLack of resourcesCluster based on artificial boundariesCluster based on artificial boundariesPersonalities, egosPersonalities, egosEnvironmental impact ignoredEnvironmental impact ignored

Page 55: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

TYPOLOGY OF AGRICULTURAL INDUSTRY CLUSTERS

STATUS

FUNCTIONAL FUNCTIONALFORMAL INFORMAL DISFUNCTIONAL FAILED

RESOURCE-BASED

Oswego Onion Cluster (NY Bold),

Concord Grape Belt

Black Dirt Onion Region

Cape Cod Cranberries, ME

Blueberry BarrensLong Island Duck

PROXIMITY-BASED

Finger Lake Culinary Bounty Batavia, NY Hudson Valley

Harvest? Sonoma Select

INTEREST-BASED NY Cheese Guild IPM Small-Scale Food

Processors NEFFFCo

COMBINATION NY Wine Industry Maple Sugar Dairy Industry

BA

SIS

OF

ESTA

BLI

SH

Page 56: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Economic Impact of CGBEconomic Impact of CGBJobsJobs Supported:Supported: 1,9231,923TotalTotal Economic ImpactEconomic Impact:: $349 million*$349 million*WagesWages Paid:Paid: $54 million$54 millionNumberNumber of Producers:of Producers: 800800BearingBearing Acres:Acres: 30,000+30,000+RetailRetail Value of Juice Sales:Value of Juice Sales: $208 million$208 millionRetailRetail Value of Wine Sales:Value of Wine Sales: $17.5 million$17.5 millionWineWine--RelatedRelated Tourist Visits:Tourist Visits: 35,00035,000

** Total Economic Impact is the total value of sales Total Economic Impact is the total value of sales generatedgenerated by juice by juice processorsprocessors, growers and other , growers and other businessesbusinesses from whom they purchase.from whom they purchase.

Page 57: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Case Study Case Study of theof theConcord Grape BeltConcord Grape Belt

Page 58: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

New York Agricultural SocietyDuncan HilcheyCommunity, Food, and Agriculture ProgramDepartment of Development SociologyCollege of Agriculture and Life SciencesCornell University

Lake Erie Concord Grape BeltHeritage Development Project:A Case Study in Agriculture ClusterDevelopment

Page 59: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Lake Erie Concord Grape Belt

Lake Erie Concord Grape Belt AssociationBy Antoni Magri and Duncan Hilchey

E s c a r p m e n t o

f A l l e

g h e n y P l a

t e a uLake Erie

527 M

172 M

Page 60: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Lake Erie Concord Grape BeltTownship of Westfield

Lake Erie Concord Grape Belt Association

Page 61: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Commodity Agricultural Region withInteresting Mix of Challenges and Opportunities

Page 62: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Strong Social Capital

Page 63: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

A Unique LandscapeA Unique Landscape

Page 64: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 65: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,
Page 66: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

History, Culture, and Tradition

Page 67: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Economic Development Opportunities

Page 68: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

CGB Cluster EvolutionCGB Cluster Evolution

ElijaElija Fay: wineFay: wineTable grapesTable grapesWelch FamilyWelch FamilyNumerous Numerous businessesbusinesses locate locate inin the CGBthe CGBOther growing areas Other growing areas come on linecome on lineWineriesWineriesAgritourism studyAgritourism study

Page 69: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Concord Grape Belt Concord Grape Belt ChallengesChallenges

Fastest shrinking county population in NYSFastest shrinking county population in NYSWelchWelch’’s headquarters closes (2000)s headquarters closes (2000)Grape prices erraticGrape prices erraticWeather has hurt harvestsWeather has hurt harvestsCompetition from Washington StateCompetition from Washington StateConsumption of Concord may slideConsumption of Concord may slide……Vineyard consolidation (1,000 and shrinking)Vineyard consolidation (1,000 and shrinking)

Page 70: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Project ObjectivesProject Objectives

Work with a community with untapped Work with a community with untapped agricultural heritage.agricultural heritage.

Develop strategies, techniques and Develop strategies, techniques and approaches to food and agapproaches to food and ag--related heritage related heritage and regional identity.and regional identity.

Conduct Extension and OutreachConduct Extension and Outreach

Encourage the state or federal government to Encourage the state or federal government to recognize recognize ““Agricultural Heritage AreasAgricultural Heritage Areas”” and and provide them with resources and incentives provide them with resources and incentives which support their integrity and sustainability.which support their integrity and sustainability.

Page 71: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

A Place at the TableA Place at the TableNomination ProcessNomination Process

CriteriaCriteria–– Palpable identityPalpable identity–– No previous activitiesNo previous activities–– Organizational capabilityOrganizational capabilitySolicited nominationsSolicited nominationsSelected two finalist communitiesSelected two finalist communitiesFinalist site visitsFinalist site visitsChose Concord Grape BeltChose Concord Grape Belt

Page 72: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Members of the Team: Members of the Team: PartnersPartners and and StakeholdersStakeholders

CCE Chautauqua CountyCCE Chautauqua CountyLake Erie Regional Grape ProgramLake Erie Regional Grape ProgramCommunity, Food, and Agricultural Program, Department Community, Food, and Agricultural Program, Department ofof Development Sociology and AEM at Cornell UniversityDevelopment Sociology and AEM at Cornell UniversityChadwick Bay Regional Development CorporationChadwick Bay Regional Development CorporationChautauqua County Agritourism CommitteeChautauqua County Agritourism CommitteeSeaway Trail, Inc.Seaway Trail, Inc.Westfield Development CorporationWestfield Development CorporationNorth East, PA, Chamber of CommerceNorth East, PA, Chamber of CommerceFredonia Chamber of CommerceFredonia Chamber of CommerceSilver Creek/Irving Chamber of CommerceSilver Creek/Irving Chamber of CommerceChautauqua County Chamber of CommerceChautauqua County Chamber of CommerceDays Inn, FredoniaDays Inn, FredoniaNational Grape Cooperative Growers Cooperative Grape National Grape Cooperative Growers Cooperative Grape Juice Co., Inc.Juice Co., Inc.Cliffstar CorporationCliffstar CorporationCanandaigua Wine CorporationCanandaigua Wine CorporationArrowhead Wine CellarsArrowhead Wine CellarsBaran VineyardsBaran VineyardsWestfield Historical SocietyWestfield Historical SocietyPresque Isle WineryPresque Isle WineryChautauqua County Planning DepartmentChautauqua County Planning Department

Page 73: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

CGB Heritage Area ProcessCGB Heritage Area Process

Core group formedCore group formedStakeholders identifiedStakeholders identifiedVisioning and strategizingVisioning and strategizingMission statementMission statementCommittee developmentCommittee developmentProject implementationProject implementationFormalization Formalization (Incorporation)(Incorporation)EvaluationEvaluationGrowth and sustainabilityGrowth and sustainability

The Community AgricultureDevelopment Process

Page 74: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

America’s First Product-Specific Agricultural Heritage Area

Page 75: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

MISSION: A dynamic and expanding region built upon its Concord grape heritage and embracing all facets of the region’s grape and tourism industries to collectively improve the opportunities and quality of life for all its citizens.

— Tom Davenport, National Grape Coop

Page 76: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

CGB HeritageCGB HeritageProject CommitteesProject Committees

Heritage CommitteeHeritage CommitteeMuseum CommitteeMuseum CommitteeTourism/Promotion CommitteeTourism/Promotion CommitteeCulinary Bounty CommitteeCulinary Bounty CommitteeInterInter--industry industry CommitteeCommittee

Page 77: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Lake Erie Concord Grape Belt Lake Erie Concord Grape Belt Heritage Association, Heritage Association, Inc.Inc.

Potential benefits:Potential benefits:–– Preservation grantsPreservation grants–– Vineyard Vineyard

preservationpreservation–– Greater local Greater local

appreciationappreciation–– Industry unityIndustry unity–– Tourism developmentTourism development

Page 78: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Community and Economic Community and Economic Development ProjectsDevelopment Projects

CGB Heritage CenterCGB Heritage CenterInterpretive trail and Interpretive trail and DVDDVDCulinary Bounty Culinary Bounty programprogramEconomic impact studyEconomic impact studyCertified labelingCertified labelingFarmFarm--toto--schoolschoolMicroenterprise Microenterprise developmentdevelopment

Welch’s Building

Page 79: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

CGB Cluster OpportunitiesCGB Cluster Opportunities

PackagingPackagingAgritourism cluster developmentAgritourism cluster developmentMicroenterprise developmentMicroenterprise developmentNew Vineyard labNew Vineyard labHeritage areaHeritage areaCertified heritage productsCertified heritage productsWineriesWineriesOrganic grapesOrganic grapesEmpire ZoneEmpire ZoneExpand cluster to include nonExpand cluster to include non--grape food processing?grape food processing?

Page 80: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Farm SignsFarm Signs

Page 81: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Heritage Heritage ProjectsProjectsPhoto collectionsPhoto collections““FoxfireFoxfire”” interviewsinterviewsFarm implement Farm implement collectionscollections

Page 82: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

New New BusinessesBusinessesJuiceries;Juiceries; stained stained TT--shirtsshirtsWineriesWineriesDiversification Diversification opportunitiesopportunitiesRecreation and Recreation and entertainmententertainment

Page 83: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Cuisine Cuisine and and ValueValue--addedadded PossibilitiesPossibilities

Grape chutneyGrape chutneyGrape catsupGrape catsupJams, jelliesJams, jelliesGrape piesGrape piesPork loin in Pork loin in grape saucegrape sauce

Restaurantagriculture

Buy-local campaign

Co-packing

Shared-usekitchens

Farm-to-school

Institutionalpurchasing

Page 84: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Blessing of the Blessing of the grape harvestgrape harvestGrape stompGrape stompJuice and wine Juice and wine samplingsamplingEntertainmentEntertainment

Coordinated Grape Coordinated Grape FestivalsFestivals

Page 85: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Vineyard Tours

Page 86: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Public Education CampaignPublic Education Campaign

Page 87: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Welch’s Building

Concord Grape Belt Museum

Page 88: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

TourismTourism ProjectsProjects

Roadside info kiosksRoadside info kiosksMapsMapsBrochuresBrochuresSignageSignageTrailsTrailsVineyard and Vineyard and processing plant toursprocessing plant toursPullPull--over vistasover vistas

Lake Erie Concord Grape Belt

Lake Erie Concord Grape Belt AssociationBy Antoni Magri and Duncan Hilchey

E s c a r p m e n t o

f A l l e

g h e n y P l a

t e a uLake Erie

527 M

172 M

Page 89: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Label of Controlled Origin (LCO) Label of Controlled Origin (LCO) (proposed)(proposed)

Agricultural Heritage Area owns the license.Agricultural Heritage Area owns the license.–– Lake Erie Concord Grape Belt Heritage Area Label Lake Erie Concord Grape Belt Heritage Area Label

of Controlled Origin. This label certifies that the of Controlled Origin. This label certifies that the producer of this product has met all heritage area producer of this product has met all heritage area qualifications and standards, and that 100% of the qualifications and standards, and that 100% of the key ingredients were produced in the heritage area.key ingredients were produced in the heritage area.

Producer must be a member in good standing of the Producer must be a member in good standing of the AHA; producer applies to use the label and pays an AHA; producer applies to use the label and pays an annual fee.annual fee.AHA designates how the label is used.AHA designates how the label is used.AHA can revoke the license if abuse is AHA can revoke the license if abuse is discovered.discovered.

Page 90: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

MarketScapeTM

CGB Farm-to-SchoolProgram

Page 91: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Increased Sales and Profit?Increased Sales and Profit?

Page 92: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

How How Are WeAre We DoingDoing??Figure 1. Concentration on process versus Concentration on results N=18

x

x x

xx x xx

xx

xxx x x

xx

x

1 2 3 4 5 6 7 8 9

Con

cent

ratio

n on

PR

OC

ESS

Concentration on RESULTS

9 8 7 6 5 4 3 2 1

X

Page 93: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Keys to SuccessKeys to SuccessShared sense of fateShared sense of fateShared visionShared visionStrong local organizations and leadersStrong local organizations and leadersPassionate belief that they can affect their futurePassionate belief that they can affect their futureChecked egos at the doorChecked egos at the doorStrong sense of Strong sense of inclusiveness:inclusiveness:–– Stakeholders included competitorsStakeholders included competitors–– PennsylvaniaPennsylvania

Industrial cluster approach Industrial cluster approach (growers,(growers, processors, processors, tourism)tourism)Infectious Infectious enthusiasmenthusiasm

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New York State New York State ““Heritage AreaHeritage Area”” DesignationDesignation

Formerly called Formerly called ““Urban Urban Parks.Parks.””Certified local government may make a Certified local government may make a nomination.nomination.LegislationLegislation must be must be passed.passed.ManagementManagement plan must be plan must be produced.produced.Finally, the heritage area Finally, the heritage area maymay apply for apply for certain preservationcertain preservation--related related grants.grants.

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Agricultural Heritage AreasAgricultural Heritage Areas……

…… recognize a recognize a placeplace--basedbased product.product.…… are geographically bounded.are geographically bounded.…… celebrate the communities that have celebrate the communities that have

evolved with the product.evolved with the product.…… protect unique agricultural landscapes.protect unique agricultural landscapes.…… reward traditional production practices.reward traditional production practices.…… encourage stewardship of local encourage stewardship of local

resources.resources.

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Potential Benefits of an Potential Benefits of an Agricultural Heritage AreaAgricultural Heritage Area

WhatWhat We Hope ForWe Hope For……Tax incentives and grants from state and Tax incentives and grants from state and federal governmentfederal government

New dollars coming in from outside the New dollars coming in from outside the communitycommunity

Plugging of economic leakagesPlugging of economic leakages

Greater sense of community prideGreater sense of community pride

Protection of natural and cultural resourcesProtection of natural and cultural resources

Page 97: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Cluster Cluster Development Development

StrategiesStrategies

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Conventional Industrial Cluster Conventional Industrial Cluster Development ApproachDevelopment Approach

Business Gap AnalysisBusiness Gap Analysis

Business recruitment/developmentBusiness recruitment/development

Job trainingJob training

Page 99: New Leaf Agriculture Industry · PDF fileClusters and Cluster Development Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers,

Cluster AnalysisCluster Analysis

What cluster(s) What cluster(s) presentlypresently exist in my region?exist in my region?

How big are they?How big are they?

What cluster(s) are emerging?What cluster(s) are emerging?

What cluster(s) What cluster(s) potentiallypotentially exist?exist?

PROCESSPROCESS–– Quantitative (location quotients, shiftQuantitative (location quotients, shift--share analysis, share analysis,

inputinput--output analysis)output analysis)–– Qualitative (keyQualitative (key--informant interviews, focus informant interviews, focus groups)groups)

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SWOT AnalysisSWOT Analysis

Informs vision, mission, and project planningInforms vision, mission, and project planningESSENTIALS:ESSENTIALS:–– Representative participationRepresentative participation–– Interviews, focus groups or bothInterviews, focus groups or both–– Facilitation is criticalFacilitation is critical–– Some people will complain about how obvious Some people will complain about how obvious

some comments aresome comments are……thatthat’’s OKAYs OKAY

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What What AreAre Some Ways to Help?Some Ways to Help?LeadershipLeadership–– Hosting meetingsHosting meetings–– Establishing core groupEstablishing core group–– Stakeholder analysis and Stakeholder analysis and ForcefieldForcefield analysisanalysis–– Lead visioning session and SWOT analysisLead visioning session and SWOT analysis–– Key informant interviewsKey informant interviews–– Chairing a committeeChairing a committee

Organizational Organizational SupportSupport–– Newsletter, mailings, meeting spaceNewsletter, mailings, meeting space–– Serve as a funding Serve as a funding ““passpass--throughthrough”” agencyagency

Project Development and ImplementationProject Development and Implementation–– Grant writingGrant writing–– Report writingReport writing–– EvaluationEvaluation

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Annual EvaluationAnnual Evaluation

QuantitativeQuantitative–– Annual survey of cluster stakeholdersAnnual survey of cluster stakeholders–– Cluster sustainability indicatorsCluster sustainability indicators

Examples:Examples: # of farm foreclosures, loan defaults, # of farm foreclosures, loan defaults, changes in processing employment, changes in processing employment, agag parcel parcel counts, CAFO violationscounts, CAFO violations

QualitativeQualitative–– Focus groupsFocus groups–– Cluster Panel Cluster Panel TechniqueTechnique

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ResourcesResources

Industrial cluster literature Industrial cluster literature reviewreviewhttp://www.planning.unc.edu/courses/261/leveen/litrev.htmhttp://www.planning.unc.edu/courses/261/leveen/litrev.htm

Location Quotients, ShiftLocation Quotients, Shift--Share AnalysisShare Analysishttp://www.epa.gov/greenkit/pdfs/howto.pdfhttp://www.epa.gov/greenkit/pdfs/howto.pdf

2002 Census of Agriculture2002 Census of Agriculturehttp://www.nass.usda.gov/Census_of_Agriculture/index.asphttp://www.nass.usda.gov/Census_of_Agriculture/index.asp

County Business PatternsCounty Business Patternshttp://www.census.gov/epcd/cbp/view/cbpview.htmlhttp://www.census.gov/epcd/cbp/view/cbpview.html

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Duncan HilcheyDuncan Hilchey

New Leaf Publishing and ConsultingNew Leaf Publishing and ConsultingIthaca, NYIthaca, NY

[email protected]@newleafnet.com607.342.0259607.342.0259