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THE CRUNCH APPLICATION
Improving access to Fresh Fruit and Vegetables in Corio and Norlane, Victoria through retailing and production.
Katie Drummond-GillettProgram manager | Food Skil
Unit 1001, Corio Shopping Centre, Bacchus Marsh Road, Corio, VIC 3214m 0405 569 622 t 03 5245 3000 f 03 5245 3099
WHAT IS FOOD SKIL?Food Skil is a social enterprise set up to address food insecurity in the Northern Suburbs of Geelong by improving access to affordable, sustainable, fresh and healthy food. This will be done through providing high quality fresh produce through production and retail.
THE SOCIAL ISSUEFOOD SECURITY IN THE NORTHERN SUBURBS OF GEELONGThe Geelong region plays a significant role in Victoria’s food production, yet many of its residents face food insecurity through poor access to fresh food, particularly in low SIEFA index areas such as Norlane and Corio. Outside of the Corio Shopping Centre, there are only 2 fruit and vegetable shops in the area. The quality of produce that is available in the area is often poor ‘seconds grade’ produce.
Corio and Norlane are seen as areas of socio-economic disadvantage and the residents have been identified as being at risk of food insecurity in research done by the State Government Neighbourhood Renewal Project.
Food Skil believes that by making fresh fruit and vegetables more accessible, food security can be dramatically improved.
THE BUSINESS IDEA - WHAT FOOD SKIL WILL BECOMEFood Skil will become a food system and operate in 2 major areas;
FRESH FOOD PRODUCTION A biodynamic market garden, providing fresh, seasonal fruit and vegetables
to our fresh food outlets. A community orchard, providing seasonal fruit to our fresh food outlets.
FRESH FOOD SUPPLY 2&5 Fresh Food shops in areas without adequate access to fruit and
vegetables. One of these will encompass processing, storage and distribution.
2&5 Fresh Food market stands in schools, neighbourhood houses and other community venues.
BROADER COMMUNITY ENGAGEMENTWe would provide employment, training and support for marginalised groups and at the same time fill the gap in services, by improving access to fruit and vegetables.
Food Skil will also collaborate with services such as Barwon Health’s Community Kitchens, local hospitality training providers/cafes, Neighbourhood Houses and schools; as well as the broader community to sell fresh produce and locally grown or made goods.
WHAT HAVE WE DONE ALREADY?Food Skil has been in existence for 1 year. We have achieved a great deal in this short time and have turned many of the negative assumptions around food security in Corio and Norlane around. Food Skil’s first major area, ‘food supply’ is already well under way. We already have;
A weekly market at Cloverdale Community Centre run by a market manager (who also works one day a week in the shop and does our finances)
A Fruit and Vegetable shop in Labuan Sq, Norlane. This shop is supplied with fruit and vegetables bought from a local wholesaler, donated produce as well as produce bought from local backyard growers
An extremely profitable weekly jam group, run by three volunteers. The group meet on a Friday afternoon to turn donated fruit or veg into jams and chutneys, we then in turn can sell in our 2&5 Fresh Food outlets.
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INSIDE OUR 2&5 FRESH FOOD SHOP AT LABUAN SQUARE
OUR 2&5 FRESH FOOD MARKET STAND
Food Swaps in Corio and Norlane. Food Skil grew from these and this has built the community’s capacity for the project.
2&5 Fresh Food market stands at two primary schools, once a week run by a paid member of staff and volunteers. This will be subsidised by Best Start, an initiative by DEECD.
We are also currently in discussion with the City of Greater Geelong to run 2&5 Fresh Food market stands in Central Geelong, providing fruit to Students and workers.
THE PILOT STUDY Food Skil started small and has built on its own successes. Some trends have become apparent from running the market stall and small shop.
We are running at a small profit; indicating that the enterprise would be financially self-sustaining.
The community wants and needs this enterprise. We have had overwhelming support from the local residents and other stakeholders in the field (including our local government). At the moment we have 25 volunteers.
This enterprise has already succeeded where others have failed… WHAT ‘S OUR SECRET??
PLANNING AND RESEARCHWorkskil’s funding of a project worker for three years to implement the planning stage. This has allowed for comprehensive research and planning as well as an element of ‘trial and error’ not usually afforded by similar enterprises.
COMMUNITY FOCUS, SPECIFICITY AND CURRENCYThere is high community support and capacity for the project. This project fulfils a service that is specific to the local areas’ current needs.
INNOVATIVE MANAGEMENT The particular method used in running the project is iterative with acceptance of failure, collaboration, open sharing of ideas and managed risk taking.
SKILLED LEADERSHIPA highly skilled and knowledgeable program manager has enabled this project to succeed in an extremely complex area.
THE BIGGER PICTURE We believe that one of the keys to our success so far has been our ability to observe, assess and react to the bigger picture.
OUR COMPETITIONPOOR EATING HABITSThis program is about people eating more fruit and vegetables. More than 40% of Victorian’s don’t eat the recommended daily allowance of 2 fruit and 5 vegetables a day. These poor statistics are often blamed on the financial cost of purchasing fresh food. Though cost is obviously a contributing factor; we believe that an underlying lack of knowledge around fresh food and limited access to fresh food are significant barriers in achieving healthier diets.
Food Skil believes that with improved education and access to fresh food we can begin to change eating habits for the better. Through our pilot study, Food Skil has proven that it is possible to change these poor habits. By empowering people through education and making fresh food and vegetables readily available Food Skil allows behaviours to change: from fish and chips to carrots and lettuce!”
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CORIO SHOPPING CENTRESince the Corio Shopping Centre was developed many of the local shopping strips have fallen into neglect. This centralisation of shops and services is acceptable for those with cars, but many of our customers and potential customers have either no car (14%) or only one car per household (40%). By re-localising, we provide improved opportunities to buy fresh food. We regularly compare our prices with those of the major supermarket and have found our prices to be consistently 30% lower.
CHEAP FRUIT AND VEG SHOPSThere are a few cheap fruit and vegetable shops in the local area, selling mainly ‘seconds’ quality produce. As Food Skil sells only high quality produce, we are unable compete with these shops when it comes to cost per unit. Generally produce is sold in three quality segments:
Top - this being slightly more expensive and sold in high end shops, Middle - sold in most supermarkets and produce shops, Seconds - which are marked or old and sold at bargain basement produce shops.
Food Skil provide the highest quality in terms of freshness (lasts longer at home) and taste (people always comment on how much flavour our produce has), but at affordable prices due to our lower costs (rent and labour).
LOCAL FOOD MARKETSThere is a local market at Beckley Park that operates on a Saturday. It usually has a couple of fruit and veg stalls.
ORGANICThere is nowhere to buy organic produce in Corio and Norlane. Through excellent sales of donated backyard produce, our pilot has shown that residents will buy organic produce if it is affordable. There are two specialised organic food shops in Geelong; however these sell to the higher income bracket and are extremely expensive. In the future we believe that we will be able to compete in these higher income areas as a more economical fresh produce alternative.
OUR TARGET MARKETTHE LOCAL COMMUNITYIn 2008 the City of Greater Geelong and the Corio-Norlane Neighbourhood Renewal conducted interviews with key informants, as part of their Food Security Project. They identified those most at risk of food insecurity in Corio and Norlane as:
OLDER PEOPLE / PEOPLE WITH DISABILITIES / UNEMPLOYED / PEOPLE ON CENTRELINK BENEFITS / FAMILIES 2ND OR 3RD GENERATION WELFARE DEPENDANT / PUBLIC HOUSING TENANTS / PEOPLE LIVING ALONE AND SOCIALLY
ISOLATED / REFUGEES AND THOSE FROM NON-ENGLISH SPEAKING BACKGROUNDS / HOUSEHOLDS WITHOUT A VEHICLE OR ONE VEHICLE HOUSEHOLDS / FAMILIES WITH CHILDREN
These are Food Skil’s customers. Our retail outlets will be tailored to suit different groups, depending on the demographic of the immediate surrounds i.e. our 2 & 5 Market Stands in schools will focus on families with children.
CASH RICH CUSTOMERSWe also hope to market a delivery box scheme to wealthier customers in other suburbs. This potentially higher earning stream could subsidise the markets in Corio and Norlane. We would sell at a slightly higher price (than in our outlets) for the convenience of having the produce delivered.
WHOLESALEWe currently wholesale to a couple of social enterprises in Corio and Norlane, which is a lucrative market with low costs. Expanding could be difficult as Glynn Harvey, who is our supplier has most of this market. We could also look at encouraging large organisations such as The City of Greater Geelong and Barwon Health to practice social procurement and make us their preferred supplier.
Once we were certified biodynamic, we could also wholesale direct to the Melbourne Markets.
FARMERS MARKETSSelling at Farmers Markets may provide another income stream.
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TRAINING AND EMPLOYMENTWorkskil is a Job Services Australia provider and is providing the funding for the wages of the project manager and admin costs. Through Workskil, Food Skil could provide retail and production horticulture traineeships. We currently offer a work experience activity which is increasing people’s capacity for work. The stories of how our volunteer’s lives have changed by being involved with Food Skil are inspiring.
OUR FINANCES CASHFLOWCashflow forecast based on the first year’s sales show that we will make a small profit based on our current activities. Once we have scaled up; we would start to make a profit at the end of the first year. After three years, once the market garden and orchard are in full production, Food Skil would be running at a substantial profit.
Biodynamic production is one of the few areas in horticulture that is growing and making profits, with many conventional farmers converting due to the higher returns. In order to scale up to this Food System model we would require $120,000 in the first year to cover costs.
CAPITAL EXPENDITUREThis loan would not include capital expenditure. We would seek this through Grants. Food Skil has already made links with philanthropic organisations in Geelong such as ‘Give Where You Live’. We have already been successful in three grant applications.
OUR FUTURE & WHY WE NEED TO SCALE UPWe are holding our first AGM in September 2012 where we will elect a Board to take us into our second year. Many skilled and professional people have expressed an interest. These have included; community leaders, a food security specialist and health professionals. We will, however focus on people who live or work in the area.
The success of this submission will enable Food Skil to grow and continue providing great access to and learning about ‘healthy food’ to the Corio and Norlane Communities. Should this submission not be successful, Food Skil will continue, however the enterprise would be moving against an increasing tide of social and financial hardships faced by the community.
UPSCALING OF FOOD SKIL Current models of community food enterprises are not sustainable and often need to be subsidised. It is our goal to run independently as a viable self-sufficient enterprise. We believe that our pilot study has proven that Food Skil is a viable enterprise. Food Skil has identified a market need and has tailored an appropriate product and service to suit. Food Skil currently breaks-even; but we are very vulnerable to risks. Up-scaling, will allow Food Skil to become more resilient and self-sufficient. This will in turn allow us to reach further in to the community.
MOVING IN TO FOOD PRODUCTIONBy activating the ‘food production’ area of Food Skil and operating as a food system (producer and retailer) we will reduce our overall costs and increase our income allowing us to be more independent. Growing our own produce would reduce the risk and reduce the costs attributed to buying from external suppliers. It would also increase our customer base, to a more lucrative one outside Corio and Norlane.
UPSCALING OUR RETAILINGExpanding our 2&5 outlets to reach new market areas (farmers markets, veggie box scheme, market stands in schools and wholesale) will allow Food Skil further opportunity to generate profit.
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WHO IS FOOD SKIL?WORKSKILWorkskil is a community based, not-for-profit provider of Employment Services, operating since 1982. In line with Workskil’s aim to make a difference in the lives of individuals through employment, as well as engage in activities which strengthen communities, Workskil has committed to support Food Skil in Corio and Norlane for three years. This support provides Workskil clients with opportunities which would otherwise be unavailable and builds the capacity of each person to affect their own growth, self esteem and community connectedness through working in their local area on a local social business. To date, Workskil clients are involved in Food Skil as a Work Experience (Work for the Dole) program.
KATHARINE DRUMMOND-GILLETTKatharine Drummond-Gillett is the founder of Food Skil. She has been working in Horticulture for over 10 years, including managing an organic market garden in Kinglake, working at Geelong Botanic Gardens, community gardens and many Urban Agriculture projects. This background and her return to study (MA in Urban Horticulture) have helped formulate her ideas and skills around what is necessary to build a healthy food system i.e. that has a sustainable triple bottom line, economic, social and environmental.
FOOD SKIL STAFF + VOLUNTEERSWe currently have three members of staff who run the shop and markets and also keep the accounts. They have a wide range of backgrounds, but all have a passion for local sustainable food and a healthy vibrant community. We also have over 25 volunteers, including our work for the dole participants.
OUR FINAL PLEA…Food Skil is already a successful social enterprise. Our 2&5 Fresh Food Outlets supply the local residents of Corio and Norlane with improved access to fresh produce and education on healthy living. Our pilot study has shown that there is a definitive community need for this enterprise.
This loan would allow Food Skil to move in to food production through the development of our community orchard and biodynamic market garden. Food production would provide Food Skil with increased income stream and community engagement opportunities. In turn this would allow Food Skil to become a more resilient enterprise and allow us to reach further in to the local community.
We believe that Food Skil has immeasurable potential to contribute to the improved health and wellbeing, and therefore quality of life, of the residents of the Corio and Norlane communities.
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