Salt Spring Island Farm Produce Centre Centre Salt Spring Island - - PowerPoint PPT Presentation

Salt Spring Island Farm Produce Salt Spring Island Farm Produce Centre Centre

Prepared for the Salt Spring Island Agricultural Alliance by Patricia Reichert

The Context & the Plan The Context & the Plan

The centre is an essential service in

the development of the SSI agricultural economy and SSI food security

The aim is to develop a multi-

purpose hub for storage, processing and distribution of Salt Spring farm produce

Community Priorities Community Priorities

The SSI Local Produce Study identified

infrastructure needs and the need for more local food production (2005)

The SSI Food Security Plan supports

increased local food production (2006)

The SSI Area Farm recommends

development of infrastructure that supports agriculture expansion, including storage and processing (2008)

Community Priorities Community Priorities cont’d

cont’d

The SSI Livestock Study (2009) and

SSI Produce Study (2010) affirmed agricultural infrastructure needs

The SSI Climate Action Plan identifies

need to increase local food consumption in order to achieve greenhouse gas emission reductions (2011)

Community Priorities Community Priorities cont’d

cont’d

Gaps assessment

survey of farmers, chefs, food processors (2011)

Growing Up

Organic/Salt Spring Farm Food Link provides 3 years of experience with commercial distribution & the need for a handling and storage facility

% 5 % 1 % 1 5 % 2 % 2 5 % 3 % 3 5 % 4 % 4 5 % 5 % A p p le ju ic in g S t

• r

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Unique Opportunity Unique Opportunity

From Beddis Developments Ltd.

– Transfer of .6 hectares of land on Beddis Rd to the community to build a community produce centre – Assistance with site preparation – Donation of 1000 square feet of building – $40,000 cash toward development costs

Total estimated value $380,000

The Proposed Site The Proposed Site

Proposed New Zoning: In1(b) Proposed New Zoning: In1(b)

Processing farm

products

Preparation,

packaging and storing of farm products

Composting facility Agriculture and food

research & education

Indoor & outdoor

retail sales and wholesales of farm products & products in a farm operation

Agriculture, farm

buildings & structures

One dwelling

accessory to industrial use

The Aims The Aims

To support the agricultural economy

• n Salt Spring

To support increased food

production with practical services

To provide a focus for local farm

food & increase access to local food

Intentions Intentions

To serve Salt Spring Island farmers & the

community

To support and not act in competition with

existing SSI farm enterprises

To demonstrate new & innovative

approaches

To link into the regional food system To operate on a break-even basis

Intentions, Intentions, cont’d

cont’d

To integrate the facility into the

physical environment, using sustainable design

To support the community’s Climate

Action Strategic goals

Summary of the Project Summary of the Project

Based on identified needs: farmers,

buyers, community at large

Market mix that is unique & prioritised Hub of services that doesn’t duplicate any

• ther business on SSI

Developed from agricultural perspective Farmers can pick services from the mix

Proposed Functions Proposed Functions

Temperature-controlled storage for

farm produce

Washing, sorting and packing for

commercial distribution

Value-added processing and

products

Other farm support services

CORE SERVICES SECONDARY SERVICES TERTIARY SERVICES

§

Temperature- controlled storage

§

Sorting, handling and prepping for commercial distribution

§

Small farm equipment rental bank (e.g. bean sheller,

§

Salad & braising green processing & packing

§

Ordering and delivery for commercial buyers

§

Office space for an agricultural business

§

Commercial processing and packing (value-added and preserving)

§

Small scale food processing and co- branding

§

Educational workshops, mentoring (e.g. farm tax consulting)

§

Joint ventures, e.g. incubator services

§

Marketing support. E.g. winter retail market

§

Greenhouse, uses energy from the refrigeration

§

Clearinghouse for agricultural information

• CSA coordination &

distribution station

Partnership Opportunities Partnership Opportunities

Storage & distribution contracts,

handling volume

Co-branding Greenhouse Farmer-grocery store contracts &

delivery

Joint ventures with community

agencies

Partners Partners

Farmers &

farm groups

Chefs Small scale

food processors

Commercial

food buyers

Public

institutions

Community

• rganisations

Government Regulations Government Regulations

Islands Trust

zoning

BC Public Health

Act

CFIA Natural Products

Marketing Act

Triple Bottom Line Triple Bottom Line

Social Enterprise/Enterprising Non-

Profit: marries the goals & the finances

Cost recovery that ensures financial viability Supports & enhances role of small scale agriculture in community food security Sustainability profile

Values & Risks Values & Risks

Unique set of

services

Supports

agricultural expansion & sustainability

Local food security More primary

production needed

It will take time to

develop processing & partnerships

Lower cost of non-

local food affects food choices

NEED VALUE RISKS

Temperature –controlled storage No other central facility Minimal quality on-farm storage Core service. High identified need by farmers. Protects and ensures quality and supply through four seasons Essential for building local food system Saves farmers from having to make capital investment on a farm-by-farm basis. Could make good use of the existing building on the site Revenue margin will be low in order to support farm prices. Volume will be low to start. Commercially licensed salad & braising washing, cooling & packaging Core service Capitalises on Salt Spring’s ability to grow top quality greens for replacement of imported greens used in restaurants and sold in grocery stores. Elevates food safe handling to industry standard. Adds significantly to local food security High profile local food branding opportunity. Pricing provides room for moderate margin. Must develop grocer commitment Need a couple of large scale farmers to get on board. Need consistent quality The Produce Centre can broker the contracts between the farmers and the grocers. Commercial processing & packaging Core service (Links with the greens processing) Adding value by simple, low impact freezing of fruits & vegetables for sale to grocers & restaurants Expansion opportunity to include product development using local

• ingredients. Developing relationships with small scale food
• processors. May be able to test market with interim use of the

new on-farm facility Adds significantly to local food security High profile local food branding opportunity Pricing provides room for moderate margin Requires increased volume of produce production. Must develop relationships with small scale food processors & chefs. Will require fundraising for capital investment

NEED VALUE RISKS Distribution and delivery

Secondary service Ensures supply for processing Supports production increases to commercial levels Essential component of local food system More primary production is needed. Off-island food price competition Low margin , to support farm prices.

Commercial processing & co- branding

Secondary service Ties local ingredients to processed foods Joint-venture opportunities Essential component of local food system. Ensures food safety of processed products. Provides a facility for incubation of new products and new food processors entering the local food system. Provides a facility for partnering with community

• rganizations such as Community Services.

Strong, diverse revenue stream. It will take time to develop this service in step with increased primary production. It will take time to develop the partnerships with business & community organizations. Will require specific management

• f operating costs.

Greenhouse

Secondary service Opportunity for co-venture with farmer(s) The greenhouse will use the heat from the refrigeration compressors, demonstrating responsible energy reuse and low-cost efficiency. The greenhouse could produce in the months that farmers cannot afford to operate their greenhouses, thus supplying

• ff-season produce (e.g. greens).

Moderate revenue margin Site placement is critical--in relation to main building (efficient access to the heat source) and light.

Tertiary Services Provides a hub of agricultural support services for farmers Draws farmers and potentially food buyers to the centre Adds revenue without significantly adding to operational costs None

Managing the Risks Managing the Risks

Covering the cost of services without adversely affecting the price of local produce for either farmers or buyers

Local food is a specialty item in a

market place dominated by industrially-produced and imported food, available 52 weeks of the year

Managing the Risks Managing the Risks

Creating economies of scale

Farm production increasing but

still not at full commercial volumes

Infrastructure services needed to

support increased production

Increased volumes needed to ensure

financial stability of infrastructure services

Business Proposition Business Proposition

Phased Approach: Ensure financial viability of the centre by providing diverse market access and expanded market streams

• Develop partnerships
• Mix of revenue streams
• Develop local food brand

Business Proposition Business Proposition

Phasing

Year 1– Start-up Phase Year 2 Development Year 3 Full implementation

Year 1 Start-up

Months 1-3 Months 4-6 Months 7-9 Months 10-12 Targeted marketing campaigns Develop & implement leased crop storage Develop & implement tool & equipment leasing depot Build distribution system between farms & commercial buyers Implement distribution system: Develop partnerships with food processors for year 2

Year 2 Development

Months 1-3 Months 4-6 Months 7-9 Months 10-12 Develop partnerships with food processors Begin sales of co-branded products Expand commercial distribution system from farm to buyer Develop greens processing contracts Develop greenhouse contract

Year 1 Phase 1 Start-Up Year 2 Phase 2 Development Year 3 First Full Year Implementation

• Est. Revenue

$ 7,750.00 $24,000.00 $39,500.00

• Est. expenses

23,382.00 31,440.00 37,820.00

Net income

($15,632.00) ($7,740.00) $ 1,680.00

% Revenue by Revenue Stream

0% 10% 20% 30% 40% 50% 60% Commercial dist. & process Leased storage Greenhouse Equip rental Teriary

Cost to Revenue Ratios: diversity the key

0% 10% 20% 30% 40% 50% 60% Distribution & processing Leased storage Greenhouse Equip rental Tertiary

Yr 3 revenue Yr 3 costs

Investing in the Future Investing in the Future

Start-up costs in

line with any new business

Grant funds may

be available for years 1 & 2 development

Year 3 break-

even

Next Actions Next Actions

Continue support of the sub-division

application

Establish planning & building

committee

Develop capital budget Develop fundraising plan Develop local food marketing plan

Thank you Thank you

VanCity Credit Union

(enviroFund grant program)

and

The Salt Spring community

for

investing in Salt Spring agriculture