Tuesday, February 25, 2014

Cornell's Study on the Economic Impacts of Food Hubs

The USDA Agriculture Marketing Survey and The National Institute for Food and Agriculture recently funded a Cornell project to conduct a comprehensive study on the economic effects of food hubs. I read about this study from an article titled Study: Food Hubs' Support for Local Economy is Mixed from The Cornell Chronicle 
Cornell found that food hubs provide a wide variety of crops to their local population. In addition to ameliorating the diet of local consumers, food hubs also promote local farm aggregation and and distribution businesses. Food hubs have somewhat of a "multiplier" impact. For every dollar that is spent on a food hub, more money stays and is re-spent in the local economy.
Other businesses, however, do suffer. Research shows that businesses that sell substitute products suffer a 10% decrease in sales.
Lastly, Cornell's research also showed that middle- sized farms are the ones that benefit most from food hubs. This makes sense because these are the farms that have outgrown sales at a street stand market but are too small to be distributed by large corporations such as Walmart.
Customer survey results from Cornell's study revealed room for improvement in the food hub sector in terms of logistics; specifically a need for lower minimum order sizes and increased frequency of deliveries.
http://www.news.cornell.edu/stories/2014/01/study-food-hubs-support-local-economy-mixed

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