Spending more money locally on food sourced from within 100 miles of a community can have economic benefits. If residents of North and South Linden, Ohio spent an additional 2% of their food dollars on local food, it could create 36 new jobs paying $30,000 per year. This is because more money would be spent on local food production, processing, and labor within the community rather than leaving the area. A curriculum is being developed to train residents in local food system jobs like food production, processing, business planning, and year-round agriculture techniques.

1. Local Food System Economics
October 2009

2. Ag-Bio Cluster Economics
Business Model
Alex Osterwalder 2006, from Slideshare.com slide 2
http://business-model-design.blogspot.com/2006/11/business-model-template-designing-your.html

3. Ag-Bio Cluster Economics
Business Case
• A business case captures the reasoning for
initiating a project or task.
• It is often presented in a well-structured
written document, but may also sometimes
come in the form of a short verbal
argumentation.

4. Ag-Bio Cluster Economics
Business Case
A Business Case Contains:
• Reference - Project name/reference, Origins/background/current state
• Context - Business objectives/opportunities, Business strategic alignment (priority)
• Value Proposition - Desired business outcomes, Outcomes roadmap, Business
benefits (by outcome), Quantified benefits value, Costs/ROI Financial scenarios,
Risks/costs of not proceeding, Project risks (to project, benefits and business)
• Focus - Problem/solution scope, Assumptions/constraints, Options
identified/evaluated, Size, scale and complexity assessment
• Deliverables - Outcomes, deliverables and benefits planned, Organizational areas
impacted (internally and externally), Key stakeholders, Dependencies
• Workload - Approach, Phase/stage definitions (Project (change) activities,
Technical delivery activities, Workload estimate/breakdown, Project plan and
schedule, Critical path)
• Required Resources - Project leadership team, Project governance team, Team
resources, Funding
• Commitments (required) - Project controls, Reporting processes, Deliverables
schedule, Financial budget/schedule

5. Today, You Will Spend $10 on Food;
Do You Know Where It Goes?
Everything Else: $5
Consumers Spend $10
Food Preparation: $1.50
Food Production
$2
Food Processing: $1.50
Distribution, Storage, Packaging, Labeling, Inspection, Certification,
Wholesaling, Retailing, Marketing, Advertising

6. $4 of That $10 Is for Labor
Consumers Spend $10
Labor
$4

7. 2%, or 20¢, Will Be Spent on Locally
Sourced Food (within 100 Miles)
Everything Else: 3¢ – 7¢ (15% – 35%)
Consumers Spend 20¢
Food Production
5¢ (25%)
Food Processing – 4¢ (20%)
0¢ – 4¢ (0% – 20%) more food for the money

8. 40%, or 8¢, of That 20¢ Is for Labor
Consumers Spend 20¢
Labor
8¢

9. The Differences Are Crucial!
Food Preparation
Subsidized
Food Production
Food Processing
Food Consumption
Global Food System
Sustainable
Food Production
Food Processing
Local Food System

10. Global vis-à-vis Local Sourcing of Food
Food Preparation
Food Production
98% Food Processing
Food Consumption
$147M / year
Global Food System Spent by 40,000 Linden Residents
2%
Local Food System
$3M / year Spent by 40,000 Linden Residents
Local Food System
.9 Employed / 1000 residents = 36 Jobs @ $30K / year

11. What if you choose more locally-sourced food?
Food Preparation
Food Production
75% Food Processing
$112.5M / year
Food Consumption
Global Food System Spent by 40,000 Linden Residents
Food Production
Food Processing
Food Production
Local Food System Food Processing
Local Food System
Food Production
Food Processing Food Production
Food Processing
Local Food System
Local Food System
Food Production
Food Processing
Local Food System
Food Production
Food Processing
Food Production
Local Food System
Food Processing
Local Food System
Food Production
Food Production
Food Processing
Food Processing
Local Food System
Local Food System
25% $37.5M / year Spent by 40,000 Linden Residents Food Production
Local Food System
Food Processing
Food Production
Food Production
Food Processing
Food Processing
Local Food System
Local Food System
Food Production
Food Processing
Local Food System
.9 Employed / 1000 residents = 450 Jobs @ $30K / year

12. If sourced locally, 20% of the calories you
consume each day come from
Vegetables and Fruits
which are seasonal and expensive
400 / 2000 Calories

13. What if you choose more locally-sourced food?
+ +
Wider Variety of Food Products with More Calories
Season Extension and Year-Round Food Production
Integrated Processing and Preparation

14. New Harvest Financial Overview

15. Local Food Systems Economics—Jobs
• Today, 40,000 people in North and South Linden
 Spend $3M / year on locally sourced food (2%)
 $1.2M / year for labor (90% outside the community)
• What if you brought what’s outside, inside?
 $1.2M / year for labor (90% INSIDE the community)
 36 MORE jobs paying $30K / year (livable wage)
• What if you spent $6M / year (4%)?
 $2.4M / year for labor (90% INSIDE the community)
 36 MORE jobs paying $30K / year (livable wage)

16. Spend more on food locally sourced from the
North and South Linden community and MORE
Vacant, abandoned,
and underutilized Jobs are
properties are put
into food production created
Food processing and
preparation operations
are established
People are
Money is spent, captured, and
reinvested in the community
healthier
and happier!
Multiplier effect occurs spurring business growth
in green energy and distributed manufacturing

17. Getting Involved in Local Food Systems—
The Curriculum
• Introduction to Food Production in a Local Food System
• Soil Production
• Business Planning in a Local Food System
• Seasonal and Extended Season Food Production
• Branding / Reputation / Food Safety Standards / Compliance
• Food Processing Incubation
• Mobile Kitchen / Food Cart Operations
• Year-Round Food Production Under Glass and Underground
• Aquaculture: Tilapia, Yellow Perch, Freshwater Prawns
Get Ready for Business in 2010!
Workshops Begin in November 2009
Enroll at the New Harvest Urban Arts Center