Building a Direct-to-Consumer Food Distribution System in Iowa

The burgeoning interest in local foods is well-substantiated. New distribution systems are needed to augment farmers’ markets and CSA farms to help satisfy this demand. The Iowa Food Cooperative (IFC) will provide another direct-to-consumer marketing option for Iowa farmers. It will utilize a web-based inventorying and ordering system with regular deliveries to distribution sites where consumers will pick up orders. We have: (1) analyzed operations of two existing direct-to-consumer food cooperatives, (2) conducted consumer and producer surveys, (3) built a database of interested consumers and producers, (4) identified possible food delivery/pick-up sites, (5) identified an appropriate legal structure, (6) secured the needed software and (7) completed a draft business plan.

Sales were $600,000/year for the four-year-old Oklahoma Food Cooperative and $48,000/year for the one-year-old Nebraska Food Cooperative. About 50 percent of sales were meat, 30 percent were prepared foods, with the remaining 20 percent being fruits and vegetables and non-food items. Eight-seven percent of 187 Iowa consumers who returned surveys on the IFC were very or extremely likely to participate. Reasons cited were to (1) support sustainably-grown local foods, (2) support family farmers and the Iowa economy, (3) know where their food comes from, (4) be part of a community of like-minded people, and (5) obtain a specific type and quality of food. Over 70 Iowa farmers responded to surveys with data on how much of what products they would likely have available for sale through the IFC. The IFC is building on the experiences of two successful web-based direct-to-consumer cooperatives. Substantial interest exists among both consumers and farmers. Additional work is needed to finalize the business plan and launch the cooperative, which is planned for the spring of 2008.

Contacts:
Gary Huber
Practical Farmers of Iowa
P.O. Box 349
Ames, IA 50010
gary@practicalfarmers.org
515-232-5661, ext. 103

Jim Clark
Practical Farmers of Iowa
P.O. Box 349
Ames, IA 50010
jim@practicalfarmers.org
515-232-5661, ext. 107