Food Hub Basics Q&A
Responses by Evan Lewarch, Project Manager, Puget Sound Food Hub Cooperative
Food Hub Basics:
- Running a Food Hub: A Business Operations Guide, vol. 2, USDA.
Some Regional Food Hubs:
- Puget Sound Food Hub Co-op (PSFHC) (Mount Vernon, WA)
- For additional information contact:
- General Inquiries:
Evan Lewarch, Project Manager, PSFHC
- Sales Inquiries:
Ed Morris, Sales Manager, PSFHC,
- PSFHC Broker for schools/institutional buyers:
Michelle Perkins, Regional Food Sales Lead, Kitchen Sync Strategies/PSFHC
- LINC Foods (Spokane, WA)
- Whidbey Island Grown Cooperative (Whidbey Island, WA)
- San Juan Island Food Hub (Friday Harbor, WA)
- Southwest WA Food Hub (Tumwater, WA)
- Farmstand Local Foods (Seattle, WA)
Regional Food Hub Networks:
- Western Montana Growers Cooperative (Missoula, MT)
- Northwest Food Hub Network
- Oregon Food Hub Network
- Washington Food Hub Network
Food Hub Basics Q&A
Q: Do you have a lot of food banks/pantries purchasing through PSFHC?
A: Yes, we have a big WSDA contract to serve food banks. There is funding in the proposed state budget for two more years, but it still needs to be approved by the legislature.
Food banks can work with us either by buying from member farms directly, working with our sales staff on a purchasing plan, online through our website, or through a We Feed WA contract – anticipated applications in April/May for July 2023+ contracts.
We are not currently working with The Emergency Food Assistance Program (TEFAP), though we do help deliver pallets to San Juan Island for Community Action of Skagit County.
We can also help with general logistics, even if you aren’t purchasing from our farms directly – please reach out if you need help!
Q: How do you maintain the identity of farmers through the process?
A: It is a very short supply chain. The online system we use, Local Food Marketplace, maintains farmer identity from the order system to the end invoice. Farms set their own prices, with PSFHC setting a margin based off the delivery region/customer type.
Q: What is the process for a farmer to become a member and start selling through PSFHC?
A: It’s a multi-stage process (see website info). It can start with farmers reaching out. PSFHC also reaches out to farms to fill a gap in available products. Sometimes buyers request a certain product from a certain vendor.
There is an application process. Sellers need a certain level of insurance and a food safety plan. They must go through food safety training. There is a values component: Sellers must confirm their practices align with PSFHC values around workers’ rights, animal rights, sustainable production practices. We usually want sellers to have an anchor customer that is purchasing a reasonable amount from them already so there is a reason for them to show up at the warehouse weekly. This incentivizes more sales through the PSFHC. Applications are processed monthly. The GM reviews applications and does a site visit. He presents prospective new members to the Board at monthly meeting. If the GM and Board approve, then a producer becomes a member. It is best to start the application process in the winter so it will go more quickly.
Q: Does PSFHC sell to schools?
A: Yes, school sales have accelerated 1000% this year because of the new WSDA farm to school purchasing grants. Schools have challenges working with multiple farms, so a food hub is a good way for them to go. PSFHC has developed three distribution models for schools. We talk to buyers and see what they need. It is best if the district has a central kitchen, but this is not a deal-breaker. Advance planning helps with most logistical bottlenecks.
Q: Do buyers other than restaurants, such as schools and food banks, purchase differently and with different prices?
A: If a school is contracting with us, they will request a quote for different products. A lot of the planning starts by working with lead nutrition staff on what they want. Depending on the amount of product and amount of money to be spent, they are required to get quotes from multiple businesses.
Margins vary. There is a lower margin for schools. We have a dedicated broker focused on institutional sales. She helps fill out a purchasing plan and deals with sourcing and getting price quotes. We haven’t gotten to the point of putting seeds in the ground for a district.
Q: Is PSFHC doing any minimal food processing?
A: One member farm does on-farm processing (squash). We got a grant to focus on food processing and now have a staff member who is leading development of lightly processed products. Cloud Mountain Farm Center got a grant for a blast freezer and some more processing equipment. It would be helpful for the development of this program to have people request processed products and a quote.
Q: What is next on the horizon?
A: Hoping this year will bring staffing stability. Managing growth and preparing for it is the goal. Waiting to hear about whether We Feed WA funding will be approved for another year.
We want to offer more producer support. We have grants to do more GAP certification, reducing barriers to GAP.
Membership engagement is on the radar. Want members to know all the good work going on, and give resources back to the membership.