Source: FOOD4ALL INCORPORATED submitted to
PRODUCER LED VIRTUAL FOOD HUB PILOT PROJECT
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
1027152
Grant No.
2021-33610-35743
Cumulative Award Amt.
$650,000.00
Proposal No.
2021-06484
Multistate No.
(N/A)
Project Start Date
Sep 1, 2021
Project End Date
Oct 15, 2023
Grant Year
2021
Program Code
[8.6]- Rural & Community Development
Project Director
Semick, K.
Recipient Organization
FOOD4ALL INCORPORATED
1642 NW WILD RYE CIR
BEND,OR 977026689
Performing Department
(N/A)
Non Technical Summary
Prior to the arrival of the COVID-19 pandemic, consolidation of food production and distribution has had significant, negative economic and health-related impacts on rural America. As farms have consolidated and turned to technology to replace human labor, rural job opportunities have diminished. As smaller farms are taken over by large corporations with national/international distribution channels, local restaurants, hospitals, schools and communities are challenged to find sources of local fresh foods. This negatively impacts the health of community members. Many rural farming areas ironically become "food deserts," with high levels of serious food insecurity. In addition, the COVID-19 pandemic has introduced unprecedented levels of economic despair that are surging above and beyond those of the Great Recession. The long-term health of rural communities is at great risk.The overall goal of this multi-phase SBIR project is to develop, validate, and commercialize a means to improve farmers' viability and profitability, increase opportunities for employment and income generation in rural communities, and facilitate rural prosperity and economic development by developing an online technology to connect rural producers with buyers. During the course of this project, we will work with pilot users, local food stakeholders and collaborating partners to validate and develop the features and functions necessary to support a transactional system that provides producers with marketing visibility through marketing partnerships; the ability to offer logistics choices to move product from producer to buyer; and provides key stakeholders with metric driven data regarding transactions within their area.The local food market is positioned to leap to over $30 Billion by 2023 as consumers and institutional buyers shift buying behaviors. Even a small, incremental buying behavior shift toward local food purchases can translate to a substantial increase in the size of the market and addressable market of our local food technology platform. Our technology platform is a catalyst for changing consumer and institutional buying behaviors.Food4All's next-generation e-commerce Local Food Sales Platform could positively impact rural communities in two important ways: First, supporting local food production and sales has the potential to increase economic activity within rural communities, boosting jobs and keeping businesses alive as the community recovers from the negative impacts of the pandemic. Second, this platform has the potential to increase the health of rural community members by providing direct access to fresh, local farm products, as well as consumer access through local restaurants, hospitals, schools, and businesses through Food4All's wholesale sales channels.
Animal Health Component
(N/A)
Research Effort Categories
Basic
(N/A)
Applied
(N/A)
Developmental
100%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6046030208080%
7245010303020%
Goals / Objectives
The overall goal of this multi-phase SBIR project is to develop, validate, and commercialize a means to improve farmers' viability and profitability, increase opportunities for employment and income generation in rural communities, and facilitate rural prosperity and economic development by developing an online technology to connect rural producers with buyers. Prior to Phase I work, Food4All's prototype enabled farmers, ranchers and value-added producers to sell directly to individuals via the producer's website, social media and in-person through a mobile point-of-sale system. Phase I built upon this foundation to prove the feasibility of a functioning prototype that enables rural producers to sell to wholesale buyers online using a single system to manage products, prices and inventory, while enabling transactions through a pilot project with MarketMaker, a directory of producers and buyers used in 23 states.Phase II R&D will further the development of the prototype wholesale technology toward a commercial stage, and will allow us to integrate the commercial wholesale features into the existing platform. Additionally, Phase II will deepen the technical integration with MarketMaker to offer a seamless experience for buyers searching for products on MarketMaker, and sellers using the Local Food Sales Platform to sell through MarketMaker.Phase II objectives are to:1) Build upon the Phase I prototype platform to develop a scalable platform that meets the needs of rural food producers selling to wholesale buyers and direct to consumers;2) Demonstrate the integration of Food4All's wholesale and direct-to-consumer platform with MarketMaker and procurement technologies used by distributors, grocery stores and other institutional buyers; and3) Demonstrate the functionality of a Food4All regulatory and reporting software framework. Phase II will allow us to produce the data needed to engage "Phase III" partners, investors, and customers.
Project Methods
1. Document business needs through interviews of pilot participants and collaborating partners.2. Develop conceptual data models to then update physical data models.3. Develop use cases to document the interaction between user and system in narrative form around a specific functionality.4. Develop graphical mock-ups of online pages that establish how the user interfaces (UI) and what the user experience (UX) will be when interacting with the system using Adobe XD software;5. Organized the work into Sprints, which define a bound set of time to develop a set of functionalities.6. Iterate on the feature set through testing, deployment and user feedback.

Progress 09/01/21 to 10/15/23

Outputs
Target Audience:- Small to mid-scale food producers seeking to sell their products locally or regionally. - Consumers interested in purchasing directly from local producers. - Wholesale buyers, including institutions, restaurants and local intermediaries interested in purchasing from local and regional producers. - Local food stakeholders interested in facilitating transactions between producers and local / regional buyers. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?We attended the 2021 and 2022 National Agricultural Marketing Summits. In 2021 and 2022 our session was as follows: Title: Creating functional online marketing and sales networks Abstract: This session will discuss opportunities and provide examples of how agricultural producers are using the internet to market, sell and donate their products. Recognizing that the internet is one of many possible sales channels used by producers, we will describe how producers are using the internet to their advantage. We will go into detail on how producers can gain marketing visibility to buyers online, how online technologies can increase operating efficiencies, and ways producers can obtain price premiums for specialty agriculture products through online marketing. We also attended, presented and demonstrated the technology platform at new and beginning farmer virtual events hosted by organizations engaged with new and beginning farmers. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Our SBIR Phase II project had and continues to have a positive impact on rural producers, local food intermediaries, consumers and local wholesale buyers by creating an efficient and low-cost method of transacting between producers and buyers of local food. In excess of $1,260,000 of local food was purchased via credit card and approximately another $150,000 marked for offline payment during the Phase II project period. By the end of the project, 1,700 small to midscale producers, in all 50 states plus Washington DC, had created selling accounts. Over 9,000 consumers and 73 wholesale buyers purchased from these producers. Additionally, 13 intermediaries created online marketplaces where consumers could buy directly from multiple local producers in a single order. The product of this SBIR project, a local food marketing and sales technology platform, is innovative because it lowered barriers to ecommerce for local food producers and intermediaries. Importantly, this project greatly reduced the cost barrier for producers engaging in ecommerce and in person credit card transactions. Producers use the technology at no cost while buyers pay a small transaction fee. Additionally, the technology platform uniquely enables producers to transact through multiple channels, all while managing product prices, inventory and availability in a single account. Specifically, producers setup a free Food4All selling account and add products that can be sold through their own branded online retail store, online wholesale store, online marketplaces, as well as in-person. The ability for producers to manage inventory for a product through all of these channels critically prevents them from overselling in any given channel. To date, no other platform enables this level of control over inventory for products sold across multiple channels. Producers and intermediaries are also able to setup and manage logistics for products sold, including pick up, delivery and shipping. We successfully met our first objective, which was to build upon the Phase I prototype to develop a scalable platform that meets the needs of rural food producers selling to wholesale buyers and direct to consumers. To accomplish this objective, we updated the data model to attach different attributes important to consumers, intermediaries and wholesale buyers. Another major task we completed was to improve buyer's ability find and buy from producers by adding a searchable national map to our website: https://www.food4all.com/national-map/. Buyers can easily find and buy online from producers in their local area. We improved the buyer's experience by updating the layout of retail, wholesale and marketplace stores to enable producers to better communicate important information, highlight featured products, and categorize products. Buyers can quickly filter goods based on categories, search and purchase their desired products. We made progress on enabling buyers using MarketMaker's Buy/Sell Forum to quickly find and buy products of interest. MarketMaker producers with Food4All accounts are able to create "ads" within the Buy/Sell forum for single products. When a buyer selects the ad and wishes to proceed to purchase, they are taken to the Single Product Page within Food4All where they can add the item to their shopping cart and complete their purchase. Another major task was to enhance our platform in order to scale for volume. To that end, we researched and implemented Amazon Web Services (AWS)'s Well-Architected Framework (WAFR) principles. WAFR describes key concepts, design principles, and architectural best practices for designing and running workloads in the cloud. The AWS WAFR is made up of six pillars: Operational Excellence, Security, Reliability, Performance, Cost Optimization, and Sustainability. The Food4All back-end was designed to meet the requirements outlined in each pillar of the WAFR. We also added key features to enhance the logistics options for moving food from producer to buyer. Specifically, we integrated with ShipEngine in order to enable producers to identify shippable products that have a perishable window for shipping and may be packed in dry ice. Integrating with ShipEngine provides a discount of 40-60% off of retail prices for UPS and USPS shipments. We also enabled producers to charge by the mile for delivery. We also set up the ability for producers to determine a delivery radius, which is reinforced in the shopping cart. In an effort to explore additional logistics option to move product from producer to buyer, we conducted research on integrating with national third-party delivery platforms, the likes of UBER and Door Dash. We encountered limitations of partnering with this type of third-party logistics provider fundamentally because these businesses are focused on moving food within high density areas. Our second objective was to demonstrate the integration of Food4All's wholesale and direct-to-consumer platform with MarketMaker and procurement technologies used by distributors, grocery stores and other institutional buyers. As discussed above, we successfully integrated the Food4All platform with MarketMaker's Buy/Sell Forum to facilitate producers ability to quickly post available product and for buyers to find and buy the product. We also held discussions with a fresh food procurement platform used by grocery store chains and institutional buyers to discuss integrating Food4All's "product catalog" into the procurement system. This opportunity could be promising in the future, but would require a more focused outreach and onboarding of mid to larger scale producers in an area that overlaps with the use of a specific fresh food procurement system. Our third objective was to demonstrate the functionality of a Food4All regulatory and reporting software framework. For this objective, we developed a Business Intelligence Framework using Google Charts, a powerful interactive Web service that creates graphical charts from our platform's transactional data. We created a Producer Dashboard graphically displaying sales, product and customer information when they initially log into their Food4All account. At a glance, producers are able to see their weekly gross and net sales volumes, best-selling products, best customers, and top products purchased by high volume customers. This data is manipulatable and dynamically refreshed based on current activity. In summary, we successfully met the objectives of this SBIR Phase II project in a way that will have long term meaningful impact on our key target audience - rural producers seeking to sell direct to their local community. A few quotes from our customers demonstrates the impact of this project on their operations: Jane Tymrak of Loberau Legacy Farm, a goat and dairy farmer in Texas said "My favorite thing about Food4All is their passion and commitment to the Farmer...Food4All's main focus is getting the farmer online, getting their products out there and having satisfied customers. Food4All has boosted our overall farm sales by allowing us to offer our products in a much more broad area. We are able to reach a lot more people. We expect to almost double in sales in the next year. " Alison Holland Rainshadow Organics, CSA manager of a full diet farm in Oregon said "The platform is built with farmers in mind. The platform creates the ability for...our customers... to more easily purchase from us...and the backend of Food4All makes my life easier because I have access to the data that I need." Lorrie Dahlen, Marshfield Farmers Market Manager and Summer Dreams Farm proprietor in Massachusetts said " I worked with three different companies that offered virtual type marketplaces - and Food4All came out on top. Fees are lower, they offer more flexibility...they offer better reports especially when it comes to paying vendors (for offline transactions). It's just simple. Food4All just makes it easy."

Publications


    Progress 09/01/22 to 08/31/23

    Outputs
    Target Audience:- Small to mid-scale food producers seeking to sell their products locally or regionally. - Consumers interested in purchasing directly from local producers. - Wholesale buyers, including institutions, restaurants and local intermediaries interested in purchasing from local and regional producers. - Local food stakeholders interested in facilitating transactions between producers and local / regional buyers. Changes/Problems:During Covid an urgency existed for producers to go online in order to sell their products to local and regional buyers. Our platform experienced a 10x growth in gross sales volume between 2019 and 2021. However, since 2022 we are seeing a more "normal" rate of growth at approximately 33% year over year. When speaking to potential investors, the drop in growth makes for a less attractive investment. What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals?We will complete the reporting framework via a sales dashboard within each seller's account.

    Impacts
    What was accomplished under these goals? The following tasks were accomplished related to Phase II objectives: Objective 1. Added the following features to the platform: - Enabled Shipping as a form of fulfillment (in addition to pick up and delivery) by integrating with ShipEngine to offer discounted shipping rates; - Enabled producers to recover credit card fees through a credit card fee manager feature; - Enabled producers to setup and manage coupons in order to offer discounts and incentives to buyers; - Enhanced delivery feature by enabling producers to charge for delivery by the mile and to re-inforce delivery zones through delivery address validation; - Enhanced the management of order and subscription orders through a more functional user interface design; - Enabled consumers to more easily find and buy from local producers through a mappng system that presents producer stores that have available products within the consumers local region. Objective 2: We completed an integration within MarketMaker's Buy/Sell Forum to support producers selling excess products at discounted prices. The Illinois Farm Bureau announced the program in January 2023. Objective 3: We initiated the build of a reporting framework.

    Publications


      Progress 09/01/21 to 08/31/22

      Outputs
      Target Audience:Target audiences reached during this period include: - Small to mid-scale food producers seeking to sell their products locally or regionally. - Consumers interested in purchasing directly from local producers. - Wholesale buyers, including institutions, restaurants and local intermediaries interested in purchasing from local and regional producers. - Local food stakeholders interested in facilitating transactions between producers and local / regional buyers. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

      Impacts
      What was accomplished under these goals? The following tasks were completed as we progress towards Phase II objectives: 1) We continue to build out the Phase I prototype platform. Since the initiation of the project, we have completed 140 development tasks. The major feature sets that have been completed include: Implementation of AWS WAFR protocols for reliability, scaleability, security, performance and sustainability. Sales Tax Feature Set Implementation of subscription billing allowing producers to offer product subscriptions Improved the ability to trim and order and refund Added the ability to mark an order as payable in person Improved the Delivery Services feature set Improved resources for account setup. 2) We are working toward a deeper integration with MarketMaker. We are integrating Food4All's ecommerce capability within MarketMaker's Buy/Sell forum and piloting this with Illinois Farm Bureau. 3) We are working toward developing a reporting framework as well as engaging investors. The reporting framework will be completed in Year 2. We have met with six potential investors. In light of the stock market and investor pull back, we are working with LARTA on additional strategies for a Phase III investment.

      Publications