Source: ARKANSAS LAND AND FARM DEVELOPMENT CORPORATION submitted to NRP
LOCAL FOODS TO NEIGHBORHOOD RETAILERS: CREATING WHOLESALE LINKAGE IN THE DELTA
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0219794
Grant No.
2009-33800-20179
Cumulative Award Amt.
$16,530.00
Proposal No.
2009-03647
Multistate No.
(N/A)
Project Start Date
Sep 1, 2009
Project End Date
Aug 31, 2010
Grant Year
2009
Program Code
[LN.B]- Community Foods Project Planning
Recipient Organization
ARKANSAS LAND AND FARM DEVELOPMENT CORPORATION
P. O. BOX 743
BRINKLEY,AR 72021
Performing Department
(N/A)
Non Technical Summary
The continuing decline in the region's population and economy has led to reductions in retail trade establishments. The depth of the regional decline was most recently confirmed when Wal-Mart announced that it was closing their store in Brinkley, the largest town in Monroe County. The depressed local economy also contributed to the failure of past efforts to establish traditional farmer's markets in the area. Currently, there is no recognized regularly scheduled farmer markets in the four county region. Direct agricultural sales for human consumption has followed the area's overall economy into a sharp downhill slide in the past few years. While direct sales have declined, the region has increased its fresh produce production. The area's growing production volume, however, is being increasingly directed into national wholesale channels instead of the local community.
Animal Health Component
35%
Research Effort Categories
Basic
35%
Applied
35%
Developmental
30%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
5036010101010%
5046010101015%
6026199101010%
6036010101015%
6036199101010%
6046199301015%
6086010303015%
6086199303010%
Goals / Objectives
By the end of the project period, a local foods wholesale entity will have been formed and have sufficient capital commited for startup.
Project Methods
A project working group with producer, retail store and consumer membership will be formed. Other regional and local market efforts that have tried working with existing retail market outlets will be analyzed. Existing Delta diet/nutrition and food frequency studies will be reviewed and compiled. A market study of retail food stores and institutional food service buyers will be performed. Four focus groups will be conducted with growers to identify participation issues, seasonal crop mix, and ownership. We will then develop preliminary business models and test financial and market feasibility to ultimately select an optimum model and prepare a final business plan, including a full marketing, sales and capitalization plan.

Progress 09/01/09 to 08/31/10

Outputs
Target Audience: The targeted audience consist of four counties that are centrally located in the eastern Arkansas Delta region. These counties, Lee, Monroe, Phillips and St. Francis, had an estimated total population of 67,239 in 2008. Three of the counties, Lee Phillips and, are Black majority counties (Census. 2009). The area, an alluvial plain squeezed between the Mississippi River on the east and the bottomlands of the White River on the west, has produced a history rich in racial division and economic disparity. All four of the targeted counties, like most of the Delta have suffered from persistent poverty and chronically high rates of out-migration. These conditions continue to erode the region and marginalize too many people. All four counties are persistent poverty counties with poverty rates of more than 20% on every Census since 1970. Most significantly, the 2007 estimated poverty rates are higher than the poverty rates found in the 2000 Census. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? The project proved business startup training, niche market development, healthy/nutritional dieting and food safety training. How have the results been disseminated to communities of interest? The ressults have been disseminated to communities by newsletters, informational mailouts and by workshops/seminars. 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 wholesale entity, American Heartland Produce,was formed and established as a Limited Liability Company. However, we were not able to raised sufficient capital to launch/startup the business.

Publications


    Progress 09/01/09 to 08/31/10

    Outputs
    Target Audience: The targeted audience consist of four counties that are centrally located in the eastern Arkansas Delta region. These counties, Lee, Monroe, Phillips and St. Francis, had an estimated total population of 67,239 in 2008. Three of the counties, Lee Phillips and, are Black majority counties (Census. 2009). The area, an alluvial plain squeezed between the Mississippi River on the east and the bottomlands of the White River on the west, has produced a history rich in racial division and economic disparity. All four of the targeted counties, like most of the Delta have suffered from persistent poverty and chronically high rates of out-migration. These conditions continue to erode the region and marginalize too many people. All four counties are persistent poverty counties with poverty rates of more than 20% on every Census since 1970. Most significantly, the 2007 estimated poverty rates are higher than the poverty rates found in the 2000 Census. Changes/Problems: Broad scale poverty continue to be a major barrier to the project. Startups almost never get off the ground in the ever economically depressed targeted area. What opportunities for training and professional development has the project provided? The project offered and provided business incubator training services. The objective here was to find the right entity that could develop into a marketing entity. Training was also provided on value added produce sales and marketing. Healthy/nutritional diets were emphasized during community meetings. How have the results been disseminated to communities of interest? The results were communicated through newsletters and through workshops at the company's regional conferences. What do you plan to do during the next reporting period to accomplish the goals? Continue to pursue development of a marketing entity. Links with local farmers' cooperative will continue to be worked at with the objective of marketing local foods through convience stores and local retail markets.

    Impacts
    What was accomplished under these goals? A local foods whole entity, American Heartland Produce,was formed. However, all effort to raised capital for this entity was insufficient to fund a startup business.

    Publications