THE  ROLE  OF  VALUES     IN  FOOD  HUB  SOURCING  AND  DISTRIBUTING  PRACTICES     By     Kaitlin  Koch                         A  THESIS     Submitted  to     Michigan  State  University   In  partial  fulfillment  of  the  requirements    for  the  degree  of     Community  Sustainability  –  Master  of  Science     2014   ABSTRACT     THE  ROLE  OF  VALUES     IN  FOOD  HUB  SOURCING  AND  DISTRIBUTING  PRACTICES     By     Kaitlin  Koch     There  has  been  rapid  growth  of  interest  in  planning  and  operationalizing  food  hub   enterprises  across  the  country.    These  entities  aggregate  food  products  primarily  from  local   and  regional  producers.    They  may  have  a  variety  of  additional  social  goals.    These   enterprises  may  have  the  ability  to  help  scale-­‐up  local  and  regional  food  systems  by   providing  an  entry  point  into  stable,  institutional  and  retail  markets.    This  thesis  focuses  on   values  employed  by  food  hub  operators  in  their  sourcing  and  distributing  practices.    Using   a  qualitative  approach,  we  interviewed  representatives  from  eleven  Midwest  food  hubs  to   investigate  their  conceptions  of  values-­‐based  products,  strategies  used  to  source  products   and  their  intersection  with  underserved  consumers.    We  find  that  most  operators  view   flexible  sourcing  preferences  as  a  prerequisite  to  a  viable  business  in  terms  of  geographic   region,  farm  size  and  product  attributes  (e.g.  production  methods).    We  also  find  that   serving  underserved  markets  is  a  secondary  priority,  often  taking  place  through   partnership  with  other  community  organizations  and  through  acceptance  of  EBT  at   farmer’s  market  or  donations  to  food  banks.    We  did  not  find  any  explicit  intention  of   developing  business  plans  to  service  underserved  consumers  in  the  future.   ACKNOWLEDGEMENTS       The  completion  of  this  thesis  and  my  degree  program  would  not  have  been  possible   without  the  support  and  guidance  of  numerous  individuals.    I  would  like  to  extend  my  deep   gratitude  to  my  advisor,  Mike  Hamm,  for  his  continuous  support  by  working  with  me  to   develop  a  research  project  that  met  my  needs,  would  be  beneficial  to  practitioners,  and   pushing  me  to  progress  in  my  research,  writing  and  critical  thinking  skills.    I  would  also  like   to  recognize  and  thank  him  for  his  funding  support  as  the  C.S.  Mott  Chair  of  Sustainable   Agriculture.    Thank  you  to  the  other  members  of  my  committee,  Rich  Pirog  and  Phil   Howard.    Rich,  thank  you  for  your  personal  and  professional  support,  your  presence  at   CRFS  has  made  my  experience  infinitely  more  valuable.    Phil,  thank  you  for  your  guidance   and  insight.    The  support  of  the  staff  at  CRFS  has  been  so  valuable,  I  have  learned   something  from  each  of  you  and  I  thank  you  for  that.    Thank  you  especially  to  Colleen   Matts,  for  being  a  teacher,  friend  and  role  model  of  a  food  systems  practitioner.    Mark  Lelle,   Chad  and  Marty  Gerencer,  thank  you  for  your  assistance  with  this  project  and  your  ongoing   enthusiasm  and  interest.    Thank  you  to  Kim  Chung,  on  a  practical  level,  your  teachings  gave   me  the  tools  I  need  to  complete  this  thesis,  and  on  a  personal  level,  you  helped  me  to  see   the  research  process  and  world  with  new  eyes.    The  support  and  friendship  of  my   colleagues  in  CSUS  has  kept  this  chapter  of  life  in  perspective.    In  particular  thank  you  to   Michaela  Oldfield,  for  your  words  of  wisdom,  to  Micaela  Fischer  for  your  assistance  and   camaraderie,  and  to  Stephanie  Rustem  for  your  generous  assistance  in  developing  a  code   system.   To  my  friends  and  family,  your  support  has  made  this  adventure  possible.    Thank   you  to  my  teacher,  Chuck,  for  your  flexibility  and  understanding.    Your  teachings  gave  me     iii     the  personal  tools  to  make  it  through  this.    Thank  you  to  my  parents,  whose  love  and   encouragement  along  my  path  has  put  me  in  the  position  to  pursue  my  dreams.    I  have   learned  so  much  from  both  of  you  and  am  grateful  for  your  presence  every  day.    To  Justin,   your  daily  patient  and  kind  support  has  kept  me  grounded.  Thank  you  for  being  there  for   me  through  your  willingness  to  review  my  drafts,  be  a  sounding  board,  and  allowing  me  to   decorate  our  house  with  concept  maps.                                                                           iv     TABLE  OF  CONTENTS       KEY  TO  ABBREVIATIONS       CHAPTER  1.    Introduction                                                        vi     Food  hub  emergence  and  attention                     1       2   6     7       10   13   Values  based  value  chains:    Background  context   for  emergence  of  food  hub  concept           Food  hubs  as  a  model  of  a  VBVC           Underserved  populations  in  the  value  chain:   The  motivation  behind  food  hubs’     social  mission  to  increase  food  access         Differentiated  and  values-­‐based  products:       Economic  and  social  considerations  in  a  growing  market   Conclusion                 CHAPTER  2.  The  role  of  values  in  food  hub  sourcing  and   distributing  practices                                               Introduction                   Values  based  value  chain  (VBVCs):     A  theoretical  framework             Product  differentiation  and  values-­‐based  products     Underserved  populations  in  the  value  chain:     Health  and  access  disparities         Methods                   Research  design  and  data  collection         Data  analysis               Results                   Food  hub  sourcing  practices           Food  hub  distribution  practices         Discussion                 Conclusion                       Reflections  on  research  results     Limitations  and  future  research   CHAPTER  3.    Conclusions   APPENDIX       REFERENCES           1   14   14       15   17                     17   19   19   21   21   22   26   29   34             35                       35   38                   40                   44     v     KEY  TO  ABBREVIATIONS       EBT  –  Electronic  Benefits  Transfer     GAP  –  Good  Agricultural  Practices     LLC  –  Limited  Liability  Company     SFSC  –  Short  Food  Supply  Chain           USDA  –  United  States  Department  of  Agriculture     VBP  –  Values  Based  Product     VBSC  –  Values  Based  Supply  Chain     VBVC  –  Values  Based  Value  Chain                                               vi       CHAPTER  1.    Introduction       Food  hub  emergence  and  attention     The  recent  emergence  of  the  food  hub  concept  and  their  development  across  the   country  has  garnered  much  attention  from  the  local  food  systems  advocacy  community.   Nationally,  the  USDA  has  supported  the  concept  by  forming  a  regional  food  hub   subcommittee  within  the  Know  Your  Farmer,  Know  Your  Food  Initiative.    In  partnership,   the  USDA  and  National  Food  Hub  Collaboration  define  food  hubs  as:    “a  business  or   organization  that  actively  manages  the  aggregation,  distribution,  and  marketing  of  source-­‐ identified  food  products  primarily  from  local  and  regional  producers  to  strengthen  their   ability  to  satisfy  wholesale,  retail,  and  institutional  demand”  (J.  Barham  et  al.,  2012,  p.  4).     Their  most  recent  food  hub  resource  guide  reports  that  food  hubs  have  many  self-­‐ determined  goals,  which  often  include:  increased  institutional  market  access  for  small  and   mid-­‐size  farmers;  making  local  and  regional  food  purchasing  more  efficient  for  institutional   buyers;  increasing  the  regional  food  economy  in  their  community;  and  a  variety  of   additional  socially-­‐driven  missions  and  goals  (Ibid.).       The  formation  and  operationalizing  of  food  hubs  is  also  generating  excitement   within  the  local  food  systems  community.    A  range  of  entrepreneurs,  community   organizations  and  cooperatives  are  looking  for  ways  to  start  food  hubs.    Feasibility  studies   abound  assessing  the  food  hub  potential  in  various  regions    (Aubrey,  2012;  Dane  County   Planning  and  Development  Department,  2011,  Market  Ventures,  Inc.,  2012;  Ryan  &  Mailler,   n.d.).    The  number  of  case  studies  and  resource  guides  regarding  business  models,   operational  scale  and  best  practices  are  increasing  (J.  Barham  et  al.,  2012;  Desai,  2012;   Lerman,  Feenstra,  &  Visher,  2012a;  Matson,  Sullins,  &  Cook,  2013).  Efforts  to  build,     1     operationalize  and  sustain  these  hubs  have  caught  the  attention  of  the  popular  media  and   the  greater  food  community  (for  example,  see:    Brown,  2013;  Holdman,  2014;  Johnson,   2014;  “Tahoe  Food  Hub  raises  more  than  $28K  in  crowdfund  campaign,”  2014).       As  resources  and  energy  are  allocated  to  the  formation,  growth,  and  maintenance  of   food  hubs,  it  becomes  important  that  we  study  how  food  hub  businesses  are  operating,   what  motivates  them,  and  how  they  intersect  with  the  food  system.       This  thesis  will  contribute  to  this  emerging  body  of  knowledge  by  studying  the   values  a  selection  of  Midwest  region  food  hub  practitioners  are  employing  in  their  sourcing   and  distribution  practices.    The  following  literature  review  examines  the  context  from   which  the  concept  of  food  hubs  has  emerged.      I  will  first  examine  values  based  value  chain   literature,  an  idea  that  originates  in  the  business  literature.    Through  reviewing  the   literature  on  food  access  and  diet-­‐related  disease  health  disparities,  I  will  frame  why  it  is   relevant  that  food  hubs  are  interested  in  interacting  with  underserved  populations  and   who  is  included  in  this  designation.    Lastly,  I  will  review  the  growing  literature  on  the   relevance  of  differentiated  and  values-­‐based  products,  to  better  understand  the  current   attitudes  of  food  hub  practitioners  about  sourcing  these  products.    Due  to  the  recent   emergence  of  the  food  hub  concept  and  much  of  the  supporting  scholarship  to  frame  it,  this   review,  by  necessity,  will  include  sources  from  the  gray  literature.       Values  Based  Value  Chains  (VBVC):    Background  context  for  emergence  of  food  hub   concept       Authors  often  frame  food  hubs  as  part  of  a  Values  Based  Value  Chain  (VBVC)  (J.   Barham  et  al.,  2012;  Matson  et  al.,  2013;  Stevenson  et  al.,  2011),  an  idea  developed  in  the   business  literature.    Stevenson  &  Pirog  (2008)  adapted  this  idea  within  the  food  system  to     2     articulate  supply  chains  that  embody  a  set  of  shared  values,  both  economic  and  social.  The   characteristics  of  a  VBVC  that  set  them  apart  from  conventional  supply  chains,  as  described   by  Stevenson  and  Pirog  (2008),  include:     • Considering  participants  in  the  value  chain  as  “strategic  partners”,  where   decisions  are  made  transparently  and  collaboratively   • Products  exchanged  are  often  differentiated  in  some  way   • The  well-­‐being  of  all  chain  participants  is  prioritized   • The  model  is  effective  on  all  scales,  including  local,  whereas  conventional   supply  chains  are  increasingly  only  national  and/or  international  in  scale   There  is  a  developing  literature  investigating  various  elements  of  VBVCs  across  the   country  and  around  the  world  (see,  for  example:    S.  Baker,  Thompson,  &  Engelken,  2004;   Bloom  &  Hinrichs,  2011;  Conner,  Campbell-­‐Arvai,  &  Hamm,  2008;  Hendrickson  &   Heffernan,  2002;  Kirschenmann,  Stevenson,  Buttel,  Lyson,  &  Duffy,  2008;  Lyson,  Stevenson,   &  Welsh,  2008;  Marsden,  Banks,  &  Bristow,  2002;  Pullman  &  Dillard,  2010).    This  literature   points  to  VBVCs  as  one  model  that  could  stimulate  and  sustain  local  and  regional  food   system  growth,  and  has  the  potential  to  address  some  of  the  challenges  that  producers  face   in  local  and  regional  markets  (Conner  et  al.,  2008).   One  of  the  widely  recognized  gaps  that  VBVCs  fill  is  providing  a  market  for  small  and   mid-­‐sized  producers.  Scholars  have  noted  a  significant  decline  in  mid-­‐sized  farms   (Kirschenmann  et  al.,  2008;  Lyson  et  al.,  2008;  Stevenson  &  Pirog,  2008),  which  they   attribute  to  the  polarized  markets  between  small-­‐scale  niche  producers  that  largely  sell  in   direct  markets  and  large-­‐scale  commodity  producers  that  sell  in  the  global  marketplace,   neither  of  which  are  appropriately  scaled  for  mid-­‐sized  farmers.         3     Some  scholars  have  expressed  concern  about  the  disappearance  of  these  mid-­‐sized   farms,  in  part  due  to  the  consequences  of  increasing  corporate  consolidation  in  the  food   sector  (Carstensen,  2008;  Lyson  et  al.,  2008)  and  in  part  because  these  farms  offer  a   number  of  environmental,  social  and  economic  services  that  contribute  to  the  vibrancy  of   their  rural  communities.  Kirschenmann  et  al.  (2008,  pp.  4–5)  comment  that  the  majority  of   mid-­‐sized  farms  have  been  family  owned  for  many  generations,  demonstrating  that    “good   land  stewardship  is  a  high  priority  since  they  regard  their  land  as  part  of  the  family’s   heritage  and  local  ecological  knowledge  has  been  handed  down  from  one  generation  to  the   next.”  Lyson  (2008)  points  out  that  products  purchased  from  a  mid-­‐level  farm  in  a   community  will  have  a  high  “economic  multiplier”,  meaning  that  the  money  used  in  that   transaction  is  more  likely  to  benefit  a  greater  portion  of  that  community,  as  opposed  to   purchasing  products  that  are  produced  by  a  farm  or  company  that  is  based  elsewhere.   A  major  benefit  that  mid-­‐sized  farms  have  in  the  market  is  that  they  have  the  ability   to  be  more  nimble  (in  comparison  to  large  commodity  producers)  in  providing   differentiated  or  values-­‐based  goods,  paired  with  the  ability  to  inform  the  consumer  of  this   differentiation  (Hoshide,  n.d.;  Kirschenmann  et  al.,  2008;  Stevenson  &  Pirog,  2008).    This  is   particularly  salient  because  a  number  of  scholars  are  suggesting  that  there  is  growing   consumer  interest  in  purchasing  products  based  on  values-­‐based,  non-­‐monetized   attributes  (E.  Barham,  2002;  Hendrickson  &  Heffernan,  2002).    These  can  include   production  methods  such  as  organic  certified,  or  pasture-­‐raised  meat  (S.  Baker  et  al.,  2004;   Conner  et  al.,  2008;  Marsden  et  al.,  2002;  Pullman  &  Dillard,  2010);  location,  such  as  local   or  regionally  produced  (Bloom  &  Hinrichs,  2011);  or  socially  motivated,  such  as  fair  trade   (Jaffee,  Kloppenburg,  &  Monroy,  2004).     4     One  VBVC  member  often  aggregates  products  from  mid  and  small-­‐sized  farms   allowing  access  to  institutional  markets  that  require  larger,  more  consistent  volumes   (Clark,  Inwood,  &  Sharp,  2011;  Hoshide,  n.d.;  Izumi,  Wright,  &  Hamm,  2010;  Kirschenmann   et  al.,  2008;  Matson  et  al.,  2013).    Stevenson  et  al.  (2011)  point  out  that  some  institutional   markets  are  interested  in  carrying  more  differentiated  products,  which  could  provide  a   steady  outlet  for  mid-­‐sized  producers.   VBVCs  may  also  have  a  distinct  advantage  in  helping  create  meaningful,  trusting   relationships  among  members  of  the  supply  chain.    Hendrickson  &  Heffernan  (2002)   speculate  one  of  the  weaknesses  of  firms  that  operate  in  the  global  system  is  their  inability   to  form  trusting  relationships  with  customers  that  desire  transparent  information.    They   offer  that  alternative  structures,  such  as  VBVCs,  have  the  ability  to  create,  foster  and   maintain  trusting  relationships  among  the  participants  in  the  chain.    Others  echo  these   sentiments.    Scholars  report  that  trust  is  a  prerequisite  for  the  formation  of  successful,   collaborative  relationships  in  organic  food  VBVCs  (Kottila  &  Rönni,  2008;  Pirog  &   Bregendahl,  2012).    Another  noted  that  creating  trust  in  inter-­‐organizational  relationships   and  sharing  common  values  were  defining  characteristics  of  a  VBVC  community  of  practice   (Campbell  &  MacRae,  2013).    Framing  a  case  study  that  investigated  a  short  food  supply   chain  (SFSC),  a  model  that  is  closely  related  to  VBVCs,  Marsden  et  al.  (2002)  note  that   building  trusting  relationships  is  a  defining  factor  of  these  chains.    Stevenson  and  Pirog’s   (2013)  articulation  of  food  VBVCs  frame  the  relationships  that  exist  within  these  chains  as   “strategic  partnerships”  that  are  outlined  in  “win-­‐win  terms”  for  all  parties  involved.    These   relationships  have  a  high  level  of  collaborative  decision-­‐making,  transparency  and  trust.     Lastly,  they  show  a  commitment  to  the  well-­‐being  of  all  members  in  the  VBVC.     5       Food  hubs  as  a  model  of  a  VBVC     This  foundation  of  research  and  inquiry  into  VBVCs  sets  a  backdrop  for   development  of  the  food  hub  concept.    These  two  concepts  overlap,  as  food  hubs  are  often   thought  to  be  part  of  value  chains,  or  that  they  can  operationalize  attributes  of  VBVCs   (Stevenson  et  al.,  2011).    One  report  highlights  the  capability  of  food  hub  businesses  to   maintain  product  differentiation,  build  capacity  of  producers  and  embody  transparent   relationships  and  communications  (Day-­‐Farnsworth,  McCown,  Miller,  &  Pfeiffer,  2009).  An   early  piece  on  food  hubs  speculates  that  they  may  be  the  “missing  middle”  necessary  for   scaling  up  local  and  regional  food  systems,  given  a  supportive  policy  environment  (Morley,   Morgan,  &  Morgan,  2008).    A  USDA  report  shares  the  realization  of  this  potential  through  a   number  of  food  hub  case  studies  that  are  increasing  local  food  distribution  through  a   variety  of  business  models  (Matson  et  al.,  2013).       Currently,  most  of  the  food  hub  resources  are  gray  literature,  or  literature  that  is  not   peer-­‐reviewed,  and  focus  on  practitioner  interests.    Lerman  et  al.  (2012b,  pp.  2–3)  review   thirty  food  hub  and  values  based  supply  chain  (VBSC)  reports  and  identified  several   themes.  These  themes  include:  the  need  for  food  hubs  and  VBSCs,  descriptions  of  VBSCs   and  food  hubs,  benefits  of  VBSCs  and  food  hubs,  challenges  of  VBSCs  and  food  hubs,  and   best  practices  for  stakeholders  involved  in  VBSCs  and  food  hubs.     The  two  national  food  hub  surveys  are  notable  exceptions  to  resources  that  typically   target  practitioners.    These  surveys  document  a  range  of  information  about  food  hubs  in   the  U.S.  including:    location,  legal  status,  age,  funding,  revenue,  products  offered,  activities,   services,  and  employee  demographics  (J.  Barham,  2011;  Fischer  et  al.,  2013).  Barham’s     6     survey  (2011)  included  responses  from  45  food  hubs  across  the  country.  The  reported   results  mainly  focus  on  the  state  of  food  hubs  at  that  time  and  were  intended  to  be  a  guide   for  developing  food  hub  resources,  as  well  as  to  inform  funding  possibilities  for  food  hub   development.   The  second  survey  was  both  a  follow-­‐up  to  the  2011  survey  and  expanded  to   examine  the  characteristics  of  “successful”  food  hubs  and  identify  barriers  to  growth  and   development  (Fischer  et  al.,  2013).  This  survey  included  data  from  107  respondents,  more   than  doubling  the  number  from  the  2011  survey.       A  food  hub  resource  guide,  informed  by  the  first  national  food  hub  survey,  was   published  by  the  USDA  Agricultural  Marketing  Service  (J.  Barham  et  al.,  2012).  It  was   intended  that  this  guide  also  appeal  to  funders  by  clarifying  the  food  hub  concept,  their   current  impacts  among  stakeholders  and  in  their  communities.    In  addition  to  providing   information  about  the  potential  impacts  of  food  hubs,  and  applied  topics  for  practitioners,   this  guide  expands  on  socially  driven  missions  and  values  that  food  hubs  often  incorporate.     Of  specific  interest  to  this  research  project  is  the  notion  that  food  hubs  may  often  take  an   interest  in  increasing  food  access  to  underserved  populations.         Underserved  Populations  in  the  Value  Chain:    The  motivation  behind  food  hubs’   social  mission  to  increase  food  access       The  most  recent  reports  and  food  hub  guides  have  indicated  that  a  number  of  hubs   have  a  social  mission  to  increase  food  access  for  underserved  populations  in  their   communities  (J.  Barham  et  al.,  2012;  Fischer  et  al.,  2013).    This  thesis  will  further  examine   how  and  why  hubs  are  motivated  to  work  on  issues  of  food  access  by  situating  this  desire   to  work  with  underserved  markets  within  the  scope  of  VBVCs.    There  is  a  growing  body  of     7     evidence  in  the  literature  related  to  food  access,  and  the  correlation  between  access  and   diet-­‐related  disease  within  underserved  populations.       It  is  well  established  that  food  access  is  not  equal  among  all  residents  of  the  U.S.,   where  a  lack  of  access  is  measured  by  living  more  than  one  mile  from  a  grocery  store  in  an   urban  area  and  more  than  ten  miles  in  a  rural  area  (ERS,  USDA,  2013).    Reduced  or  limited   access  to  healthy  food  has  been  shown  to  correlate  with  lower  income  levels  (Morland,   Wing,  Diez  Roux,  &  Poole,  2002;  Ver  Ploeg  et  al.,  2012).      For  example,  a  study  examined   data  from  across  the  U.S.  and  reported  that  low-­‐income  neighborhoods  have  75%  less   access  to  supermarkets  than  middle-­‐income  neighborhoods  (Powell,  Slater,  Mirtcheva,  Bao,   &  Chaloupka,  2007).       Race  and  ethnicity  are  also  significant  factors  determining  access  to  healthy  food,   often  more  significant  than  income  level.    A  multitude  of  studies  have  shown  that   communities  of  color,  in  particular  Black  and  Latino  communities,  have  lower  access  to   healthy  food  than  white  communities  (E.  A.  Baker,  Schootman,  Barnidge,  &  Kelly,  2006;  Bell   &  Standish,  2009;  Galvez  et  al.,  2008;  Morland  et  al.,  2002;  Powell  et  al.,  2007;  Seligman,   Laraia,  &  Kushel,  2010;  Shaffer,  2002;  Stuff  et  al.,  2004).        In  Morland  et  al.’s  (2002)  study   supermarkets  were  reported  four  times  more  likely  to  be  found  in  predominantly  white   neighborhoods  than  in  predominantly  Black  neighborhoods  and  that  convenience  stores   were  more  likely  to  be  located  in  Black  communities.  Culturally  appropriate  fruits  and   vegetables  for  Latino  and  African  American  populations  in  Southwest  Chicago  were  much   less  likely  to  be  found  than  commonly  consumed  fruits  and  vegetables  (Grigsby-­‐Toussaint,   Zenk,  Odoms-­‐Young,  Ruggiero,  &  Moise,  2010).     8     Other  studies  have  shown  that  access  to  healthy  food  may  result  in  consumption  of  a   healthier  diet  (Bodor,  Rose,  Farley,  Swalm,  &  Scott,  2008;  Moore,  Roux,  Nettleton,  &  Jacobs,   2008).    Consumption  of  a  healthy  diet  was  25-­‐46%  less  likely  by  residents  who  did  not  live   in  close  supermarket  proximity  than  those  residents  living  in  areas  with  the  densest   incidence  of  supermarkets,  even  after  controlling  for  age,  gender,  race,  ethnicity  and   income  (Moore  et  al.,  2008).    A  New  Orleans  study  reported  that  increased  vegetable   consumption  was  related  to  more  shelf  space  allocated  to  vegetables  in  food  stores  that   were  close  to  the  respondents’  homes  (Bodor  et  al.,  2008).       The  food  access  literature  has  noticeably  expanded  in  recent  years.    A  number  of   more  recent  reviews  of  this  literature  have  pointed  out  important  critiques  and   weaknesses  in  this  body  of  work.    Systematic  review  of  this  literature  has  been  cited  as   difficult  due  to  diverse  definitions  and  access  measurement  methodologies  (Beaulac,   Kristjansson,  &  Cummins,  2009;  Black,  Moon,  &  Baird,  2013;  Walker,  Keane,  &  Burke,   2010).    More  than  half  of  the  studies  in  one  review  found  no  relationship  between   proximity  to  healthy  food  outlets  and  diet  (Black  et  al.,  2013).       More  recent  articles  on  this  topic  report  results  that  broaden  this  discussion.    The   assumption  that  food  shopping  generally  takes  place  in  the  neighborhood  of  residence  is  in   question  (Aggarwal  et  al.,  2014;  Zenk  et  al.,  2011).    Zenk  et  al.  (2011)  found  no  relationship   between  dietary  behavior  and  supermarket  presence  in  the  neighborhood.    The  authors   speculate  that  this  may  be  related  to  the  majority  of  participants  engaging  in  daily  activities   outside  of  their  neighborhoods.    Similarly,  Aggarwal  et  al.  (2014)  found  that  consumption   of  fruits  and  vegetables  was  not  related  to  proximity  of  food  outlets,  and  that  many   participants  would  travel  farther  to  reach  low-­‐cost  grocery  stores.    A  recent  pilot  study     9     examined  the  effects  of  a  new  supermarket  located  in  a  predominantly  African  American,   low-­‐income  community,  and  found  no  relationship  between  the  newly  created  access  and   consumption  of  fruits  and  vegetables  (Cummins,  Flint,  &  Matthews,  2014).   Despite  the  diversity  of  methodologies  and  questionable  assumptions  present  in   some  of  these  studies,  there  is  a  growing  consensus  that  healthy  food  access  is   disproportionately  lower  for  low-­‐income  communities  of  color  (Beaulac  et  al.,  2009;  Black   et  al.,  2013;  Walker  et  al.,  2010).    This  access  deficit  is  disconcerting  because  a  diet  low  in   fruits  and  vegetables  has  been  shown  to  increase  the  risk  for  developing  diet  related   diseases  including  Type  II  diabetes  and  cardiovascular  disease  (Ogden,  Carroll,  &  Flegal,   2008;  Seligman  et  al.,  2010;  USDA,  2009).      These  diet  related  diseases  are  more  prevalent   in  low-­‐income  communities,  and  Latino  and  African  American  populations,  as  compared  to   white  populations  (Bell  &  Standish,  2009;  Narayan,  Boyle,  Thompson,  Sorensen,  &   Williamson,  2003;  Ogden  et  al.,  2008;  Seligman  et  al.,  2010;  USDHHS,  2001).   Set  within  this  context  of  healthy  food  access,  diet-­‐related  disease  and  racial   disparity,  this  thesis  attempts  to  situate  the  consideration  of  underserved  consumers   within  the  scope  of  VBVCs  and  food  hubs.    This  research  investigates  the  motivation  of  food   hubs  to  serve  these  populations,  and  if  hubs  do  attempt  to  engage  in  this  service,  how  they   are  doing  it.     Differentiated  and  values-­‐based  products:    Economic  and  social  considerations  in  a   growing  market     Generally,  regional  food  hubs  provide  product  differentiation  services,  so  that   producers  can  take  home  larger  revenue  (i.e.  a  larger  share  of  the  consumer  food  dollar).     Food  hubs  accomplish  this  by  providing  services  identifying  the  farm  or  producer,  group     10     branding,  carrying  specialty  products  like  heirloom  varieties,  and/or  carrying  products   that  use  specific  production  practices,  like  organic  or  “naturally  grown”  (Barham  et  al.,   2012,  p.  4).       The  literature  provides  some  grounding  for  the  motivation  behind  sourcing  and   selling  differentiated,  values-­‐based  products  (VBPs).    While  this  thesis  focuses  more  on   social,  rather  than  economic  considerations  of  food  hub’s  interaction  with  VBPs,  it  must  be   recognized  that  economic  sustainability  is  crucial  for  farms  and  producers  that  are  selling   VBPs  in  the  marketplace.    Therefore,  we  will  begin  by  briefly  looking  at  a  portion  of  the   literature  relevant  to  the  economic  impacts  for  VBP  producers.   While  describing  characteristics  of  successful  value  chains,  Diamond  and  Barham   (2011,  p.  3)  claim  that  product  differentiation  is  critical,  because  producers  are  gaining   economic  value  through  this  strategy.    Other  studies  have  complementary  conclusions.     Conner  et  al.  (2008)  note  that  VBVCs  bring  a  premium  price  to  the  producer  through   product  differentiation,  which  can  increase  farm  viability.    Three  case  studies  look  at  value   chains  that  are  marketing  pasture-­‐raised  beef  (Ibid.;  Marsden  et  al.,  2002;  Pullman  &   Dillard,  2010),  and  all  three  note  that  differentiating  this  product  from  conventional  beef   leads  to  the  producer  capturing  a  higher  price.   In  addition  to  the  economic  benefits  that  producers  can  capture  from  product   differentiation,  this  strategy  may  provide  social  benefits  for  value  chain  members  when   products  are  identified  as  having  additional  attributes  that  represent  a  larger  goal  or   perspective.    In  this  case  the  attributes  are  not  valued  in  dollars,  but  as  a  social  or   environmental  goal  (Diamond  &  Barham,  2011;  Stevenson  &  Pirog,  2008).         11     Barham  (2002)  writes  that  labeling  and  communication  of  values  can  be  thought  of   as  a  way  to  “re-­‐humanize”  the  market,  by  allowing  food-­‐purchasing  choices  to  be  based  on   traditionally  non-­‐monetized  attributes.    She  also  speculates  that  these  choices  can  be   explicitly  political  and  part  of  a  social  movement  based  on  common  goals  and  values.  In  a   case  study  of  two  farmer’s  markets  in  Northern  California,  Alkon  (2008)  found  that   customers  at  these  markets  were  purchasing  food  based  partly  on  political  and  moral   considerations.    Coff  et  al.  (2008)  write  that  labeling  values-­‐based  products  facilitates  more   informed  consumer  purchasing  choices  by  allowing  transparent  insight  into  the  production   methods  that  were  used  in  making  a  particular  product.   A  number  of  researchers  comment  that  there  is  growing  consumer  interest  and   demand  for  differentiated  products  (S.  Baker  et  al.,  2004;  Connell,  Smithers,  &  Joseph,   2008;  Conner  et  al.,  2008;  Marsden  et  al.,  2002;  Painter,  2007;  Pullman  &  Dillard,  2010).     While  values-­‐based  labels  may  represent  a  variety  of  values,  many  of  them  connect  with   environmental  consciousness  via  production  methods,  such  as  organic  (S.  Baker  et  al.,   2004),  or  pasture-­‐raised  animals  and  their  humane  treatment  (Conner  et  al.,  2008;   Marsden  et  al.,  2002;  Pullman  &  Dillard,  2010).    Other  labels  signify  a  socially  motivated   goal,  such  as  preservation  of  small  to  mid-­‐size  family  farms  culture  (Alkon,  2008;  Conner  et   al.,  2008;  Pullman  &  Dillard,  2010),  or  impact  of  authentic  and  fair  relationships  along  the   value  chain  (Hendrickson  &  Heffernan,  2002;  Jaffee  et  al.,  2004).       With  growing  consumer  interest  in  product  differentiation,  and  a  multitude  of  potential   environmental,  social,  and  cultural  impacts  that  these  products  may  supply,  this  movement   towards  product  differentiation  becomes  increasingly  important  to  examine.           12     Conclusion     Within  the  context  of  current  regional  food  hub  operations  and  what  informs  their   social,  environmental  and  economic  goals,  this  thesis  will  focus  on  two  aspects  of  food  hub   operation.    First  I  will  examine  how  food  hub  practitioners  are  currently  conceptualizing   niche  markets,  differentiated  and  values-­‐based  products,  and  what,  if  anything,  their   operations  are  doing  to  source  these  products.    Second,  I  will  investigate  how  food  hubs  are   interacting  with  underserved  consumers  as  a  part  of  the  VBVC.    These  questions  will  be   examined  through  a  qualitative  study  of  food  hubs  in  Michigan,  Ohio,  Indiana  and   Wisconsin  that  ranged  in  their  stage  of  development  from  planning  to  operational.                                 13     CHAPTER  2.    The  role  of  values  in  food  hub  sourcing  and  distributing  practices   Introduction     The  recent  emergence  of  the  food  hub  concept  and  its  development  across  the   country  has  garnered  much  attention.    Food  hub  operations  have  been  framed  as  a  strategy   to  scale-­‐up  local  and  regional  food  systems,  specifically  by  increasing  market  access  to   small  and  mid-­‐sized  farms  (J.  Barham  et  al.,  2012;  Kirschenmann  et  al.,  2008;  Stevenson  et   al.,  2011).         In  partnership,  the  USDA  and  National  Food  Hub  Collaboration  define  a  regional   food  hub  as  “a  business  or  organization  that  actively  manages  the  aggregation,  distribution,   and  marketing  of  source-­‐identified  food  products  primarily  from  local  and  regional   producers  to  strengthen  their  ability  to  satisfy  wholesale,  retail,  and  institutional  demand”   (J.  Barham  et  al.,  2012,  p.  4).    The  self-­‐identified,  intended  goals  of  food  hubs  are  many:     increased  institutional  market  access  for  small  and  mid-­‐size  farmers;  strengthening  the   regional  food  economy  in  their  community;  and  a  variety  of  additional  social  goals,   including  increasing  food  access  for  underserved  populations  (Ibid.).    Results  from  a  recent   national  food  hub  survey  reinforce  that  many  hubs  have  mission  driven  goals  (Fischer  et   al.,  2013).    Their  results  also  show  that  the  majority  of  food  hub  businesses  are  financially   profitable.    These  findings  indicate  that  food  hubs  may  provide  examples  of  solvent,  values-­‐ based  businesses.   Despite  the  attention  the  food  hub  concept  is  generating,  research  on  the  collective   impact,  characteristics  and  motivations  of  food  hub  businesses  has  only  recently  begun.     Much  of  the  existing  research  targets  hub  practitioners  and  appears  in  case  studies,  reports   and  resource  guides  (J.  Barham  et  al.,  2012;  Cohen  &  Derryck,  2011;  Day-­‐Farnsworth  et  al.,     14     2009;  Greenberg,  2007;  Matson  et  al.,  2013).    With  the  notable  exception  of  the  two   national  food  hub  surveys  (J.  Barham,  2011;  Fischer  et  al.,  2013),  we  are  not  aware  of   research  examining  the  motivations  and  operations  of  food  hub  sourcing  and  distributing   practices.     Several  case  studies  have  commented  on  intended  and  observed  food  hub   operational  characteristics,  including:    hubs’  ability  to  maintain  product  differentiation   (Day-­‐Farnsworth  et  al.,  2009;  Greenberg,  2007;  Matson  et  al.,  2013)  and  their  potential  to   engage  in  transparent  and  collaborative  relationships  with  other  business  partners  and   stakeholders  (J.  Barham  et  al.,  2012;  Matson  et  al.,  2013).    Fischer  et  al  (2013)  confirm  that   food  hubs  nationwide  differentiate  products.    For  example,  60%  of  the  107  hubs  surveyed   branded  or  labeled  products  (Fischer  et  al.,  2013,  p.  37).    The  results  also  indicated  a   majority  of  hubs  prefer  to  carry  products  which  either  use  particular  growing  methods  or   have  specific  certifications.     While  the  national  survey  and  case  studies  provide  a  useful  baseline  of  food  hub   information,  there  is  still  much  to  be  learned  about  the  values,  characteristics  and   motivations  of  food  hub  operations.       Values  based  value  chains  (VBVCs):    A  theoretical  framework     Researchers  often  frame  food  hubs  as  part  of  a  VBVC  (J.  Barham  et  al.,  2012;  Matson   et  al.,  2013;  Stevenson  et  al.,  2011),  an  idea  developed  in  the  business  literature.    Stevenson   &  Pirog  (2008)  adapted  this  idea  to  articulate  supply  chains  within  the  food  system  by   including  explicit  encouragement  of  equitable  relationships  among  food  supply  chain   members  along  with  more  traditional  supply  chain  management  strategies  (Bloom  &     15     Hinrichs,  2011).  They  describe  the  VBVC  characteristics  that  set  them  apart  from   conventional  supply  chains  as:     • Considering  value  chain  participants  as  “strategic  partners”,  where  decisions   are  made  transparently  and  collaboratively   • Products  exchanged  are  often  differentiated   • The  well-­‐being  of  all  chain  participants  is  prioritized   • The  model  is  effective  on  all  scales,  including  local,  whereas  conventional   supply  chains  are  increasingly  nationally  or  internationally  scaled   VBVCs  may  also  be  a  model  to  address  concern  about  mid-­‐sized  farms’   disappearance  in  the  U.S.  (Carstensen,  2008;  Lyson  et  al.,  2008;  Stevenson  &  Pirog,  2008).   This  concern  is  due  in  part  because  these  farms  offer  a  number  of  environmental,  social   and  economic  services  that  contribute  to  the  vibrancy  of  their  rural  communities.     Kirschenmann  et  al.  (2008)  note  mid-­‐sized  farms  are  often  family  owned  for  multiple   generations  which  increases  their  practice  of  sound  land  stewardship.    Mid-­‐sized  farms   also  have  the  comparative  advantage  of  being  more  able  to  meet  growing  consumer  needs   for  differentiated  or  values-­‐based  goods,  compared  to  large  scale  commodity  farms  (E.   Barham,  2002;  Diamond  &  Barham,  2011;  Hoshide,  n.d.;  Stevenson  &  Pirog,  2008).       VBVCs  may  provide  increased  market  access  for  small  and  mid-­‐sized  farmers  by   aggregating  products.    This  allows  them  to  move  into  institutional  and  retail  markets  that   require  larger,  consistent  volumes  (Clark  et  al.,  2011;  Hoshide,  n.d.;  Izumi  et  al.,  2010;   Kirschenmann  et  al.,  2008;  Matson  et  al.,  2013).     This  study  explores  food  hub  sourcing  and  distributing  practices  through  a  values-­‐ based  perspective.    To  further  contextualize  the  study,  we  will  look  at  product     16     differentiation  and  values-­‐based  products  (VBPs)  and  the  relevance  of  including   underserved  populations  in  the  VBVC.   Product  differentiation  and  values-­‐based  products   A  suite  of  benefits  from  the  VBVC  strategy  of  selling  differentiated  goods  or  VBPs   can  result  for  producers.    Economically,  sales  of  differentiated  goods  may  result  in  a   premium  price  (Conner  et  al.,  2008;  Marsden  et  al.,  2002;  Painter,  2007;  Pullman  &  Dillard,   2010),  often  crucial  for  mid-­‐sized  farm  financial  stability.       Environmental  or  social  goals  may  also  be  accomplished  via  VBPs.    Consumers  are   increasingly  interested  in  purchasing  products  that  use  practices  such  as  organic   production  (S.  Baker  et  al.,  2004),  pasture  raising  of  animals,  and/or  their  humane   treatment  (Conner  et  al.,  2008;  Marsden  et  al.,  2002;  Pullman  &  Dillard,  2010).    Consumers   are  also  interested  in  social  goals,  such  preserving  family  farm  culture  (Alkon,  2008;   Pullman  &  Dillard,  2010)  or  promoting  authentic  and  fair  relationships  throughout  the   supply  chain  (Jaffee  et  al.,  2004).    Finally,  Fischer  et  al.  reported  that  22%  of  hub   respondents  included  food  access  as  a  value  in  their  mission  statement  (Fischer  et  al.,  2013,   p.  31).   Underserved  populations  in  the  value  chain:  health  and  access  disparities     There  is  a  growing  body  of  literature  investigating  a  relationship  between  the  lack  of   food  access  to  the  occurrence  of  diet  related  diseases  in  underserved  populations.    Multiple   studies  show  that  decreased  access  to  healthy  food  is  related  to  lower  income  levels   (Morland  et  al.,  2002;  Powell  et  al.,  2007;,  2009).    The  availability  of  healthy  food  is  lower  in   communities  of  color  that  are  predominantly  Black  or  Latino,  as  compared  to  access  in   predominantly  white  communities  (E.  A.  Baker  et  al.,  2006;  Bell  &  Standish,  2009;  Galvez  et     17     al.,  2008;  Morland  et  al.,  2002;  Powell  et  al.,  2007;  Seligman  et  al.,  2010;  Shaffer,  2002;  Stuff   et  al.,  2004).    A  number  of  more  recent  reviews  of  this  literature  have  pointed  out  important   critiques  of  this  body  of  work.    Systematic  review  of  this  literature  has  been  cited  as   difficult  due  to  diverse  definitions  and  access  measurement  methodologies  (Beaulac,   Kristjansson,  &  Cummins,  2009;  Black,  Moon,  &  Baird,  2013;  Walker,  Keane,  &  Burke,   2010).    More  than  half  of  the  studies  in  one  review  found  no  relationship  between   proximity  to  healthy  food  outlets  and  diet  (Black  et  al.,  2013).       More  recent  articles  on  this  topic  report  results  that  broaden  this  discussion.    The   assumption  that  food  shopping  generally  takes  place  in  the  neighborhood  of  residence  is  in   question  (Aggarwal  et  al.,  2014;  Zenk  et  al.,  2011).    No  relationship  between  a  new   supermarket  and  consumption  of  fruits  and  vegetables  was  found  by  a  pilot  study   examining  the  effects  of  the  newly  created  access  point  located  in  a  predominantly  African   American,  low-­‐income  community  (Cummins,  Flint,  &  Matthews,  2014).   Despite  the  diversity  of  methodologies  and  questionable  assumptions  present  in   some  of  these  studies,  there  is  a  growing  consensus  that  healthy  food  access  is   disproportionately  lower  for  low-­‐income  communities  of  color  (Beaulac  et  al.,  2009;  Black   et  al.,  2013;  Walker  et  al.,  2010).    This  access  deficit  is  disconcerting  because  a  diet  low  in   fruits  and  vegetables  has  been  shown  to  increase  the  risk  for  developing  diet  related   diseases  including  Type  II  diabetes  and  cardiovascular  disease  (Ogden  et  al.,  2008;   Seligman  et  al.,  2010;  USDA,  2009).  These  diseases  have  been  shown  to  be  more  prevalent   in  low-­‐income  communities  or  Black  and  Latino  populations,  as  compared  to  higher  income     18     or  white  populations  (Bell  &  Standish,  2009;  Narayan  et  al.,  2003;  Ogden  et  al.,  2008;   Seligman  et  al.,  2010;  USDHHS,  2001).     Thus,  it  is  important  to  understand  strategies  that  can  simultaneously  address   viability  of  small  and  medium-­‐scale  farms  as  well  as  improve  healthy  food  access  in   underserved  communities.    Within  this  context,  we  further  examine  food  hub  sourcing  and   distributing  practices  by  sharing  results  on  two  topics.      The  first  is  how  food  hub   practitioners  are  conceptualizing  differentiated  and  VBPs,  and  what,  if  anything,  their   operations  are  doing  to  source  these  products.    Secondly,  we  investigate  how  food  hubs  are   interacting  with  underserved  consumers  as  a  part  of  the  VBVC.       Methods   Research  design  and  data  collection   This  research  was  approved  by  the  Michigan  State  University  Institutional  Review   Board  for  Human  Subjects  (IRB#x13-504e)  and  was  classified  as  ‘exempt.’    This  research   utilizes  a  qualitative  approach  to  explore  our  research  questions.    Ideally,  qualitative   inquiry  may  result  in  themes,  patterns,  insights  or  understanding  within  the  diverse  terrain   that  comprises  food  hub  business  models,  values  and  priorities  (J.  Barham  et  al.,  2012;   Fischer  et  al.,  2013;  Patton,  2002).    This  study  used  Maxwell’s  (2012)  qualitative  research   design  model  -­‐  a  reflexive  and  adaptable  model  that  requires  constant  evaluation  as  it   develops  and  changes.     The  sample  for  this  study  included  representatives  of  11  food  hubs  from  the   following  states:    Michigan  (8),  Ohio  (1),  Indiana  (1)  and  Wisconsin  (1).  Maximum  variation   sampling  was  used  to  identify  candidates  for  participation  (Patton,  2002).    Our  criteria     19     were  that  the  hubs  were  geographically  spread  and  were  ranging  from  ‘in  planning’,  to  ‘in   development’,  to  ‘operational’  in  their  business  development.       The  steering  team  of  the  Michigan  Food  Hub  Learning  and  Innovation  Network   provided  a  list  of  potential  candidates  and  their  contact  information.    Those  identified  had   been  actively  participating  in  the  network.    Invitations  to  participate  in  the  research  were   sent  to  15  food  hub  organizations  in  Michigan,  eight  of  which  responded.  We  then   broadened  our  geographic  scope  to  include  neighboring,  Midwestern  states.  The  national   food  hub  survey  administrator  (M.  Fischer,  personal  communication)  provided  a  list  of   organizations  in  neighboring  states  that  responded  to  the  survey.    An  additional  seven   invitations  were  sent  to  food  hubs  in  Ohio,  Indiana,  Illinois  and  Wisconsin  with  three   agreeing  to  participate.       Participating  hubs  represent  a  mixture  of  legal  structures.    Four  hubs  are  for-­‐profit   LLCs,  four  are  non-­‐profit  organizations,  one  is  a  cooperative,  one  has  both  LLC  and  non-­‐ profit  components,  and  one  was  too  early  in  planning  to  have  determined  their  structure.     On  the  spectrum  of  business  development,  five  hubs  were  clearly  operational,  one  hub  was   clearly  in  planning,  and  the  remaining  five  hubs  were  ranging  between  in  planning/in   development  to  in  development/operational.    Although  many  of  the  hubs  in  this  sample  did   not  distinctly  fit  into  one  of  the  business  development  categories,  for  analysis  purposes,  we   placed  them  in  a  singular  group.    This  designation  was  based  on  a  combination  of  how  the   hub  operators  self-­‐identified  and  our  conception  of  where  they  best  fit.       The  data  were  primarily  collected  through  semi-­‐structured  in-­‐depth  interviews   (Rubin  &  Rubin,  2011).    Seven  interviews  were  conducted  in-­‐person  and,  due  to  distance,   four  were  conducted  by  telephone.    We  had  access  to  seven  of  the  hubs’  2013  national  food     20     survey  responses  (MSU  IRB#  x12-­‐125e  )  which  were  reviewed  prior  to  the  interview  to  set   context  and  to  avoid  redundancy  in  the  collection  of  information.    All  interviews  were   recorded  and  transcribed  verbatim.  The  interviews  lasted  between  60-­‐90  minutes  and,  if   in-­‐person,  took  place  at  the  food  hub.    The  interview  guide  had  three  sections:    (1)  general   food  hub  information  and  business  development,  (2)  sourcing  practices  and  preferences   and  (3)  distributing  practices  and  interaction  with  underserved  populations.     Data  Analysis     We  chose  the  organizational  level  as  our  unit  of  analysis  (Patton,  2002)  in  order  to   comment  on  food  hub  organizational  practices.    This  helped  inform  the  type  of  information   that  was  included  in  our  investigation.    Early  analysis  of  the  data  was  conducted  by  using   contact  summary  sheets  (Miles  &  Huberman,  1994),  where  a  summary  and  commentary  of   each  interview  was  written  shortly  after  the  interaction.    The  remainder  of  the  analysis  was   completed  using  memos,  thematic  coding  (Rubin  &  Rubin,  2011)  and  data  displays  (Miles  &   Huberman,  1994),  with  the  assistance  of  QSR  International’s  NVivo  10  (NVivo,  2012).    Data   displays  were  created  by  hand.     Results       The  hubs  were  categorized  along  a  spectrum  of    ‘in  planning’,  ‘in  development’,  and   ‘operational’  with  respect  to  their  business  development.    One  hub  was  ‘in  planning’,  which   did  not  have  a  physical  space  or  paid  staff.    They  had  some  developed  ideas,  including  a   mission  and  potential  programs,  but  had  not  yet  formed  a  legal  entity.    Five  hubs  were  ‘in   development’  all  of  which  had  funding.    Four  of  these  five  had  a  physical  space  identified,   all  had  business  plans  and  staff  or  volunteers.    At  the  time  of  this  study,  one  of  these  hubs     21     was  already  sourcing  and  distributing  food.    Three  of  these  hubs  had  operational  programs   outside  of  food  distribution,  and  the  other  two  were  planning  programs.    Five  hubs  were   ‘operational’  –  they  were  sourcing  and  distributing  food.    All  five  had  staff,  a  functional   infrastructure,  business  plan,  mission,  vision,  sales,  expenses  and  programs.    Each  of  these   hubs  had  at  least  one  item,  such  as  a  program  or  expansion  that  was  in  planning,  but  not   yet  actualized.    The  business  development  phase  and  legal  structure  (e.g.  non-­‐profit,  LLC,   co-­‐op)  will  be  highlighted  where  there  are  notable  differences  or  nuances  among  these   categories.     Food  hub  sourcing  practices     There  were  three  main  themes  that  emerged  in  relation  to  food  hub  sourcing   practices.    The  first  relates  to  region  and  type  of  farm  from  which  food  hub  practitioners   are  sourcing  products.    Notably,  food  hub  practitioners  do  not  appear  to  have  hard  and  fast   rules  on  the  region  or  the  size  of  the  farm  from  which  they  source.    A  second  theme  relates   to  product  attributes.    We  found  that  the  majority  of  hubs  do  not  have  product  attribute   requirements.    Neither  did  the  majority  of  hubs  mention  attribute  preferences,  with  the   exception  of  food  safety  practices  or  certification.    The  third  and  final  identified  theme   relates  to  farmer  training  and  education  provided  by  the  hubs.    We  found  that  half  of  the   hubs  provide  training  for  their  farmers,  primarily  focused  on  food  safety  practices.   Looking  more  specifically  at  the  farms  and  producers  for  sourcing  we  found  that  all   hubs  source,  or  will  source,  a  portion  of  their  products  locally  or  regionally,  with  varying   delineations  of  these  terms.    The  smallest  geographic  range  identified  is  a  radius  of  100   miles,  and  the  largest  covers  a  four  state  area.    Several  of  the  hubs  are  sourcing,  or  are   planning  to  source,  primarily  within  50  miles.    Seven  of  the  hubs  are  willing  to,  or  already     22     do,  expand  their  sourcing  area  to  secure  more  product  over  an  extended  time,   demonstrating  that  they  do  not  have  strict  sourcing  boundaries.    Two  practitioners  from   different  hubs  expressed  their  willingness  to  source  outside  of  their  local  area:     “Our  range  is  typically  within  50,  but  that  doesn’t  mean  that  we  can’t  reach  out   to  [other  areas]  …”     “The  majority  of  what  we  are  hoping  to  focus  will  come  locally,  um,  and   everyone’s  definition  is  different,  but  you  know,  within  the  10  county  region,  …,   around  here  –  is  what  I  am  thinking.    But,  if  there’s  products  that  people  want   that  we  can’t  get  here  that  are  being  grown  [elsewhere],  I  don’t  really  see  a   problem  working  with  them.”     The  hubs  that  hope  to  expand  their  future  sourcing  area  acknowledge  a  need  to  address   product  logistical  challenges  first.   The  other  four  hubs  do  have  set  sourcing  boundaries.    When  asked  whether  hub   practitioners  would  compromise  their  boundaries  under  certain  circumstances,   representatives  from  two  hubs  voiced  that  they  would  not.    An  operator  from  a  hub  still  in   development  explains  the  circumstances  that  would  encourage  them  to  source  outside  of   their  boundaries:   “…there  comes  a  point  in  time  where  it  would  be  nice  to  reach  beyond  that,  say   to  [other  areas]  and  get  fruit,  for  example.    Things  that  aren’t  as  abundant   [here].    That  may  be  in  the  cards,  but  again,  we  would  let  the  market  determine   that  –  and  if  we’re  really  receiving  lots  of  requests,  like  –  hey,  we  really  want   this,  could  you  do  this  and  integrate  it  into  your  site  –  then  we  would  entertain   that  idea.”     The  fourth  of  these  hubs  does  source  outside  its’  boundaries  under  special  circumstances,   described  as  follows:       “Practitioner  1:    We  try  not  to  go  outside  of  the  state   Practitioner  2:    99%  of  the  time  we  are  not  leaving  the  state   Practitioner  1:    We  have  specific  customers,  with  specific  needs,  and  we  will   help  them.    But  we’re  not  doing  it  to  bring  it  into  stock”     23       Over  half  of  the  hubs  are  working  primarily  with  farms  that  they  define  as  small  and   medium  sized.    Only  two  hubs  state  an  intention  of  specifically  supporting  these  sized   farms.    For  e.g.  one  hub  operator  commented:   “Those  are  single  family  farms  um,  none  of  them  are  larger  than  mid-­‐size,   okay?    And  we  only  have  two  mid  sized,  all  the  rest  are  small.”     The  other  five  hubs  that  source  from  small  and  medium  sized  farms  are  open  to  working   with  larger  farms  often  expressed  through  a  common  theme  of  having  less  supply  than   demand.    This  was  expressed  similarly  by  operators  from  two  food  hubs:         “Preference  as  to  size,  no,  but  we  do  need  more  larger  farms.    Uh,  larger  farms   have  economies  of  scale,  and  we  need  their  participation.”     “We  have  a  much  greater  demand  for  local  product  than  we  can  meet.    Our   customers  are  constantly  wanting  more  local  production,  but  quite  frankly   there’s  –  there  might  be  a  few  products  out  there  where  the  supply  outpaces  the   demand,  but  the  vast  majority  of  products  –  especially  on  the  produce  side  –  we   can’t  come  anywhere  close  to  meeting  the  demand  with  the  farmers  that  we   actually  kind  of  have  available  here  in  the  Midwest”   In  terms  of  product  attributes  (e.g.  certifications  or  non-­‐certified  production   methods),  eight  of  the  hubs  do  not  have  specific  requirements.    The  majority  of  the  hub   operators  interviewed  do  not  explicitly  mention  attribute  preferences,  other  than  food   safety.    Seven  of  the  hub  practitioners  are  encouraging  their  producers  to  work  towards   food  safety  practices  or  certifications.         There  are  three  hubs  that  do  have  product  requirements  or  strong  preferences.    The   operators  from  these  three  hubs  expressed  the  thought  that  these  product  requirements  or   preferences  will  give  them  market  separation.    One  hub,  the  only  co-­‐operative  in  this   sample,  has  the  strictest  sourcing  requirements  and  won’t  deviate  from  these  guidelines  to   secure  more  food  supply.    The  co-­‐op  operator  describes  the  value  the  co-­‐op  places  on  their   produce  attribute  requirements,  which  she  describes  as  ethics:     24     “As  this  co-­‐op  was  formed  the  expressed  intention  was  food  done  right.    We  are   not  becoming  part  of  that  big  system.    We  shadow  the  big  system,  but  we  are   not  a  piece  of  it.    If  we  wanted  another  [large  corporation],  that’s  not  hard  to   do.    But  we’re  not  them.  So  we  do  have  ethics.    Somewhere  in  there,  we  actually   have  rules.    So  no,  we  would  not  eighty-­‐six  the  ethics  to  just  get  the  food.    That’s   not  what  we’re  in  business  to  do.”         The  two  remaining  hubs  both  strongly  prefer  certified  organic  or  non-­‐certified  organically   produced  products.    The  developing  hub  described  the  production  practices  of  the  products   they  are  hoping  to  source  as  follows:   “I  think  that  we  would  like  to  feature  in  -­‐  let’s  say  our  portfolio  -­‐  is  sustainably   raised,  you  know,  and  some  farmers  are  going  to  be  certified  organic…  Or,  if   not,  they  are  working  on  it.    But,  the  other  growers  would  follow  similar   practices.”     The  other  operational  hub  also  carries  both  certified  organic  and  non-­‐certified  organic   produce.    They  will  carry  products  that  do  not  follow  organic  growing  practices  when  the   organic  is  not  available,  expressed  as  follows:     “We  do  prefer  organic…  we  do  have  a  couple  of  farmers  that  don’t  do  organic  –   that  don’t  have  their  certification  but  they  do  sustainably  grown,  they  don’t   grow  with  pesticides  or  herbicides.    We  will  source  those  products  as  well,  in  the   event  that  there’s  not  an  organic  or  sustainable  option  on  the  market  for   something  that  we  want  to  carry,  we  will  source  a  conventional  product.    In   kind  of  a  –  a  next  option,  you  know,  there’s  some  like  green  beans  and  sweet   corn  that’s  really  hard  to  buy  regionally  that  –  in  an  organic  fashion.”   When  this  hub  offers  non-­‐organic  produce,  their  staff  ensures  that  customers  are  informed   about  the  production  methods.    The  other  hub,  which  is  in  development,  anticipates  that   they  may  need  to  compromise  on  their  preference  for  organically  produced  products  in   order  to  have  adequate  supply.   “It’s  going  to  take  a  little  while  to  get  those  processes  and  to  get  the  food   flowing  through  here  in  the  way  that  we  envision.    But,  the  first  principle  of   being  sustainable  is  being  sustainable  economically,  and  there  are  years  like   last  year  when  there  are  no  apples.    And  so,  if  you  are  a  cider  business,  and  you   have  no  apples,  you…  do  what  it  takes  to  stay  in  business.”     25         Half  of  the  hubs  provide  training  and  education  to  the  farmers  they  work  with.    The   majority  of  this  training  is  focused  on  food  safety,  with  a  common  motivation  of  moving   farmers  toward  certification  or  acceptable  practices  to  meet  safe  food  market   requirements.    Many  of  the  hub  practitioners  expressed  their  interactions  with  food  safety   requirements,  or  the  anticipation  of  needing  them.    One  commented:   “We  spend  a  lot  of  time  on  that  food  safety  education  because  if  regulation   forces  people  out  of  the  markets  –  we’re  dead.    And,  so  we  need  to  make  sure   that  all  of  the  small  and  medium  farms  are  getting  the  skill  set  necessary  and   the  education  to  incorporate  that  in.”       A  second  had  a  similar  comment:     “I  mean  –  sooner  or  later  –  no  one  is  asking  me  yet,  but  I’m  just  waiting  for  the   buyers  to  ask  me  –  you  know,  are  you  GAP  certified?    Or,  are  you,  you  know   what  do  you  have?”     A  third  commented  with  respect  to  school  marketing:     “I’d  like  to  get  into,  you  know,  schools  are  another  interesting  thing  –  when  I   started  [the  hub],  I  was  like,  oh,  we’ll  just  sell  to  schools  –  that’ll  be  easy.    Well,   talk  about  rules.    GAP  certification,  that’s  at  the  farmer  level,  that  takes  a  year   or  two,  and  a  lot  of  money  and  inspections.”       Two  of  the  hubs  that  provide  educational  resources  have  intentions  of  increasing   the  skills  and  knowledge  of  their  farmer  partners.    Examples  include  workshops  on  digital   literacy  or  technical  assistance  on  growing,  specifically  through  season  extension.    One  hub   operator  expressed  their  perspective  on  providing  additional  resources  to  their  producers:   “It’s  about  increasing  the  capacity  of  farmers,  not  just  about  their  financial   capacity  to  you  know,  grow  and  sell,  but  capacity  in  broader  terms.”     Food  hub  distribution  practices   There  were  three  main  themes  that  emerged  in  relation  to  how  food  hubs  are   interacting  with  underserved  consumers.    The  first  is  that  food  hubs  are  broadly  aware  of,     26     or  stated  that  they  value  increasing  food  access  to  underserved  consumers.    The  majority  of   hubs  are  addressing  food  access  barriers  or  providing  services  to  underserved  populations   by  engaging  in  partnerships.    The  second  theme  includes  the  main  identified  activities  that   food  hubs  use  to  increase  food  access.    The  two  most  common  activities  are  supporting  or   hosting  farmer’s  markets  that  accept  Electronic  Benefits  Transfer  (EBT)  and/or  donating   leftover  produce  and  products  to  food  banks.    The  final  theme  consists  of  the  various   challenges  that  food  hubs  face  in  working  with  and  reaching  underserved  populations.   Seven  of  the  hubs  engage  directly  in  activities  to  increase  food  access  by   underserved  populations.    The  following  are  two  examples  of  hub  operators  discussing   how  food  access  is  included  in  their  mission:   “Our  particular  one  is  an  aggregation  point,  and  also  that  it’s  satisfying  out  –   where  it’s  located  –  it  is  helping  to  minimize  its’  status  as  a  food  desert.     Because,  I  mean,  twice  a  week  we  are  out  there,  making  that  available  to  the   community”     “We  manage  market  operations,  develop  programs,  build  facilities  and  provide   infrastructure  to  strengthen  the  [hub]  district,  improve  access  to  good  food   choices  in  [our  city],  fortify  the  food  sector  as  a  regional  economic  driver.”       Two  additional  hubs  consider  themselves  part  of  a  network  engaging  in  activities  to   increase  food  access.    All  of  the  hubs  that  are  actively  pursuing  increased  food  access  are  at   least  partially  attempting  to  accomplish  this  via  partnerships  with  other  organizations.    The   ‘in  planning’  hub  hopes  to  engage  in  a  partnership  providing  job  training  to  area  residents.         Seven  hubs  are  operating  or  supporting  farmer’s  markets  in  their  area.    Six  of  these   markets  accept  EBT  (the  ability  of  the  seventh  is  unknown)  and  five  are  explicitly  operated   to  increase  food  access.    Two  hubs,  one  a  non-­‐profit  and  one  a  for-­‐profit,  partner  with   community  organizations  to  operate  mobile  markets.    Another  non-­‐profit  hub  operates  an     27     in-­‐house  mobile  market.    Two  of  the  non-­‐profit  hubs  operate  their  own  farmer’s  markets   on  site.         The  majority  of  hubs  donate,  or  plan  to  donate,  leftover  produce  or  products  to  food   banks.    One  developing  hub  operates  a  food  pantry.    They  would  like  producers  to  donate   to  the  pantry,  but  have  not  yet  established  how  or  if  this  will  happen.    Donations  of  product   are  the  only  way  that  two  food  hubs  interact,  or  plan  to  interact  with  underserved   populations.    For  example,  this  hub  operator  commented:   “We  do  provide  space  for  gleaning  in  the  region.    We  give  them  three  pallet   spots  in  a  very  crowded  cooler,  so  they  can  glean  and  store….  But  that’s  as  far   as  we  go.”     Other  strategies  hubs  use  to  reach  underserved  consumers  include  providing   resources  or  programs,  in  addition  to  farmer’s  markets.    Seven  hubs  either  already  do   provide  programs  or  resources,  or  plan  to  in  the  future.    Of  these  seven  hubs,  four  are  non-­‐ profit  organizations,  which  offer  the  widest  range  of  services  and  programming  to   underserved  populations.    Two  hub  operators  describe  the  programs  and  focus  of  their   respective  hub  activities:   “Whether  we  are  talking  about  our  health  programs,  or  our  housing  programs,   or  our  food  programs,  you  can  array  those  on  a  continuum  –  ranging  from   straight  up  social  services  at  one  end,  right?    To  something  that  is  really  about   empowerment  and  capacity  building  at  the  other  end.”       “The  majority  of  what  our  food  hub  actually  does  right  now  is  much  more  of  the   education,  access,  and  working  with  people  of  lower  income  and  just  the   general  population,  than  the  wholesale  piece.”     All  four  of  these  non-­‐profit  hubs  offer  business  development  or  job  training.    One  of  the  for-­‐ profit  hubs  partners  with  a  community  organization  to  offer  job  training  to  low-­‐income   residents.    Another  partners  on  an  initiative  to  get  more  fresh  produce  into  corner  stores,   which  was  the  only  hub  working  on  this  type  of  program  with  the  retail  sector.     28       Many  hubs  identified  challenges  to  providing  services  or  reaching  underserved   consumers,  none  of  which  were  experienced  by  the  majority  of  hubs.    Three  hubs  do  not   have  ample  time  or  resources  to  engage  in  these  activities,  at  least  without  partnering.     Two  hubs  identified  low-­‐income  customers’  lack  of  access  to  transportation  to  their   farmer’s  markets  as  a  barrier.    A  challenge  mentioned  by  two  hubs  is  the  perception  that   healthy  food  is  too  expensive.     In  summary,  we  have  identified  fluidity  to  food  hub  sourcing  practices  as  a  seeming   prerequisite  to  a  viable  business  model.    The  sourcing  practices  in  geographic  distance,   farm  size  and  product  attributes  are  malleable,  with  a  few  exceptions,  in  order  to  secure   enough  supply.    We  have  also  identified  that  the  majority  of  hubs  are  working  in   partnership  with  other  organizations  to  reach  underserved  consumers,  mainly  through   food  bank  donations  or  hosting/supporting  farmer’s  markets.    For  the  majority  of  hubs,  we   did  not  find  intentions  to  develop  a  business  plan  to  focus  on  servicing  low-­‐income  or   underserved  markets  via  corner  grocery  stores  or  other  market-­‐based  entities  within  these   communities.     Discussion     By  definition,  food  hubs  source  primarily  local  and  regional  products  (J.  Barham  et   al.,  2012)  –  however  the  boundary  conditions  for  this  are  very  unclear.    Our  findings  show   that  all  of  the  hubs  are  sourcing  some  portion  of  their  products  locally  or  regionally  while   most  do  not  have  established  sourcing  boundaries.    Of  the  hubs  with  established   boundaries,  all  but  two  compromise,  or  are  willing  to,  based  on  market  demand  and   availability.    We  found  the  hub  administrators  interviewed  in  this  study  willing  to  go     29     beyond  their  current  or  desired  boundaries  based  on  supply  and  demand.    Fischer  et.  al’s   (2013)  survey  support  our  findings  by  reporting  that  securing  more  product  supply  was  a   barrier  to  growth  experienced  by  47%  of  hubs  –  indicating  that  until  local  production   expands  both  in-­‐season  and  out-­‐of-­‐season  there  will  be  a  continuing  need  to  bound  a   region  or  locale  while  moving  outside  it  to  secure  product  .  This  sourcing  approach   demonstrates  that  hubs  do  value  and  attempt  to  source  products  from  their  region,  but  the   majority  are  not  willing  to  be  tied  to  strict  sourcing  boundaries  at  the  cost  of  gross  revenue.     Food  hubs  have  been  identified  as  a  potential  business  model  to  increase   institutional  market  access  to  small  and  mid-­‐sized  farms  (J.  Barham  et  al.,  2012;   Kirschenmann  et  al.,  2008;  Stevenson  et  al.,  2011).    Two  hubs  in  our  sample  are  exclusively   working  with  small  and  mid-­‐sized  farms  and  half  are  sourcing  some  of  their  products  from   these  farms,  which  was  a  smaller  percentage  than  was  reported  nationally.    Fischer  et.  al   (2013)  found  that  32%  of  hubs  are  sourcing  all  of  their  products  from  small  and  mid-­‐sized   farms  and  that  44%  of  hubs  are  sourcing  some  products  from  these  farms.    It  is  not  clear   why  our  data  is  divergent  from  the  national  sample-­‐  although  it  could  be  related  to  the   geographical  region  from  which  we  sampled.       Two  operational  hubs  provide  greater  insight  into  the  motivation  and  willingness  to   work  with  larger  farms.    Both  of  these  hubs  have  developed  sourcing  systems  to  obtain   products  with  the  needed  qualities  to  operate  their  business  and  to  expand  their  customer   base.    The  first  hub  focuses  primarily  on  quality  and  volume.    Securing  a  combination  of   these  attributes  often  requires  them  to  source  from  larger,  more  distant  farms.    The  second   hub  focuses  primarily  on  volume  and  price.    They  require  low  price  points  to  reach  new     30     customers  that  are  accustomed  to  lower  prices  from  large  distribution  companies.    These   prices  are  most  often  obtainable  from  larger  scale  farms.     The  majority  of  hub  practitioners  did  not  mention  organizational  preferences  or   requirements  for  product  attributes  (e.g.  certifications  or  non-­‐certified  growing  practices).   Our  findings  indicated  that  many  hubs  were  hesitant  to  define  product  preferences  or   requirements  but  were  inclined  to  carry  a  range  of  products  with  various  attributes,   allowing  their  customers  to  choose  the  desired  products.    Essentially,  hub  operators  were   allowing    “voting  with  your  dollar”,  or  political  consumerism;  that  is,  actions  by  their   customers  to  make  choices  among  producers  and  products  to  change  objectionable  market   practices  (Micheletti,  2003,  p.  2).       There  were  several  exceptions  of  hubs  that  had  requirements  or  strong  preferences.     It  isn’t  clear  if  this  is  particular  to  these  hubs  or  more  related  to  their  stage  of  development.     Two  of  the  three  hubs  that  stated  preferences  for  product  attributes  were  in  development   and  had  not  yet  begun  sourcing  and  supplying  products  to  customers.    It  would  be   interesting  to  track  these  developing  entities  longitudinally  to  understand  the  relationship   between  food  hub  developmental  theory  and  their  market  practice.         The  most  notable  exception  relating  to  product  attribute  preference  is  the  majority   of  hub  operators’  desire  to  encourage  food  safety  certifications  and/or  practices  among   growers.    This  was  often  recognized  as  a  challenge  for  small  and  mid-­‐sized  farms  primarily   due  to  the  food  safety  certification  expense.         Authors  that  classify  food  hubs  as  members  of  VBVCs  indicate  that  they  expect  hubs   will  differentiate  their  products  (J.  Barham  et  al.,  2012;  Matson  et  al.,  2013).  All  of  the  hubs   in  our  study  carried  or  brokered  some  form  of  differentiated  product  and  many  of  them     31     provided  additional  information  to  their  customers.    Our  findings  demonstrated  that  the   specific  differentiated  attribute  was  not  as  important  as  the  act  of  differentiation  itself.     All  the  food  hubs  in  our  study  mentioned  awareness  of  increasing  access  for  limited-­‐ resource  residents  or  stated  that  their  organizations  valued  this  goal.    More  than  half  of  the   hubs  engage  in  activities  to  accomplish  this.    This  is  consistent  with  previous  findings  that   food  hubs  may  value  increasing  food  access  to  underserved  populations  (J.  Barham  et  al.,   2012;  Fischer  et  al.,  2013).    Our  findings  provide  new  insights  into  how  they  are  attempting   to  accomplish  this.    There  are  two  types  of  strategies  to  consider  –  the  first  is  through   organizations  doing  free  distribution  and  the  second  is  via  the  market  economy.    The   majority  of  hubs  in  this  study  are  partnering  with  food  banks  or  gleaning  organizations  to   donate  leftover  produce.    Thus  a  portion  of  meeting  this  goal  for  them  is  through   emergency  food  assistance.     Our  sample  includes  hubs  that  engage  limited-­‐resource  populations  through  the   market  economy  as  well  –  although  in  a  limited  way.    More  than  half  of  the  hubs  host  or   support  farmer’s  markets  or  mobile  markets  that  accept  EBT.  Of  the  three  hubs  that   operate  mobile  markets  the  results  to  date  are  mixed:  one  is  considered  successful  by  the   interviewee,  another  is  not  as  successful  as  expected  and  the  last  did  not  comment  on  their   success.    It  is  still  unclear  whether  mobile  markets  offer  a  sound  market-­‐based  solution  to   access  in  communities.       Food  banks  and  farmer’s  markets  are  the  most  common  way  our  study’s  food  hubs   interact  with  underserved  populations  –  only  one  of  those  interviewed  interacted  via   servicing  product  to  small  footprint  grocery  stores  in  the  neighborhoods.    Beyond  that,   some  food  hubs,  mainly  those  that  have  a  non-­‐profit  legal  structure,  offered  a  range  of     32     other,  mostly  educational,  services.    A  minority  of  hubs  offered  “capacity  building”  services   for  underserved  consumers  including  business  development,  job  training  skills  or  food   production  and  preservation  education.    Many  of  these  programs  were  operational  prior  to   the  hubs’  formation.     Half  of  the  hubs  in  our  sample  are  in  early  phases  of  development  -­‐  either  planning   or  developing  their  businesses  and  currently  do  not  have  ample  resources  to  focus  on   reaching  underserved  populations.    Five  of  the  hubs  are  mainly  focused  on  wholesale  and   institutional  markets  and  any  strategies  they  use  to  reach  underserved  consumers  fall   outside  of  their  daily  operations  as  a  food  hub.    This  poses  another  challenge  in  reaching   limited-­‐resource  customers.    It  appears  that  there  are  systemic  issues  in  the  ways  food   hubs  reach  out  to  underserved  populations,  or  the  ways  in  which  they  are  challenged  in   accomplishing  this.      This  is  demonstrated  by  the  challenges  hub  operators  identified,   including:    lack  of  organizational  resources,  limited  access  to  transportation  by  those  that   the  hubs  are  trying  to  reach,  and  a  perception  that  their  food  products  are  too  expensive.     It  appears  that  hubs  which  demonstrate  the  most  success  reaching  underserved   consumers  are  those  that  are  either  non-­‐profit  in  structure  or  have  a  business  model  that   includes  direct  sales  to  consumers.    These  hubs  were  also  most  likely  to  include  increasing   food  access  in  their  mission.    The  non-­‐profit  hubs  all  have  additional  streams  of  funding  or   revenue  that  allow  them  to  run  programs  outside  the  realm  of  their  food  hub  operations.     The  hubs  that  include  direct  to  consumer  sales  have  the  opportunity  to  prospect  specific   groups  of  consumers  by  doing  targeted  outreach  or  by  adapting  their  business  models  to   accept  EBT.           33     Conclusion     Our  findings  contribute  to  the  relatively  young  food  hub  literature  by  adding  depth   and  nuance  to  our  current  understanding  about  the  sourcing  practices  of  these  business   enterprises.    This  study  also  provides  previously  unavailable  insights  into  how  food  hubs   value  and  interact  with  underserved  populations.    While  our  regionally  based  study  may   not  be  generalizable  to  food  hubs  across  the  U.S.,  it  does  provide  a  deeper,  contextualized   understanding  of  the  included  organizations’  values  and  motivations  relative  to  product   sourcing  and  customer  development.     Our  findings  suggest  that  food  hub  operators’  main  objective  is  to  create  a  viable   business.    With  some  exceptions,  this  necessitates  the  adoption  of  flexible  sourcing   practices.    Activities  to  increase  food  access  for  underserved  consumers  appeared  to   become  a  secondary  priority.    Consistent  with  food  hub  working  definitions,  hubs  are   sourcing  a  portion  of  their  products  locally  and  regionally  as  well  as  from  small  and  mid-­‐ sized  farms.    Interestingly,  we  found  the  majority  of  hubs  not  willing  to  rigidly  enforce   guidelines  on  sourcing  distance,  size  of  farm,  or  product  attributes,  motivated  mainly  by  a   lack  of  supply.    We  also  found  that  many  of  the  hubs  are  challenged  in  reaching  limited-­‐ resource  customers  with  the  goal  of  increasing  food  access.    Due  to  lack  of  resources,  the   majority  of  hubs  work  in  partnership  towards  this  goal.    Hub  activities  to  increase  access   mainly  fall  into  two  categories:    free  distribution  as  donations  to  food  banks  and  market-­‐ based  as  on-­‐site  or  mobile  farmer’s  markets.    Further  research  is  needed  to  better   understand  the  lack  of  supply  from  local/regional  small  and  mid-­‐sized  farms,  how  the  hub   business  development  stage  impacts  their  practices,  and  viable  strategies  for  serving   limited-­‐resource  consumer  populations.     34     CHAPTER  3.    Conclusions   Reflections  on  research  results       This  thesis  examined  how  eleven  food  hub  enterprises  employ  values  in  their   sourcing  practices  and  how  they  interact  with  underserved  consumers.    Generally,  we   found  that  the  majority  of  hubs  do  state  and  hold  values  pertaining  to  both  of  these  topics.     Looking  more  closely  at  these  stated  values,  we  found  that  the  majority  of  hubs  have   flexible  boundary  conditions  for  their  sourcing  preferences  and  requirements  in  terms  of   geographic  distance,  size  of  farm,  and  product  attributes.    In  terms  of  hubs’  interaction  with   underserved  consumers,  we  found  that  most  hubs  form  partnerships  to  reach  and  serve   these  consumers,  and  that  the  main  activities  to  accomplish  these  goals  are  accepting  EBT   at  farmer’s  markets  and  donating  produce  to  local  food  banks.    For  the  majority  of  hubs,  we   did  not  find  any  explicit  intention  of  developing  plans  to  reach  local  underserved   consumers  in,  for  example,  small  footprint  grocery  stores.     Despite  the  attention  that  food  hub  enterprises  receive  for  focusing  on  local  and   regional  produce,  and  small  and  mid-­‐sized  farms  (J.  Barham,  2010;  Fischer  et  al.,  2013;   Matson  et  al.,  2013),  we  found  that  a  minority  of  hubs  strictly  source  products  with  these   descriptors.    The  majority  of  hubs  do  source  a  portion  of  their  products  locally/regionally   and  from  small  or  mid-­‐sized  farms,  but  they  also  source  beyond  their  preferred  boundaries   and  from  larger  farms.    This  flexibility  in  preferences  and  requirements  was  also  true  of   product  attributes.    For  the  few  hubs  that  did  prefer  specific  production  methods,  such  as   organic,  they  were  open  to  the  possibility  of  sourcing  non-­‐organic  products  if  an  organic   option  was  not  available.     35       The  most  notable  exception  to  this  flexibility  was  a  preference  for  food  safety   certifications  and/or  practices.    The  majority  of  hub  operators  raised  concerns  about  food   safety  requirements  for  their  institutional  markets,  or  that  they  engage  in  training  and   education  activities  to  benefit  their  producers  on  these  topics.    Many  hubs  cited  market   requirements  for  safe  food  as  a  motivation  for  these  concerns  and  activities.       These  findings  of  flexible  sourcing  practices  can  be  partially  explained  by  a  lack  of   supply  available  locally  and  regionally  from  small  and  mid-­‐sized  farms.    The  root  of  the   supply  issue  may  connected  to  the  challenges  that  mid-­‐sized  farms  in  the  U.S.  face.    The   literature  suggests  food  hubs  as  a  potential  business  model  appropriately  scaled  for  mid-­‐ sized  farm  product  distribution.    Missing  from  this  literature  are  the  additional  efforts  food   hubs  may  need  to  undertake  in  order  to  prepare  existing  mid-­‐sized  farm  businesses  to   interact  in  this  market.    Our  results  indicate  that  hubs  may  need  to  support  existing  mid-­‐ sized  farmers  in  skill  and  business  development  in  order  to  ensure  they  can  secure  the   needed  supply.    They  may  also  need  to  support  the  recruitment  and  skill  building  of  new   farmers  to  increase  local  and  regional  supply.     Resources  available  on  beginning  farmers  identify  two  main  barriers  to  starting  a   business.    These  are  high  start  up  costs  and  access  to  land  (Ahearn  &  Newton,  2009).     Addressing  these  issues  is  no  small  task,  especially  for  a  developing  food  hub  business.    If   food  hub  operators  are  interested  in  sourcing  the  majority  of  their  products  locally  or   regionally  from  small  and  mid-­‐sized  farms,  they  may  need  to  include  more  strategies  in   their  business  plans  to  develop  existing  farmer  capacity  and  to  recruit  new  farmers.     We  found  that  the  majority  of  hubs  had  awareness  of  food  access  disparities  in  their   communities,  or  stated  that  their  organization  values  improving  access  to  underserved     36     consumers  through  various  strategies.    The  majority  of  hubs  acting  on  this  goal  are   partnering  with  other  community  organizations.    Many  of  the  hub  operators  cited  lack  of   staff,  time  and  monetary  resources  as  a  barrier  to  engaging  in  these  activities  as  an   individual  organization.     The  strategies  hubs  use  to  increase  food  access  fall  into  two  categories:    first,   charitable  distribution  by  donating  products  to  local  food  banks  and  second,  market  based   strategies  mainly  by  hosting  or  supporting  farmer’s  markets  that  accept  EBT.    These  were   the  most  common  activities  used  to  increase  food  access  across  the  various  business   development  stages  and  legal  structures  of  hubs  in  our  sample.    A  minority  of  hubs  used   mobile  markets  as  another  market  based  strategy  to  increase  food  access.    With  the   exception  of  one  hub,  who  partnered  on  an  initiative  to  distribute  produce  to  corner  stores   in  limited-­‐resource  neighborhoods,  we  did  not  find  that  any  other  hubs  had  explicit   intentions  of  engaging  in  retail  market-­‐based  strategies  to  reach  and  service  underserved   consumers  in  their  areas.       In  contrast  to  providing  farmer’s  market  access  and  food  bank  donations,  the  non-­‐ profit  hubs  provided  additional  services.    The  majority  of  these  hub  operators  stated  a   value  of  increasing  individual  community  member  capacity,  mainly  by  providing   educational  services  on  topics  of  nutrition,  cooking,  job  training,  business  development,   food  preservation  and  gardening  production  skills.    These  hubs  appear  to  share  an   intention  of  providing  services  to  community  members  at  a  variety  of  levels,  moving   beyond  the  concept  of  increasing  access  by  making  food  available  in  their  communities.     Most  of  the  hub  practitioners  identified  challenges  in  either  serving  limited-­‐ resource  customers  or  reaching  them  to  communicate  existing  services.    For  many  hubs,     37     this  may  be  due  to  their  primary  focus  of  working  with  institutional  markets.    For  others   that  do  include  direct  consumer  services,  there  were  challenges  of  perceptions  that  healthy   food  is  too  expensive  or  that  there  are  business  model  barriers  to  accepting  EBT.    Some  hub   operators  expressed  that  underserved  consumers  in  their  area  lack  access  to   transportation  to  farmer’s  markets,  which  brings  the  efficacy  of  this  strategy  into  question.     The  number  of  new  food  hubs  has  risen  dramatically  over  the  last  few  years.    If  each   of  these  new  hubs  were  to  distribute  healthy  food  or  offer  educational  services  for  limited   resource  consumers,  the  potential  impact  for  this  population  could  be  significant.    This   research  did  not  collect  the  number  of  customers  served  by  each  hub.    Neither  is  this   information  available  nationally.    Therefore,  it  is  beyond  the  scope  of  this  paper  to  estimate   the  quantitative  impact  of  increasing  services  that  target  underserved  consumers.    Food   hubs  should  not  be  expected  to  be  the  sole  solution  to  the  issue  of  food  access  disparity.   However,  as  their  number  and  operational  scale  increases  across  the  country,  they  should   be  able  to  play  a  contributory  role  to  more  equitable  healthy  food  access.     Limitations  and  future  research     Due  to  the  size  and  geographic  region  of  this  study,  the  findings  are  limited  in  their   general  applicability  to  food  hub  enterprises  nationally.    However,  it  should  be  noted  that   many  of  the  findings  of  the  national  food  hub  survey  supported  the  findings  presented   here.    In  either  case,  it  was  not  the  intention  of  this  study  to  create  generalizable  findings,   but  rather  to  share  food  hub  activities,  values  and  motivations  situated  in  their  specific   context.     38       Our  findings  prompt  a  number  of  additional  topics  to  be  further  investigated.    One  of   the  main  barriers  to  sourcing  products  with  preferable  attributes  was  a  lack  of  supply.     Further  research  could  focus  on  actual  supply  levels  in  food  hub  regions  and  whether  it  is   entirely  absent,  and/or  whether  it  is  being  directed  into  other  markets  and  unavailable  to   food  hubs.    Research  of  small  and  mid-­‐sized  farmer  willingness  and  barriers  to  supply  food   hub  markets  would  also  be  instructive  on  this  topic.     A  major  question  regarding  underserved  markets  that  emerged  from  this  study  is   the  question  of  whether  food  hubs  have  a  responsibility  to  address  issues  of  access  and   providing  services  to  this  group  of  consumers.    Examples  of  food  hubs  that  prioritize  these   issues,  their  motivations  and  business  plans  that  incorporate  these  goals  could  elucidate   viable  strategies  in  this  realm.    In  relation  to  this  study,  it  would  likely  be  helpful  to  explore   how  food  banks  and  food  hubs  are  partnering  to  increase  food  access,  with  the  possibility   of  expanding  or  reimagining  these  relationships.    Underserved  consumer  desires,  needs,   motivations  and  barriers  could  be  researched  to  better  inform  food  hubs  that  choose  to   pursue  serving  this  market.    Strategies  for  food  hubs  to  effectively  reach  and  market  to   underserved  consumers  would  also  be  practically  useful  and  requires  further  research.                             39                                                 APPENDIX                                                   40     Interview  Guide     Pre-­‐interview   1. Introductions,  hellos,  express  gratitude  for  taking  the  time  to  participate   2. Go  over  IRB  informed  consent   3. Ask  permission  to  begin     Development  +  Organizational  Structure     1. Let’s  start  with  a  general  question  about  food  hubs.    Would  you  mind  sharing,  in  one   to  two  sentences,  what  you  think  a  food  hub  is?   • What  parts  of  your  organization  do  you  [envision/currently  consider]  to  be   part  of  your  food  hub?     2. Does  your  organization  have  a  mission  and  vision?    If  so,  could  you  share  it?       3. For  this  project  I  have  been  thinking  about  food  hubs  falling  along  a  spectrum  of   organizational  development.  The  spectrum  ranges  from  “in  planning”,  to  “in   development”  to  “operational”.    Would  you  mark  where  you  think  that  your   organization  fits  along  this  spectrum?     [Ask  them  to  mark  the  spectrum  on  paper.    It’s  okay  to  use  more  than  one  mark  to   refer  to  different  parts/projects  within  the  organization]   • What  reasons  lead  you  to  place  your  organization  there?   • [Prompt  for  in  development/in  planning]  Do  you  have  an  idea  of  what  your   developmental  plan  looks  like?    A  sense  of  your  timeline  for  this?       Transition:  That  is  helpful  to  set  some  context.    Let’s  switch  gears  into  [how  you  envision   your  hub  operating/your  hub  operations].  I  am  curious  to  learn  more  about  whether  your   organization  has  any  preference  about  what  types  of  food  or  food  products  it  [would  like   to/does]  source  for  the  food  hub.     Sourcing     1. Specifically,  does  your  organization  have  a  preference  or  requirement  for  –  [have  list   of  attributes  from  National  Food  Hub  survey  for  reference]   • Certifications?    Which  ones?   • Growing  methods  [not  certified]?   • Scale  of  production/size  of  operation?   • Distance  traveled?     • What  parts  of  your  mission  and  vision  lead  the  organization  to  try  and  source   these  types  of  products?   o [Prompt]      Why  are  these  attributes  important  to  your  organization?     41       2. How  do  you  [plan  to/already]  verify  that  the  products  that  you  are  sourcing  have   these  attributes?  [Prompt  if  necessary]   • Farm/producer  visits?   • Audits?   • Proof  of  certification?   • Anything  else?     3. [Do  you  anticipate/Have  there  been]  any  challenges  sourcing  products  that  have   these  desired  attributes?   • [Do  you  anticipate/Have  you  had]  any  problems  with  supply  of  the  products   with  your  desired  attributes?   i. [Prompt  if  they  answer  no]  What  leads  you  to  believe  this?    Have  you   done  market/supply  side  research?   • What  concessions  about  these  attributes  [would  you  be  willing  to  make/have   you  made]  if  you  cannot  find  adequate  supply?       Transition:      Thanks  for  all  that  information.    I  have  a  much  better  understanding  of  your   sourcing  now.    I’m  also  interested  in  the  distribution  side  and  your  [potential/current]   customers.       Distribution  +  Retail     1. Can  you  help  me  to  understand  the  geographic  area  of  what  your  [planned/current]   sales  market  is?  [Prompt  if  necessary]   • Specific  regions?  Counties?   • Cities?       • Neighborhoods?   • Distance  from  your  site?       2. Does  your  organization  [plan  to/already]  target  any  specific  groups  of  consumers?       Specifically,  do  you  have  any  specific  interest  in  reaching  –   • Urban  populations?   • Low-­‐income  populations?   • Communities  of  color?     3. A.    [For  planning  hubs]  Do  you  have  any  plans  to  implement  strategies  to  aid  in   reaching  these  groups  of  customers?    What  types  of  strategies  have  you  considered?     [Prompt  if  necessary]   • Incentive  programs?   • Outreach  strategies?   • Other  strategies?   • What  are  the  pros  and  cons  to  the  programs  you  are  considering?       42       B.    [For  operational  hubs]  Have  you  developed  or  used  any  strategies  that  seem  to   work  well  in  reaching  these  groups  of  customers?  [Prompt  if  necessary]  If  so  what   are  they?   • Incentive  programs?   • Outreach  strategies?   • Other  strategies?   • How  do  you  run  these  programs?       • What  seems  to  be  working  well?    What  is  challenging?   • Do  you  have  a  good  sense  of  your  customer  base?    What  impact  do  these   programs  have  on  your  customers?    Can  you  tell  whether  your  customers  are   returning  to  use/due  to  these  programs?   4. What  challenges  [do  you  anticipate/have  you  experienced]  in  developing  a  supply   chain  for  these  groups  of  customers?     Closing  remarks     1. I  want  to  respect  your  time,  and  I  am  so  grateful  that  you  were  willing  and  able  to  sit   down  and  share  with  me.    My  goal  is  to  use  the  information  from  this  interview  and   interviews  with  other  food  hubs  around  the  state  to  create  a  sharable  document   with  some  of  the  best  practices  and  challenges  that  emerge  around  food  hub   sourcing  and  distributing.    I’ll  be  sure  to  keep  you  in  the  loop  with  progress  on  that.   2. Do  you  have  any  questions  for  me?   3. 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