36 FOOD hub can provide marketing options for producers
the same thing, and it never rains but it pours. “This creates a huge surplus of product in our market that does not make it to sale,” says Ty James of West Coast Micro Greens Inc. in Victoria. Speaking to the Farmer 2
Farmer conference the Capital Regional Food and Agriculture Initiatives Roundtable (CRFAIR) organized at the Saanich Fairgrounds on March 1, James outlined a vision to create a hub for aggregating, processing and expanding markets for local produce.
Reshaping local food A network of 50 local food
organizations, CRFAIR works to reshape the local food system, something James hopes the facility he aims to open later this year facilitates. Squash sells for 75 cents a pound raw but when it’s cut and packaged in a spiralized, ready-to-cook form it fetches $6.99 a pound.
“There’s so much value being left on the table through raw product sales and distribution,” he says. James envisions a
processing facility that would see farmers commit to bring a minimum of 500 pounds of produce each to be processed.
The farmers wouldn’t be
charged a fee, but rather share proceeds from the finished product with West Coast. Processing options
considered include light processing (such as cutting and packaging), flash freezing or dehydration. “We would … process that
product how we saw best for bringing that product to market and we would share in the profits from the sale of that product,” James explained. “So that totally mitigates any of the risk to the farmer of having to pay us for the processing service.” He also sees potential for private label products, too,
which would allow farmers – especially large ones with established brands – to have their produce processed and packaged under their own name. This would allow them to maintain and build brand recognition.
Third option A third option is seasonal
processing, which would see farmers supply West Coast with product it would market under its own name. “This benefits us because
we currently sell products under our own label and this would allow us to expand our product market under our label,” James said. West Coast is looking at
procurement and strategies to develop its processing facility as a regional hub. James is seeking a site that makes sense for farmers from a logistical point of view. “We want to have it close enough that it’s convenient to take large amounts of product and process and
distribute it,” he said. “It’s not easy to find properly zoned land in the ALR, close to the ALR, for commercial processing.” And even if a site was
available, price has proven to be another barrier. “There is not a lot of land
for sale right now for what we are trying to accomplish and what is available is extremely high-priced,” he told Country Life in BC last month. Startup costs, based on examples elsewhere, could run as high as $2 million for a 10,000-square-foot plant with an annual capacity of 100,000 pounds. James estimates operating costs at $350,000 a year, with revenues running between $500,000 to $1 million, depending on production.
Commitments Plans to establish a proof-
of-concept facility in partnership with a local farm fell through, but the Farmer 2 Farmer conference yielded
COUNTRY LIFE IN BC • JUNE 2018 nfrom page 35
several verbal commitments accompanied by production data. James would like to kick off the plant with firm commitments from up to three farms. “We are doing our best to
be creative and make this project come together,” he said. “We hope that we will be able to find something by the end of year but it's tough to say.” By developing new
opportunities for existing product, he hopes farmers will be able to increase revenues and enjoy a broader market rather than competing head-to-head each season. “Ultimately, what we’re
trying to do is give southern Vancouver Island greater capacity to realize the agro- economic potential in the farming industry,” he said. “What we’re trying to do is create a new environment where these products can actually be more shelf-stable, more diverse.”
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