[ROOSTER CROWING] SIS CO CORPORATE HAS ABOUT 425,000 CUSTOMERS, 5 $500 BN A YEAR COMPANY.

AT THE END OF THE DAY, NOBODY IS BY AING YOUR PRODUCT, YOU HAVE TO SELL YOUR PRODUCT.

FOOD HAS THE POWER TO TRANSFORM THE BOARD SO MUCH EASIER TO GET ON THE PHONE ON ORDER ALL YOUR PRODUCT OUT OF CALIFORNIA, MEXICO.

ALL THE GUYS ARE DRIVING 1972 CHEVY BOX TRUCKS THAT HAVE BEEN CONVERTED WITH AN AIR-CONDITIONER.

WHEN ASKED WHY PEOPLE BUY LOCAL, OVER 50% OF FOLKS SAY IT IS TO SUPPORT THEIR NEIGHBORS, AND THAT IS A GREAT REASON.

UNFORTUNATELY, YOU CAN'T ALWAYS GET ALL THE FOOD YOU NEED OR WANT GROWN INSIDE YOUR NEIGHBORHOOD.

SO, HOW DO WE GET MORE LOCAL FOOD FROM OUTSIDE OUR NEIGHBORHOOD INTO OUR STORES AND RESTAURANTS?

DISTRIBUTION.

WE DO A DELIVERY ROUTE TWICE A WEEK IN THE GREATER BURLINGTON AREA.

DISTRIBUTION.

I STARTED GROWING GREENS AND MY TOYOTA PICK UP GOING DOOR-TO-DOOR AT RESTAURANTS.

DISTRIBUTION.

THREE MARKETS AND TWO DELIVERY DAYS WHICH ENDS UP BEING A LOT OF DRIVING.

IT IS THE DRY STORAGE AND FREEZERS, PALATES AND BINS AND FORKLIFTS, LOADING DOCKS AND TRUCKS.

THOSE THINGS MAY NOT CONVEY AN IDYLLIC FORECAST OF MARKETING BUT THEY ARE A FUNDAMENTAL STEP OF THE LOCAL FOOD SYSTEM AND THEY LET PRODUCERS FOCUS ON WHAT THEY DO BEST, WHICH IS GROWING LOCAL FOOD.

SO THE FUEL AND DELIVERY TRUCKS AND IN-STORE MERCHANDISING AND COLD CALLS TO GROCERY BEERS SHALL IF YOU WANT TO FOCUS ON GROWING YOUR FEED, YOU CAN LET DISTRIBUTORS DO THE REST.

IT WOULD BE NICE TO NOT HAVE TO DO LOTS OF FARMERS MARKETS AND GO TO LIKE ONE FARMERS MARKET AND THAT'S IT.

AND HAVE SOMEWHERE I CAN JUST SHIP ALL MY STUFF TO AND BE DONE WITH IT ONCE A WEEK, TWICE A WEEK, BOOM.

SO THIS EPISODE, LET'S SEE HOW OUR FOOD MOVES AND TAKE A LOOK AT HOW THE LOCAL FOOD SYSTEM IN VERMONT CAN OVERCOME THE CHALLENGES AND BOTTLE NECK IT IS FACES TO EFFICIENTLY AND EFFECTIVELY DISTRIBUTE THE LOVE.

LET'S GO MOVE SOME FOOD.

[HORN HONKING] SYSCO IS A BRAD LINE FOOD SERVICE DISTRIBUTOR, WE GET FOOD FROM THE PRODUCERS TO THE END USERS AND EVERYTHING IN BETWEEN.

NOBODY BUT NOBODY MOVED FOOD LIKE SYSCO.

SYSCO'S FOUNDING PRINCIPLES WERE TO DELIVER QUALITY PRODUCTS AS SAFELY AS WE CAN TO OUR CUSTOMERS AS EFFICIENTLY AS WE CAN.

SERIOUSLY, THEY'RE THE WORLD'S LARGEST FOOD DISTRIBUTOR.

WHEN IT COMES TO GETTING FOOD TO MARKET, THEY ARE INSANELY EFFICIENT.

WE LIVE IN A GLOBAL ECONOMY AND WE LIVE IN A TIME THAT PEOPLE WANT STRAWBERRIES ON THEIR WEDDING CAKE 12 MONTHS OUT OF THE YEAR.

MANY PRODUCTS ARE AVAILABLE YEAR AROUND BUT THE VIRTUE WE HAVE THAT INFRASTRUCTURE AND THAT BUYING NETWORK WHERE WE CAN DIDN'T THOSE PRODUCTS.

FOLKS IN THE FOOD INDUSTRY CALL WHAT SYSCO DOES BROAD LINE DISTRIBUTION, WHICH IS BASICALLY MATCHING A WIDE VARIETY OF PRODUCTS TO A WIDE VARIETY OF CUSTOMERS.

SO WHAT'S THIS FORTUNE 500 COMPANY DOING TO RESPOND TO INCREASING CONSUMER DEMAND FOR LOCAL PRODUCTS?

THE NOTION OF DISTRIBUTING REGIONAL, SEASONAL AND LOCAL FOODS IS CERTAINLY NOT A NEW OR TRENDY IDEA TO A COMPANY LIKE SYSCO.

IT'S A CHALLENGE AND IT'S A GOAL OF OURS, AND PARTICULARLY IN AN AREA WE'RE SUCH PURISTS, LIKE THE STATE OF VERMONT.

IS THERE A ROLE FOR SYSCO AND ITS COUNTLESS TRUCKS TO PLAY IN OUR LOCAL FOOD SYSTEM?

THE GREATEST CHALLENGE WE HAVE HERE IS THE INFRASTRUCTURE CAN'T SUPPORT THE DEMAND.

WE CAN'T FIND IN MANY INSTANCES.

PRODUCERS THAT CAN GENERATE ENOUGH PRODUCT FOR US TO MARKET.

WHAT ABOUT VERMONT'S LARGEST PRODUCERS WHY DON'T THEY LOCKERK WITH BROAD LINERS.

WE'VE DONE THAT OVER THE YEARS AND WE DON'T TEND TO GROW STANDARDIZED STUFF THAT FITS INTO THE WHOLESALE PRODUCE WORLD.

LOOK AT THIS NICE, BIG FIELD.

IT IS FUNKY, HILLY, WE DON'T HAVE IRRIGATION HERE.

THERE'S LOTS OF VARIABLES.

SO LOCAL VEGGIES MAY NOT ALWAYS COME OUT LOOKING THE SAME?

I GET IT.

SYSCO NEEDS CONSISTENCY.

WHAT OTHER HOOPS DOES A LOCAL FARMER NEED TO HOP THROUGH TO GET ON SYSCO TRUCK.

OUR PRODUCERS HAVE TO HAVE A CERTAIN AMOUNT OF LIABILITY INSURANCE AND THEY NEED TO BE ABLE TO MEET THE QUANTITY TO SELL.

THAT IS THE BIGGEST TROUBLE, SHEER VOLUME, DEMAND EXCEEDS SUPPLY, TENFOLD.

SO SYSCO HAS HURDLED FOR A SMALLER PRODUCER.

LUCKILY, THERE IS ANOTHER WAY.

WE WORK WITH PEOPLE OF ALL SCALES.

WE WORK WITH SOMEBODY WHO WILL SELL US ONE BOX OF ORGANIC GARLIC A YEAR.

YOU DON'T ALWAYS MAKE MONEY ON GOING OUT AND GETTING ONE BOX FOR ONE SPECIFIC CUSTOMER, BUT WE'RE A CUSTOMER SERVICE-BASED COMPANY.

DISTRIBUTION AT ITS CORE IS A LOGIC TIS, GAME AND WALKING AROUND THE BLACK RIVER PRODUCE WARE NEWS SPRINGFIELD, THIS IS UNDENIABLE.

ABOVE ALL THE SALES CALLS AND PACKING LISTS, INVOICES AND TRACKING LABELS, THEY BUILD RELATIONSHIPS.

WE'RE SO DIFFERENT FROM A BROAD LINER COMPANY.

THE EASIER WAY TO THINK ABOUT IT IS THE PORTFOLIO OF PRODUCTS YOU CARRY.

BLACK RIVER GIVES ADVICE AND OFFERS FEEDBACK FROM LOCAL BUYERS.

WE TALKED TO THE PRESIDENT, SEAN BRIAN IN A, BUT B HOW DISTRIBUTORS CAN BE AND SHOULD BE OFFERING MORE LOCAL FOOD GROWN CLOSE TO HOME.

ALL THE LOCAL FOOD WE SELL IS ABOUT 27% OF WHAT WE SELL AND THAT IS A REALLY GOOD NUMBER FOR CONSIDERING HOW SMALL OUR GROWING SEASON IS.

THAT, TO ME IS FOOD SECURITY.

I MEAN, THAT'S WHAT WE'RE TALKING ABOUT.

WHEN WE TALK ABOUT A WORKING LANDSCAPE, WE DRIVE THROUGH OUR VALLEYS AND WE DRIVE DOWN AND SEE OUR PASTURES AND WE WANT THOSE FARMS OPERATING SO WE NEED TO MAKE SURE THOSE FARMERS HAVE MARKETS.

WELL, BLACK RIVER CERTAINLY SEEMS TO WANT THE BEST FOR VERMONT.

SYSCO WHAT BENEFIT DO YOU PROVIDE TO OUR STATE'S ECONOMY?

$80 MILLION IN SALES AND CLOSE TO $10 MILLION WE INFUSE TO THE LOCAL ECONOMY BY VIRTUE OF TAXES SO WE'RE A PRETTY GOOD CUSTOMER IN THE STATE OF VERMONT.

THAT'S A BIG CONTRIBUTION TO THE LOCAL ECONOMY.

WHERE A LOCAL DISTRIBUTOR IS DIFFERENT IS WE DEPEND ON OUR MARKETPLACE.

WE DON'T DO A LOT OF CHAIN BUSINESS.

WE'RE VERY CHEF-DRIVEN ECONOMY, THE RESTAURANTS ARE LOOKING FOR THE FRESHEST AND BEST QUALITY, NOT THAT VERY SPECIFIC BRAND OF THIS BASED ON, YOU KNOW, A CORPORATE CFO WHO TELLS ME WE ARE BUYING THIS PRODUCT AND ONLY THIS PRODUCT SO IT GIVES US A LOT MORE FLEXIBILITY.

WE ARE A PUBLICLY-HELD COMPANY, THERE IS NO MR.

SYSCO.

SO IT IS VERY IMPORTANT TO US TO LISTEN TO OUR BOARD OF DIRECTORS AND THE PEOPLE INVOLVED AND THE STOCKHOLDERS AND GIVE TO THEM WHAT THEY'RE REQUESTING.

WHERE WE'RE, YOU KNOW, PARTIALLY BE DIFFERENT IS THE QUICKNESS AT WHICH WE CAN MOVE.

YOU KNOW, A BIGGER COMPANY, LAKE THE FEDERAL GOVERNMENT, MOVES SLOWLY.

THEY DON'T EMBRACE CHANGE QUICKLY.

WE HAVE TO EMBRACE CHANGE REALLY, REALLY, REALLY QUICKLY.

WE HAVE TO GET BETTER, REALLY, REALLY, REALLY QUICKLY AND WE HAVE THAT ACT.

THINK OF SYSCO AS A TREMENDOUS STEAM SHIP [FOG HORN BLOWING] ONCE IT GETS GOING, IT IS GOING.

IT DOESN'T TURN AS QUICKLY AS A SMALLER VESSEL, BUT UNDERSTAND IT IS GOING, IT IS GOING.

IF I WAS AN OPERATOR TODAY, I WOULD WORK WITH A BROAD LINE, I WOULD PROBABLY WORK WITH SYSCO AND I WOULD PROBABLY HAVE ONE OR TWO OTHER BACK-UPS TO GET THE SMALLER THINGS OR PERHAPS THE LOCAL THINGS.

IT IS NOT THAT THE BIG BROAD LINERS ARE BAD, THEY'RE NOT DESTROYING AMERICA.

THE IMAGE OF US BEING THAT BEHEMOTH COMPANY THAT SORT OF SET IN THEIR WAYS REALLY ISN'T THE REAL STORY.

THEY'RE MEETING THEIR CUSTOMER'S NEED, AND HONESTLY FORECAST SYSCO OR RYAN HART OR GORDONS WERE GETTING CALLS EVERY DAY SAYING I NEED MORE LOCALIZED FOOD AND IT IS MILLIONS OF DOLLARS OF SALES YOU'RE GOING TO LOSE, THEY WOULD PROBABLY BE ABLE TO ADAPT.

CONSCIOUSNESS IS BEING RAISED ON ALL SIDES AND CERTAINLY BROAD LINE FOOD SERVICE IS NOT THE ENEMY OF THE LOCAL FOODS MOVEMENT, AND THERE IS A RESPONSIBILITY ON THE PART OF THE CUSTOMER TO ENLIGHTEN THEIR SUPPLIERS AS TO WHAT THEY NEED AND OUR RESPONSIBILITY IS TO RESPOND TO THAT.

I DON'T EXPECT SYSCO TO SAY YOU GUYS DO THE LOCAL THING AND WE DO THIS THING.

I PECK THEM TO SAY, DO YOU THE LOCAL THING AND YOU SEEM TO BE GROWING SO MAYBE THE LOCAL THING IS SOMETHING WE'RE GOING TO LOOK INTO AND IT IS GOING TO FORCE US TO BECOME MORE COMPETITIVE.

I THINK THAT IT'S SYSCO'S RESPONSIBILITY TO ENLIGHTEN THEIR CUSTOMERS AS TO WHERE THEIR PRODUCTS ARE COMING, FROM AND ALSOS AS I SAID BEFORE, FOSTER MORE LOCAL FOOD DISTRIBUTION.

I'M NOT GOING TO SAY SOMETIMES WOULD I LIKE THEM TO MAKE IT A LITTLE EASIER ON US, BUT I MEAN, WE'VE TAKEN A BIG CHUNK OF BUSINESS.

SO, NO, I DON'T EXPECT THAT IT IS EASY AND I EXPECT THAT THEY'RE NOT GOING TO BE EASIER FOR US AND WE'RE NOT GOING TO BE EASIER FOR THEM AND IN THE END WE'RE PROBABLY BOTH GOING TO BE STRONGER COMPANIES BECAUSE OF IT.

DISTRIBUTION IS A CUTTHROAT WORLD.

I MEAN, YOU ARE CONSTANTLY LOOKING FOR NEW ACCOUNTS AND YOU'RE CONSTANTLY WAITING FOR SOMEBODY TO TAKE YOUR ACCOUNTS AWAY.

IT IS A HIGHLY COMPETITIVE MARKETPLACE AND IT IS BECOMING MORE COMPETITIVE WITH THE INCREASED SMALLER DISTRIBUTORS AND PLAYERS, THE INCREASED NONPROFIT DISTRIBUTION PLAYERS THAT ARE NOW ENTERING THE MARKETPLACE.

NONPROFIT DIDN'TERS?

HOW DO THESE FOLKS MOVE OUR FOOD?

WHEN WE STARTED TAKING ORDERS FROM CUSTOMERS, HE WAS TAKING PRODUCT IN THE BACK OF OFU AND DRIVING AROUND FOR ONE QUART OF YOGURT.

SHE REALIZED DISTRIBUTION WAS THE CORNERSTONE OF THE LOCAL FOOD SYSTEM.

OUR AGREEMENT WITH THE LOCAL SCHOOL TO MAKE HERE IS EVERY VERMONTER IN OUR COMMUNITY HAS ACCESS TO LOCAL FOOD.

AND THUS, GREEN MOUNTAIN WAS BORN.

PART OF OUR WORK IS OUR FOCUS ON MISSION AND FOOD ACCESS THAT WE ARE SERBING SOME OF THE LEAST PROFITABLE ACCOUNTS, THE SMALL SCHOOLS AND SMALL INSTITUTIONS WHO WORK ON, YOU KNOW, RAZOR THIN MARGINS.

DISTRIBUTION IS OFTEN A BARRIER IN GETTING HEALTHY LOCAL FOOD TO THE END CONSUMER, AND YOU KNOW, PART OF THAT COMES WITH THE FACT THAT WE'VE BUILT A VERY LARGE SCALE CENTRALIZED SYSTEM, WHERE SOMETIMES IT CAN BE EASIER TO GET A HEAD OF LETTUCE FROM CALIFORNIA THAN DOWN THE ROAD BECAUSE THE TRUCKS ARE SET UP TO MAKE STOPS AT BIG FARMS AND DROP PRODUCT AT CENTRALIZED WAREHOUSES THAN CAN BE A CHALLENGE WHEN YOU WANT TO GET A SMALL CASE OF LETTUCE FROM A FARMER TO THE CUSTOMER RIGHT DOWN THE ROAD.

AND SO, YOU KNOW, WE ARE ALL WORKING, I THINK, TO BUILD FROM THE GROUND UP A NEW WAY TO MAKE IT EASY TO CONNECT PEOPLE WITHIN THEIR COMMUNITY, THE CUSTOMERS.

AND SO THE CHALLENGE IS FIGURING OUT HOW TO PAY FOR THAT.

IT IS HARD TO PAY FOR TRUCKS ON THE ROAD AND WAREHOUSES.

I THINK DISTRIBUTION IS DISTRIBUTION, NO MATTER WHICH WAY YOU SLICE IT.

IF YOU HAVE TO FUND YOUR DISTRIBUTION THROUGH NONPROFIT MEANS OR THROUGH DONATION OR ANYTHING ELSE, JUST MAKE SURE THE WORK YOU DO IS LEGIT, AND IF THAT DONATION POOL DRIES UP, THEN THAT'S THE CHALLENGE.

AND IF YOU'RE DEPENDENT UPON, YOU KNOW, THE OTHER AVENUES OF MONEY, GRANTS AND EVERYTHING ELSE TO SUPPORT YOU, THAT IS INEVITABLY A SYSTEM WHICH WILL DISAPPEAR.

SO YOU HAVE TO BE... YOUR END GOAL SHOULD NOT BE HOW CAN WE GET MORE GRANTS AND GRANTS AND GRANTS.

HOW CAN WE GO AHEAD TO THE SIZE WHERE WE'RE SUSTAINABLE AND ECONOMICALLY SUSTAINABLE FOR THE LONG-TERM.

OUR WORK AS A NONPROFIT ORGANIZATION COMES FROM FEE FOR SERVICE, WHERE SCHOOLS AND OUR CUSTOMERS ARE HELPING CONTRIBUTE TO THE COST OF OUR WORK, BUT WE ARE ALSO RAISING GRANT DOLLARS AND PUBLIC SUPPORT FROM INDIVIDUALS AND BUSINESSES WITHIN OUR COMMUNITY, HELP MAKE THIS WORK POSSIBLE.

GREEN MOUNTAIN FARM TO SCHOOL IS A GREAT PROGRAM.

EACH WEEK WE ARE IN COMMUNICATION WITH OVER 40 DIFFERENT FARMERS AND FOOD PRODUCERS WE WORK WITH.

FOLKS CAN ORDER BY E-MAIL OR ONLINE FROM OUR ONLINE ORDERING SYSTEM.

WE PICK UP THE PRODUCT AT THE FARMS, WE STAGE IT AT OUR WAREHOUSE AND WE DELIVER TO OVER 100 CUSTOMERS EVERY YEAR SO THEY HAVE EASY ACCESS TO LOCAL FOODS FROM THEIR NEIGHBORS.

THERE IS A LOT OF BEING VERY WORRIED ABOUT GRANT MONEY, YOU KNOW, IS THE SOCIAL... ARE YOU A BUSINESS OR ARE YOU A SOCIAL CAUSE?

THAT'S SOMETIMES GET AS LITTLE MURKY.

I MEAN, IF YOU'RE IN DISTRIBUTION, YOU'RE IN DISTRIBUTION.

YOU CAN CALL IT FOOD HUBBING, CALL IT WHATEVER YOU WANT, BUT YOU'RE IN THE FOOD DISTRIBUTION MARKET SO DON'T BE SURPRISED IF YOU'RE GOING TO COME IN AND TAKE BUSINESS FROM OTHER PEOPLE, WHETHER IT IS A BROAD LINER OR A LOCAL FOOD DISTRIBUTOR LIKE US WE CAN DON'T WANT TO LOSE THAT 0 BUSINESS.

SO WE'RE GOING TO COMPETE WITH YOU.

SO DON'T COMPLAIN WHEN WE COMPETE.

WE ARE JUST NOW FIVE YEARS INTO BUILDING THIS DISTRIBUTION SYSTEM, GETTING TO THE POINT WHERE THE MINIMUM ORDERS FROM OUR CUSTOMERS ARE AT A SIZE THAT WESTBOUND GET CLOSE TO FULLY COVERING THE COST OF DISTRIBUTING THAT PRODUCT THAN JUST COMES DOWN TO THE FACT IT IS A LOT OF MAILS ON THE ROAD AND THERE IS COST ASSOCIATED WITH THAT AND WE WANT TO ALSO KEEP THE PRICE POINT FOR THE PRODUCT AT A PRICE THAT OUR SCHOOLS AND OTHER INSTITUTIONAL CUSTOMERS CAN AFFORD WHILE AT THE SAME TIME ENSURING A FAIR PRICE TO OUR FARMERS SO WE'RE WORKING ON REALLY THIN MARGINS.

WE'VE BEEN AROUND 38 AREAS.

THE COST OF FOOD IS STILL GOING TO BE THE COST OF FOOD.

IT WILL BE INTERESTING TO SEE WHERE THE FUTURE GOES, HOW LONG AS A NONPROFIT ORGANIZATION WE NEED TO BE A PLAYER IN THE FOOD SYSTEM, RUNNING A FOOD DISTRIBUTION BUSINESS.

WE DIDN'T GET INTO THIS WORK BECAUSE WE WANTED TO RUN A FOOD DISTRIBUTION BUSINESS.

WE WANTED TO SOLVE THE PROBLEM, MAKE IT EASIER FOR CUSTOMERS TO ACCESS LOCAL PRODUCT.

IF WE GET TO A POINT WHERE IT MAKES SENSE FOR A FOR-PROFIT BEST TO TAKE THAT OVER, WE LOOK FORWARD TO PASSING THAT OFF AND MOVING TO THE NEXT ISSUE.

KUDOS TO THE FOLKS DOING THEIR BEST TO DISTRIBUTE THE LOVE.

SWING UP TO BURLINGTON AND CHECK OUT ANOTHER SMALL SCALE FOOD HUB.

THERE IS A LOT OF SHIFTING HAPPENING AND I THINK THAT WHATEVER METHOD IS USED TO TRY TO ACCELERATE SUSTAINABLE FOOD SYSTEMS, LOCAL FOOD SYSTEMS, IT HAS TO BE NIMBLE AND IT HAS TO BE DYNAMIC, AND THERE ISN'T ONE FORMULA, EITHER.

I THINK THERE'S MULTIPLE FORMULAS THAT ARE NEEDED TO TRY TO GET AT THIS SORT OF DIVERSITY WE'RE SEEING IN TERMS OF THE MARKETPLACE.

THE INTERVALE FOOD CENTER IS A MAGICAL PLACE LOCATED ON THE OUTSKIRTS OF BURLINGTON.

LIKE ITS COUSIN TO THE SOUTH, THE MAD RIVER FOOD HUB, IT MATCHED GROWERS WITH BUYERS, BOTH RESIDENTIAL AND COMMERCIAL.

WE TALKED TO SONA DESAI ABOUT HOW HER FOOD HUBS THAT GROWN.

WE BUY PRODUCT FROM FARMERS, ABOUT 40 DIFFERENT FARMERS AND PRODUCERS, AND THEY DELIVER HERE.

SO WE DO NOT GO OUT AND PICK UP FOOD FROM FARMS, THEY ALL DELIVER HERE TO A CENTRAL LOCATION AND THEN OUR PRIMARY CUSTOMER IS CONSUMERS.

SO WE DO... WE ARE A DIRECT TO CONSUMER FOOD HUB.

SO THE REASON THAT WE CHOOSE THE DIRECT TO CONSUMER MODEL IS PRECISELY BECAUSE WE ARE ABLE TO INFLUENCE CONSUMER BEHAVIOR.

WE ARE SEEING THE CONSUMERS, WE'RE TALKING TO THE CONSUMERS AND WE CAN REALLY SHAPE AND INFLUENCE CHOICES THAT CONSUMERS WILL MAKE IN THE FUTURE.

SO I THINK THAT'S ONE OF THE CORNERSTONES TO REALLY MOVING THE LOCAL FOOD SYSTEM FORWARD.

I THINK WE NEED TO CHANGE OUR CULTURE.

WE NEED TO CHANGE THE WAY THAT WE BUY FOOD.

WE NEED TO REALLY HONOR THE VALUES THAT ARE IMPORTANT TO US AND THAT IS INCREASINGLY DIFFICULT TO DO IN THE CURRENT DISTRIBUTION MODEL THAT WE HAVE.

WHY DON'T THE FOOD HUBS SCALE UP THEIR GREAT WORK AND GET BIG ENOUGH TO COMPETE WITH THE HUGE DISTRIBUTORS?

I THINK THE SCALE ISSUE IS INTERESTING.

FOOD HUBS THAT ARE LOCALLY MINDED AND ARE TRYING TO BE GOOD BUSINESSES THAT PAY PEOPLE WELL AND TAKE CARE OF THE FARMERS AND CONSIDER FARM VIABILITY AND CONSIDER THE FARMER VOICE IN AG DISTRIBUTION, I THINK THOSE FOOD HUBS SCALING UP, YOU KNOW, SOMETIMES IT'S NOT COMPATIBLE.

I THINK THE IDEA OF FOOD HUBS IS DECENTRALIZING SO HOW BIG DO YOU WANT TO GO BEFORE YOU START TO COMPROMISE SOME OF THOSE VALUES.

YOU KNOW, I DON'T THINK THERE IS A CLEAR ANSWER.

I DON'T THINK THERE IS A CLEAR SIZE OF HOW BIG DOES THE FOOD HUB NEED TO BE BUT FOOD HUBS BY NATURE ARE COMMUNITY ORIENTED BUSINESSES.

SO THEY ARE DESIGNED TO SERVE THEIR COMMUNITY OR FUNCTION WITHIN A CERTAIN GEOGRAPHIC AREA.

I THINK WHEN YOU START GOING NATIONAL, IT BECOMES REALLY HARD TO PRESERVE SOME OF THE VALUES THAT ARE INTRINSIC TO FOOD HUBS.

OKAY, SO FOOD HUBS ARE SMALL, BUT WHAT ABOUT BIG GROCERY STORES?

ARE THEY GOING LOCAL?

IT MAY SURPRISE YOU THEY'RE WELL ON THEIR WAY THANKS TO THE LOCAL INNOVATORS NEAR VERMONT.

I WAS BORN AND RAISED IN THE STATE OF VERMONT.

TRUE VERMONTER.

OKAY.

I'M THE PROGRAM GUY FOR THE SUPER MARKET.

I'M JEFF JONES FROM VERMONT HYDROPONIC PRODUCE.

BELIEVE IT OR NOT, MOST SUPER MARKETS DIDN'T THEIR FOOD FROM A SINGLE REGIONAL HUB, WHICH ISN'T ALWAYS CLOSE BY, BUT A LOT OF SMALL SCALE GROWERS CAN'T AFFORD TO DELIVER THEIR PRODUCT TO A HUB WHICH IS FAR AWAY SOMME WHAT IF THESE BIG REFRIGERATED TRUCKS, EMPTY FROM THEIR DELIVERY TO THE STORE COULD DO A LOCAL FOOD PICK UP ON THE WAY BACK TO THE HUB, SAVING SMALL GROWERS THE EXPENSE AND GETTING THEIR FOOD INTO AN OTHERWISE UNREACHABLE MARKET.

JEFF JONES IS COMBINING HIS GROWING AND LOGISTICS AND MAY HAVE A SOLUTION.

YOU WAS DELIVERING TOMATOES AND SITTING OUT OF A SHAW'S SUPER MARKET TO WAIT FOR MY TURN TO GET RECEIVED AT THE BACK DOOR.

JUST AT THAT TIME, A SHAW'S TRUCK PULLED UP, BACKED IN, UNLOADED THEIR PRODUCT WHILE I WAS SITTING THERE WAITING AND I THOUGHT I HAVE TO GET MY TOMATOES ON THEIR TRUCKS.

THEIR TRUCKS ARE BUILT FOR HAULING PRESSURE PRODUCE, THEY GO ONLY FROM THE DISTRIBUTION CENTERS TO THE STORES SO I WENT TO THE ONLY REGIONAL SUPER MARKET CHAIN CURRENTLY OPERATES IN THE NORTHEAST, PRICE CHOPPER SUPER MARKETS, AND TALKED TO THE THEN VICE PRESIDENT OF PRODUCE ABOUT POSSIBLE HUB AND SPOKE MODEL FOR LOCALS.

HE THOUGHT IT WOULD BE A GREAT IDEA.

HE TOLD ME HE WOULD COME UP WITH A PLAN AND BRING IT TO THEM.

I DEVICED GROWERSHUB.COM AS WEB-BASED ORDERING PLATFORM FOR GROWERS TO ACCESS LARGE SUPER MARKET CHAINS, AND WE PRESENTED IT TO PRICE CHOPPER FIVE YEARS EYE GO.

OUR FOOD HUB SYSTEM STARTD WITH A PILOT HUB.

WE TESTED IN UPPER VERMONT, JAMES GORDON WAS KIND ENOUGH TO KIND OF GIVE THE PROCESS ITS START.

JAMES GORDON OF UPPER VALLEY PRODUCE, SHOWS US THE ROLE A LOCAL DIDN'TER PLAYS ALLOWING THEM TO ACCESS GROWERSHUB.COM.

THEY CAN GO ONLINE, LOOK AT THE GROWER IDENTIFIED THERE AND PUT IN AN ORDER.

IT WAS VERY SUCCESSFUL.

WE HAD A LOT OF SUCCESS WITH IT.

IN VERMONT NOW, AND ROLLED IT OUT TO OUR CHAINS TWO YEARS AGO.

THE CONCEPT IS SIMPLE.

WE'RE USING THE BACK HAUL LOGISTICS OF A SUPER MARKET CHAIN, THEY LOAD UP THEIR TRUCKS FULL AT THE DISTRIBUTION CENTER.

EVERY DAY THEY DRIVE TO THE PRESCRIBED AMOUNT OF STORES FULL AND DRIVE BACK THROUGH THE REGION THROUGH THE DISTRIBUTION CENTER EMPTY, FOR THE MOST PART.

CALLED A BACK HAUL.

SO I THOUGHT, IF I PUT HUB THE WHERE I COULD DROP OFF PRODUCT THAT'S CONVENIENT FOR ME AS A GROWER AND ALSO WITHIN THEIR LOGISTICS PLATFORM, DO THEY PICK UP MULTIPLE GROWER'S PRODUCT, PUT IT ON THAT TRUCK, THE GAS IS ALREADY PAID FOR, BRING IT TO THE DISTRIBUTION CENTER AND GET IT OUT TO ALL THE STORES THE NEXT DAY.

WHAT WE DO IS GO, EITHER PICK UP THE PRODUCT AT THE GROWER OR THE GROWER WILL DELIVER HERE AND PRICE CHOPPER ARE PICK IT UP AND PUT IT THROUGH THEIR DISTRIBUTION PSYCH SCHOOL IN PRICE CHOPPER TRUCKS GO FROM VERMONT TO ALL THE STORES, THERE IS 14 STORES THEY OPERATE IN VERMONT.

ON THE WAY BACK, SEND ONE, TWO, THREE, FOUR TRUCKS THROUGH WHITE RIVER JUNCTION TO PICK UP MULTIPLE ORDERS FROM THE LOCAL FARMER THE, BRING IT BACK AND GET IT TO ALL THE STORES.

THE BUYERS WILL BUY FROM GROWERS ON GROWERSHUB.COM.

EACH GROWER HAS THEIR OWN DASHBOARD.

THEY'RE RESPONSIBLE FOR THEIR OWN INVENTORY, THEIR OWN PRICING.

WE SEND OUT PRICING LIDS OR LIMITS TO HOW MUCH THEY CAN CHARGE FOR A CERTAIN COMMODITY.

THE GROWER DECIDES IF THEY WANT TO SELL THAT TO PRICE CHOPPER BASED ON THE PRICE.

IF THEY DO, THE BUYER WILL LOG ON, LOOK AT MULTIPLE GROWERS AND MULTIPLE HUBS IN A BUYING SESSION.

ORDER ALL THE PRODUCE.

THE SYSTEM AUTOMATICALLY GENERATES ENJOYSES, YOU HAVE AN ORDER, HERE IS HOW MUCH IT IS, WHEN IT WILL BE PICKED UP.

BRING IT BEFORE SUCH AND SUCH A DATE AND TIME.

THE GROWERS ARE THEN ABLE TO FOCUS THEIR ATTENTION TO THE ONE HUB, PRICE CHOPPER AUTOMATICALLY HAS A TRUCK COMING BY TO PICK ALL THAT PRODUCT UP SO THAT ONE ORDER THAT IS GENERATED COULD BE FROM 15 DIFFERENT GROWERS FROM THE ENTIRE REGION, ALL OF IT OVER THE NEXT 24 TO 48 HOURS WILL END UP RIGHT HERE.

WE TAKE PRODUCE FROM OUR FARMERS AND OUR NETWORK WHO DELIVER TO REGIONAL FOOD HUBS THAT WILL BE DISTRICTLY PLACED THROUGHOUT THE NORTHEAST, AND PRODUCE IS AGGREGATED THERE AND WE SENT AN EMPTY PRICE CHOPPER TRUCK, RETURNING FROM A STORE DELIVERY TO PICK UP LOCAL PRODUCE AND BRING IT BACK TO OUR WAREHOUSE TO BE DISTRIBUTED TO THE CHAIN.

SAVING ME THOSE TRIPS TO THE FEW STORES THAT I COULD REACH IN A VAN OR SMALL BOX TRUCK AND ALSO MAYBE EXPANDING MY REACH AS A GROWER TO MORE STORES BECAUSE THEY HAVE ACCESS TO ALL 130 OF THEIR STORE THE.

AND SO NOW, HUBS ARE LOCATED IN AREAS THROUGHOUT OUR MARKET AREA.

AND LAST YEAR, WE OPENED FIVE HUBS, ALL FILTERING BACK INTO OUR WAREHOUSE.

WHICH IS A GREAT SYSTEM.

IT CUTS DOWN A LOT OF ROAD MILES.

THEY'RE SENDING A TRUCK HERE THAT IS ALREADY IN THE AREA.

MORE EFFICIENT FOR THE GROWER, MORE EFFICIENT FOR PRICE COPPER TO DEAL WITH THE LOCAL.

THERE IS SAFETY BECAUSE WE'RE DOUBLE CHECKING THE PRODUCT BEFORE IT GOES OUT TO THE CONSUMER, WHICH IS IMPORTANT FOR FOOD SAFETY, AND ALL THE CARBON EMISSIONS WITH ALL THE LITTLE TRUCKS RUNNING AROUND TO ALL THESE STORES IS ELIMINATED.

WOW, THERE ARE SURE A LOT OF WAYS TO MOVE OUR FOOD AND THE WAY WE'RE GOING IT IS SURE TO KEEP ON MOVING.

WE WILL SEE YOU NEXT TIME WHEN WE TALK ABOUT HOW INSTITUTIONS OF TAPPING INTO THE LOCAL FOOD SYSTEM.

UNTIL THEN.

KEEP ON TRUCKING.

[ENGINE STARTING] [HORN HONKING] [ROOSTER CROWING] WHEN THE BIG INSTITUTIONS WITH THEIR BIG FOOD ORDERS MAKE A COMMITMENT TO LOCAL FOOD, THEY ARE TOTALLY TRANSFORM THE MARKET AND WE'RE GOING TO SEE HOW PASSIONATE INDIVIDUALS COMMITTED TO THE CAUSE CAN INSPIRE A MORE WHOLESOME CULTURE OF FOOD AT AN INSTITUTION.

TO ME, CAFETERIA REPRESENT THE LARGEST CLASSROOM THE IN THE SCHOOL AND WE, AS A COMMUNITY, ARE TRYING TO EMBRACE THAT.

YOU CAN TAKE A FARMER YOU'VE KNOWN FOR YEARS, WE CAN USE OF HUNDRED POUNDS OF POTATOES.

WHAT DO YOU.

WE NEED TO LOOK AT IT IN THAT FASHION, ESPECIALLY WHERE WE ARE.

SO PART OF THIS LOCAL FOOD MOVEMENT FOR US IS ABOUT THE HEALTH AND WELL-BEING OF THE FOLKS WE SERVE.

PRODUCTION OF THE LOCAL MOTIVE IS SUPPORTED IN PART BY BEN AND JERRY'S.

CITY MARKET.

GARDENERS SUPPLY COMPANY.

HANOVER CO-OP FOOD STORES.

HICOCK AND BOARDMAN INSURANCE GROUP.

PRICE CHOPPER.

UVM DIAMOND.

THE VERMONT COMMUNITY FOUNDATION.

VERMONT FARM TO PLATE NETWORK.

VSECU.