Global food distribution systems are being blamed for taking money out of farmers’ pockets.
Speaking to the Local Living Economies conference in Saskatoon March 24, author Michael Schuman presented data that showed how 40 cents of every dollar spent on food in 1900 went to the farmer, compared to seven cents today. Of the $1, 73 cents goes to distribution.
“Distribution has gotten inefficient and unwieldy,” he said.
Localizing food production makes it possible to get rid of unnecessary packing, refrigeration and transportation.
“It can bring customers in closer alignment with producers and bring more money to the farmer and cheaper food,” he said.
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New food distribution systems are emerging, he said, such as direct deliveries in Vancouver where biofuel vehicles ship produce to customers’ doorsteps.
Internet based suppliers connect farmers and consumers in North America while food co-operatives in India help rice growers meet fair trade and organic standards.
Schuman said these new systems represent innovative ways to improve the quality of products while also increasing returns to producers.
He encouraged economic developers and public policy makers to support such innovation and entrepreneurship, remove barriers to small businesses and promote buying and investing locally.
He said businesses with lower overhead offer the best chance of success in troubled economic times. Local businesses offer unique shopping experiences, are more likely to survive and leave a lighter carbon footprint through walkable communities.
Wild rice grower Lynn Riese of La Ronge, Sask., was skeptical about how that model would work for a province like Saskatchewan.
“Toronto would have more success dealing with local as they have four million people,” he said.
“Ours are one million and spread around so we have to export.”
Riese markets rice to Europe and the United States for about 80 producers. He said he has noticed that the large warehouse store in Saskatoon where he buys his groceries doesn’t stock his rice. Instead, it sells cheaper paddy rice from the U.S.
Large-scale retailers set the prices, do not buy locally and return profits to corporate headquarters outside of Canada, he added. Small businesses and entrepreneurs should do more self-promotion, he said, but it’s not always feasible.
“We have to compete with Americans that are cheaper, so that doesn’t give us much money to talk to the end user.”
