DRAFT Case Study
For BIOAg grant
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Growing Washington
Spokespersons: Clayton Burrows
Interview Dates:
Website: www.growingwashington.org
I. HISTORICAL DEVELOPMENT
1) Introduction
Growing Washington is an on-the-ground 501©(3) non-profit organization with the mission to raise, move, represent and grow food and farmers in Washington State. It was created incorporated in 2003 by Clayton Burrows. Comprised of new generation and Latino Farmers, the organization currently operates five community farms and a number of interconnected community projects that focus on generating new farmers, maximizing efficiency and profit of current farmers, tackling basic infrastructural and transportation barriers, increasing agricultural education, and feeding the hungry.
2) Strategic and Philosophical Goals
Philosophically, Growing Washington aspires to be a self-sufficient non-profit organization that is directly supported by its programming and the subsequent public demand for its programs and products. Nearly every Growing Washington employee splits time between farming and community work, and there is significant overlap between the two. It is the hope of the organization to possess a self-sufficiency mentality while approaching organizational challenges and opportunities with a farmer sensibility. Growing Washington operates within agriculture, as producers first, and therefore has a greater ability to relate to, understand, keep up to date with, and mobilize the local farming community.
Strategically, Growing Washington sees the production of food and farmers as the base of the agricultural pyramid, and it has placed itself at the bottom of the pyramid so that it has the ability to both hoist others up and to possess authority and autonomy over the organization’s lateral and upward mobility. Based upon Maslow’s Hierarchy of Needs, the strategy of Growing Washington is to create a sold base at the bottom of the needs hierarchy so as to allow uninhibited, organic growth through the overlap and building of complementary, holistic programs and projects. By being firmly rooted in the ground, Growing Washington’s reliance on its agricultural production for operational capacity necessitates a serious and honest involvement in agriculture, and a sense of responsibility and accountability to the natural resources that sustain the organization, the community that supports it, and to each other.
Because of its non-profit mission, Growing Washington provides services that government has failed to deliver and the for-profit sector has found unprofitable (or has yet to find profitable). The classic barriers to market entry for small scale farms are access to basic infrastructure like cold storage, transportation, marketing, and technology. While simultaneously supporting itself through agricultural production, Growing Washington seeks to address and break through traditional barriers, and seeks to help other farmers do the same. Though on a small scale and statistically insignificant on the macro level, the approach has proven possible and scalable. Essentially, a group of energetic farmers is willing to do much of the leg work to create meaningful, tangible projects that tie together farmers and subsequently create a more robust marketplace. By providing cold storage, transportation, marketing and technology to a group of farmers Growing Washington’s strategy has been to serve as a benevolent broker, hoping that the addition of more successful small scale farms to the pond will help everyone’s ship rise.
Strategically, each of Growing Washington’s farms serve as an epicenter of activity, with resources, results and action rippling out into communities, forming overlapping circles of contact and organizational presence. The farms essentially serve as the hubs of activity (labor) and hubs of infrastructural capacity (trucks, cold storage, dry storage, office space). Growing Washington is now pairing its rural farm hubs with smaller, yet increasingly important urban hubs, running a Local Food Exchange farm stand (cold storage, CSA drop off point, commerce center) on the main street of Bellingham and also maintaining a commercial kitchen in Seattle (processing, value adding, packaging and distribution).
3) Organizational Development
Growing Washington has found itself well positioned to develop at or just ahead of the pace of the local food movement. Grounded in agriculture, the group of young and Latino farmers has the foundation to act quickly and decisively. By building up an infrastructural network of farm epicenters complete with trucks, cold storage, labor, and existing routes and routines, the organization has been able to expand to small scale collaborative marketing and transportation with other area growers. Growing Washington’s focus is not on transportation, but its community projects and strong farm centers make collaborative transportation a natural extension of its current programs and projects. Growing Washington’s projects can be categorized as distinct in delivery, but overlapping in nature.
Current Developments:
Agricultural Production
Alm Hill Gardens – Growing Washington currently runs Alm Hill Gardens, a 40 year old, 47 Acre year-round direct market and educational organic farm. The farm is one of the most productive and profitable small farms in Washington, maintaining top seniority at top Washington farmers markets.
21 Acres – A 3 year old, 7 Acre year-round direct market and educational organic farm located in the heart of the King County Metropolitan area, the 21 Acres farm is an urban fringe production area that routinely hosts large groups and provides an example of urban farming in a rapidly expanding cityscape.
Food Bank Farm – A 4 Acre educational and production farm (practices organic methods) that produces solely for food banks, the Food Bank Farm provides education, volunteer opportunities, and food to those most in need.
Longfellow Creek Garden – A micro farm in West Seattle encompassing less than an acre
Monroe Barn Farm – A small farm in development
New Farmer Production and Education
Root Camp – A New Farmer Training Program created to help generate the new generation of Washington farmers. The average age of a Washington a farmer is over 55 years old; the average age of a Growing Washington farmer is just over 30.
New Farmer Generator – A hatchery of new farmers has been formed at Growing Washington’s farms, currently employing up to 25 “new generation” farmers (those with little to now previous farming experience prior to Growing Washington).
Latino Farmer Cooperative – Bringing real ownership to real farmers by providing the highest possible wages for Latino and other immigrant farmers who work on Growing Washington farms. Growing Washington is currently transitioning a long-time family farm into a cooperative between new generation and Latino farmers.
On-Farm Education – Classes, seminars, field trips, farm walks, college visits, course offerings, and farmer education series are routinely held at Growing Washington farms.
School at Farm – Growing Washington has hosted over 1,500 students from several school districts for on-farm educational activities
On Farm Research – A strong partnership with Washington State University has been formed on Growing Washington farms, with various research conducted, including organic integrated pest management, alternative growing methods, field trials, season extension, no till farming, and specialty crop production.
Farmers Market Presence – Attend over 400 farmers markets per year for constant, intimate contact with our membership and supporters.
Community Supported Agriculture
Local Choice Food Box – A Year Round Multiple Farm CSA that connects farmers with shareholder citizens in the greater Seattle area
Growing Whatcom CSA – A Seasonal Multiple Farm CSA that connects farmers with shareholder citizens in Whatcom County
Just Food CSA Program – A Seasonal CSA that seeks out community sponsors for shares that are then purchased from local farms and delivered to those in need for free, through a sliding scale, or through a revolving loan program. CSAs will also be available for purchase through state sponsored food assistance programs.
Collaborative Marketing and Transportation
Growing Washington’s Online Farm Store – A Seasonal online farm store and tracking system that lists wholesale and retail products from multiple farms. The online farm store is targeted at local chefs. The site is updated weekly and allows customers to purchase food from multiple local farms with the click of a mouse. Growing Washington maintains the website, communicates with farmers about weekly orders, facilitates collecting all the food from farmers, consolidates orders, and transports food up and down I-5 corridor, connecting rural producers with urban consumers. With one purchase customers support multiple farms
Growing Whatcom CSA – A Multiple Farm Marketing Strategy offering products from over a dozen farms to citizens in the community
Farm to School – Growing Washington maintains one of the states longest ongoing farm to school program, always available to help schools source more local products through an-on-the ground, team based approach. Growing Washington regularly coordinates with farmers and schools and then physically transports food to various districts in the state.
Farm to Restaurant – Similar to farm to school, and utilizing the Online Farm Store, Growing Washington administers a program that lists farms’ products, takes orders, consolidates and packages products, and then distributes to restaurants in NW Washington.
Local Food Exchange – The Local Food Exchange is a classic food co-op that sells products from a host of local farms, including fresh fruits and vegetables, dairy, and value added products. It also has a cold storage unit and serves as the drop off/consolidation/pick up point for the Growing Whatcom CSA. It is also utilized as a drop off point for farmers, a pick up point for restaurants, and a hub for local food transactions.
Collaborative Transportation – Growing Washington attends up to 25 farmers markets a week, making the trip to Seattle/King County up to five times a week. Growing Washington utilizes its existing transportation routes and refrigerated trucks to transport the food from other farms up and down the I-5 corridor.
Food Justice/Food Insecurity
Just Food CSA Program – The Just Food CSA Project attacks food insecurity at the ground level, making individual arrangement possible for low income individuals and families to have access to healthy, local food for an entire season. Educational materials and continuity allows Growing Washington to help people learn to cook with raw ingredients, learn to eat seasonally, and learn to eat healthy, wholesome foods.
Whatcom County Food Bank Farm – The Whatcom Food Bank Farm grew and donated $47,000 worth of produce in 2008 to those in need.
Small Potatoes Gleaning Project – Small Potatoes Gleaning Project has gleaned nearly 1 million pounds of food from farms for those in need, and over 50,000 lbs. of produce in 2008 alone.
Washington State Farm to Food Bank Program – Growing Washington is coordinating other local farmers to grow over $100,000 worth of food for Whatcom County Food Banks through a pilot project sponsored enacted by the State of Washington.
Vertical Integration
Small Scale Food Processing – Seeing the importance of year-round incomes for small-scale farmers, Growing Washington has initiated small scale food processing. Currently, efforts are focused on preserving the value of crops through canning, freezing, drying, etc. and minimally processing products (e.g. turning carrots into matchsticks, baby carrots, shredded carrots) to allow for greater acceptance in institutional settings like schools.
Growing Washington Country Fare – As an off-season project Growing Washington has maintained prepared food stands at the winter farmers markets, specializing in soups and sandwiches. Using all or nearly all local ingredients from the other farmers at the markets, Growing Washington is slowly thinking about increasing hot food service, expanding the prepared food’s presence at the markets, hosting farm dinners, doing catering jobs, and possibly starting up a multiple use restaurant.
Transportation and Marketing – By starting small in collaborative transportation, but starting something in collaborative transportation, Growing Washington is well positioned to increase on-the-ground efforts and expand a market that is currently not being assisted by government or found to be profitable by the private sector. By utilizing existing equipment and transportation routes, and by consciously growing in a way that accommodates more overlap between equipment and routes, Growing Washington has the ability to effectively and efficiently transport substantial amounts of product from rural producers to urban consumers. By having direct and shared control, the organization and the farmers that it works with have the ability to expand or restrict market access as demand and supply dictate.
4) Financial Development
Growing Washington has several income streams. The vast majority of income comes to the organization as a direct result from on-the-ground programming. Working as a team, the organization’s farms attend over 20 farmers markets per week during the peak season, maintain and administer three community supported agriculture (CSA) programs, and sell to dozens of restaurants and grocery stores in the Puget Sound Region.
As a 501©(3) organization that has passed its five year IRS ruling period Growing Washington is eligible for many grants, gifts, and charitable donations. As a rule, the organization seeks to solicit the majority of its publics support through direct interaction with the public, and rarely applies for grant funds unless contacted directly by funders. However, as Growing Washington takes on more and more charitable projects, the need for public support has increased and the organization is looking into applying for greater amounts of grant funds.
5) Historical Growth Indicators
Growing Washington essentially started from scratch in 2003, and was a one person operation until 2005. As of early 2009 the organization employs up to 30 individuals during farming season, and maintains a year round staff of 7-10 employees. Starting with shallow roots in production agriculture and farm to school, the organization now has deep roots in the agricultural community, administering over a dozen community projects. It increased production/sales by 1/3 between 2007 and 2008, and is projected to increase both production and sales in 2009. In 2008 the organizational budget was just under $500,000, and nearly all of its budget (save taxes) was immediately returned to directly to farmers (either those employed by or partnered with Growing Washington) for their goods and services.
Growing Washington has taken on several new community projects. As is the case with the Food Bank Farm, the Online Farm Store, the Local Food Exchange, and Small Potatoes Gleaning Project, for example, most of Growing Washington’s projects are initiated by direct request from the community. The Bellingham Food Bank asked Growing Washington to start the Food Bank Farm, The Online Farm Store was created at the request of local farmers, the Local Food Exchange was previously run by another farmer who no longer had the energy, and Small Potatoes was going to cease operations unless someone stepped in to manage the project. Therefore, Growing Washington is showing a strong tendency to respond to requests for assistance from local stakeholders, and as a non-profit organization it is providing goods and services both demanded and otherwise not being offered.
II. CURRENT DYNAMICS
1) Creating and Marketing Differentiated (and higher value) Food Products
Value chains are predicated on producing and marketing significant volumes of differentiated, higher value products. See Appendix A, value chain summary.
a) Product Differentiation and Branding.
The dimensions of differentiation (de-commodification) on which Growing Washington focuses include:
1) Carrying on the product identity from each farm – When Growing Washington brings a deliver to a restaurant that is sourced from 7 different farms the end user (in this case, the chef) knows exactly which products come from each farm, and in addition the chef is aware of that farm’s story, it production practices and capacity, and other important details right down to the variety of each product. By carrying on the farm name Growing Washington is helping in the direct marketing of both products and farm identities, effectively giving local producers access to a new cash generating market while also making sure that their names are listed on the menu beside their products we deliver.
2) Focusing on producers that are either certified organic or practice organic methods allows Growing Washington to effectively and confidently market products that are an identifiably alternative to the large scale, dominant food production and distribution paradigm.
3) Branding is generally used to sell an idea and to therefore sell more products. Branding in the food industry is generally most effective when it ties together on product set with one physical location (e.g. Maine Lobster, Sonoma Wine, Washington Apples, Wisconsin Cheese, Georgia Peaches, Alaskan King Crab, Vermont Maple Syrup, etc.). In the case of Growing Washington and the farmers that it represents, branding is secondary to quality and to the individual story of each farm. Often branding (see above) can lead to the commodification of an individual farm’s products because the brand is given more market presence than the producer. Farmers are often against the notion of being categorized, are traditionally independent, and as a group of farmers Growing Washington’s approach is that customer service and the retention of farm identity and a promise and delivery of quality is the best brand to stand the test of time. At this point branding has neither been an issue nor a focus.
4) Product differentiation and the individualization of farm products is both encouraged and actively fostered. For instance, on the Online Farm Store individual farms regularly are offering similar, if not the same variety, of products for substantially different prices. Each farmer has the ability to be a price-maker, not a price-taker, and each producer is participating in an uninhibited, open marketplace. Therefore, each farmer is encouraged to set a fair price (or he or she won’t see the sales of other farmers), but also has the ability and the encouragement to set a price that reflects the value of the product (if a farmer has the best peaches he doesn’t have to be afraid to demand a premium price—the product will either speak for itself or the restaurant will order from someone else next time around).
b) Standards and Certification. Food value chains that are larger and more complex than direct-to-consumer marketing require clearly communicated standards, and often third-party certification. See Appendix A, value chain summary
While Growing Washington doesn’t necessarily feel that it is fair that small scale farmers making a conscious effort to take care of their land, their environment, their customers, and themselves are required to pay the State up to several thousand dollars to be certified organic (or to even use the word “organic” for that matter) while large, conventional farms are the recipients of billions of dollars of subsidies, we do understand the need for standards and certifications. Otherwise, there are no rewards for those growers utilizing organic growing methods.
While Growing Washington doesn’t require organic certification to work with farmers, it does require that they grow to organic standards. And, it does list those farms that are certified organic as being “certified” organic. Growing Washington considers growing methods, community reputation, the treatment of employees, and the participation in community when choosing farms to work with. In the end, it values honest, open communication between farmers, consumers, and the organization, and seeks a system that values a fair trade and exchange for honest goods and services.
c) Identity Preservation Through the Value Chain. A feature of the food value chain in Growing Washington’s model is that farmers and ranchers have the right to maintain their identity/brand on the product from farm gate to dinner plate. When listed for sale on the Online Farm Store, each farm’s products are labeled with farm of origin (e.g. F.A. Farms Fingerling Potatoes), each invoice reflects item origination, and customers also have access to information on all participating farms through the Growing Washington website and links to the individual farm websites. Customers may also request visits to farms, and all participating farmers understand that the sale and ongoing relationship must begin with and retain transparency.
d) Interaction and Feedback from Customers.
One of the strengths of the Growing Washington procurement and distribution model is the constant, colloquial communication between the producers and the customers. Interaction in the model is high, with customers having the ability to communicate with the farmers via telephone, email, through the online store, and also face-to-face during the weekly delivery drop-offs and/or market pick-ups.
Gathering feedback is also an integral part of the project, with each customer routinely asked for both positive and negative feedback, constructive critique, and ideas on how to make both the purchase and the fulfillment of orders more efficient and effortless.
2) Creating Effective Internal Organizational Forms
Successful value chain businesses aggregate and market products through effective organizational structures and develop and/or hire competent leadership and management.
Creating effective internal organizational forms is not necessarily the most obvious strength of a group of farmers who spend the majority of the time in the field and out of offices. However, with the rapid dissemination of readily available software, some computer knowledge, and simple shopping cart style software, creating an online space capable of serving as a sales point and a data collector is within the grasp of any agricultural entrepreneurs.
The current software that Growing Washington uses to power its multiple-farm, online store and delivery service allows the organization to easily create and track invoices, track total sales, differentiate sales by farm, evaluate sales by product, and also gauge average prices, seasonal demand, and a host of other data that is automatically collected and cataloged by the online system. In addition, the online store serves as a record keeping assistant to participating farms, allowing them to track their sales and trends with little to no administrative effort. While the current scale is small and makes for a relatively easy data set for scrutiny, Growing Washington has the basic internal organizational “back end” to successfully organize and execute day-to-day fulfillment while simultaneously tracking sales and delivery activity over a period of time.
a. A multi-purpose organization with non-profit and for-profit functions.
As discussed in the Organization Developments section above, Growing Washington is a project-based charitable and educational organization that also runs several operating, working farms. Its operating income is almost all derived directly from its programming, and much of its programming is directly grounded in growing and selling organic food. Internally, Growing Washington may sell food at a farmers market, a natural programmatic function within an organization that grows new farmers from seed to sale. This sale, in turn, not only supports the farmers that grow the food and the market staff that sells it, but it also might go to support, among other things, the operations of the food bank farm, the subsidizing transportation costs, or the equalizing of the inefficiencies inescapable when purposely hiring green/new farmers. In addition, participation in strong retail markets, such as farmers markets, allows Growing Washington to also participate is weaker, wholesale markets, like public schools districts.
b. Competent Leadership and Management
3) Selecting Markets and Value Chain Partners.
Successful value chain partners have similar values, different competencies, and complementary business models. See Appendix A, value chain summary.
a. Farmer Partners.
b. Processing and Distribution Partners
c. Retail and Food Service Partners
d. Packaging Partners.
Growing Washington currently only delivers and advertises farm fresh products with minimal packaging. Crops are packed into appropriate containers (e.g. bags, boxes, cartons, flats, etc.) and delivered to customers in an “out of the field and into your kitchen” condition. Currently, no dairy or meat products are being sold or delivered, and only a few shelf-stable, value added items are available for purchase and delivery (honey, berry based preserves, and flour are examples).
Because of the limited processing and packaging, Growing Washington currently does not have any packing partners, other than the participating farms. Generally, Growing Washington either picks up the produce from the farms or the farms deliver to the Local Food Exchange/Food Hub or to one of the Growing Washington’s farm-based cold storage units. Once all the food from the farms is gathered into one location, Growing Washington must break up the food into individual orders (a farmer dropping off 100 pounds of carrots might be contributing to several separate orders). In this regard, Growing Washington serves as the primary packaging agent, breaking up bulk deliveries into individually packaged shipments.
e. Strategic Partnerships Replace Capital and Expertise.
4) Developing Effective Supply Chain Logistics.
In addition to values-based business relationships, successful value chains require increasingly sophisticated logistical systems as they grow larger and more complex. See Appendix A, value chain summary
a. Production.
b. Aggregation and Distribution
c. Accounting.
d. Logistical Coordination.
5) Achieving Economic Sustainability.
In successful value chains, commitments are made to the economic welfare of all strategic partners. See Appendix A, value chain summary
a. Pricing Philosophy.
b. Mixed income streams.
c. Communicating Sustainable Economics in the Marketplace.
6) Acquiring Technical Support.
III) FUTURE DYNAMICS
1) Internal Organizational Issues.
2) Issues with Supply Chain Partners.
3) Economics and Efficiencies.
4) Strategies for Increasing Market and Growth of RT.
5) A Mature RT…What does RT want to look like when it grows up?
6) Positioning Value Chains in a Troubled (and Contracting) Economy.
APPENDICES
A) Value Chain Summary (Attached electronically)
B)
