Category Archives: Farmers Markets

Crowd-funding for farming

A version of this article first appeared in the Coffs Coast Advocate on Saturday, 28th September, 2013

It’s been said many times: there is a crisis of profitability in Australian agriculture. Many factors are involved, including drought, the high Australian dollar, softening commodity prices, and the market power of the duopoly.

In May this year the Australian Financial Review reported that ‘at least 80 farming operations worth more than $1mn across Australia are in receivership or some form of financial distress.’

Debt levels feature prominently in this picture. According the Australian Bureau of Agricultural Research Economics and Science (ABARES), total farm debt for broad-acre farms averaged $476,000 as at 30 June, 2013. For dairy farms, average farm debt was $701,500. Debt levels in the Queensland beef industry have increased 500% in under 20 years, with most of the increase coming in the post-GFC period.

Commenting on the AFR report, financial blogger Steven Johnson of Intelligent Investor wrote,

“Any Australian farm funded with more than 50% debt is a Ponzi operation. There are thousands of them.”

Low interest rates bring some relief, and have been welcomed by the NFF. Before it left office, the ALP introduced a two-year Farm Finance package worth $420 mn of concessional loans (interest-only payments for 5 years, before reverting to market rates). But in the absence of a genuinely ‘farmer-friendly’ national food policy (which would likely include substantial tax breaks), this package, which is also supported by the incoming administration, may simply be deferring the inevitable.

At the other end of the scale, smaller scale farmers selling into niche local markets are successfully exploring a different financing alternative: crowd-funding. With its origins dating famously to Joseph Pulitzer’s 1884 campaign that raised $100,000 from 125,000 people to complete the pedestal of the Statue of Liberty, crowd-funding has really taken off alongside the rise of the social network era of the internet. US platforms such as IndieGoGo, GiveForward and KickStarter have helped artists, musicians and others raise tens of millions of dollars, mostly in small donations from large numbers of individuals, to enable them to make music videos, write books, fund travel and a host of other projects. Pledges are made securely via encypted software (using a credit or debit card), as you would do if you were purchasing a book on Amazon.com, and typically are only redeemed if the campaign reaches 100% of its target figure within the alloted time frame.

In Australia, the Pozible website (www.pozible.com) was launched in May 2010, and by August 2013 had raised $13 mn for more than 4000 projects. These have included in the past few months: $12,000 to send 5 Australian farmers to the Via Campesina global conference in Jakarta (June 2013), $27,570 to finance an on-farm butchery at the free range heritage pig farm, Jonai Farms in Daylesford, Victoria (June 2013), and $29,250 to finance the making of Just Food, an Australian-first Fair Food documentary (August-September 2013).

In the Coffs region, the owners of Nana Glen Synchronicity Farm, Josh and Tomoko Allen, recently launched a pozible campaign, seeking to raise $30,000 to finance a ‘gourmet food hub’ based on their property. As well as creating a farm-gate store which will be an additional market outlet for local producers, they intend to build a community facility for educational workshops on organic farming, permaculture, aquaculture, shitake mushroom farming and a venue for long table farm lunches to support access to good food for community members on low incomes.

Synchronicity Farm Stall, Coffs Harbour Harbourside Market
Synchronicity Farm Stall, Coffs Harbour Harbourside Market

Josh and Tomoko sell their heirloom fruit and veg at the Sunday Harbourside Market and the Nana Glen general store. Their campaign has around one month to run.

The project is in its early days, but it would make an important addition to food retailing diversity for this region. The food hub sector in the US is booming, with over 100 now in existence. It’s also starting in Australia, with projects in Casey, Trentham, Shepparton and Kyabram, amongst others. For more information, visit www.foodhubs.org.au.

Local Food, Local Farms

Local food and the 2013 Federal Election

A version of this article first appeared in the Coffs Coast Advocate on Saturday, 3rd August, 2013

As the 2013 Federal election draws closer, policy announcements are starting to come thick and fast.

The Government has already set out its stall on food and agriculture, in the shape of the National Food Plan. The ‘big idea’ is that Australia will become the ‘food bowl’ of Asia, with a 45% increase in exports and a 30% in agricultural productivity by 2025.

The Coalition likewise wants a big increase in exports and foresees a ‘dining boom’ to replace the ‘mining boom’. The distinguishing feature from the Government’s plan is the emphasis on Northern Australia, with the damming of rivers and the clearing of land seen as the key to opening up the untapped resources of the northern frontier.

Meanwhile Bob Katter’s Australia Party has taken an entirely different tack, focusing on what he sees as the largely negative role played by Australia’s supermarket duopoly in terms of the viability of our farmers. He has accordingly introduced a Bill to Reduce Supermarket Dominance, which among other things makes it an offence, punishable by a $50 million fine, for any supermarket operator to retain a market share greater than 20% withinsix years after the passage of the legislation.

That $50 million fine contrasts with the $61,200 fine imposed on Coles after it was found to have engaged in misleading conduct, by selling as ‘baked today, sold today’ bread that had actually been made weeks ago in Ireland.

Katter’s initiative, which was supported by Nick Xenophon, has been branded by the industry as ‘radical’ and ‘extreme’. Forcibly breaking up companies is indeed radical, although there are plenty of historical precedents for such actions. I can’t speak for Bob Katter, but I imagine he might say that a situation in which two companies control in excess of 70% of the grocery market is itself ‘radical and extreme’.

On this issue, the Government and the Coalition effectively adopt a ‘do nothing’ approach. The Greens, on the other hand, propose that the Australian Competition and Consumer Commission be given divestiture powers, although they propose nothing as directly forthright as Katter.

Local Food Local Farms
Local Food Local Farms

What the Greens have announced in the past week is the establishment of an $85 million grants program to support various forms of direct marketing of produce by farmers and growers, including farmers’ markets, regional food hubs, and community-supported agriculture vegie-box schemes.

This proposal draws directly on the experience of the ‘Know Your Farmer, Know Your Food’ program operated for some years by the US Department of Agriculture. Partly as a result of such initiatives, the numbers of farmers’ markets in the US have more than doubled in the past decade, from 2900 in 2001 to 7000 in 2010. And the numbers of farms selling some or all of their produce through local markets rose to 136,000 in 2012, a 24% increase from 2012.

The $85 million in grants for direct marketing compares favourably with the $1.5 million grudgingly offered by the Government in the National Food Plan to support community food initiatives such as farmers’ markets and community gardens. That $1.5 million came with many strings attached, including a dollar-for-dollar matched funding requirement. I know of many groups that would have liked to apply but were put off by such conditions.

Many people in rural and regional Australia will be sceptical that the Greens are or ever could be the friends of farmers. That said, direct marketing and local food is growing at 5% -10% per annum in North America, with solid and bi-partisan political support at both state and federal levels, and with clear benefits to farmers. Indeed, net farmer numbers in the US recently increased for the first time in decades, with many new entrants being considerably younger than the average age of 58. Clearly something is going on here.

Local food production means resilience

Expanding trust horizons in Karangi

A version of this article first appeared in the Coffs Coast Advocate on Saturday 6th April, 2013

In February last year , Canada-based blogger Nicole Foss (www.automaticearth.com) spoke at the Cavanbagh Centre in Coffs Harbour, as part of her speaking tour of Australia and New Zealand. Nicole is now back in Australia for another speaking tour, though she won’t be visiting Coffs on this occasion.

In Coffs as elsewhere, Nicole offered her perspective on what she terms the unfolding ‘deflationary depression’, caused by the build-up of unsustainable debt levels throughout the global economy, combined with the anticipated impacts of dwindling supplies of cheap energy. Events in many countries in southern Europe would seem to offer early confirmation of her analysis.

Nicole Foss, aka Stoneleigh
Nicole Foss, aka Stoneleigh

Nicole also talked about the shrinking  ‘trust horizon’ that she believes will accompany a prolonged economic contraction. She argues that ‘relationships of trust are the glue that holds societies together’; and while in good times trust expands and the sense of ‘us vs them’ recedes, the opposite is true when hard times fall.

Putting this in a wider historical context, Dr Ben Habib of La Trobe University notes how the Chinese people coped with around 140 years of upheaval, revolution and war from the 1830s to the 1970s by ‘drawing on a cultural practice called guanxi (pronounced “gwan-shee”) which is about maintaining networks of ongoing personal relationships based on mutual benefit through reciprocal ties and obligations.” It was guanxi, according to Dr Habib, that enabled ‘greater social stability at the local level in China than would otherwise have existed during this turbulent period.’

Enter Sam Mihelffy, who migrated to the Coffs Coast with her husband Aaron and young family from Noosa five years ago. They bought a 34-acre property in Karangi, with established stands of citrus, pecans, macadamia, avocado and custard apples. They added some blueberries, apple trees, a vegie garden and most recently dragon fruit; and for the first time in their lives became farmers.

At the start, they weren’t ready for taking on this sort of life project. “It was mind-blowing”, says Sam. “We definitely moved in there with our hearts and not our heads, we didn’t really take on the concept of growing on such a large scale. It’s been a massive learning curve, and we’ve only really scratched the surface. But it’s something you evolve with, it’s really exciting.”

They diversified the farm by fencing it into three paddocks and adding a flock of 30 sheep, three alpacas, six ducks, a shetland pony and a pet pig. So was born the concept of ‘Me-Healthy Farm’ (a play on their name, Mihelffy), a ‘whole farm’ experience. Sam and Aaron opened the farm on Sundays for friends and the public to visit, buy fresh local produce at the farm shop (both from their own farm and nearby properties), and relax with a cup of coffee and some homemade cake, while kids could run around and feed the animals.

Sam Mihelffy at her Coffs Coast Growers Market stall
Sam Mihelffy at her Coffs Coast Growers Market stall

Providing that direct connection with farm animals was a big part of Sam’s motivation. “A lot of kids, even in Coffs Harbour, don’t have that experience, not even with the sheep”, says Sam. “A baby lamb being fed, they have no concept of that, so it’s really that we could show kids, hey look, this is what it’s like to live on a farm, come and have that experience for the day.”

And the concept proved very popular. “The fact that the kids could roam free was a great pull for parents”, Sam says.  “They got excited about the fact that they could chill out, the kids could feed the animals – there were so many different aspects. And get some fresh produce. It was a real experience – and we don’t have that happening any more [in modern society].”

Sadly though Sam and Aaron have had to pause it for the time being, because the amount of work involved in having their farm open every Sunday with a farm shop, was proving to be too much with a young family. But it’s time could come again – and given the need to strengthen our trust horizons – it might be sooner than later.

In Sam’s words, “This is where we should all be going. It’s really what we want to do. It wasn’t just about us – it was about our local community, [about] all the local products of the area. This is what we need to do, get back into that trading idea, someone specialises in garlic, someone specialises in ginger, someone’s doing beef, someone’s doing honey. If anything ever happens, we need to create that community where we can support each other.”

Pragmatic Idealism

Kim Towner – the ‘pragmatic idealist’

Nick Rose

This article first appeared in the Coffs Coast Advocate, 30.4.11

This is the first of a two-part series on Kim Towner, owner and manager of Tangellos and Happy Frog in the Coffs Harbour CBD, and is also the coordinator of the Harbourside Sunday market. The story of Happy Frog and Kim’s thoughts on the future will be in the next column.

Kim Towner, proprietor of the Happy Frog, Coffs Harbour, NSW
Kim Towner, proprietor of the Happy Frog, Coffs Harbour, NSW

Kim Towner, in her own words, has ‘been to corporate scum and dirty hippy, and lots of things in between’. She’s a great asset to the city, and is exactly the sort of enterprising individual we need if we’re going to meet the challenge of building a sustainable and resilient food system.

Kim has always been a strong believer in supporting local farmers and growers: ‘I’ve always enjoyed shopping that way, going to the markets, knowing the peoples’ names whom I’m buying from’, she says. With Tangellos, she was able to put those values into practice, and combine it with a business savvy that has seen the juice and coffee bar more than double its turnover in only a few years.

As she got to know the stallholders at the central growers’ market, she heard that were unhappy about the then Sunday market, because they felt they couldn’t compete ‘against all the seconds coming out of Brisbane’. Kim, being the energetic person she is, decided to do something about it – she started her own market at the Harbourside.

‘I wanted to make it more than just a growers’ market’, she said. So ‘it has growers’ stalls, live music, a wine producer, an olive stall – and most produce there is grown or made on the mid-north Coast, or with connections to here’, with strict rules about no re-selling and no imports.

And once again, she did it well, with perhaps a dash of luck thrown in – fortune favours the brave: ‘There’s been very few days when it hasn’t felt really good. A Koori elder said to me that it was an old trading ground, “You dream them markets did ya?” The tribes from the north and the south and the west used to meet there. And the currents meet there too, which is why it’s so good for fishing’, Kim adds.

Reflecting on her experience with the market, Kim says that ‘there’s two levels of growers that I’ve found. You’ve got your bigger high-end growers, who just want to ship everything off to the [Brisbane or Sydney] market – they don’t want to come to the market. And other level of grower is very small – and they have to hold down a full-time job, as well as grow, and they can’t come to the market either.’

‘So the ones who come to the markets are the in-betweeners – they’ve got a small farm, they make their living out of it, but they’re not huge – Chris who does my fruit & veg, he’s like that, he’s grows tomatoes and herbs and he’s got a bit of a job. They’re the sort of people who can do markets. And often sell their produce locally.’

‘We’ve tried to accommodate these different levels, and the best we’ve come up with is this lady, who goes around and gets what she can from the different growers, and even then she struggles – with a local mushroom grower here will only deal with the wholesaler. So we can get local mushrooms, but only through the wholesaler. And there’s something to be said for that.’

Always looking to improve, Kim’s next goal for the market is to add workshops to the experience – ‘arts and crafts, yoga and so on – I think it’s an opportunity to create something really different, a combination of a market and an event, and tie in to local activities like the buskers or whatever’s going on.’ Watch this space!

Building community through food

Image

“Community Through Food”

 First published, Coffs Advocate, 7.8.10

Nick Rose

Farmers’ markets – ubiquitous before the age of supermarkets, then almost disappearing – have enjoyed a renaissance during the past decade. Ten years ago they were virtually unheard of in Australia; today there are more than 120, including of course the popular growers’ markets in Coffs Harbour and Bellingen.

Their growth in the United States has been equally dramatic, rising from 1,755 in 1994 to 6,132 in 2010. And in the UK there are now 550 farmers markets, from a base of zero in 1997.

This is a phenomenon in search of an explanation. There is the quality, seasonal, produce these markets offer. There is the convivial atmosphere, often enriched with arts, crafts and live music. There is the knowledge that each dollar spent goes directly to the farmer. And there is the direct connection with the person who produces the food, which contrasts so sharply with the antiseptic anonymity of the modern supermarket.

Farmers’ markets create ‘community through food’, as Shana Henry, one of the founders of the Nambucca Valley Local Food Network (NVLFN), puts it. It’s this capacity to bring people together which is perhaps the key to understanding their popularity, in an age when there has been such a widespread loss of any sense of ‘community’.

The NVLFN, launched last September, placed farmers’ markets at the core of its mission to create greater access to local produce for local residents. Inspired by the various sustainability initiatives launched in Bellingen over recent years, Shana and her co-founders felt frustrated by the low availability of locally-grown produce in such a fertile valley. “We just can’t get much local produce [where I live] in Macksville, unless it’s from a face-to-face exchange, and that’s what we want, those face-face connections.”

They soon found however that supporting a farmers’ market is not as easy as it sounds. Their first efforts were directed at the Valla Beach market, in existence for less than two years, but they feel disappointed by what they see as a drift in the market’s initial focus on local produce, and a lack of support from local residents. Jocelyn Edge sees the problem in the market’s lack of frequency: “It’s a bi-monthly market, and people don’t use it to buy their food.”

Last October, other members of the NVLFN in Taylor’s Arms successfully launched a farmers’ market supported by the local Primary School. Shana believes that this market may be more successful, because “they’re a small community, more easily mobilised”. She adds, “We [also] want to establish a [farmers’] market in Macksville, but we need to see how things play out with the recent opening of Woolworths.”

And what has been the impact of Woolworths on local businesses in Macksville? Not as bad as some expected, according to Shana. “Food Works [the local co-op] have survived, people have tried out Woolworths and came back. They [the co-op] were pleasantly surprised.”

“In some ways Woolworths have been their own worst enemy”, adds Gary Pankhurst. “They’ve cannabilised their own market, because now the Woolworths in Nambucca Heads is suffering.”

Apart from farmers’ markets, NVLFN members support each other through the sharing of skills, knowledge and information. “We’ve done breadmaking, and soap-making and candle-making, and we would like to involve the older generation in teaching us how to bottle”, says Shana. Recently the group organised a cheesemaking day, producing 8 kilos of feta from local cow’s milk. They’ve organised local food picnics, and have plans for a bush dance later in the year.

Though they may be relative newcomers to the Valley, Shana and her colleagues are attracting support from long-time residents. Recently Shana was contacted by a 79-year old lady in response to a NVLFN notice about sourcing goats’ milk locally. “She rang to tell me how she needed it years ago for her children, and she was just so happy to see that people were taking things into their own hands [again]”, said Shana.

Building a community around food.