Local Economic Alternatives Session 1 Local economic alternatives – Food as a starting point Tim Crabtree Course learning outcomes •Understand the rationale for “alternative” local economic systems, and the problems associated with globalised economic systems, using food as a focus for the analysis. •Understand the impacts of environmental limits on economic systems, and explain the social, economic and environmental benefits of activity at a local level. •Understand the key features of “alternative” eco-social enterprises – including organisational structures, financing, operations, ethos, the role of collaboration, etc. •Apply learning from the course to the design of an eco-social enterprise. Currently: •Completing research contract with Cardiff University on local food initiatives. •Development Director, Wessex Community Assets, part of Wessex Reinvestment Trust group – working on affordable housing, renewable energy, social forestry, workspace, arts sector. •Senior Lecturer in Economics, Schumacher College / Plymouth University https://encrypted-tbn2.gstatic.com/images?q=tbn:ANd9GcTLtHZDaJ08AxygesWAMyCrqwnu6J_hLAUFCGcfDI0ONGV wow1u IMG_4890 200 293 Introductions •Ask your partner: • –Where are you from? – –What are you studying? – –Is there an economic problem in your country that could benefit from an “alternative” economic approach? Previously •Grew up in Poole •Went to local state school then Oxford •Went to Japan •Worked with colleagues from the Philippines •Worked with New Economics Foundation from 1988 to 1992 •Moved to Bristol, then back to Dorset •Set up West Dorset Food & Land Trust, Local Food Links and Wessex Reinvestment Trust • Poole http://t1.gstatic.com/images?q=tbn:ANd9GcQwPqlpSgaTbYnALGhzBAR6oaJAW3pyCoZptmiPOyDFL4jNgV-c http://t3.gstatic.com/images?q=tbn:ANd9GcRfPbLwW-8LTl_WsTaKt7S9sKIC3OlXCNpswrtSHgDbntWribZl http://t1.gstatic.com/images?q=tbn:ANd9GcTeWhpsfJTrm_VHGewfZl3skycmdqWEjASEklzY6_OF287yEbcc Mondragon, Spain 84,000 employed in 256 co-operatives Supported by Mondragon Co-operative Corporation https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcQ9vk3i1M5PeRdYfyy0mRojx3j2WxpjfcT1U8ueyfHEdRc gzD7-YA Oxford: 1982 C:\Users\Tim\AppData\Local\Temp\1982 Matric Photos.jpg “There is no alternative” •At Oxford I was taught: •That people are self-interested, rational and competitive, and that more consumption will create well-being. •That firms should focus only on profit and growth, that decreasing returns to scale will prevent monopoly power •That economies best function with “free” markets, free trade, growth maximisation, deregulation, privatisation, globalisation…. http://www.mindfulmaps.com/wp-content/uploads/2011/07/smallbeautiful.jpg Schumacher: Small is Beautiful •“the modern private enterprise system ingeniously employs the human urges of greed and envy as its motive power”, but then asks: •“Can such a system conceivably deal with the problems we are now having to face? •The answer is self-evident: greed and envy demand continuous and limitless economic growth of a material kind, without proper regard for conservation, and this type of growth cannot possibly fit into a finite environment. •We must therefore study the essential nature of the private enterprise system and the possibilities of evolving an alternative system which might fit the new situation.” Kenneth Boulding •“Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist” C:\Users\Tim\Documents\2012\Japan\Scan005.jpg Japan - Hiroshima C:\Users\Tim\Documents\2012\Japan\Scan006.jpg C:\Users\Tim\Documents\2012\Japan\Scan005.jpg Seikatsu Club Seikatsu Club •Started in 1965 by Japanese housewives •Established three jointly owned milk plants with milk farmers, and also owns chicken farms. •3,000 products, e.g., rice, pork, vegetable oil, soy sauce and eggs •307,000 members; 99.9% women •Turnover: £600m p.a. •700 workers collectives, with 20,000 members: –preparing meals for elderly people, homecare, kindergartens, handicrafts, recycling, etc. • • Philippines Sugar production on Negros Island, the Philippines Scan002 Scan001 http://www.brotherhoodbooks.org.au/Books/images/9780349123073.jpg Professor Kevin Morgan, Cardiff University •“the multifunctional character of the food system means that it has profound effects on a host of other sectors – including public health, social justice, energy, water, land, transport and economic development” Question 1 •What problems associated with national and global food systems can you identify? –E.g. –Health & well-being –Environment –Economic –Fairness throughout the food chain Food – some key issues in the UK •The development of “food poverty” as low income households are forced to consume “low value commodities” while “high quality” foods become a niche product for those with high enough incomes; •obesity in children and food-related illnesses such as coronary heart disease, cancer and diabetes; •malnutrition in older people, leading to a range of health problems; •the loss of skills at a household and community level relating to the growing and cooking of healthy food, and the reduction of opportunities for people to sit and share meals with others; •environmental pollution from pesticides, fertilisers and herbicides, alongside the green house gas emissions caused by the food and farming industry. The “New Food Equation” •There is a new understanding of the agri-food system’s contribution to a range of key issues, e.g., burgeoning public health costs, dwindling natural resources and escalating national security threats. • •This is due to a set of new trends: •The food price surge of 2007 - 08 •Food insecurity – 2 billion people are food insecure •Food security now understood as a matter of national security •Climate change – with agri-food accounting for 30% of climate change emissions •Land conflicts due to the new global “land grab” Developing sustainable food systems • •West Dorset Food and Land Trust –Charity, established 1996 •Local Food Links –Trading company, established as subsidiary of Trust in 1999 •Wessex Reinvestment Trust –Community Development Financial Institution established 2003 The local food sector in Dorset •Mapping exercise resulting in Directory Archive 002_edited Pict0005 West Dorset Food Week & Bridport Food Festival Farmers’ Markets Grow it, Cook it, Eat it Project Bridport Centre for Local Food Bridport Centre for Local Food Bridport Centre for Local Food School Fruit Scheme DSC00484 Spanish Fruit Sales Inc Fruit scheme > Soup Lunch Pilot Soup Lunch Pilot Nottingham Ready Meals Inc Fruit scheme Soup scheme > New Central Kitchen at Centre for Local Food Pupils from St. Mary’s Primary – A Food for Life Flagship School – visiting the central kitchen at the Bridport Centre for Local Food Local Food Links: ethical sourcing •Meat – Genesis Farmers •Milk – Coombe Farm •Yogurt – Yeo Valley •Butter – Denhay Farms & Coombe Farm •Cheese – Denhay & Coombe Farm •Flour – Edward Gallia, Cerne Abbas •Eggs – Vurlands Farm •Vegetables in season – Bothen Hill Organic, Washingpool Farm, Somerset Organic Link •Fruit in season – Elwell Farm •Bread – Leakers, Punch & Judy Bakery •Food service – Essential Trading Expansion of school meals service •5 new schools and 1 nursery joined the 8 original schools in West Dorset •New kitchen opened in Blandford •10 new schools and 2 nurseries joined the Blandford operation •24 staff •Turnover: £500,000 p.a. •Over 200,000 meals per year Trusty Bank plc Fruit scheme Hot lunch scheme Soup scheme > Vocational Training •Contract with 3 local secondary schools •Contract with Children Out Of School Service •24 students over 3 days •Year 10 and 11 •NVQ levels 1 and 2 NVQ Training in Catering Time of year Jan Feb Mar Apr June May July Aug Sep Oct Dec Nov Sales to older people & other groups in the community School meals sales Local Food Links: Balancing Demand through Diversification High subsidy Low subsidy No margin Low margin High margin “Free” meals School meals Lunch clubs, Care homes, Day centres Meals on Wheels Local/organic take home meals Cafes & Juice Bars Take home family meals Training restaurants Spectrum of potential catering activities IMG_5141 IMG_5143 Work-space School lunches MCj04417080000[1] Catering for older people MCj04417080000[1] Training & Education > Locating enterprises along the food chain •The food chain can be divided into separate stages: –Primary production –Basic processing –Value added processing –Distribution –Retail & Food Service –Consumption ABATTOIR SPEC’LIST GROWER FARMERS FISH FARMING FISH INDUSTRY FISH POULTRY DAIRY RED MEAT VEG’S CEREALS BASIC PROCESSING PREPARED MEAT/FISH READY MEALS GOURMET FOOD SNACKS DESSERTS YOGHURT BAKERY PASTRY CREAM BUTTER FAST FOOD VALUE ADDED PROCESSING RETAIL/FOOD SERVICE END USERS PUBS AND REST’ANTS SCHOOLS & HOSPITALS RESID’IAL HOMES FOOD COOPS & BUYING GROUPS BOX SCHEME SUPPLIES IND RETAILERS HOTELS LOCAL DISTRIBUTION REGIONAL NATIONAL DISTRIBUTION CONSUMERS IMPORTED FOOD SPECIALIST BREEDER THE FOOD CHAIN Question 2 •Locate the following local food initiatives along the food chain Primary Production Basic Processing Value Added Processing Distribution Retail/Food Service Community owned shop Veg box scheme Farmers’ Market Home Producers’ Market Pick your own Wholefood Distributor Community gardens City Farms CSA’s Care Farms Farm shops Organic farms Local farms Community orchards Community catering Local flour mills Community bakeries Primary Production Basic Processing Value Added Processing Distribution Retail/Food Service Community owned shops Veg box schemes Farmers’ Markets Country Markets Pick your own Wholefood Distributors Community gardens City Farms CSA’s Care Farms Farm shops Organic farms Local farms Community orchards Community bakeries Local flour mills