Food Systems and Distances Traveled

Food is an essential requirement for life. A certain degree of psychological preoccupation is prompted if there are risks associated with getting the need for food met. As a result, securing food is one of the fundamental building blocks in Abraham Maslow’s “hierarchy of needs.”

Distance from the source of food is a sticky wicket for food consumers. We are left in the hands of government regulations, enforcement agencies, businesses, and various special interest groups in between us and the food we need for survival, health, and well-being. Questions range from plant and animal genetics to methods of production, processing, and preparing foods, to the logistical systems that transport, store, and stock what we eat as it moves from the point of production to the point of consumption.

So how far is it from the point of production to the point of consumption? According to a 2003 study, “Checking the Food Odometer: Comparing Food Miles for Local versus Conventional Produce Sales to Iowa Institutions,” by Rich Pirog at Iowa State University it can be further than one might think. For a synopsis of Pirog’s study, please read Consumers Prefer Locally Grown Foods published by the WK Kellogg Foundation.

Drawing from Pirog’s report, Jane Black offers the following analysis in her article in Slate entitled, “What’s in a number? How the press got the idea that food travels 1,500 miles from farm to plate:1

All statistics, of course, are based on a series of assumptions. And Pirog is quick to point out that whether or not the 1,500-mile figure applies to everyone and everything—or how it’s been misused—it has raised consciousness about where food comes from. It sends a message: It matters what you buy, and where you buy it.

The graphic below illustrates some of the critical relationships in the current, globalized food system relative to distances food travels.

Essentially, the diagram is a continuum from local to global with regional and continental “zones” setup to offer arbitrary hash marks at the 100, 1,000, and 10,000 mile intervals in between. Clearly, the distribution of distance favors production, processing, and preparation encompassing more than 1,000 miles. Also, the interplay of production, processing and preparation, and consumption is embedded within a logistical system that supports the movement of plant and animal materials from one location to another while transferring from one production / processing stage to another.

This diagram does not attempt to quantify the complete distance traveled, but offer a way to visualize the approximate distribution of mileage when looking at the overall food system. While Pirog’s report focuses solely on fresh produce and excludes various stages of processing between production and consumption, if one included the distances incurred by these additional steps the total mileage traveled would be considerably further. Also, due to the economies of scale favored by globalized operations, processing and preparation are centralized in specific locations that enjoy advantages of lower cost labor or closer proximity to large scale production operations. This adds to total distance traveled when completing the cycle to the consumer.

In his book, PERMACULTURE: A BEGINNER’S GUIDE, Graham Burnett offers a diagram entitled, “The Industrialization of Tea” that captures the notion of distance in the globalized food system and its consequences. When the total costs of fossil fuel consumption is treated as an externality and there is relative assurance that globalized food sources are secure and can provide safe food at low cost the food system functions effectively. But what if the formula changes due to increased fuel costs? What if we cannot assure food security and safety? What is an alternative? Mr. Graham begins to explore this question by providing a second diagram, “The Permaculture Cup of Tea,” posted on the same website.

In carrying the philosophy of a “permaculture cup of tea” further, the diagram below follows the same general format as the previous graphic, only the food system is more localized than globalized.

Now, 60 % of the food system functions within an area under 1,000 miles of the point of consumption. While this stops far short of 100% under 1,000 miles, it does suggest that simply moving a mere 30% of the total food system output from over 1,000 miles to under will have a profound impact on the issues like fuel consumption, food security and safety, and community sustainability, health, and well-being. But how much difference would this really make?

While there are no data to tell us for sure, there are reports from studies in related fields that offer some insight. In The New York Times article by Matthew Wald published December 30, 2006 entitled “Travel Habits Must Change to Make a Big Difference in Energy Consumption,” the author states,

…picking a large sport utility vehicle that goes two miles farther on a gallon of gasoline than the least-efficient SUV’s would have an impact on emissions of global warming gases about five times larger than replacing five 60-watt incandescent bulbs. The dollar savings would be about 10 times larger. And the more-efficient light bulbs would have a negligible effect on oil consumption.

This suggests that shifting the 30% of the current food system activity to under 1,000 miles from the point of consumption would make a substantial difference.

There is a business case in this for sure; but how would one go about putting the business model together that leads to viable business plans and startups in localized agriculture? The key is in designing a framework that ties the critical elements of food production, processing and preparation; renewable energy and environmental remediation; logistical systems; and community sustainability together into a set of dynamic, interactive, and adaptive relationships. And that will be the topic for subsequent postings…

Wishing you all the very best in 2007!

Originally posted to New Media Explorer by Steve Bosserman on Tuesday, January 2, 2007

  1. The original article, “The Issues: Buy Local,” is no longer available online

Localize – Link – Globalize

In the 17 July 2006 issue of Newsweek International, an article by Ron Moreau and Sudip Mazumdar entitled, “Bigger, Faster, Better: India’s top tycoon hopes to kick the country’s nascent boom into hyperdrive by remaking its stores, farms and even its biggest cities,” provides a compelling twist in corporate social responsibility. Earlier this year, Mukesh Ambani, chairman of Reliance Industries, Ltd, announced the creation of a new, major business venture under the Reliance umbrella, Reliance Retail, Ltd. This is only one step in Mr. Ambani’s far-reaching vision in retailing that seeks to bring broad-sweeping changes in agricultural production and retailing across India as well as how people live in urban areas:

…Ambani, 49, has finalized plans to invest more than $11 billion over the next decade to build two new satellite cities outside creaking, overcrowded Mumbai and Delhi. He foresees these metropolises emerging within just four years, each with a population of 5 million people making $5,000 a year, on average (or seven times India’s norm), and hosting top multinational companies. And that is all pretty simple – a development on steroids – compared with the idea that really gets Ambani going.

Ambani’s favorite scheme aims to revolutionize in one swoop two of India’s largest but most backward sectors: farming and retail. Despite boom times, India is still a nation where 100 million mostly small farmers work with ox and plow, where 96 percent of retail stores are mom-and-pop shops and most of the roads between farm and store are mud tracks. Ambani plans to invest $5 billion by 2011 to put both the farms and the stores on the road to modernity, connect them through a distribution system guided by the latest logistics technology, and create enough of a surplus to generate $20 billion in agricultural exports annually.

I don’t have a clue whether Mr. Ambani will be successful in achieving what he envisions. Actually, that is not the point. What is significant, though, is that he apparently understands the connections between the circumstances surrounding those who produce food, and food production, logistics, and retail sales to consumers; he is willing to challenge the inadequacies and deficiencies in the current system; and even more, he is taking no small risks in making a significant play to install an alternative system that is more respectful, efficient, and sustainable for those who participate at the “ground level,” so to speak.

Basically, Mr. Ambani is addressing the problem by taking an approach that runs backwards from the conventional wisdom of a globalized model. He is, first, raising the capability and capacity of the farmer / producer, establishing an infrastructure to move productive output swiftly and safely to downstream stages in the value-chain, and providing fair compensation for the farmer / producer to assure sustainability:

To transform Indian farmers into quality suppliers for his new retail chain, Ambani plans to create 1,600 farm-supply hubs across India, providing technical know-how and credit, selling seeds, fertilizer and fuel, and buying produce.

Then, he is scaling the output of the farmer / producer to exceed local demands for food stuff and move the overage into the global market:

He also plans to build some 85 logistics centers to move food to retail outlets and to ports and airports for export. Reliance is gearing up to train tens of thousands of new employees in the next six to eight months to do everything from erecting prefab warehouses to transporting fresh produce. Even Reliance’s admirers note that with little experience in farming or retail, Ambani is taking his biggest risks yet. “There will be mistakes,” Ambani admits. “But we are not scared. We will correct our mistakes fast and move on.”

This is opposite to the typical globalizing business model that strips output from agricultural producers for a pittance and pumps it into the global market at the outset without regard or interest in the sustainability of the producer’s business or preserving the sanctity of the local community. The consequence of the more typical approach is farm consolidation, loss of livelihood and location, and dependence on globalized agriculture for local food supplies – not a good position to be in if supply chains are disrupted.

The critical path is to stabilize the producer / provider at the individual / family / community level; link producers / providers with others through flexible and dynamic networks capable of moving information, goods, and services in response to demand AT A LOCAL LEVEL; and lastly, scale the operations to match output with fluctuations in demand on a global level. This simple three-step formula – localize, link, and globalize – is a useful scorecard to measure the validity of any strategy aimed at utilizing natural resources or leveraging human resources in particular areas. If it strives to globalize first or prematurely, the approach is exploitative at best and unconscionable at worst!

Originally posted to New Media Explorer by Steve Bosserman on Sunday, August 27, 2006