by Ben Becker, Newsletter Writer
Inflation is regarded as a tax on everyone. As the price of goods and services increases, regular folks have little choice but to reduce their spending and forego many of the things they previously enjoyed. With surges in fuel costs, it seems the only ones coming out ahead are the oil companies. Not only do Americans have to forsake long drives to afford basic necessities, but they are hurting from the ripple effects left by the cost of energy needed to produce, manufacture, and transport the products we rely on. The cost of food is a prime example, as the global economy feels the aftershocks of war, disease, and other disasters. As the worldwide network experiences this shake-up, our local food economy is seeing both an opportunity and a challenge to feed folks here in Wisconsin.
Grain
Often framed as a commodity, with prices reflecting factors such as famine or drought on the global scale, grain is not what most think of when picturing locally grown food. However, buying locally raised grain can provide a hedge against rising food prices, especially as international supplies are interrupted. With Ukraine, Europe’s breadbasket, under siege, escaping the commodity mindset for this good couldn’t come at a better time. “The war in Europe has caused some disruption in grain supply chain,” states Alyssa Hartman, Executive Director of the Artisan Grain Collaboration “although not a major impact on the upper midwest.” In resisting the push and pull of foreign markets, Midwest grain production exemplifies the resilience of local and regional food economies. It is also an industry challenged by COVID but able to improve the quality and availability of food Midwesterners can enjoy as a result. Says Hartman, “Stakeholders in the regional grain community saw an uptick in sales during the pandemic, with greater purchases in grain and flour and also more knowledge.” As consumers increase their awareness of locally raised and processed grain, so too has the infrastructure necessary to provide it emerged. The pandemic has also led to more processes and systems allowing providers and businesses to reach customers, and those remain in place.
Meadowlark Community Mill
Maintaining these systemic changes requires not just growers but infrastructure. To that end, Meadowlark Community Mill in Ridgeway has taken on a pivotal role in the regional grain system. The mill provides a market for eight different organic farmers in the nearby Driftless region. Not only does this create a market for farmers, but it also means midwest consumers have access to a greater variety of local grain. Whether buying for a bakery or home, Meadowlark boasts a higher quality of flour than can be found elsewhere. Madison shoppers are likely to find artisan grains in such products as Origin Bread and Giant Jones Beer. Meadowlark flour is also available for Co-op shoppers looking to stock up on this item in bulk.
Eggs
Locally sourced flour is just one of many bulk items that can help Co-op shoppers combat the cost. Co-op grocery buyers are continuing to look to local wheat vendors to avoid the price surging of inflation rampant in the international market. Something as innocuous as eggs provide a case study for instability in massively centralized food chains. For larger, consolidated animal operations, avian flu outbreaks have led to a loss in egg production and skyrocketing prices. Meanwhile, small free-range operations benefit from the healthier layers on their farms. Without the challenges of an unhealthy environment making their birds pandemic prone, local egg providers can keep their prices more consistent. The result is that local, organic, and free-range eggs are more competitively priced, while also boasting greater flavor and quality.
Labor Shortages & Cost Increases
Unfortunately, many center-store items suffer the negative effects created by the volatility of the larger economy. Labor shortages continue to be a challenge to producers and other employers. “A lot of local companies are having a hard time finding help,” observes Dean Kallas, Grocery Category Manager for Willy Street Co-op, “so whether you’re trying to grow ingredients or make them into a product, it's hard to get those produced in time. That combined with lots of rising costs from the cost of fuel to ingredients has been a huge issue. This has been true even for bigger companies with larger scale.” Willy Street Co-op is by no means immune to such economic impacts. Although benefitting from a vibrant regional food infrastructure through which local product is sourced, rising prices can still be felt. “I have seen more cost increases in the past year than in the 10 years previous,” states Kallas, “Managing and keeping up with these has been a challenge.”
Produce
Local produce is also seeing an impact from the forces influencing our food economy. Many of these forces can still be traced to the influence of COVID, with growers continuing to cope with interruptions in the supply chain, the cost of farm labor, and increases in the price of fuel. There are a handful of farms struggling to maintain a necessary labor force. However, farms that are well established are seeing staff continue to return to help out. While many segments of the food economy are passing on increased labor costs to the customer, this is less of an issue for produce growers. Changes to the supply chain have in some ways benefited local growers too. As domestic and global supply chains have broken down, consumers are looking to more resilient local food networks from which to procure safe, quality food. This shift is exemplified by the growth of farmers' markets. Community Supported Agriculture is also seeing a strong subscription level two years into the pandemic. Produce farmers are still challenged by the larger economic trends, however. The impacts of inflated fuel costs felt across the nation do still present a financial challenge for farmers. For produce growers, that has resulted in a 5% increase in the cost of goods when selling to retailers.
While costs of goods are on the rise due to the pressures farmers are facing, there are still opportunities to beat inflation. By buying local produce in season, customers will enjoy better value for their dollar. A clear example of this is the cost of lettuce. Out-of-season lettuce from a distant distributor can run as much as $4.99 a head. However, the price for local lettuce can still be as low as $2.99. The value of local seasonal produce benefits from greater availability during the growing season, but it is also a reflection of product quality as well. Just ask our Produce Category Manager, Andy Johnston: “When you take into account the quality of the product you are getting and the nutritional value of that item, you are getting the highest quality product when you purchase locally at a reasonable price, compared to the larger national supply chain.” By going with produce grown within the local supply chain, customers enjoy greater shelf life for their purchases, not to mention more flavor and nutritional value. The taste of a tomato at the peak of the summer is a good illustration. Currently, our shelves are filled with heirloom tomatoes of every size, stripe, color, and flavor, all boasting peak taste. This offering won’t last, however, as the changing of the seasons will leave tomatoes behind in favor of new winter produce.
This month is the perfect time to take advantage of local growing seasons that provide for peak quality and availability. Throughout September, the Co-op’s “Eat Local Month,” shoppers will see nearby farms featured as we bring in later summer and early autumn crops. These will include peppers and zucchini, which will make their last big showing before the days turn cool. Heading into October, summer varietals will give way to winter squash and fall favorites such as beets and onions. In marketing this transition in the local growing season, Willy Street Co-op enjoys a big opportunity for farmers and customers alike. Growers have an opportunity to sell surplus crops and get ready for their next season. Customers can enjoy the abundance and value of the produce at its absolute peak of freshness.
Community Reinvestment
While investing in your Co-op can pay you back directly, it also creates an opportunity for us to enrich our community. Our Community Reinvestment Fund (CRF) committee has a special responsibility to distribute small grants each year to local programs and projects. This special fund is derived from funds contributed by former Owners. When Co-op Owners decide to discontinue their membership, they have the option to receive a refund of their equity or to donate it. Those donated funds are collected and held in trust. The principle and interest from these donated funds are distributed back to the community with oversight from our board of directors. To manage this distribution it appoints its CRF committee which will consider applicants for the available grants.
One of the most direct ways in which our Cooperative supports a robust local economy is through its work to bring the local product to market. Such a fact is likely to come as no surprise to many of our Owners and partners, as this important facet of Willy Street Co-op’s work has become synonymous with our reputation. “Willy Street Co-op has been a huge force in connecting directly with farmers and local processors and using locally grown and raised products” notes Co-op Owner and Food System Scientist Sarah Lloyd. Providing shelf space for foods and products sourced from nearby ensures that small, Wisconsin businesses and producers have a consistent avenue for bringing their wares to market. This sets us apart from other grocery retailers who are only too happy to use the term local for products from large, far-flung producers. Our ability to work with smaller producers combined with our system of transparency about where your food comes from means that Co-op shoppers can be certain they are buying truly local products.
While farmers, processors, and cooperative retailers work to improve the resilience of our local food economy, perhaps no voice is more powerful than that of the customers. With that in mind, continuing to choose locally raised and manufactured goods is an important way to keep your dollars in the community, and to ensure the freshest and best quality products remain available into the future. Consumers don’t just have influence at the register either. Making local, sustainable choices also extends to how we invest and donate charitable funds. To do so, start by making prudent and community-minded decisions about what your money goes to. Avoid risky investment vehicles such as cryptocurrency and non-fungible tokens (NFTs). Not only can the volatility of such investments leave you without a nest egg, but the blockchain technology they utilize also has an astonishingly high carbon footprint. Bitcoin alone consumes more energy than the entire population of Argentina! Instead, safeguard your local economy and the environment by seeking out locally based and Socially Responsible Investment opportunities. Cooperatives provide an avenue through which you gain greater decision-making power over what your money is used for. You can also help fund the future of the food system by donating to organizations such as Fairshare CSA, that work to support farmers right here in our community. Together, we can build a food economy and infrastructure that is more resilient, independent, and able to provide sustenance and opportunity to our community.