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Submission on the National Food Plan Jamie McCall Burnside Organic Farm Proposal for Farmers’ Markets to be used as a mechanism for achieving the desired objectives of the National Food Plan. I suggest that Farmers’ Markets have been overlooked as an emerging and strengthening trend in the Australian food supply chain. They are referred to in the green paper, but only in passing. They are actually a valid and viable way to achieve each of the desired objectives of the National Food Plan with low levels of outlay over a limited duration as suggested later in this submission. How Farmers’ Markets meet the National Food Plan objectives: 1. Support the global competitiveness and productivity growth of the food supply chain, including through research, science and innovation. Farmers’ Markets are a key driver of innovation in the agricultural sector as they allow research and innovation on a small scale by farmers. Direct interaction with the public allows new product testing to take place without having to scale up to meet requirements of the conventional supply chain. True innovation occurs much more frequently on this micro scale than on a macro scale where the risks of failure are far more serious. New crops can be trialed on a small scale to assess marketplace acceptability. Similarly new processed products or processing techniques can be market tested. Following a successful innovation production can be scaled up to meet larger markets through the conventional supply chain and export opportunities can be explored. Success at a Farmers’ Market level can be leveraged into investment into larger market opportunities. Globally Australian farmers and producers face many hurdles, not least of which are high production costs associated with agriculture in Australia. Farmers Markets’ used as an outlet by farmers provide a high margin component to their business mix that can make the difference between success and failure of a business. There is a mistaken belief that Farmers’ Markets are exclusively for small growers. In fact many large growers use Farmers’ Markets to sell produce that does not meet supermarket specifications and thus turn a problem into profitability. 2. Reduce barriers food businesses face in accessing international and domestic markets. Barriers to domestic markets are removed with farmers able to directly market produce and achieve high relative returns while offering consumers better affordability at the same time. One of the biggest barriers to domestic markets is the supply chain structure that passes agricultural profitability to wholesalers 3. 4. 5. 6. and retailers higher up the chain and leads to the farm gate price taking phenomenon. Farmers Markets may be small and local in nature, but the enhancement of viability they offer farmers by giving better margins and an outlet for product that fails to meet sometimes arbitrary market specifications can make the difference between making a profit and a loss for even the biggest growers. With a guidance structure in place suitable Farmers’ Market businesses could be encouraged to gear up to meet export requirements. The Farmers’ Markets could be the ground where future, innovative export potential is identified and fostered. Contribute to economic prosperity, employment and community wellbeing in regional Australia. Economic prosperity and community well-being are both served by Farmers’ Markets. The enhancement of agricultural viability by access to retail opportunity creates economic security and prosperity for farmers which leads to employment opportunity. Food processing opportunities create employment prospects. The community spirit of Farmers’ Markets is a well-known phenomenon and perhaps one of the most important aspects they create. A good Farmers’ Market becomes a social meeting place for a community and can build social capital like no other activity. A Farmers’ Market allows farmers to take pride in their produce within their community rather than be an anonymous commodity supplier into the supermarket supply chain. Branding opportunities arise that can give a whole community pride in the fine products that originate from their region. Identify and mitigate potential risks to Australia’s food security. Farmers’ Markets create a food supply chain that is localized and outside the conventional supply chain. The inherent security risk posed by the transport dependent conventional supply chain is mitigated by a strong network of Farmers’ Markets. The local production that flourishes with a Farmers’ Market ensures some resilience in local food supply in the event of catastrophic natural or economic disturbances to the conventional food chain. It also ensures diversity of food production as food niches are filled by innovative and enterprising local growers. Maintain and improve the natural resource base underpinning food production in Australia. Farmers’ Markets create the contact between farmer and consumer that fosters attention to the sustainability of food production systems. Consumers given access to the people growing their food are able to communicate their concerns about methods of food production that care for the natural resource base. Increased profitability for farmers allows for reinvestment in preservation of the natural resource base that the future of farming depends upon. Reduce barriers to a safe and nutritional food supply that responds to the evolving preferences and needs of all Australians and supports population health. With an emphasis on fresh seasonal primary produce Farmers’ Markets are an encouragement towards healthy eating. Most Farmers’ Markets focus on primary fresh produce and manufactured produce must usually be produced from local ingredients. There is consequently little in the way of “junk” food at a Farmers’ Market. Produce is also picked specifically for the market and has not undergone lengthy storage processes. Consumers are able to engage directly with a grower and determine if their needs for food safety, lack of chemical residue and freshness are being met. 7. Contribute to global food security. An Australia wide network of Farmers’ Markets, enhancing Australia’s food system resilience and diversity will work as an asset for global food security. What the Federal Government could do to foster an Australia wide network of Farmers’ Markets. Farmers’ Markets face a small, specific list of challenges for establishment and success. These are: 1. A framework under which to operate. Farmers’ Markets need to work under a not-for-profit association model to avoid profit taking by an “owner” and preserve ownership of the markets by the participants. Government could supply a suitable template for establishment of state-specific organisations that most appropriately meet these needs. A “model” constitution for Farmers’ Markets could be created that, once adopted, can lead to eligibility for assistance with establishment and running issues. The author wrote a constitution for the Margaret River Farmers’ Markets 10 years ago. This could serve as a model. 2. Guidelines that ensure the integrity of Farmers’ Markets. To be successful Farmers’ Markets must be genuine. A set of rules that covers eligibility to sell at a Farmers’ Market and definitions of local area and a hierarchy of food processing eligibility are all necessary to ensure the integrity of a market cannot be compromised. Farmers’ Markets need to be food only markets or they deteriorate into craft and nick-nack markets and lose their identity and appeal. Often sectors of the community wish to leverage their own non-food businesses off the success of Farmers’ Markets without realizing that their involvement can cause the demise of a successful market. The set of rules designed by the author for the Margaret River Farmers’ Markets could serve as a model. 3. A location with secure tenure. Farmers’ Markets need a location with a suitable area for setting up, adequate parking, access to power, toilets and possibly shelter. Successful markets can work in carparks, on ovals or in community venues. Most towns have suitable sites, but negotiations with local government or state agencies over vesting or lease arrangements can be time consuming and difficult. Assistance with site identification and arrangement of suitable long term lease arrangements are a vital step to enable the setting up or ongoing viability of a Farmers’ Market. With a Federally coordinated program to address these challenges and create an Australia wide network of genuine Farmers’ Markets there would be a shift towards all of the objective of the National Food Plan. Jamie McCall 27/8/12