by Conor Butkus | Jul 28, 2016
Join Local Orbit at Crain’s Food Summit at Eastern Market in Detroit.
About the event:
Behind Michigan’s food story is a business story. The food economy is one of untapped growth potential. At the Crain’s Food Summit, key players from local food companies will gather to focus on building Michigan’s supply chain and pairing ideas with the visions from major national food companies.
The Summit will connect entrepreneurs, farmers,manufacturers, distributors, retailers, growers and processors to potential customers and those interested in learning more about our food ecosystem. Investors will be introduced to food entrepreneurs from around the state in an effort to showcase the investment-worthy companies in the state.
Local Orbit CEO Erika Block will be a panelist on a session about the impact of local food on agriculture (and there will be a food truck rally dinner at the end of the day!) Learn more.
by Conor Butkus | Jul 22, 2016
Deadlines for many provisions of the Food Safety Modernization Act (FSMA) will be in effect this fall. While there is still significant confusion surrounding the language of many FSMA rules, the FDA recently the clarified definitions of “food facility” and “retail food establishment” as they related to small producers with CSA’s, farm stands and other direct-to-consumer sales.
Smaller operations worried they would need to adhere to strict registration and certification requirements to continue their direct-to-consumer businesses, but it looks like that’s no longer a concern.
Note that many aggregation and local food distribution businesses will still be considered a food facility requiring certifications and FDA registration. To learn more about the requirements, visit the National Sustainable Agriculture Coalitions FSMA resources page.
The National Sustainable Agriculture Coalition describes the changes in detail. Original available here.
FDA Final Rule Provides Needed Clarity for Local Food Producers
Washington, D.C., July 13, 2016 – The National Sustainable Agriculture Coalition (NSAC) welcomes the issuance of the Food and Drug Administration’s (FDA) final rule amending the Food Safety Modernization Act (FSMA) requirements for food facility registration. The local and regional farm and food community has long awaited this final rule, which provides much-needed clarity for direct marketing farms and food enterprises, preventing undue regulation of these businesses.
By redefining the term “retail food establishments”, the FDA provides clear distinctions between which farms and related businesses are subject to “food facility” registration under the Preventive Controls Rule, and which are not. Thanks to this new language, farmers and small food enterprises primarily selling value-added products directly to consumers can now rest assured that they are not subject to food facility registration requirements or regulations.
“For family farmers, one of the most concerning things about the new FSMA rules has been this confusion over classification of farms and registration requirements,” said NSAC Policy Specialist Sophia Kruszewski. “Conflicting and misleading guidance on farms that do or do not qualify as retail food establishments has been the order of the day for over a decade. Congress settled the matter in FSMA in 2010. We are pleased to see FDA finalize this long overdue clarification, and on first glance are optimistic that the final rule reflects the intent of Congress to shield local food producers who directly market to consumers from ill-fitting federal requirements.”
In FSMA, Congress clarified that sales through direct-to-consumer sales platforms like roadside stands, farmers markets, and community-supported agriculture (CSAs) operations were included within the exemption for retail food establishments. This amendment was sponsored by Senator Jon Tester (D-MT) and former Senator Kay Hagan (D-NC) and was strongly backed by NSAC.
The clarification serves two important purposes. First, it reinforces that CSAs, farmers markets, roadside stands, and other direct-to-consumer operations that sell the majority of their food directly to consumers are not food facilities, do not have to register with FDA as facilities, and therefore are not subject to the Preventive Controls Rule.
Second, it clarifies that the location of the direct sales does not trigger the facility definition – for example, delivering a CSA box to an off-farm location where customers could pick up their boxes would not make that location a “facility”. Neither, as the final rule makes clear, would use of an off-farm commercial kitchen to process value-added goods.
“We applaud FDA for addressing our comments and recommendations on the proposed rule,” said Kruszewski. “NSAC will analyze the rule thoroughly and provide more detailed information in the coming days.”
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About the National Sustainable Agriculture Coalition (NSAC)
The National Sustainable Agriculture Coalition is a grassroots alliance that advocates for federal policy reform supporting the long-term social, economic, and environmental sustainability of agriculture, natural resources, and rural communities. Learn more: http://sustainableagriculture.net
by Conor Butkus | Jul 22, 2016
Local Orbit’s Founder and CEO will speak at the 2016 Change Food Fest in New York, NY.
Kicking off the event on November 11th, Erika’s “Change Talk” on building a successful business that can positively impact the food system will be part of the session “Business Doing It Right,” with speakers including:
- Adam Eskin, Founder, Dig Inn
- Eric Kessler, Arabella Advisors and New Venture Fund
- Daniel Lubetzky, Founder, KIND
- Sophia Mendelson, Head of Sustainability, Jet Blue
- Erika Block, Founder, Local Orbit
- Nicolas Jammet, Co-Founder, Sweetgreen
Attend the event or tune in to the live broadcast on Facebook.
About Change Food Fest: The Change Food Fest “Growing the Good Food Movement” will take place in New York City on November 11, 12 and 13, 2016. We will explore and celebrate change happening in the food system. Rather than simply
The Change Food Fest “Growing the Good Food Movement” will take place in New York City on November 11, 12 and 13, 2016. We will explore and celebrate change happening in the food system. Rather than simply talk about problems, we will actively look at solutions that are leading us to the sustainable food system we wish to see. Our focus will be on both real and visionary solutions. Learn more here.
by Conor Butkus | Jul 19, 2016
Our team is excited to support the Michigan Good Food Summit, where we’ll be participating in two sessions.
As Local Goes Mainstream, What Is Your Good Food Business’ Real Value Proposition?
Local Orbit CEO Erika Block will be joined by Evan Smith, Chief of Operations of Cherry Capital Foods, and Jackie Victor, Co-Founder and CEO of Avalon International Breads, for an interactive conversation about the shifting local food landscape, focused on helping businesses identify, articulate and capitalize on their business value proposition. The conversation will explore:
- New ways to think about risks and opportunities, and how businesses and communications strategy can evolve to address them.
- Defining or rediscovering a business’ “North Star” and using it to guide decisions.
- Strategies for ensuring sustainable growth, impact, and profitability.
Harnessing the Power of Data to Help Michigan’s Local Food System Thrive
As institutions, growers, food hubs and distributors work to develop a more sustainable local food system, access to supply chain data is critical to increasing local procurement among Michigan’s anchor institutions and other high volume buyers throughout Michigan.
Chief Technology Officer Andy Bass will provide a visual overview of data in action – from menu development and demand planning to transportation optimization and pricing.
Interested in scheduling a meeting with one of the Local Orbit team at the Summit? Click here to email our service team.
About the Michigan Good Food Summit:
The 2016 Michigan Good Food Summit will be held on October 28, 2016 at the Kellogg Hotel & Conference Center in East Lansing.
Celebrate state and local successes. Engage with sector-specific breakout tracks. Network with others from around the state and across the food system. Hear stories about successful Michigan collaborations. Advance good food for all as we work towards the Michigan Good Food Charter goals for 2020.
Whether you’re a food consumer, grower, buyer, advocate, educator, or policymaker, come to connect with others who want to further good food – food that is healthy, green, fair, and affordable.
Learn more and register here.
by Conor Butkus | May 27, 2016
The Perishable Agricultural Commodities Act protects businesses dealing in fresh and frozen fruits and vegetables by establishing and enforcing a code of fair business practices. Denetra M. McPherson explains how PACA may apply to you.
Guest Post by Denetra M. McPherson, Legal Instrument Examiner with the USDA
Are you new to the produce industry? Do you grow produce or work for someone who buys and/or sells it? Maybe you handle sales transactions on behalf of other companies?
If you answered yes to any of the above questions, you may be in need of a PACA license.
What is PACA?
PACA stands for The Perishable Agricultural Commodities Act, 1930. It authorizes the buying and selling of fresh and frozen fruits and vegetables. This produce must be perishable, meaning it has a limited shelf life if it’s not refrigerated. The produce can have minimal processing done to it, as long as it does not change the perishable nature. Minimal processing can be peeling, washing, cutting, adding a light coating, etc.
Who needs a license? PACA states that, either “interstate or foreign commerce” is how the produce travels. This means if you buy or sell produce which crosses state lines or comes in from another country. This information can usually be found on the invoice/bill of lading. If you are a retailer or grocery wholesaler, you need a license once you have $230,000 worth of sales of produce per calendar year. Everyone else will need a license if at any time throughout the year they buy or sell 2,000 lbs of produce in any given day makes you subject. There is an exception to this rule, Brokers must be licensed at the time of the very first produce transaction.
What are the types of businesses needing a PACA License? If you determine that you may be subject to a license, here are the businesses categories; Retailer or Grocery Wholesaler, and what will be referred to as everyone else: Broker, Commission Merchant, Food Service, Grower, Grower’s Agent, Processor, Shipper, Trucker, Wholesaler,
What about Growers/Farmers? PACA was created to protect growers and farmers in 1930, so they do not need to have a license. However, many choose to have this license for added protection.
Where does PACA cover? The business must have a physical address in the United States. You can import from other countries, but to obtain a license you must have an operating office or hub in the United States where an individual transacts produce business.
How long is the license good for? Retailers and Grocery Wholesalers must renew every three years, everyone else must renew each year. A renewal invoice will be sent to the mailing address we have on file, six weeks before your anniversary date. This is why it is very important to update us at the time you move or change any contact information.
How much does it cost? The fee is $995 to obtain a license, and must renew each year at $995. However, there is a $100 one-time administrative fee for retailers and grocery wholesalers with no other fees required as long as the license is renewed every three years prior to the anniversary date. All licensees will be charged a late fee of $50 if the license is not paid by the anniversary date. Note that If you have more than one business location, this is considered a branch and there is a $600 fee for every branch plus the license fee for your primary business location.
How can PACA Help? If you have a PACA License and experience any issues receiving payment or receive a bad shipment, PACA can help settle these disputes.
What do I need to apply for a license? A physical and mailing address in the United States, type of business, legal business structure (meaning Corporation, LLC, sole proprietor, partnership, etc.), owner/principal/officer information, fees due, a signature, and the application. Also note, you do not need to be a United States Citizen to apply for the license. If you need a license application, or you are still not sure if you fit into the categories mentioned above, you can visit our website @ www.ams.usda.gov/paca or call our toll free number 1-800-495-7222 Option 1 to speak to a representative
