Conference on Access to Food, September 18 and 19, 1995 report of the proceedings

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USDA
United States
Department of
Agriculture
Food and
Consumer
Service
Office of
Analysis and
Evaluation
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Conference on Access to Food
September 18-19,1995
Report of the Proceedings
November 1996
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USDA
Umt*d States
Department of
AorieuHura
Food and
Consumer
Service
3101 Park
Center Drive
Alexandria, VA
22302-1500
CONFERENCE ON ACCESS TO FOOD
SEPTEMBER 18 -19,1995
REPORT OF THE PROCEEDINGS
November 1996
Enclosed for your information is a copy of the "Conference on Access to Food
September 18-19,1995: Report of the Proceedings." The conference was
held to bring together food access experts to share their knowledge and help the
Department of Agriculture build an agenda to increase access to food for low-income
Americans.
This report is also available on the Food and Consumer Service (FCS) home
page of the Internet at http://www.usda.gov/fcs. Select "What's New at FCS."
Under "New Files," select "961101.TXT, Conference on Access to Food,
September 18-19,1995: Report of the Proceedings." This file can be
downloaded.
The Food and Consumer Service is continuing its work on food access. One
initiative is a toll free 800 number that individuals can call to obtain technical
assistance on improving access to food. This "hot line" will be available from
December 1,1996 through March 31,1997. The number is 1 (800) 386-3040.
If you have any questions regarding this report, please contact Kilolo Kijakazi,
Family Programs Staff, Office of Analysis and Evaluation, (703) 305-2123.
AM tOUAt OPfOWTUMTY tMHOVCT
Summary of "Conference on Access to Food
September 18 - 19, 1995: Report of the Proceedings"
Background
The Food and Consumer Service held the Conference on Access to Food in Washington, DC,
on September 18 - 19, 1995. It brought together retailers, academicians, researchers,
community development corporations, and community residents to present and discuss
strategies for improving access to nutritious and affordable food in underserved urban and
rural areas.
Among the 60 speakers who participated were many Federal Government representatives.
Agriculture Secretary Dan Glickman and Under Secretary Eilen Haas gave keynote addresses.
Other Federal speakers included representatives of the White House; the Rural Business and
Cooperative Development Service (RBCDS), the Small Business Administration (SBA); the
Departments of Housing and Urban Development (HUD), Health and Human Service (DHHS),
and Commerce (DOC).
Over 100 invited guests came from across the country to hear the speakers and to actively
participate in the discussions. Guests represented Empowerment Zones and Enterprise
Communities, private nonprofit organizations, foundations. State and local governments,
Congressional staff, and the media. Their diverse backgrounds resulted in a very full
discussion of food access issues from multiple perspectives.
Workshop Highlights
There were three plenary sessions and twelve workshops held during the conference. The
highlights from them are presented below.
There is a link between food access and economic development. Supermarkets, or other
food distribution businesses, can affect inner city development in four ways: by serving as an
anchor for commercial property investments; by providing jobs to community residents; by
improving residential property values; and by increasing the number of customers for nearby
businesses.
Supermarket development is a key strategy for improving food access since these stores
are the primary source of food for most people. Successful supermarket development
requires sound marketing research, well written business plans, a solid public/private
partnership, a good relationship with wholesalers, quality management, sufficient capital, and
community support.
Cooperative food stores can work well in both urban and rural areas. These stores are
customer-owned and generally offer lower prices than supermarkets. They also require
sufficient capital and community support.
9-
Urban Agriculture allows for the involvement of a range of people from children to the
elderly. It is the growth of food within the inner-city community in which it will be
consumed. This can take place on large plots of land for retail or smaller plots for personal
consumption.
Farmers markets benefit low-income communities as well as farmers. Residents are able to
purchase fresh fruits and vegetables at prices lower than most stores. Farmers can expand
their market and gain direct access to customers.
Public markets increase access to food and revitalize cities. These markets are a set of
owner-operated stalls housed in a permanent structure and operate throughout the year. They
provide nutritious affordable food, encourage entrepreneurship and foster the incubation of
new businesses.
The development and improvement of independent small and moderate stores can meet
the unique needs of neighborhoods. Independent stores which join together to buy
cooperatively and in bulk from wholesalers can offer a full-line of food at reasonable prices.
Their smaller size also allows them to match the ethnicity of the community and adapt to the
needs of their customers.
Transportation options offer an alternative means of improving access. One option is to
use van pools to take people to existing stores. A second involves promoting the development
of essential businesses, like food stores, around transit hubs.
There are several sources of funding which can be used for the development of
supermarkets and other access strategies. Both private and public sources exist such as
private equity capital from The Retail Initiative, and public funds from RBCDS, HUD, DOC,
SBA, and DHHS.
Food access and food security are linked. The latter is a prevention-oriented concept that
looks at the access to food resources within a given community.
3
n
Hotline
>.
Call 1-800-386-3040 for Information and Technical Assistance
on Improving Community Access to Food
The U.S. Department of Agriculture, Food and Consumer Service
(FCS) is sponsoring a toll free "800? Food Access Hotline. The
Hotline will offer information and technical assistance on strategies
to improve access to nutritious and affordable food. These include
attracting supermarkets, full-line grocery stores, fanners' markets,
and public markets into communities, as well as developing food cooperatives and
transportation options.
The "800?number will crier the iollcwing types 01 services:
Information Dissemination
* A list oi reierences included in the research effort
* A list oi lood access resource organizations
* Deiinitions or rood access strategies
* An annotated bibliography, available in January 1997
Technical Assistance
* Discussion or strategies appropriate lor a particular situation
* Recommendations on how to implement strategies and address problems
that may arise in the process
* Suggestions on additional sources ror technical assistance
The Hotline will be operated and staffed by CRP, Incorporated under contract to
FCS. Callers may make requests for informational services Monday through Friday
from 9:00 a.m. to 5:00 p.m., EST. A technical assistance expert will be available
on Mondays and Tuesdays from 11:00 a.m. to 3:00 p.m., EST to provide more
specific support. We encourage your use of this service.
1(800)3863040
Z
Conference on Access to Food
September 18 and 19,1995
Report of the Proceedings
November 1996
Author:
Robin D. Koralek
Submitted by:
KRA Corporation
1010 Wayne Avenue
Suite 850
Silver Spring, Maryland 20910
Project Director: Ed Rugenstein
Submitted to:
U.S. Department of Agriculture
Food and Consumer Service
Office of Analysis and Evaluation
3101 Park Center Drive
Alexandria, VA 22302
Project Officer: Kilolo Kijakazi
This document wasprepared under Contract Number 53-3198-4-023 between the Department of Agriculture and
KRA Corporation ot Silver Spring, Maryland. The contents ofthis document do not necessarily reflect the views or
policies of the Department, nor does mention of trade names, commercial products, or organizations imrly
endorsement by the U.S. Government.
/
U.S. Department of Agriculture/Food and Consumer Service
Conference on Access to Food
September 18 and 19, 1995
Report of the Proceedings
The Conference on Access to Food, held in Washington, D.C., on September 18 and 19, 1995,
was sponsored by the U.S. Department of Agriculture (USDA) Food and Consumer Service
(FCS). The conference was held to bring together food access experts to share their knowledge
and help USDA build an agenda to increase access to food for low-income Americans.
The Honorable Dan Glickman, Secretary, USDA, opened the conference and stated that
"restricted or limited [food] access undermines [USDA's] ability to promote health through
nutrition because if prices are too high, there is not enough bang for the buck for Food Stamps
and WIC benefits, or if choices are limited . . . [Americans] can't make the choices that
nutrition education efforts encourage them to make." Ellen Haas, Under Secretary, Food,
Nutrition, and Consumer Services, said that access to food is a key component of USDA's
comprehensive food policy. The three components are as follows:
Nutrition Assistance Programs—Child Nutrition Programs, the Special
Supplemental Nutrition Program for Women, Infants, and Children (WIC), the
Food Stamp Program, and others form a network of food and nutrition assistance
to ensure access to nutritious diets.
Nutrition Education—The policy provides knowledge and skills allowing
Americans to make healthy food choices.
Access to Food—The policy ensures individuals the opportunity to purchase foods
for a healthy diet through access to full-line food stores.
Although access to food has been the least visible component of USDA's comprehensive food
policy, it is an important one. Under Secretary Haas said that "without access to high quality,
affordable food the effectiveness of our nutrition assistance programs and nutrition education
initiatives are lessened."
USDA is focusing its efforts on the problem of food access through several initiatives. Current
efforts include a study of authorized food stamp retailers. This nearly completed study gathered
information in a number of areas, including access to food. A second study, a national survey
of food stamp households, is in its initial stages and asks recipients about their access to food.
USDA is conducting another study that will identify strategies that communities have
implemented to improve access to food. This study will provide technical assistance to
communities that want to improve access but do not have the experience or resources.
t
The conference addressed issues of access to food in urban and rural underserved areas and
provided a forum for discussing successful strategies for increasing access to food through the
development of full-line, affordable food stores and alternative means such as farmers' markets
and transportation options. It also provided a discussion forum for experts in supermarket and
food store development, economic development, and food policy. Mr. Paul Pryde of the Capital
Access Group, LLC discussed the link between food and economic development. Supermarkets,
or other food distribution businesses, can affect inner city development in four ways: by serving
as an anchor for commercial property investments; by providing jobs to community residents;
by improving residential property values; and by "providing life" to nearby businesses. Several
efforts to link improved food access to local economic development were also identified during
the conference.
Ms. Sheryll Cashin, Staff Director of the Community Empowerment Board at the White House,
further underscored the importance of the connection between food access and economic
development, especially with regard to the Empowerment Zone and Enterprise Community
(EZ/EC) Program. She said that this program provides a context that can help reduce the
timeframe required to get food access initiatives-like supermarket development-implemented.
EZs and ECs are working within a comprehensive strategic plan with input from residents, state
and local governments, and business leaders. These are the same groups needed to implement
food access initiatives.
The 2-day conference included three plenary sessions covering issues such as food access and
community and economic development. A series of concurrent workshops allowed for
presentations and open discussion among conference attendees on a variety of topics. Presenters
included retailers representing small and moderate food stores as well as supermarkets;
wholesalers; community and economic development specialists; food access advocates;
representatives from financial institutions; academicians; community residents; and others. The
conference attracted more than 150 participants representing Empowerment Zones and
Enterprise Communities; nonprofits; private industry; financial institutions; advocacy groups;
academia; foundations; and Federal, State, and local governments.
Several food access alternatives were discussed during the conference, ranging from supermarket
development to improved transportation options. When addressing improved access to food,
supermarket development is often the first option considered. However, in some communities,
supermarket development may not be possible in the immediate future. In these instances, other
options may be considered. For example, improved transportation may allow residents to reach
a full-line supermarket a few miles away. Farmers' markets or public markets can provide
quality produce and other foods at reasonable costs with little overhead investment while keeping
profits in the community. In densely populated urban areas, space is often at a premium; a
smaller independent store could provide quality, nutritious food in a much smaller space. In
addition, several presenters discussed the issue of food security.
The three key themes that emerged from the conference were:
• Supermarket development
l
• Alternatives to supermarkets
• Food security
Each of these topics is discussed in detail below.
Supermarket Development
The supermarket industry is the primary source of food for the majority of Americans.
However, according to Mr. Andy Fisher of the Community Food and Security Coalition,
between the 1970s and the 1990s supermarkets abandoned the inner city and many other
distressed communities. Inadequate access to proper foods is frequently due to lack of access to
supermarkets or to supermarkets with good quality produce and other foods at a reasonable
price. Consequently, an important component of community development is the revitalization
of inner-city neighborhoods and other distressed communities through the establishment of
supermarkets. Many communities are focusing revitalization efforts on the establishment of
much-needed supermarkets. There are different types of supermarkets that can be brought into
a community, ranging from large regional chains, local chains, and franchises, to voluntary
operators who are financed and serviced by a wholesaler, who typically provides independent
stores with inventory and assistance in a variety of areas such as layout and marketing.
To successfully develop a supermarket, panel presenters recommended the following:
• Invest in credible, unbiased marketing research that demonstrates a need for a
supermarket in that area. In addition, research should show that local residents
will shop at a supermarket in this location.
• Develop a well-researched, well-written business plan that incorporates potential
problems and solutions.
• Develop a solid partnership between the private sector, local government, and the
community. This should include financial commitments from a variety of
sources.
• Develop a good relationship with a wholesaler—one that provides guidance in the
areas of marketing, construction, legal issues, and accounting, among others.
• Foster community support, or a sense of ownership, on the part of local residents.
• Secure adequate working capital, or cash, on sensible terms. Adequate cash is
necessary to attract the kind of management needed to implement and operate a
full-scale food store. In addition, capital is needed for marketing and advertising
once the store is in operation.
Access quality management and technical assistance.
1
Several presenters stressed that access to adequu's funding is a central issue when developing
a supermarket in an economically distressed area. According to Ms. Pamela Fairclough of the
Comrainity Food Resource Center, there are multiple costs associated with supermarket
development. "Soft costs" are those that are needed to cover preliminary market analysis,
feasibility studies, environmental reviews, zoning changes, and draft architectural and
engineering plans. For the most part, these activities are not financeable up front so the
supermarket developer has to cover these costs. Alternatively, if the supermarket is being
developed by a Community Development Corporation (CDC), these startup costs will have to
be financed by CDC or other development corporations. Construction and renovation costs may
come from conventional banks, wholesalers, or out of pocket. Finally, permanent financing for
operating the supermarket must be secured from similar sources.
There are numerous sources of capital *br financing supermarket development. Among these
are conventional banks. CDCs, private flinders, wholesalers, foundations, community groups,
and government entities. The collateral for these loans is often the store inventory and the
property lease. Often, developers need to be aggressive and creative when securing capital;
perhaps looking at a mixture of funding sources in order to secure adequate funds.
Conventional banks are often a source of financing for commercial ventures. Many banks have
community development subsidiaries or components and finance commercial development in
targeted inner-city developments and other distressed areas. The Community Reinvestment Act
(CRA) is a Federal law that governs the banking community's responsibility to invest capital in
low-income neighborhoods. This law requires banks to lend where they do business, thus banks
are often looking for CRA-eligible projects. However, according to Ms. Pamela Fairclough,
the stringent documentation required to receive a bank loan often prohibits supermarket operators
from applying for a loan. In addition, operators in economically distressed communities may
not qualify for a bank loan because of their level of equity investment and the high risk
associated with the project. It is important to remember that banks are looking to make money
so they will carefully study the project team and history.
Mr. Lamont Blackstone of The Retail Initiative, Inc. (TRI) discussed the way in which his
organization invests in inner city retail development. TRI invests equity capital on behalf of ten
institutional investors including the City of Philadelphia's public pension fund. There is a large
pool of investment capital in the form of both public and private pension funds that needs to be
tapped and channeled into inner city development. The challenge, according to Mr. Blackstone,
is to ". . . develop a strategy that will allow these institutional investors to invest their capital
profitably and at market rates of return, or close to market rates of return, at the same time
investing that capital at levels of risk that [investors] deem acceptable."
Ms. Ann Rosewater, Deputy Assistant Secretary for Policy and External Affairs, Department
of Health and Human Services (DHHS), discussed several programs offered by her Department
which can fund food access initiatives. First, DHHS monies finance the EZ/EC program.
Second, this Department strengthens community development corporations through their Urban
and Rural Economic Development Program. In addition, they fund business development,
microenterprise, business incubation, and building renovation.
f
Transportation Options
According to Mr. Michael Freedberg of The Center for Neighborhood Technology, the
issue of access to supermarkets in the inner city is magnified by the low percentage of
people who have access to cars. The dislocation of supermarkets and grocery stores
from the inner city has left few acceptable food stores for residents. The Center for
Neighborhood Technology in Chicago is addressing this issue by putting together an
alternative transportation strategy that examines the critical needs of a community and
how transportation systems can meet that goal. They have formed a commission to look
at compact land development around transit hubs. Suggestions to improve access include
placing markets, day care centers, and other community amenities around the public
transit stops in the inner city. Through promoting microdevelopmer* around the
individual transit stops, transit stops can become the center of activity in the community
and begin to have a regional impact along the transportation corridor. By demonstrating
the impact of having retail services at this transit station on ridership, the commission
has been able to forecast reduced automobile traffic and show how that will help the
region meet its air quality goals under the Clean Air Act. This has enabled them to
leverage millions of dollars in transportation funds that would otherwise have gone to
suburban highway construction.
Food Security
Food security advocates believe that the concept of food security has replaced the concept of
hunger among social welfare and antihunger advocates in the United States, creating a change
in the way that we think about hunger as a problem in this country. It moves the concept of
hunger from being an individual's problem to that of a community need. Food security is a
prevention-oriented concept that looks at the access to food resources within a given community.
The Community Food Security Coalition defines food security as "all persons obtaining at all
times a culturally acceptable, nutritionally adequate diet through local non-emergency sources."1
The concept of food security incorporates and addresses the ability of individuals to prepare
foods and their level of economic resources to purchase food; a community's access to land
for growing food and enhancing community food supplies; the ownership of food-related
businesses; the connections of farmers and food processors to communities and markets; and the
ability of community organizations to ensure access and availability of food. According to Dr.
Kate Clancy of Syracuse University, a food secure community is one where "all of its members
have access through normal, non-charitable means to adequate, culturally appropriate, nutritious
food supplies whenever they need them."
Using Biddle's definition of community development: "a social process by which human beings
can become more competent to live with and gain some control over local aspects of a
frustrating and changing world," food security is an integral aspect of community development.
That is, a community is not fully "developed" until it is food secure and community
x"The Community Food Security Empowerment Act. January 1995." The Community Food Security
Coalition, Hartford, CT.
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111
development cannot take place without attention to food security. However, there has not been
a great deal of interaction between food security and community organizing/community
development work in this country. This may be due, in part, to the fact that many community
development projects, while useful, are driven by economics rather than by human growth. In
addition, food has become such a commodity, and so taken for granted, that people assume it
is available only through commercial transactions.
Food security advocates believe that there are many ways to attain food security and all
of these options should be explored simultaneously. Among these options are
cooperatives, food exchanges, community service, public markets, enhanced
transportation, urban agriculture, and farmers' markets. Community development
projects should be strongly encouraged to incorporate "food centered thinking" into their
"working planning activities".
The Community Fo'xl Security Act of 1995 was initially introduced to Congress on July 11,
1995, as a means of promoting food security. These provisions were enacted as part of the
Federal Agriculture Improvement and Reform Act of 1996 (P.L. 104-127). The legislation
provides for $1 million in fiscal year 1996 and up to $2.5 million per year from fiscal year 1997
through 2002 for assistance to community food projects. These projects should be "designed
to meet the food needs of low-income people, increase the self-reliance of communities in
providing for their own food needs, and promote comprehensive responses to local food, farm,
and nutrition issues." The Act is intended to yield a variety of food projects such as urban
agriculture, community gardens, fanners' markets, inner city food store development, and
microenterprises creating linkages between sectors of the food system.
"Seeds of Change: Strategies for Food Security in the Inner-city,"2 a study conducted at the
University of California, Los Angeles (UCLA), identified numerous solutions to the problem
of lack of access to nutritionally adequate diets. These solutions include working with smaller
stores to enable them to sell nutritional items at lower prices, urban agriculture, farmers'
markets, joint ventures between CDCs and supermarkets, microenterprises, buying clubs, and
food policy councils. Food security advocates believe that there is no single answer to the
dilemma of food access; rather, a mixture of approaches must be developed and implemented.
Summary
The conference closed with a discussion of what should be done next to increase and ensure
access to food in inner city and rural communities. Mr. Michael Fishman, Acting Director,
Office of Analysis and Evaluation, FCS, USDA commented that "there is room for everybody
under the tent of food access, that there is enough need out there that the challenge is. . . to try
to help people get the access to food that they need." Presenters discussed ways in which
private, non-profit, local, and Federal entities need to get involved in the promotion of access
to food.
2"Seeds of Change: Strategies for Food Security for the Inner City." The Southern California Interfaith
Hunger Coalition, Los Angeles, California. 1993.
14
//
Mr. Roy Priest, Director of the Office of Economic Development, HUD, said "... we've got
to look at integrated strategies. . . . you've got to bring together a collaborative framework that
allows you to address [issues] holistically. And if you don't do that, then I think you're going
to have a very difficult time being able to create any kind of long-term, sustained change in
these communities.
Mr. Zy Weinberg of Public Voice for Food and Health Policy said that "... successful
supermarket development and operation must be a community-wide effort, with the collaboration
of [a] whole range of non-profits. . ., for-profit companies, including banks, the grocery
industry and its suppliers, unions, and government at all levels, Federal, state, and local. . ."
Ms. Karen Brown of the Food Marketing Institute supported this by saying "... revitalization
will come only through public-private partnerships involving coalitions of business, community,
and government leaders at the local level."
The creation of food security must include a variety of efforts within a community—projects
such as farmers' markets and public markets, urban agriculture, food groups collaborating with
community development corporations and food retailers, and food policy councils, among
others. As Mr. Andy Fisher said, "there is no magic solution to food insecurity ... it is really
a kind of basket of solutions that needs to be addressed and needs to be developed."
Ih 15