Where Do Food Dollars Go?
Money flowing in and out of southeast Minnesota establishes economic patterns that either help or hurt the region’s economic well-being. Rural areas tend to import considerably more products/services than they export. As a result, more money flows out than flows in.
Food purchasing patterns in southeast Minnesota suggest that outside business interests benefit at the expense of the local economy. This upside-down import/export equation is a detriment to establishing a regional food system in the fertile Hiawatha Valley countryside – seen in the photo– that historically has been know for its considerable food-producing qualities. Southeast Minnesota would benefit from a system that is more sustainable by re-diverting food expenditures into local communities and then reaping benefits from the resulting economic multiplier factor.
The Community Design Center of Minnesota, under the leadership of Nancy Bratrud and Ruth Murphy, is undertaking a study through its Hiawatha’s Pantry project to determine how much money is spent on food in southeast Minnesota and where the food dollars are traveling within the region and outside of the region. The study will analyze available data on individuals, businesses, and institutions to measure the flow of purchase dollars. By identifying the products purchased in local markets and the flow of food purchasing dollars, growers and farmers will be better able to judge what products are in demand and identify opportunities to sustain smaller producers.
“If the total value of all food purchases in the region is known, producers can begin to determine the feasibility of entering into specific areas of food production, processing, and marketing.” notes Bratrud. One challenge in building a regional food system is to develop a methodology for food producers that provides consumers with sought-after food products that represent a target for retaining food purchasing dollars in the region.
Bratrud and Murphy are convinced an alternate model can counter the present centralized food system that draws wealth and resources out of the region and undercuts production opportunities for area farmers, producers and processors. If the producers in the region collaborate to organize food production and link directly into consumer interests, the regional economy will be diversified and opportunities for healthy growth will increase.
The project leaders have been active participants in the Southeast Minnesota Foods Working Group. Bratrud has been instrumental in shaping a University of Minnesota research project examining supply chain food movement from producers within the region to point-of-sale options inside and outside of southeast Minnesota. A student research associate has been placed with the Hiawatha’s Pantry project through the University’s Institute for Social, Economic & Ecological Sustainability.
A project supported by the Experiment in Rural Cooperation. (#651 345 4336)