Slow Food, Slow Money…
Mon, Sep 28, 2009
Recent discussions with a friend of mine, Paul Spence, a cash crop farmer from Ridgetown Ontario, really brought home the crisis, the opportunity, and the barriers in diversifying in the agricultural sector today.
We all know that many sectors of the Canadian agriculture are in trouble. Case in point, the pork industry. It’s under catastrophic collapse from fluctuating commodity prices, trade barriers instigated by disease outbreaks, and supply and demand issues which have left the pork industry in chaos. Pork farms are going bankrupt under the current system.
So there are a myriad of farmers who are ready and willing to make the break from their traditional practices, and start into a new farming venture that may be more sustainable, or more responsive to market demand. But there’s no money to be had. Banks see farms, and especially experimental ventures, as risky business. Loans are few and far between, and young farmers, such as my friend, who have little equity built up, are left in a quandary as to what to do, and how to fund it.
How about Slow Money? In essence, put your money where your mouth is. Like Slow Food, where supporting food and agriculture has become a winning business for many producers, some creative venture capitalists have branched into investing in local agriculture. High risk, but potential for respectable returns, and respect for supporting the local economy. Check out the report by CBC’s David Gutnick.
Do you have an example of a successful or creative farm and food investment strategy? Tell us about what has worked for you.
_____________________
Posted by Amy Proulx
Photo © George Chriss, used under a Creative Commons Licence
I think many people in society today don’t want to know where or how their meat is getting to the supermarket. However, they will sure want to know when it stops coming, or when it becomes way too expensive! I think perhaps we might need to start eating a bit less meat, less often…but really what do I know!
I wish all the farmers good luck.
Dawn, you know a LOT.
I agree that many consumers find ignorance to be bliss. Most chefs I know are very diligent about knowing where their food comes from, but consumers often want convenience.
From an environmental and health stance, eating smaller portions of meat less often is good. Would this approach help or hurt livestock farmers? I haven’t a clue but would love for someone in the know to respond.
Back to the venture capital issue though, I think the biggest problem is that venture capital is not a sure fix for the farm crisis, but it is an interesting option. We can’t solve the farm crisis in five hundred words or less on the blog, but we can at least brainstorm on different ideas.
Venture capitalists are often known for just wanting to make a quick buck and pull out. A double whammy of a crisis for the farmers. That said, a really effective partnership between a farmer and someone with money AND principles could, however be a good thing.
Hi there-
Just heard about this blog today from Karen Baxter and was interested to see the topic of pork. I’m a Home Economist & Registered Dietitian working for the pork industry in Ontario, and this topic is my bread and butter, so to speak.
It is tragic to hear about pork producers across Canada going out of business – one of the things that makes Canadian pork so great is that most producers take the care and attention to their product as is seen on the ‘family farm’ (vs. huge productions like Smithfield as seen in the US). Canadian standards for all pork are among the best in the world and hormones are not used in Canada (not true for pork produced in other countries).
What most consumers don’t know is that more and more of the pork we buy at retail is imported (mostly from the US, mainly because the US can offer a lower price, huge volumes and a consistent product precisely because they are huge-scale productions). Buyers (e.g. from the large grocery store) and consumers themselves seem to value low price over quality or anything else…everytime we buy cheap meat without finding out where it came from, we vote for imported products with our spending dollars.
In my opinion, only 2 things will help the pork producers (1) government must support the pork industry in Canada to preserve the family farm and agriculture in Canada (2) consumers must DEMAND Canadian-produced pork when they shop. Eating less (or even more, if that pork is from the USA) will not help. I, for one, want to know that my pork is hormone-free and produced in the high standards of a Canadian farm… this may not be an option if things continue as is.
Interesting. Working with venture guys on the Clean Tech stuff I can tell you that venture capital is weak, period, in Canada. Regardless of sector there is not a huge appetite for venture or angel investment in Canada. This is despite some fantastic opportunities. Even the venture guys can’t give a good reason why this is the case.
Can I say I love the idea of slow money?!
I’m imagining a little system here. It would be great if there were a ‘list’ of farmers who need $$, and individuals who want to invest could get in touch with them. I suspect a person would have to invest some minimum amount (eg. $200 is way too low to bother with the administrivia) – let’s say $5000 as an example. And the farmers who signed up on the list would have to provide some info so the potential investor has some confidence in the venture. And there would have to be some sort of legally binding contract.
I don’t know how/when/if something like this will occur, but I’d love to invest $5000 in this sort of thing. What do people think about this?
It is sad to hear about the pork industry in trouble to think that pork has become a staple in most family meals. It is even sadder to know that the pork farmers or pork breeders have no one to turn to for help. I do think that the government should provide for at least some funding help to put them back on their feet. This will not only benefit the farmers but pork consumers as well. Because if the pork industry isn’t taken care of, we might as well fear for our lives whenever bacon is served….
.-= Michelle´s last blog ..Business Working Capital For Purchase Of Medical Equipment =-.