The Greens Party has launched a $85m policy aimed at helping farmers sell directly to end customers and small, local processors.

“With one of the most concentrated food retail sectors in the world dominated by the supermarket duopoly, the barriers to making it easy to buy local food in Australia are significant. It is time for Australia to rebuild local food systems,” the policy document says.

The Greens would provide $85 million in grants over four years from 1 July 2014 for infrastructure and initiatives that connect farmers and local communities, such as:

• Starting farmers markets, mobile markets and community food box schemes.
• Creating and supporting producer cooperatives.
• Fitting out local food hubs for packaging and value-adding local food, including for larger bulk supply.
• Creating and marketing a regional food brand.
• “The ability to sell direct to the public through farmers markets and fresh food box schemes has a number of benefits for farmers. Short supply chains often mean greater financial returns as producers receive a larger share of the food dollar.

“These types of local food systems give farmers viable alternatives to low margin, high volume supply contracts. They provide an entry point for sales for growers just starting out, and the opportunity to diversify crops and value-add for greater returns.

“Supporting local food systems creates opportunities for farmers in a district to collaborate and create an authentic local brand that can attract premium prices. The KingIsland and MargaretRiver local brands are good existing examples.

The Greens say that providing infrastructure such as regional food hubs would give farmers and other local businesses access to facilities where they can store, pack and process foods, for example via bottling, juicing or pickling. Small to medium farmers and new enterprises typically can’t afford to install such infrastructure on their own properties without a guaranteed market.

Food hubs would also give farmers the opportunity to collaborate and meet regional commercial demand for produce, typically from institutions such as aged care centres, education providers, hotels and restaurants.

The US experience

The Greens policy quotes the experience in the United States, where in 2009 the Obama administration created the ‘Know Your Farmer, Know Your Food’ program, a targeted investment in rebuilding local and regional food systems.

The program responded to the demand from American communities and farmers for alternative paths to market and access to local food.

The ‘Know Your Farmer, Know Your Food’ program has been hailed as a success. It has funded food hubs, local markets and branding and innovative ways of connecting communities to local food. Funding local infrastructure to provide access to fresh local food has helped low income American communities gain better access to healthy food.

“Evaluations of key initiatives funded through the program such as regional food hubs has demonstrated the economic and social benefits of governments investing in local food systems,” say the Greens.