Attention Food Hubs!
Have you wondered if it is ‘worth it’ for your food hub to pick up product from farms? We have an excel tool that can help you figure that out! This tool calculates the dollar amount of product that needs to be picked up from a farm and sold by your hub in order for you to breakeven.You can use this tool to look at the breakeven point for products you pickup and/or products delivered to your warehouse/hub.
The model was created using an economic “long-run” perspective, so it incorporates the fixed costs of the food hub. You can average your costs across seasons or choose a particular season’s costs and generate different breakeven points are generated for each season.
Maggie Mills, one of our FLEdGE 2017 RAs, worked with 100 KM Foods, based in Toronto, to create the breakeven analysis tool. Using their historical data, Paul and Grace at 100 KM foods helped Maggie to design and test the tool.
Download it and have some fun!