Home Grown Economics - Buying Local Sustains Communities

As President of Helios Nutrition, the nation's largest producer of organic kefir, and Pride of Main Street Dairy in Sauk Centre, I often find myself hanging out at the dairy case in retail stores to watch consumers study ingredient lists and nutrition facts panels on food labels. They use this information to decide if products are acceptable to them. A long-time member of several food cooperatives, I too pay attention to these things.

So, when I see consumers purchase Ben & Jerry's ice cream rather than Sonny's, or Land O' Lakes butter rather than Hope butter, or one of our competitors' milks or kefirs rather than our own, I wonder how to convey the differences not listed on the labels.

These "ingredients" are difficult to measure and therefore, don't appear. Yet, I have come to appreciate that they are essential to the health of our local rural communities, environment, and sense of well-being. In imagining a "social nutrition facts panel," I would like to see these categories listed:

• Locally produced ingredients
• Small-scale and family operated food production
• Responsible land stewardship and "truck miles per gram"
• Enlightened employment conditions
• Economic contribution to our Minnesota rural communities (called the "economic multiplier effect")

For example, few consumers know that Ben & Jerry's is owned by one of the world's largest food companies - Netherlands' based Unilever. Since purchasing Ben & Jerry's a few years ago, Unilever has cut more than 25% of Ben & Jerry's staff. I never used to care much about the companies behind products I bought. But now, as owner of two companies, I recognize that more than thirty families of farmers, employees and independent distributors depend on our ability to convince consumers to buy our products. Watching this growing web of interconnected lives, I understand that every dollar spent by a consumer on a Minnesota-produced agricultural product generates approximately three to seven dollars in economic value to rural Minnesota.

This benefit is called "the economic multiplier effect,"4 and reflects that local purchases circulate through a community several times, paying salaries or purchasing goods and services. In contrast, every dollar a consumer spends on products produced out of the state sees virtually no multiplier effect. Behind these dry details of dollars, numbers and agricultural economics are individual stories that when told, add to the richness of our own lives.

Minneapolis restaurateur Lucia Watson, of Lucia's, told me during a visit to our dairy that the setting reminded her of Europe, where food production is done on a small scale by local artisans committed to quality production. She met our employees and learned that Rudy is soon to celebrate his 48th year of employment. Ron and Carrie of Sonny's ice cream visited our dairy plant, where the base mix for their wonderful ice cream is produced. They toured the farms to meet the farmers and cows, who work so hard to produce the milk.

Today, due in large part to our presence, central Minnesota has upwards of thirty organic dairy farmers. When I first visited Sauk Centre in 1999, in search of a dairy processor to produce Helios Nutrition's organic kefir, we had difficulty locating one. We soon found Dennis Russ, who had been supplying the Kraft cheese plant in Melrose for years with organic milk (quite an amazing thought).

At a time when conventional milk prices are at the same level as in 1979 (when the minimum wage was $2.90/hr.) and Minnesota's dairy production is declining faster than any other large dairy state, organic dairy farmers are receiving living wages. The key to this wonderful development amidst a fairly depressing landscape:

• presence of a local organic dairy processor;
• dedicated retail outlets such as the Wedge and other local natural food stores;
• loyal and educated consumers.

Noted cookbook author Beth Dooley summed up this growing awareness in a recent article on Helios Nutrition in the mix: "In my tight urban orbit, where household purchases are governed by taste and nutrition, it's easy to forget the consequences of my relatively small budget. Yet, my seeming inconsequential decisions affect more than the flavor of the shake I make." When you purchase food products from smaller scale companies, the individual stories from the farm to your table can be traced and re-told all the way through the food chain.