Organization is the Missing Link to Supply Chains

Grower Distribution Difficult

By Mikenzi Meyers, Contributing Editor

Creating a link between growers and the distributions of their commodities is becoming increasingly difficult. Aaron Magenheim with AgTech Insight based out of Salinas is helping to create a more efficient communication system to bring supply chains together.

Magenheim described a situation last year where Walmart required IBM technology in order to sell leafy greens, but when growers asked how to implement the technology, they could not get a clear answer. “We need to help move this industry forward and have the right people that work together and understand the right direction,” he said.

Another issue Magenheim has seen is the lack of data on failed trials. This is especially a problem in California, where there is a constant push to test new products. Whether it be hiring an analytics team or making sure growers record their ROI (return on investment), Magenheim said organization is the key to moving forward.

Manufacturing Consortium

U.S. Secretary of Commerce Penny Pritzker announced late last week that The Central Valley AgPlus Food and Beverage Manufacturing Consortium, led by Fresno State, was one of 12 new communities designated this year under the Obama Administration’s Investing in Manufacturing Communities Partnership (IMCP) initiative. IMCP was designed to accelerate the resurgence of manufacturing in communities nationwide by supporting the development of long-term economic development strategies.

Consortium members represent major Central Valley public and private institutions from the education, business, economic and workforce development and civic sectors joining forces to foster the growth and creation of food and beverage businesses and middle-skills manufacturing jobs in the Central Valley.

“An IMCP designation is an important signal to potential investors that these communities are a good place to spend their money, and this is smart government at work,” Pritzker said. “By breaking down silos and encouraging communities to take a more thoughtful, comprehensive approach to their strategic plans, we are ensuring that precious federal dollars are used on the most high impact projects and in a way that maximizes return on investment.”

The new communities were selected by an interagency panel based on the strength of their economic development plans, the potential for impact in their communities and the depths of their partnerships across the public and private sectors to carry out their plans.

Consortium members worked together to identify a sector of manufacturing where their community has a comparative advantage and drafted a strategic plan that addresses workforce and supply chain challenges; infrastructure; research and innovation; trade and investment; capital access; and operational improvement for manufacturing companies.US EDA Logo

The 12 designated manufacturing communities will receive:

  • coordinated support for their strategies from 11 federal agencies with more than $1 billion available in federal economic development assistance.
  • a dedicated federal liaison who will help them navigate available federal resources.
  • recognition on a government website, accessible to prospective private foreign and domestic investors, looking for information on communities’ competitive attributes.

Mike Dozier, director of Fresno State’s Office of Community and Economic Development, the lead office for the project, said the opportunity and challenge facing the Central Valley is to claim more value from agricultural production through the food processing industry, along with its supply and distribution chains.

“California’s food system is the largest agricultural economy in the U.S. and among the top 10 globally,” Dozier said in the application. “It produced nearly $105 billion in economic output in 2012, and it was responsible for over 198,000 jobs tied directly to manufacturing.”

With 28 counties located in California’s heartland, the Central Valley plays a dominant role in this economy as America’s “Farm to Fork Capital.”

“Production agriculture has been the Central Valley’s mainstay and competitive advantage, fueling growth in the food manufacturing sector as those industries are part of a highly integrated supply chain,” he said.

The AgPlus implementation strategy will build upon the Central Valley’s unique asset base, committed partnerships and networks to:

  • capture more value-added cluster manufacturing and supply chain activity within the region, including to meet new demand and for local specialty products such as through the Farm to Fork efforts;
  • provide the workforce with the needed skills through successful career pathways models;
  • accelerate the development and adoption of innovative technologies so the Central Valley’s food and beverage manufacturing industry is the most efficient, safe, healthy, viable and sustainable national and global center of innovation for next-generation processing and supply chains;
  • facilitate the transformation of the industry to adapt to the short- and long-term impacts of drought and climate change; and
  • strengthen business operations and access to capital.

Consortium members are: 

Higher Education: Fresno State; California State University, Chico; University of California, Davis; Central/Mother Lode Regional Consortium; Fresno State’s Water, Energy and Technology Center; Los Rios Community College District; NextEd; and UC Merced Small Business Development Center.

Government Entity: Tuolumne County Economic Development Authority; City of Avenal; City of Fresno; City of Winters; and Sacramento Area Council of Governments.

Nonprofit: Valley Vision; Center for Land-Based Learning; Fresno Community Development Financial Institution; Northern California World Trade Center; Sacramento Employment and Training Agency; Sacramento Metropolitan Chamber of Commerce; and Solano Economic Development Corporation.

Private Sector: AgTech Innovation Fund; CalAsian Pacific Chamber of Commerce; Davis Chamber of Commerce; JBT FoodTech; and PackageOne, Inc.

For more information, contact Mike Dozier at 559.278.0727 or mdozier@csufresno.edu.