This study examined the prospects of marketing aquaculture products through food hubs in the Midwest . The addition of aquaculture products in food hubs could translate into the expansion of aquaculture production. However, engaging food hubs requires an understanding of factors that could incentivize them to supply seafood in order to facilitate economically sound production and marketing decisions. This study also explored various business models for processing services in shared-use and commercial kitchens in an attempt to explore processing and value-added product development opportunities for the aquaculture industry to ensure their sustainability and profitability. We surveyed select food hub and shared-use kitchen businesses in Illinois and Indiana, with emphasis on the quality of information to derive.
The response rate for the questionnaire was 31.3% (10 out of 32) from both food hubs and commercial kitchens in Indiana and Illinois. Seafood is not a common product handled by food hubs and commercial kitchens because of the barriers created by licenses and certifications requirements. There is a lack of information concerning the cost and benefits of aggregating and distributing seafood, and also processing available seafood to food hub operators.
The common business models for food hubs are non-profit, cooperative and for profit. The average number of years of operation is 5.5 years with some co-ops being in operation for 20 years. With the exception of one food hub, that has a meat processing facility, all the other food hubs only aggregate and distribute with not processing services . For food hubs to commit to processing and marketing locally produced seafood, producers need to meet supply frequency and quantities. Food hubs tend to have contract obligations with their institutional buyers and therefore require consistency in supply from producers.
The 3 commercial kitchens in our sample are all for-profit. The kitchens have been in operation for about 3.5 years, on average. The commercial kitchens require membership before a producer or supplier can use their facility. They provide space to process and prepare mainly produce for the market, and some kitchens provide additional services like training in kitchen and food safety, entrepreneurship, culinary education; packaging, labeling, pricing and deep cleaning services after the tenants have finished using the kitchen. Commercial kitchens get revenue from membership and rental fees. All 3 kitchens will allow the processing of seafood in their facility.
Even though the kitchens are certified for commercial food processing activities , each tenant is required to be certified (e.g. Food Safety manager certificate) in order to use the facility. Some kitchens also require liability insurance from their tenants while they are using the facilities. Food processors must also follow good manufacturing practice and have a Hazard Analysis and Critical Control Point (HACCP) plan.