Assessing the Economic Impacts of Food Hubs on Regional Economies: A Framework that Includes Opportunity Cost

TLDR

Food hubs, which aggregate and distribute local food, are expanding in the U.S. but few data‑driven assessments of their economic impacts exist. The study measures net and gross impacts of a policy supporting food hub development using an input‑output methodology and a unique data set. The authors employ an input‑output-based methodology with a unique data set from a successful food hub to assess these impacts.

Abstract

The number of food hubs—businesses that aggregate and distribute local food—in the United States is growing, fueled in part by increasing public support. However, there have been few data-driven assessments of the economic impacts of these ventures. Using an input-output-based methodology and a unique data set from a successful food hub, we measure net and gross impacts of a policy supporting their development. We estimate a gross output multiplier of 1.75 and an employment multiplier of 2.14. Using customer surveys, we estimate that every $1 increase in final demand for food hub products generates a $0.11 reduction in purchases in other sectors.