PowerPoint Presentation

Andrea Patrucco

Independent consultant on urban policies and rural-urban

development | Milan | Italy

[email protected]

Urban farming business

models

21 January, 2021

Brief personal presentation

Direct experiences on management and funding of urban projects and

urban-rural initiatives. Some examples:

 OpenAgri – New Skills for new jobs in peri-urban agriculture |

Urban Innovative Action project | Municipality of Milan

 RUMORE - Rural-Urban partnerships MOtivating Regional

Economies | Interreg Europe project | Lombardy Region

 Agro-Millennials – a new metropolitan agricultural generation |

Local project funded by Cariplo Foundation | Municipality of

Gorgonzola (Milan)

Executive summary

1. Organizational models and business models in urban farming: a

close connection.

2. What are the economic impacts that urban farming produces?

3. Municipalities as activators of new urban and peri-urban

farming processes: implications of short value chains

4. Urban farming and urban economies: agricultural projects of

circular economy and agro-ecology

5. The role of citizens: from consumers to prosumers

6. Comments on environmental, economic and social sustainability

Guide for the presentation

For each point indicated in the summary I underline

elements to be considerate for business modelling

in urban farming starting from concrete examples of

my experience.

Above all the experiences:

the «pioneer and flaghip project» in Italy: the CSA

(Community Supported Agriculture) Arvaia in

Bologna.

Comments and recommendations raise from these

experiences.

Organizational models and

business models in urban

farming: a close connection.

Territorial community model

The economic sustainability of urban farming passes through necessary points

of interests:

1. Diversification of activities: in line with

the multifunctional approach of

agriculture

2. Keep business costs low: waste re-use

and apply circular economy initiatives

3. Establish relationships with citizens

who are not farmers for training and

leisure activities

4. Regulate the use of space as a shared

space for different but compatible uses.

The reference model is:

CSA - Community Supported Agriculture

• Niche and specific agri-products;

• Different urban-rural supply

chains;

• Volunteers networks

• Training courses and workshop

• Micro-generators for energy

demand

• Raw Materials from organic waste

• Multi-function spaces (outdoor and

covered) to be shared and rented

Models

MASS MARKET RETAIL

SYSTEM

ONLINE PLATFORMS

DIRECT

RELATIONSHIP

CONSUMERS

FARM

CONSUMERS

FARM

CONSUMERS

FARM

CROP

FARMER MARKETS

€

CUSTOMERS

SUPPORTERS

CSA

CSA Model (Community Supported Agriculture)

€

FARM

START

HERE

Arvaia model

FARM

CROP

€

SUPPORTERS

/COSTUMERS /

FARMERS

CROP

Arvaia is a cooperative of citizens,

producers, farmers born in 2013 in

Bologna.

 In June 2015, through a public call,

Arvaia rent from the Municipality of

Bologna 47 hectares of land farm in

the area.

 Arvaia is a CSA - Supporting

Community Agriculture - which

produces and distributes organic

products to members every week.

The shareholders finance the costs for agriculture production in January, from

the budget estimation.

The shareholders assume the risks of the CSA and benefit from everything that is

produced and distributed weekly in equal parts.

The investments necessary for production are made possible from the capital lent

by the shareholders, bound for 3 years and remunerated at 2%/year. No loans from

banks.

Arvaia model

NUMBERS:

493Shareholders in 2020 of

which 200funding shareholders.

52 active members, 9 paid workers. The annual

contribution (fee) is defined year by year based on the

estimated costs and number of contributors. Annual

contribution last year: € 780. Weekly distribution

through 10collection points in city, x 49weeks

Average weight of the weekly: 6kilos - meeting the

needs of two people (approximately).

MANAGEMENT:

 1 Board of directors

 5 Working groups: Distributions – farmers –

Communication/Events – Economy

 Shareholders’ meetings

8830

hours

voluntary work

8780

hours

paid work

What are the economic

impacts that urban farming

produces?

Economic impacts of UF

Considered as a fact the social and environmental impacts of UF, What

economic impacts derive at the territorial level?

1. Property:

2. Surroundings and

neighborhood:

3. Health care and

Employment

PUBLIC: agriculture as profitable activity in comparison to

manifacture/retail. No soil consumption. Urban plans impacted.

PRIVATE: less wastelands in urban and peri-urban area. Lower

costs for area cleaning, security and indirectly on insurances.

For both: the value of the land increases. Real Estate

changed models of development: new urban projects financed

UF areas through urban tax or tax deduction, mixing functions

and open to neighborhood.

COMMUNITY HUB: urban farming as «playground» - from private to

public. No costs for extra common infrastructures.

COMMUNITY HUB: agriculture as «outdoor gym». Less expense

on health costs.

COMPETENCES AND JOBS CENTER: starting from volunteering

but also half-time / full time workers. Job reintegration

opportunities for “new workers”.

Economic impacts of UF

Example: OpenAgri | Milan

After the project, land contracts of 15

years are offered to new farmers

Prototype business ideas on 30 hectares of public agricultural lands made

available by Municipality for the duration of the project as experimentation phase.

New companies (4) + New NGO (1) on:

• Bread as an agricultural product;

• Subscription of farm fresh flowers bike

delivered;

• Organic agriculture, biodiversity, agro-

ecosystem services;

• Precision farming focusing on water saving

technologies; short supply chains

Existing companies (4) testing new products,

services, or a new application of existing techs, on:

• Syntropic agriculture;

• Biomass from pruning into renewable energy;

• Superfood Spirulina seaweeed;

• Sustainability of Local Craft brewery

business model

Municipalities as activators of

new urban and peri-urban

farming processes: implications

of short value chains

Municipalities as innovation drivers

Example: OpenAgri | Milan

 Free temporary use of 33 hectares of agricultural land

 An extensive program of acceleration and pre-

incubation activities, advanced training, mentorship and

strategic networking, depending on the characteristics and

the maturation of individual projects.

PHASE 0 PHASE 1 PHASE 2 PHASE 3

WHAT

TERRITORIAL

ADAPTION

PRE

INCUBATION

CAMPUS

INCUBATION

AND

TRAINING

WHEN

May

– Dec 2018

Apr

– Jun 2018

Sept

– Nov 2018

Oct

– Dic 2018

WHO

Universities

local

NGOs

Avanzi

srl +

MakeACube

Chamber

of Commerce of Milan

Formaper

(inhouse of

Chamber

Commerce

)

WHAT

(2)

Territorial

context

workshop

-designed

Masterplan

Workshops

for:

targeting

, value

proposition

idea

validation.

Interlocution with possible supply

chain partners

interested in

open innovation.

Match-making

actions between supply and

demand.

Building the

business model

product and service

testing, operational

strategy and market

access.

Urban farming and urban

economies: agricultural

projects of circular economy

and agro-ecology

Agro-ecology and circular economy

Example: from RUMORE Interreg Europe project

Circular Amsterdam: Tuinen Van West – circular lab

Tuinen Van West are

4 agri-food polders

focusing on:

1. Energy-neutral

2. Self-maintenance

of public space

3. Green ‘waste’

re-used in the

area

4. Valuable water

and algae

/waterplants

5. Local food

systems

Mushrooms

producted in

cointaners

Wood waste

from Food

Forest

Worm

composting

Vegetable

garden

«butler»

Agro-ecology and circular economy

Example: from OpenAgri - Milan

CasciNet: Milan Porta Verde (Green Door) project

‘Milano Porta Verde’ aims to transform an abandoned agricultural

area in the “fringe” areas of South-East of Milan into a

demonstrative, productive and recreational Agroforestry Park

linked to a Community Supported Agriculture (CSA) scheme.

10.000 plants per hectare, transforming an agricultural area into an agro-

ecosystem capable of offering essential ecosystem services for all Milan

citizens.

The role of citizens: from

consumers to prosumers

Producers and Consumers

Agro-Millennials is a project of Nazca Mondo Alegre

Cooperative with Municipality of Gorgonzola and

other local institutions as technical schools.

The cooperative works in the fair trade market by

importing products from the world.

In 2017 decided to invest locally on urban farming

for the citizens of Gorgonzola (20,000 inhabitants).

The cooperative invests on social agriculture

activating citizens with work problems and young

graduated would-be farmers.

The cooperative uses fair trade shops to sell

agricultural products, as well as a new farmer's

market.

Example: from Agro-Millennials – Gorgonzola

Municipality (Milan area) co-financed by

Example: from Agro-Millennials – Gorgonzola

Municipality (Milan area) co-financed by

Producers and Consumers

The production area is just on 2 hectares in the north

part of the City, in the sorroundings of a residential

farmstead and in «fringe» plots between the new East

Milan ring road.

20 vegetables of different varieties guarantee the

supply for the hyper local demand. Revenues were €

20,000 for the first year.

The investments in machinery were financed by the

Banking Foundation as philanthropic body.

Comments on environmental,

economic and social

sustainability

Sustainability - comments

Urban

authorities

Urban farmers

/ pratictioners

CSA MODEL

ECONOMIC

IMPACTS OF UF

SHORT VALUE

CHAINS

(PROMOTED BY

MUNICIPALITIES)

AGRO-ECOLOGY

AND CIRCULAR

ECONOMY

PROSUMERS

Topic

New community hubs

Incremental growth

Smart use of wastelands

Land value increased (public)

Land value increased (private)

More sustainable real

estate project

Less costs in health and

employment

Territorial and neighbourhood

development

Effects on local and social innovation

New urban-rural economies

Niche products and

specific demand

Better soils in peri-urban lands

Less waste to be disposed

Mix of employment

and volunteering

Less costs on materials

Community network (citizens,

ngos, startups)

Networking with schools and

employment offices

Community Hubs

New Private and Public

partnerships

New jobs and competences

SOCIAL ECONOMIC

ENVINROMENTAL

Color legend

Questions for open discussion

1. Starting from the Arvaia model and more generally from CSA model, do you

think this model could be implemented in your local territory? Do you believe

that the answer to the economic sustainability of urban farming is in the

community?

If yes, what are the elements to start from? If not, what are the constraints?

2. Urban farming and peri-urban farming are not the same things, they are

differentiated by the "amount" of space available to work and set up the related

business plan. However, they share their proximity to the city and their relations

with the "urban economies".

In your opinion, what are the assets on which an urban farmer should focus, in

addition to agricultural production? (what services for citizens?)

3. Finally, which service do you think most important should be provided by the

local public body?

Give outdoor spaces, provide business creation support, promote events,…?

Project smedia

Thank you!

Questions welcome