>> IT'S ONE THING TO KNOW HOW TO RUN A RESTAURANT.

IT'S ANOTHER THING TO GET INTO FOOD PROCESSING.

>> IT CAME OUT OF A QUESTION.

WHY AND WHERE DOES CIDER GO.

J ARE PEOPLE NOT DRINKING CIDER?

>> IN THE EARLY 90s I CAME ACROSS THE HOME MATE -- >> IN A PLACE WE LOVE WITH PEOPLE THAT WE LOVE.

>> NOT QUITE THUNDER DOME BUT IT'S NOT NOT THUNDER DOME.

>> YOU KNOW, SOME FOOD IS JUST ABOUT PERFECT RIGHT OUT OF THE GROUND.

OR OFF THE BRANCH.

GOOD.

BUT AS MUCH AS WE ALL LOVE FRESH, LOCAL PRODUCE IN ITS PUREST STATE THE FACT OF THE MATTER IS THAT LOTS OF FOOD HAS TO GET PROCESSED IN SOME WAY, SHAPE OR FORM BEFORE FINDING ITS WAY INTO YOUR KITCHEN.

PROCESSED FOODS, PROCESSED FOODS?

I KNOW.

YOU'RE THINKING ABOUT FRUIT.

CHEESE PUFFS.

>> PROCESSES I THINK OF LIKE CHEETOS.

>> SOMETHING YOU COULD BUY OUT OF THE FREEZER AT A GAS STATION.

>> WHITE SUGAR, WHITE FLOUR, AND PROCESSED LIKE HYDROGENATED FATS.

OILS.

>> BAD MIGRAINE WHEN I EAT A LOT OF THAT STUFF.

>> BUT NOT ALL PROCESSED FOOD IS CREATED EQUAL.

>> PROCESSED FOOD DOESN'T HAVE TO BE BAD.

>> BREAD AND BUTTER FARM, I GET -- IT'S THE MOST WHOLESOME BREAD YOU COULD BUY.

>> WHEN YOU CONSIDER AN ARTISANAL ORGANIC VEGGIE BURGER MADE WITH LOCALLY FARMED BUSINESS AS A PROCESSED FOOD?

YOU SHOULD.

A LOT OF WHAT WE CALL VALUE ADDED PRODUCTS WE CAN PROCESS RIGHT HERE IN VERMONT.

THEY CREATE A CRUCIAL LINK BETWEEN FOLKS WHO GROW OUR LOCAL FOOD AND THE REST OF US WHO WANT TO EAT IT.

SO TODAY WE'RE GOING TO LOOK AT WHY THE CONCEPT OF PROCESSED FOOD HAS GOTTEN AN UNFAIR STIGMA ATTACHED TO IT AND WHY IT'S ACTUALLY SUCH A CRITICAL STEP IN GROWING OUR LOCAL FOOD SYSTEM.

WE'RE GOING TO SHINE THE LIGHT ON BOTTLENECKS AND CHALLENGES THAT A FOOD PROCESSING ENTERPRISE MIGHT FACE AND WHO IS IN NO INVESTIGATING THEIR WAY TO GROWTH AND SUCCESS.

>> WE HAVE TO COOK OVER A THOUSAND TONS OF BUSINESS A WEEK RIGHT NOW.

>> SPECIAL CHEESE IS THE FASTEST GROWING SEGMENT IN THE DAIRY INDUSTRY.

>> WAS THERE ANYONE MAKING AN ARTISAN CRACKNER VERMONT TO GO WITH ALL THESE WONDERFUL VERMONT ARTISAN CHEESES?

I DIDN'T SEE ANYONE DOING IT.

>> AFTER WHILE WE REALIZED THIS IS TAKING A LOT OF MY TIME AND THERE'S A BUSINESS HERE.

ROBIN SAID WE NEED TO SPIN THIS OFF INTO A COMPANY.

I SAID, I'LL DO IT.

>> WHILE I WAS GROWING VEGETABLES, WE CAN'T SELL ALL OF THIS.

SOME OF IT IS NUMBER 2 PRODUCT.

SOME OF IT COSMETICALLY CHALLENGED.

LET'S DO ADD VALUE TO IT.

>> THERE WEREN'T REALLY A LOT OF OPTIONS FOR CIDER.

WE STARTED DIGGING INTO SOME OF THE HISTORY THAT'S OUT THERE AND THIS COUNTRY WAS FOUNDED ON CIDER.

>> WE'RE HERE IN VERMONT BEAN CRAFTERS IN THE BEAUTIFUL MAD RIVER VALLEY IN WARREN, VERMONT.

LET'S GO PROCESS SOME FOOD!

>> I WORKED ON A HALF DOZEN DIFFERENT FARMS BEFORE STARTING BEAN CRAFTERS.

WAS BASICALLY TRYING TO FIGURE OUT WHAT TO DO WITH MY LIFE.

THIS IS JOE.

>> I WAS GROWING AN ACRE OF BLACKS BUSINESS.

>> I HAVE BEEN AN RESTAURANT OWNER.

I'M A TRAINED CHEF.

>> THIS IS ALSO JOE.

>> CERTAIN POINTS I STARTED TO BURN OUT.

THE RESTAURANT INDUSTRY IS NOT VERY KIND TO THE FAMILY LIFE.

THIS IS THE TALE OF TWO JOES AND HOW THEY CAME TO GROW THEIR OWN VALUE-ADDED FOOD BUSINESS.

>> THE MORE LAYERS OF THE FOOD SYSTEM I BEGAN SEEING THE MORE I REALIZED THERE'S A HUGE GAP IN THAT WE ACTUALLY NEEDED CONDUITS FROM FIELD TO TABLE.

WE NEEDED AMONG OTHER THINGS VALUE-ADDED PRODUCTS AND PROCESSING BECAUSE PEOPLE ARE MORE COMFORTABLE OPENING A CAN OF BUSINESS THAN PICKING THEM FROM SCRATCH.

>> AS THE STATE HAS SEEN A BOOM IN FARMERS, YOUNG FARMERS COMING BACK TO THE LAND, WELL, GUESS WHAT, YOU KNOW, YOU HAVE MORE AND MORE FARMERS ALL COMPETING FOR A VERY TINY MARKET.

>> MORE THAN ANYTHING THOSE FARMERS NEED BETTER CUSTOMERS, NOT MORE COMPETITION.

I REALIZED THAT'S WHERE I WANTED TO PUT MY TIME AND ENERGY.

>> STARTED GOING TO THE FARMERS MARKET, THE SOUP REALLY TOOK OFF.

NEXT THING YOU KNOW I'M TRYING TO RENT SPACE.

I GOT A CATERING PERMIT AND A WATER PERMIT FOR ONE OF THE LOCAL CHURCHES IN MONTPELIER.

THEY LET ME USE THE KITCHEN ON MONDAY AND TUESDAY.

WE KEPT MAKING SOUP.

HUNGER MOUNTAIN CO-OP TOOK ME ON AS A VENDOR.

THAT WAS REALLY WHAT STARTED THE DRIVE.

THEN MAD RIVER FOOD HUB OPENED UP ABOUT FOUR YEARS AGO.

>> AH, THE MAD RIVER FOOD HUB, WHERE JOE AND JOE WERE ONCE BOTH ANCHOR TENANTS.

LET'S CHECK IN ON THIS MAGIC FOOD HUBS.

>> I'M JOSHUA GIBBS, GENERAL HANGER.

WE'RE IN WAITSFIELD, VERMONT.

WE'RE GOING TO TAKE YOU ON A LITTLE TOUR.

MAYBE YOU'RE WONDERING WHAT A FOOD HUB IS.

IT AGGREGATES, STORES, PROCESSES, DISTRIBUTES AND/OR MARKETS LOCALLY PRODUCED FOOD FOR FOLKS TRYING TO GET INTO THE LOCAL FOOD BUSINESS A FOOD HUB CAN MAKE A WORLD OF DIFFERENCE.

NOW ALL OF A SUDDEN YOU HIT THE MAD RIVER FOOD HUB, YOU'VE GOT FRIDGE RATION, PERMITS, LICENSES, YOU CAN START TO SCALE.

HE WOULD USE THE 40-GALLON STEAM JACKET KETTLE.

>> YOU CAN EXPAND.

YOU CAN AFFORD TO BUY EQUIPMENT.

>> REALIZE YOU COULDN'T PRODUCE ENOUGH IN ONE 40-GALLON KETTLE SO HE BOUGHT ANOTHER ONE AND WE INSTALLED IT FOR HIM.

WE SUPPLIED THE POWER, UPGRADED THE POWER.

>> IT HAS BEEN SITTING THERE FOR, OH, A GOOD PART OF THE YEAR NOW.

WE'RE SORRY TO SEE IT GO, BUT CLASSIC INCUBATOR PROBLEM.

WE NURTURE THESE COMPANIES UNTIL THEY ARE TOO LARGE THEN WE KICK THEM OUT AND WE HAVE TO FIND NEW PEOPLE TO USE THIS SPACE.

>> I WOULD NOT HAVE BEEN ABLE TO GO FROM THE CHURCH KITCHEN TO A FACILITY BECAUSE I'M TOO SMALL.

I DON'T HAVE THE ASSETS.

I DON'T HAVE COLLATERAL, THE BANKS WON'T LOAN YOU MONEY.

YOU HAVEN'T BEEN IN BUSINESS LONG ENOUGH.

THE IDEA WAS THAT WE CREATE A PROCESSING CENTER FOR FARMERS AND FOOD PROCESSORS TO COME TO AND PROCESS THEIR VEGETABLES.

WE WOULD ALSO CREATE STORAGE PLACE.

>> THIS IS ROBIN MORRIS WHO FOUNDED MAD RIVER FOOD HUB IN 2011.

>> IT WAS CLEAR TO ME THE ONLY WAY WE COULD MAKE IT WORK WAS TO HAVE A HYBRID FOOD HUB THAT PROCESSED MEAT AND VEGETABLES.

>> I'M JAKE ONLY WITH ARTISAN MEATS OF VERMONT.

WE'RE A SMALL SCALE MEAT VALUE ADDED PROCESSOR.

WE WORK OUT OF THE MAD RIVER FOOD HUB.

I CAN'T SAY THAT I WOULD HAVE TAKEN THE LEAP TO GO OUT AND ACQUIRE THE FUNDING.

IT WOULD HAVE BEEN A QUARTER MILLION DOLLAR CAPITAL OUT LAY TO DO THIS ON MY OWN.

>> THESE PROCESSORS START OFF AND THEY GOT VERY LITTLE CAPITAL.

THESE MACHINES ARE NOT CHEAP.

>> I DID NOT HAVE THE KNOWLEDGE OR FINANCIAL EXPERTISE TO PURSUE THAT KIND OF FUNDING, AND FRANKLY I FOUND IT INCREDIBLY INTIMIDATING.

FOR 150 BUCKS A DAY AND THE COST OF A LITTLE INSURANCE I CAN COME IN AND USE ON DEMAND.

>> UNDER USDA PROCESSING GUIDELINES AND REGULATIONS THE ACTUAL PLANT PHYSICAL PLANT IS THE RESPONSIBLE PARTY, SO AS PEOPLE ARE PROCESSING MEAT HERE UNDER USDA INSPECTION, THEY ARE ACTUALLY QUASI EMPLOYEES OF THE MAD RIVER FOOD HUB WHILE HERE.

WE'RE RESPONSIBLE FOR THE MANAGEMENT OF THE FOOD SAFETY.

>> WHERE IS A POSSIBLE POINT OF CONTAMINATION AND HOW CAN I CONTROL IT OR ELIMINATE IT SO THAT WHEN I'M DONE AND IT'S PACKAGED AND LABELED AND I SHIP IT TO THE GROCERY STORE IT'S GOING TO TASTE GOOD BUT IT'S NOT GOING TO MAKE ANYBODY SICK?

>> THERE'S A HUGE CODE OF FEDERAL REGULATIONS TO FOLLOW WHEN IT COMES TO PROCESSING FOOD.

>> IS THIS USDA INSPECTION.

SANITATION IS A WHOLE 'NOTHER LEVEL.

>> YOU HAVE TO LOOK AT EVERY PROCESS AND EVERY STEP OF THE FLOW OF FOOD THROUGH THE ESTABLISHMENT.

>> IT'S THAT BIG SHIFT FROM A RESTAURANT MENTALITY OR EVEN SOME OF THE PEOPLE COMING IN AND THERE'S THIS HUGE THING ABOUT REGULATION AND SANITATION THAT IS VERY DIFFERENT.

YOU'RE GOING INTO ANOTHER PROFESSION BASICALLY.

>> PRODUCERS ARE GENERALLY INTIMIDATED BY INFECTION AT FIRST.

GIANT BUREAUCRATIC BODY THAT WANTS TO GOVERN EVERYTHING I DO.

>> REALLY THE INSPECTORS ARE HERE TO HELP YOU MAKE SURE YOUR CUSTOMERS ARE SAFE.

TAKES A LOT TO MAKE SURE THAT THE PRODUCERS THEMSELVES ARE DOING THE THINGS CORRECTLY, DOCUMENTING THE RIGHT STEPS.

>> SWE HAVE A GREAT INSPECTION TEAM IN VERMONT.

THEY ARE HERE TO WORK WITH YOU TO MAKE SURE THAT YOU'RE NOT GOING TO KILL ANYBODY.

[LAUGHTER] >> THE LOCAL FOOD CHAIN IS VERY FRAGILE AND WE WILL BREAK IT QUICKLY IF WE START GETTING PEOPLE SICK.

>> THERE'S A HUGE DEMAN FOR PROCESSING FACILITIES.

WHEN IT'S GOING TO JUST KEEP INCREASING AS THIS NEW FEDERAL REGULATION COMES THROUGH CALLED FOOD SAFETY MODERNIZATION ACT, YOU'RE GOING TO LOSE HOME CATERING EXEMPTION.

PEOPLE ARE NOT GOING TO BE ABLE TO PROCESS IN THEIR KITCHENS.

THAT'S HOW A LOT OF THESE TINY BUSINESSES START.

YOU'RE JUST NOT GOING TO BE ABLE TO DO IT.

YOU'RE GOING TO HAVE TO HAVE A FACILITY LIKE A FOOD HUB THAT'S LICENSED, SANITARY, REGULATED.

YOU HAVE TO RENT TIME AND AWAY YOU GO.

>> HURRAY FOR FOOD HUBS.

THEY ARE A GREAT WAY TO GET INTO THE GAME.

BUT WHAT IF YOU'RE NOT SO SURE YOU WANT TO BE THE ONE WHO ACTUALLY MAKES, PACKS AND SHIPS YOUR PROCESSED FOOD?

ENTER CO-PARKING, A CLEVER, INNOVATIVE FOOD PROCESSING SOLUTION.

AT BRISTOL BAKERY WHITNEY SHOWS US HOW THINGS ARE CHANGING.

LIKE HER VERY OWN CRACKERS.

>> IN THE EARLY '90s I CAME ACROSS A HOME MADE CRACKER RECIPE AND WOULD MAKE IT FOR FAMILY AND FRIENDS OVER THE YEARS.

PEOPLE WOULD SAY, YOU SHOULD SELL THESE.

I WOULD BE LIKE, YEAH, YEAH.

THEN I STARTED PAYING ATTENTION TO ALL THE VERMONT CHEESE COMPANIES POPPING UP AROUND THE STATE.

I TOOK BABY STEPS BUT THOSE BABY STEPS SORT OF EXPLODED.

MY WHOLE HOUSE WAS COVERED WITH CRACKERS IN A VERY SHORT AMOUNT OF TIME.

I QUICKLY OUTGREW MY HOME AND A BUSINESS CONSULTANT FRIEND HELPED ME.

I NEED OVENS.

I CAN'T KEEP DOING THIS BY MYSELF.

HE SAID WAIT A SECOND.

DO YOU WANT TO BE MAKING CRACKERS DAY IN AND DAY OUT OR DO YOU WANT TO FINE A MANUFACTURER TO PRODUCE YOUR CRACKERS THAT YOU OVERSEE BUT THEN YOU CAN FOCUS ON SALES AND MARKETING AND GROWING THE COMPANY.

AND THAT REALLY RESONATED WITH ME.

SO THAT STARTED MY JOURNEY OF WORKING WITH CO-PACKERS AN THE STATE OF VERMONT.

>> EVENTUALLY WHITNEY AND HER CRACKERS FOUND KEVIN HARPER AND HIS BAKERS.

WITH KEVIN'S MANUFACTURING KNOWLEDGE AND A TEAM OF SKILLED WORKERS, WHITNEY FOUND A HOME WHERE HER CRACKERS WOULD BE MADE FOR HER SO SHE COULD FOCUS ON SELLING THEM.

>> SPECIALTY MANUFACTURING IS WHERE I WOULD SAY YOU COMMIT TO A GIVEN SEGMENT, INDICATE-GOER OF PRODUCTS AND YOU GO DEEP AND WITH A RANGE OF SERVICES THAT WE PROVIDE YOUR PROSPECTIVE CUSTOMERS.

>> IT'S LIKE SENDING A CHILD TODAY CARE.

IT'S YOUR BABY, YOU HAVE YOUR VISION.

YOU KNOW WHAT YOU WANT FROM START TO FINISH FOR YOUR PRODUCT.

GETTING THAT MANUFACTURER TO UNDERSTAND THAT AND REALLY BUY INTO YOUR CONCEPT AND YOUR VISION.

>> IF WE'RE COMMITTED TO THE LOCAL MOVEMENT AND SUSTAINABLE AGRICULTURE THAT WE NEED TO BE COMMITTED TO SUSTAINABLE VALUE ADDED MANUFACTURING.

>> THIS ALL SOUNDS GREAT BUT ARE THERE ENOUGH CO-PARKERS IN VERMONT TO GIVE LOCALLY PROCESSED FOOD THE BOOST IT NEEDS?

>> VERMONT ESPECIALLY IN THE FOOD WORLD HAS SUCH A STRONG BRAND.

YES ON THE MANUFACTURING SIDE THERE ARE CHALLENGES FOR SORT OF MIDDLE LEVEL FOOD PRODUCERS IN THE STATE.

THERE WAS A TIME PERIOD AFTER BEING IN RANDOLPH THAT I ACTUALLY HAD TO TAKE PRODUCTION OUT OF THE STATE.

IT BROKE MY HEART BECAUSE PART OF MY STORY WAS I'M A VERMONT PRODUCT BUT IT'S ALSO AS A BUSINESS OWNER WANTING TO BUILD AND GROW MY BRAND DO I STOP GROWTH BECAUSE IT CAN'T BE MADE IN VERMONT?

I DID HAVE TO MAKE THAT DECISION.

>> LUCKILY FOR US KEVIN STEPPED IN AND BROUGHT THE CRACKERS HOME.

BUT WHY AREN'T THERE MORE LOCAL CO-PACKERS, PROCESSING MORE LOCAL FOOD IN VERMONT?

>> THIS MODEL COMES WITH A CERTAIN AMOUNT OF RISK AND I'M FRANKLY NOT SURE I FIGURED OUT HOW TO MITIGATE THAT RISK.

YOU CAN'T TAKE ON TOO MANY.

YOU'LL DILUTE YOUR SERVICE BUT YOU CAN'T TAKE ON TOO FEW BECAUSE IT ONLY TAKES ONE TO FADE AWAY AND NOT BE IN BUSINESS ANY MORE.

IT CAN BE DEVASTATING.

>> YOU CAN GET A JUMP-START IN A LOCAL FOOD HUB.

>> YOU CAN FIND A CO-PACKER TO SPLIT YOUR WORKLOAD OR TAKE THE BULL BY THE HORNS AND DO IT ALL YOURSELF.

HERE ARE TWO OF VERMONT'S FAVORITES TO TELL US THEIR STORIES OF GREAT SUCCESS AND WHAT THAT MEANS TO THEIR FOOD COMMUNITY.

JASPER HILL FARM IS A TYPICAL HILLSIDE FARM IN THE NORTHEAST KINGDOM.

IT'S ROCKY, HILLY.

WELL SUITED FOR GRAZING COWS.

>> WITH THE POSSIBLE EXCEPTION OF BOILING MAPLE SAP DOWN INTO SYRUP THERE'S NO MORE BELOVED QUINTESSENTIAL VERMONT PROCESSING PASTIME THAN TURNING MILK INTO CHEESE.

AND NO ONE DOES IT BETTER THAN THE FOLKS AT JASPER CELLARS IN GREENSBORO.

THEIR BLEU CHEESE WAS RECENTLY AWARDED BEST RAW CHEESE IN THE WORLD.

>> IT'S BEEN AN INCREDIBLE RUSH, KIND OF TAIL OF THE DRAGON EXPERIENCE.

>> NO JOKE.

MAKE NO MISTAKE, THE BROTHERS BEHIND THE BAYLEY HAZEN BLUE HAVE A MISSION FIRMLY ROOTED FROM THE HILLS OF THE NORTHWEST KINGDOM.

>> WE'RE LOOKING AT DEVELOPING ECONOMIC MECHANISMS TO TAKE CONTROL OF OUR PRICE AND TO CREATE THE CIRCUMSTANCES WHERE A DAIRY PRODUCER COULD OPT OUT OF GLOBAL COMMODITY MARKETS.

>> WHAT IS THIS AN ECON CLASS?

LET ME BREAK IT DOWN.

A COMMODITY LIKE DAIRY IS A PRODUCT WHERE THE PRICE IS SET BY THE GLOBAL MARKETPLACE.

SO YOU WANT TO GET PAID MORE FOR YOUR COMMODITY YOU NEED TO ADD VALUE TO IT.

>> SPECIALTY CHEESE IS THE FASTEST GROWING SEGMENT IN THE DAIRY INDUSTRY.

IT CAN DELIVER JUST RETURN MANY MULTIPLES OF WHAT COMMODITY MILK MIGHT BE.

A DIFFERENT KIND OF BUSINESS.

A LOT MORE COMPLICATED.

WE LEARNED THAT EARLY ON.

WE CAME INTO THIS BUSINESS A LITTLE STARRY EYED AND IT'S AMAZING WHAT HAS HAPPENED WITH AMERICAN CHEESE IN THE LAST TEN YEARS.

WE HAVE BEEN A PART OF THAT.

>> I DOUBT THAT THE ANCIENT ROMANCE EVER TALKED IN TERMS OF VALUE-ADDED PRODUCTS, BUT THE GATHERING AND PRESSING OF CIDER DOES GO BACK LITERALLY MILLENNIA.

CIDER IS HAVING A BIT OF A RENAISSANCE AND VERMONTERS ARE DOING CIDER AS WELL AS ANYTHING.

>> OUR WHOLE PROCESS HAS EVOLVED DRAMATICALLY.

WE STARTED WITH 40 GRAND WITH FRIENDS AND FAMILY MONEY.

BUILT A NETWORK OF SUPPLIERS AND BUILT A MARKET OF INTEREST.

>> YOU KNOW WHO IS ESPECIALLY LOVING THIS REVIVAL?

APPLE GROWERS.

AT CITIZEN CIDER IN THE SOUTH END WE LEARNED WHY PROCESSING A POPULAR PRODUCT LEADS TO CRAZY DEMAND FOR LOCAL APPLES.

>> WE DID A LITTLE OVER 5,000 GALLONS THAT FIRST YEAR AND THAT TANKER TRUCK HOLDS OVER 6,000 GALLONS.

WE'RE IN A ONCE A WEEK COMES IN WITH 6,000 GALLONS OF FRESH JUICE TO FERMENT.

>> WE'RE PROBABLY THE BIGGEST BUYER OF WHOLE FRUIT IN VERMONT.

CIDER IS A FEW DOLLARS MORE BUT IT'S BECAUSE OF HOW WE'RE INVESTING IN THE LOCAL SYSTEM TO GET THIS PRODUCT TO YOU.

>> WHEN WE FIRST CAME ON TO THE SCENE IT WAS LIKE THE FRUIT THAT HE'S GUYS WERE SELLING FOR PROCESSING CIDER APPLES THEY WERE GETTING NOTHING FOR IT.

LIKE A BREAK EVEN DEAL.

WE HAVE BEEN PAYING, YOU KNOW, ABOVE MARKET PRICE FOR THAT FRUIT.

TRYING TO KIND OF RAISE THAT UP.

>> THAT'S ONE WAY THAT THIS BEAUTIFUL LOCAL FOOD SYSTEM CAN WORK.

ONCE YOU GET BIG ENOUGH YOU CAN HELP OTHERS GROW.

BACK TOMA TE'O.

>> HE ASKED US TO MAKE FOR THEM AN ENGLISH STYLE RAW MILK CHEDDAR.

>> CABOT IS THE GIANT OF VERMONT CHEESE LAND.

THEY ARE A HELPFUL, FRIEND LIP GIANT.

>> THE CHEESE WAS DELICIOUS.

WE KNEW WE WERE ON TO SOMETHING.

AND IN 2006 CABOT WON BEST OF SHOW AT THE AMERICAN CHEESE SOCIETY.

HAS PLAYED A VERY IMPORTANT ROLE.

IT GAVE US THE WEIGHT WE NEEDED TO BUILD NATIONAL DISTRIBUTION.

SO IT'S BEEN A REALLY IMPORTANT PART OF MAKING ALL THIS HAPPEN.

LIKE TO HONOR AND ACKNOWLEDGE.

THE ROLE THAT BIG COMPANY LIKE CABOT HAS PLAYED IN HELPS TO JUICE THE WHOLE ARTISAN CHEESE INDUSTRY IN VERMONT.

>> JASPER HILL IS NOW PAY BE IT -- PAYING IT FORWARD.

>> IT'S BEEN 12 YEARS SINCE WE STARTED MILKING COWS AND IT FEELS LIKE WE'RE JUST REALLY GETTING GOING.

GETTING TO THE WORK THAT WE'RE REALLY INTERESTED IN DOING, WHICH IS AROUND COMMUNITY DEVELOPMENT AND AGRICULTURAL DEVELOPMENT.

WE HAVE THE INFRASTRUCTURE, WE BUILT MARKET.

NOW WE'RE IN THE PROCESS OF BUILDING FARMS.

>> ONE.

WAYS THEY MAKE THIS HAPPEN IS BY BEING THE KORTEN AND THE.

>> AT THE VERMONT FOOD VENTURE CENTER.

>> WE'RE IN THE CENTER OF THE FOOD VENTURE CENTER, THE ANCHOR TENANTS.

>> JASPER HILL AND THE FOOD VENTURE CENTER HAVE CREATED A DEDICATED SPACE TOGETHER WHERE SMALL CHEESE PRODUCERS CAN COME TO GROW THEIR BUSINESS WITH THE HELPING HAND OF JASPER HILL.

LET'S GET MORE DETAIL.

>> THEY USE THIS FACILITY AS THE PLACE WHERE THEY ARE SCALING UP A CHEESE PRODUCTION LINE.

>> CHEESE THAT'S DEVELOPED HERE AT JASPER HILL FARM GROW TO 20, 30 TONS OF PRODUCTION, MOVES TO THE FOOD VENTURE CENTER.

SCALE THAT UP, THEN MOVE THAT CHEESE AND THE CHEESE MAKER AND THE EQUIPMENT TO A FARM.

SO IN ESSENCE WE'RE WORKING ON DERISKING THE START-UP OF NEW FARM FED CHEESE BUSINESSES.

>> JASPER HILL'S HELPING HAND GOES BEYONDING KU BAITING OTHER MAKERS.

BEING A CORE TENT AND THE HERE IS ESSENTIAL FOR THE FOOD HUB'S VIABILITY.

>> THIS EVEN THOUGH IT'S NOT TO SCALE IS A GOOD MAP OF THE FOOD VENTURE CENTER.

ONE OF THE THINGS IN THE DESIGNING OF THIS BUILDING WAS THE IDEA THAT LIKE A SHOPPING MALL, YOU WOULD WANT ANCHOR TENANTS WHO COULD PAY THE RENT AND WHO WERE ESTABLISHED BUSINESSES THAT WERE GOING TO BE ABLE TO CONTINUE DESPITE UPS AND DOWNS IN THE ECONOMY.

THESE TWO ALLOW US TO PROVIDE THESE OTHER SERVICES BECAUSE THEY HELP -- THEY ARE HERE 24 HOURS A DAY, SEVEN DAYS A WEEK, AND THEY HELP PAY THE RENT.

THEY ALLOW FOR OUR SMALL INCUBATOR CLIENTS TO SEE WHAT IT IT TAKES TO GET TO THE SCALE OF A SUCCESSFUL MILLION PLUTS DOLLAR BUSINESS.

IT'S LIKE HAVING THE HIGH SCHOOLERS WORKING WITH THE ELEMENTARY SCHOOLERS.

IT REALLY IS TERRIFIC TO HAVE THAT GRADUATED KIND OF BUSINESS.

WE'RE ALL IN ONE PLACE.

>> BY THE WAY, THE AMAZING WOMAN WE HAVE BEEN TALKING TO IS SARAH WARRING, EXECUTIVE DIRECTOR FOR THE FOOD EVENTUAL CENTER.

>> FROM HERE ACROSS TO ABOUT HERE PEOPLE DON'T REALLY UNDERSTAND WHAT HAPPENS.

THIS IS A PART OF THE FOOD SYSTEM THAT IS OFTEN INVISIBLE.

THIS IS WHERE ALL THE FOOD SAFETY REGULATIONS COME IN.

THIS IS WHERE ALL OF THE LICENSING AND LIABILITY AND INSURANCE ASPECTS COME IN.

THIS IS WHERE SIGNIFICANT CONTRACT AND DEALS WITH COMPANIES COME IN TO BE ABLE TO MOVE AND MANAGE AND HANDLE ALL OF THAT FOOD STUFF.

ONE OF THE THINGS I LIKE TO SAY IS THAT FARMERS AND CHEFS ARE PRETTY SEXY AND THAT OUR MISSION IS TO MAKE HAIR NETS AND HAND SANITIZER JUST AS SEXY AS FARMERS AND CHEFS.

>> LOADS OF SMALL BUSINESSES BENEFIT FROM THE FOOD VENTURE CENTER.

STILL THAT'S ONLY PART OF WHAT THEY DO.

>> SO IN THIS KITCHEN, WE ARE PROCESSING BROCCOLI AND THIS HAS COME FROM LOCAL FARMS.

WE HAVE AGGREGATED IT HERE AND WE'RE CHOPPING IT AND MAKING IT INTO BASICALLY ALMOST THE EXACT SAME PRODUCT THAT A COLLEGE OR HOSPITAL OR SCHOOL WOULD BE USING FROM JOLLY GREEN GIANT OR RINEHART OR WHOEVER BUT THE IDEA IS THIS IS LOCAL.

SO THEY ARE OFTEN WILLING TO PAY MORE.

IT'S ALSO CREATING JOBS HERE IN VERMONT.

AGAIN, THIS IS WHERE THAT PIECE ON THE MURAL IS SO IMPORTANT TO US BECAUSE THERE ARE JOBS IN THE FOOD WHICH WHICH ARE NOT FARMING AND AREN'T CHEFS BUT ARE SOMEWHERE IN THE MIDDLE.

IT ALLOWS US TO TRY TO CREATE A MARKET PATHWAY FOR FARMERS THAT WOULD INCREASE THEIR VIABILITY ON THE LANDSCAPE.

ULTIMATELY IF WE LOSE OVR LANDSCAPES, OUR WORKING LANDSCAPES, THEN THIS ENTIRE FOOD SYSTEM IDEA IS NOT GOING TO BE FEASIBLE.

RIGHT?

SO WE'RE TRYING TO CREATE A HIGHER VALUE AND WE'RE ALSO TRYING TO CREATE A LARGER MARKET FOR THEIR LOCAL PRODUCT BY DOING THE PROCEEDING HERE.

>> WHY IS IT SO IMPORTANT FOR US TO DO THE PROCESSING HERE?

WELL, WHEN YOU LOOK AT THE INFRASTRUCTURE OF THE GLOBAL ECONOMY AND WE LOOK AT THINGS LIKE POLLUTION AND WATER QUALITY AND SOILS AND OUR LIMITED NATURAL RESOURCES IF WE DON'T MAKE BETTER USE OF WHAT WE HAVE HERE WE WILL BE AT THE WHIM OF THOSE TRENDS THAT ARE HAPPENING GLOBALLY AND IF WE DO MAKE BETTER USE OF IT WE WILL BE RESILIENT THROUGH THOSE CHANGES.

I THINK THAT FOR US IS REALLY CRITICAL.

IF WE DON'T HAVE JOBS WE DON'T HAVE A SUSTAINABLE COMMUNITY.

IF WE DON'T HAVE FARMS WE DON'T HAVE A SUSTAINABLE FOOD SOURCE.

IF WE DON'T HAVE CONNECTIONS TO OUR DISTRIBUTORS OR SCHOOLS OR HOSPITALS WE'RE NEVER GOING TO BE ABLE TO KEEP A CONSISTENT MARKET GOING .

WE'RE FIGHTING AGAINST A FOOD SYSTEM THAT IS CHEAP AND EASY AND FAST.

AND IT'S ENORMOUS.

IT'S ENORMOUS.

WHAT WE'RE DOING HERE IS A VERY SMALL THING BUT IT'S SO IMPORTANT WHEN WE THINK ABOUT THE FUTURE.

IT'S A REALLY LOW PRESSURE KIND OF INCREDIBLE.

GIVES ME THE SHIVERS WHEN I THINK ABOUT IT.

>> HOW DO WE GET MORE RAW, LOCAL INGREDIENTS INTO FOOD THE PUBLIC WANTS?

HONESTLY WE HAVE A LONG WAY TO GO, BUT A HANDFUL OF SMART, SAVVY LOCAL ENTREPRENEURS ARE SHOWING HOW IT'S DONE.

>> THE GOAL HAS REALLY BEEN TO USE CHEESE TO TRANSFORM OUR COMMUNITY BY CREATING A DIFFERENT KIND OF ECONOMIC REALTY HERE.

>> LAST YEAR IN OUR BUSINESS THERE WERE EIGHT REAL ESTATE TRANSACTIONS.

THEY ARE BABIES POPPING OUT ALL OVER THE PLACE.

IT'S WORKING.

WE'RE BUCKING THE TREND UP HERE.

>> WE'RE STILL COOKING.

IT'S NOT A FACTORY.

WE'RE A SEMI FACTORY.

[LAUGHTER] ALMOST FACTORY BUT YOU KNOW IT'S STILL PRETTY PERSONAL.

>> WE JUST SENT OFF 750 BOSTON BURGERS.

A THOUSAND FALAFEL.

I DON'T EVEN KNOW WHAT SCHOOLS THEY ARE GOING TO ANY MORE.

THEY ARE GONE AND IT'S REALLY COOL.

THERE'S SO MUCH WORK LEFT TO BE DONE.

>> THE BIG THRILL IS SHOWING MY KIDS YOU CAN DO WHATEVER YOU WANT IF YOU HAVE THE HEART AND THE PASSION.

>> TALKED TO A LOT OF PEOPLE THIS EPISODE.

ONE THING WE HAVE LEARNED, THERE ARE A BUNCH OF GREAT BUSINESSES JUST WAITING TO BE LAUNCHED PUTTING LOCAL INGREDIENTS INTO CONVENIENT, COMFORTING, FAMILIAR MEALS THAT WE'LL ALL ENJOY.

WE'LL SEE YOU NEXT TIME.

>> MAKE SURE TO COME BACK FOR THE NEXT EPISODE OF THE LOCAL MOTIVE WHEN WE MOVE INTO THE EXCITING WORLD OF DISTRIBUTION.

DISTRIBUTION, DESCRIBE DRUGS, DAN CHRISTOPHER BUGS.

THERE ISN'T ANY DISTRIBUTOR OUT THERE WHO SAYS I GOT IT EASY.

>> THIS HAS ABOUT 425,000 CUSTOMERS.

ABOUT 45,000 ASSOCIATES.

500 BILLION DOLLAR A YEAR COMPANY.

>> SOMETIMES IT CAN BE EASIER TO GET A HEAD OF LETTUCE FROM CALIFORNIA THAN DOWN THE ROAD.

>> I HAVE TO GET MY TOMATOES ON THEIR TRUCKS.

>> I'LL LOOK AT HOW THE LOCAL FOOD SYSTEM IN VERMONT CAN OVERCOME THE CHALLENGES AND BOTTLE NEXT IT FACES TO EFFICIENTLY AND EFFECTIVELY DISTRIBUTE THE LOVE.

>> PRODUCTION OF THE LOCAL MOTIVE IS SUPPORTED IN PART BY BEN AND JERRY'S.

CITY MARKET.

GARDENER'S SUPPLY COMPANY.

HANOVER CO-OP FOOD STORE.

HICKOK AND BOARDMAN INSURANCE GROUP.

PRICE CHOPPER.

UVM DINING.

THE VERMONT COMMUNITY FOUNDATION.

VERMONT FARMS NETWORK.

BSEC U.