New food business center aids Appalachian region

The newly formed Appalachian Regional Food Business Center is designed to help stiffen the region’s food supply chain while providing opportunities to food-related small businesses through grants and technical assistance.

The need for such assistance became apparent in 2020 with the COVID-19 pandemic causing upheavals and shortages across the country’s food-delivery system.

“The pandemic revealed obvious problems in the food supply chain in 2020 and 2021,” said Paul Freedman, director of the Appalachian Regional Food Business Center. “A good example is what happened with chicken farms. Farmers were producing plenty of chickens but ran into a lack of processing capacity. The economy of scale became an excess of chickens.”

The federal government created the $42 million program to assist seven states in the Appalachian region.

The center’s two channels of focus support the area through technical assistance and grants, Freedman said. “We are here to offer technical expertise for those doing business in the food supply chain. We will be working with 18 partners in the region and will be able to get answers about growth, processes, distribution and just about any other topic needed.”

The second part brings a sizable source of funding into play, Freedman said. “Part two holds $16.6 million in available grant money distributed across seven states. We will offer grants up to $100,000 for small to medium businesses. That’s help with processes, distribution and transport through retailing, consignment and co-ops.”

Grant funds should be available beginning sometime this fall, said Häns Kneuss of Rural Action, who also is assisting with the new business center.

The center is independently in charge of grant processing, which frees the center to provide real-world solutions, Freedman said.

While grants won’t be ready for applications until later this year, the Appalachian Regional Food Business Center is compiling lists of those who may be eligible, hoping to get ahead of the curve.

“The more people we talk to now,” Kneuss said, “and the more interest we have means we will be able to funnel more grant funding into the local economy. Some work now can help a small business get ahead of the pack before the fall.”

Kneuss reiterated the underlying need for such action. “The food supply lines just broke down during the pandemic. We want to strengthen the food supply chain in the region as much as possible. That’s the chief aim here: better distribution.”

The best way to find out if a business may be eligible for pending grant funds is to simply ask. “$100,000 can be a significant chunk for a small- or medium-sized business,” Kneuss said. “We suggest that anyone who has an idea bring it to us to talk about it. We hope to make a significant impact over the next five years or so.”

While funds cannot be used for infrastructure or building purchases, there are plenty of opportunities for small businesses with good ideas. “The experts we have available, along with the many partnerships we’re forming, means there is plenty of knowledge available to help,” Freedman said.

Meanwhile, the center will work to prepare for the fall when it will be fully up and running. “With 18 partners across seven states,” Kneuss said, “there are a lot of moving parts, a lot to work out.”

Learn more by calling Kneuss at Rural Action at 740-677-4047 ext. 400. Visit the Appalachian Regional Food Business Center at www.appalachiarfbc.org.