Food Bank Business Model Debated

There has been great back and forth in response to Carla Dearing's recent post, "When the Food Bank Loses Its Business Model." In essence, Carla suggested that food banks forced to buy food (rather than simply distributing donated food) are operating under a new business model that for-profit providers like Wal-Mart might actually do better.

Here are few points made by PhilanthroMedia readers in response:

- On the flip side there is quite a bit of press here in Washington DC in recent days that our big food bank - Capital Area Food Bank - has so much product they have outgrown their facility. And they are looking to the city to help provide a bigger warehouse (Donna)

- Actually, most food banks have good relationships with many food suppliers, so they can broker deals at (or even below) cost. Here at the Food Bank of Central New York, we can acquire about $10 worth of food for every dollar donated. Also, if we are purchasing some of our inventory instead of only stocking donated items, we are better able to provide healthy and nutritious food to those who need it most -- making sure our products aren't too high in sodium, saturated fat, etc., and providing all the many nutrients a person needs. Finally, buying produce from local growers has three benefits: healthier food for folks who can't always afford fresh produce; a longer shelf life than most donated produce; and strengthening the local economy, which helps everyone. (Stephanie C.)

- Walmart could be a perfect partner in addressing hunger at the local level - but not necessarily in the way you describe. The fact is that hunger in this country is not because of a lack of food - it is plain and simply the result of poverty. Walmart employees and other low-income service employees who are piecing together a living from working 2 or 3 part-time jobs are the very same people showing up at food pantries. Really, Walmart (and big companies like Walmart) could play a more significant role in ending hunger by paying its employees a living wage - not by brokering better deals on food that then gets passed to food banks that then in turn gets passed to food pantries and shelters and then finally gets distributed to low-income Americans. (Gabi)

To me, the most important point is that business models like this one deserve to be debated, in search of ever greater efficiencies that can squeeze maximum impact from limited resources. I find it thrilling to be in on these debates.

Susan Herr