Australia’s food system is under pressure. Climate disruption, rising costs and growing demand for transparency are creating complex challenges for farmers, food businesses and communities. A new report from Food Connect Foundation argues that the solution lies in rebuilding the “missing middle” of food infrastructure, and offers a strategy for how communities, industry and investors can do exactly that.
‘Regenerating the Regions: How Food Hubs Can Build Resilience,’ authored by Food Connect Foundation Co-CEOs Robert Pekin and Emma-Kate Rose, distils more than two decades of experience in developing resilient, place-based food systems. Central to that experience is Brisbane’s Food Connect Shed – Australia’s first community-owned food hub. Its home warehouse was purchased in 2018 after raising $2 million in equity from more than 500 “Careholders,” with a diverse mix of both impact funders and “mum and dad” investors putting in as little as $500.
Since then, Food Connect Shed has demonstrated a viable hybrid model that blends commercial operations with social enterprise principles. It has supported hundreds of farmers and small businesses with access to otherwise cost-prohibitive resources including cold storage, commercial kitchens, processing facilities and networks.
‘The Shed’ (as it’s referred to by its supporters) reached profitability within two years, and creates an estimated social return of $3.20-$4.80 for every dollar invested. Rose and Pekin say its unique model can be replicated by other regions looking to localise supply chains, in turn boosting their economies and community food security.
“When farmers are backed by the infrastructure they need, the results speak for themselves,” Rose said. “This report shows how regional hubs can deliver real economic and social impact when the model is replicated.”
Rebuilding the “missing middle” - what food hubs do and why they matter
The report says that Australia’s food system is constrained by a lack of mid-scale regional infrastructure – the critical “missing middle” that connects producers to markets. While large processors and distributors dominate mainstream channels, smaller regenerative and niche producers face barriers in storage, packing, processing and logistics that would allow them to reach more customers and scale.
Food hubs are shared-use facilities designed to help farmers and small food businesses overcome those barriers. They aggregate produce, provide essential infrastructure, offer business support, and connect producers and SMEs with buyers and other important commercial relationships. They can also provide a social space for the wider community, creating positive associations, active participation and greater visibility for farmers.
Pekin and Rose say this shortens supply chains, reduces risk for producers, increases access to nutrient-dense local food, and ensures that value stays within local communities. When designed as hybrids - combining commercial operations with social enterprise principles – they also create circular, regenerative feedback loops that improve landscape health and build long-term community resilience.
A national investment opportunity
The report outlines not only the impact a coordinated network of food hubs could have on Australia, but crucially, a roadmap for funding it.
“Food hubs require an average of $4 million to establish, while the healthcare food budget alone exceeds $500 million annually,” Rose said. “Imagine if just a fraction of that was redirected to building the infrastructure to improve access to local produce that’s good for both people and planet – the benefits would be far-reaching.”
Drawing from the positives of Food Connect Shed’s diverse investment mix, the report highlights opportunities for co-investment between business, community shareholders, private capital, philanthropy and government – not leaving it to any one group.
The ROI? For farmers, it’s plugging the crucial infrastructure gaps hindering market access and fair prices. For manufacturers, wholesalers and retailers, the model means investing in access to more diverse, regionally based suppliers, improved freshness and provenance, and shorter, more transparent chains. Communities and governments benefit from stronger local economies, greater food security and more nutritious food.
For Rose, the message is clear: “We’ve seen what’s possible when communities invest in their own future. We’ve got the blueprint, now we need to replicate that success to rebuild the infrastructure Australia urgently needs - for farmers, for our health, for climate, and for secure access to food.”
Read the report in full at fcf.org.au.
Rose and Pekin will be sharing their insights and strategy in a free webinar on 27 November – registration via Humanitix.
