What is a Food Hub? Benefits & How They Support Local Food Systems

Imagine shopping from dozens of local farms in one place, without needing to drive across the countryside or wait for the next weekend market. That kind of convenience and connection is exactly what food hubs make possible. These hubs are becoming a vital part of building stronger and more resilient local food systems.

As demand grows for regionally sourced food, transparent supply chains, and sustainable farming practices, food hubs are helping fill the gap. They connect farmers with buyers and make it easier for communities to access fresh, locally produced food. They also support the producers who need it most. According to national data, 89 percent of food hubs mostly or exclusively purchase from small to mid-size farms.

In this article, you’ll learn what food hubs are, how they work, the benefits they offer, and the challenges they face. You’ll also see how tools like Local Line are helping food hubs grow and operate more efficiently in both the United States and Canada.

Key takeaways

• Food hubs help local farmers sell their products by collecting food from many producers and delivering it to customers, stores, and restaurants.
• They make it easier for communities to buy local food all in one place, instead of going to multiple farms or markets.
• Food hubs support local economies by creating jobs, helping small farms grow, and keeping money in the region.
• Tools like Local Line help food hubs run smoothly, saving time and making it easier to manage orders, inventory, and deliveries.
• Food hubs are becoming more common in Canada and the U.S. as more people look for fresh, local, and sustainable food options.

What is a food hub?

A food hub is a business or organization that helps local farmers and food producers sell their products to nearby markets. It serves as a central point for collecting, storing, marketing, and distributing food, making it easier for producers to reach more customers and for buyers to access local goods.

The USDA defines a food hub as an entity that actively manages the aggregation, distribution, and marketing of food products, primarily from local and regional producers. There are more than 400 food hubs currently operating in the United States. Some focus on wholesale distribution, others prioritize access to healthy food, and many work to reduce food insecurity.

In Canada, food hubs often take on a broader role. In addition to distribution, they may focus on improving food access, supporting small-scale processing, and building community food security. Federal and provincial programs, such as the Local Food Infrastructure Fund (LFIF) and networks like Local Food and Farm Co-ops in Ontario, are helping expand these models to support farm viability, address rural food insecurity, and promote sustainable agriculture.

How food hubs differ from farmers markets and co-ops

Food hubs, farmers markets, and co-ops all support local food systems, but they serve different purposes and operate in different ways.

• Farmers markets are direct-to-consumer spaces where individual producers sell their products directly to shoppers, typically in person and on specific days.
• Food co-ops are member-owned grocery stores. While some prioritize local food, many carry a wider range of products based on member demand.
• Food hubs act as intermediaries. They collect products from multiple producers and handle aggregation, storage, marketing, and distribution. Some food hubs sell directly to consumers through online stores or pickup points, but many also supply wholesale buyers such as restaurants, institutions, and retailers.

Food hub operations are designed to reduce the burden on small and mid-sized farms by managing logistics, outreach, and sales, allowing producers to focus on growing food rather than coordinating orders and deliveries.

How food hubs work

Food hub collaborations and businesses are designed to make it easier for producers and consumers to connect. The core functions of food hubs include:

• Aggregation: Collecting products from multiple farms and vendors
• Storage and handling: Cold storage, packing, and labelling
• Distribution: Coordinating delivery or pickup to customers
• Marketing and branding: Representing producers under a shared regional or hub brand
• Customer relationships: Managing buyer accounts, communications, and recurring orders

On average, each food hub maintains relationships with 79 producers or suppliers, showcasing the value of hubs as collaborative platforms.

The role of digital tools and platforms

Running a food hub manually can be complex. Many now rely on digital platforms like Local Line, a Canadian-built software that enables food hubs to manage:

• Online storefronts for multiple producers
• Centralized order and inventory systems
• Customer communications and logistics
• Reports, invoices, and producer payouts

Local Line is used by hundreds of food hubs and farms across North America to simplify their operations and expand their reach.

Benefits of food hubs

1. Economic benefits

• Better market access: Producers, especially small and medium-sized farms, can sell more consistently without needing to attend multiple markets.
• Fair pricing: 82% of food hubs said their work helps small- and mid-sized farmers get fair prices and reach more markets.
• Support for local economies: By keeping food dollars circulating within communities, food hubs drive regional development.

2. Environmental benefits

• Reducing transportation distances lowers the carbon footprint.
• Support for regenerative and organic practices through value-based sourcing policies.
• Lower waste with targeted ordering, shorter shelf life, and responsive demand planning.

3. Social benefits

During the COVID-19 pandemic, food hubs provided essential services while continuing to support local farmers and producers. Their community-focused nature makes them flexible and responsive in times of need.

• Food security: Hubs often work with local charities, schools, and food banks to improve access to fresh food.
• Inclusive opportunities: Many hubs support Indigenous producers, women-led farms, and newcomers.
• Community connections: From educational programming to volunteer opportunities, food hubs strengthen civic engagement.

Challenges food hubs face

While food hubs offer many benefits, they aren’t without obstacles. Disadvantages food hubs face include:

• Funding and sustainability: Many rely on food hub grants, donations, or government support, especially in early stages.
• Logistics complexity: Coordinating pickups, inventory, and delivery is resource-intensive.
• Regulatory compliance: Food safety, labelling, and health codes can be burdensome for small teams.
• Balancing needs: Producers want flexibility; buyers expect consistency; managing both is an ongoing challenge.

Food hubs in the United States

The USDA has supported food hub growth through grants, research, and regional food system partnerships. Examples of successful U.S. hubs include:

• Region Roots (Northwest Indiana) – A wholesale and community-based food hub partnering with small and mid-sized farmers.
• Red Tomato (Northeast) – A non-profit marketing and distribution company focused on EcoCertified fruit, strong regional farms, and more equitable supply chains.
• Common Market (Mid-Atlantic, Southeast) – A mission-driven wholesale regioinal food distributor that works with institutional buyers.
• GrowFood Carolina (South Carolina) – The state’s first local food hub, focused on connecting small-scale farms with retail and wholesale markets.
• Spork Food Hub (California) - One of many food hubs in California that focus on local procurement from sustainable family farms.

Food hubs in Canada

Food hubs in Canada are supported through federal programs like the Local Food Infrastructure Fund (LFIF) and provincial initiatives such as Ontario’s Greenbelt Fund.

Examples include:

• Eat Local Huron (Huron County, Ontario) – A centralized way for residents of Huron County to access local food year-round.
• Local Food and Farm Co-ops (Ontario) – A network of community-led food co-operatives across the province.
• South Island FarmHub (British Columbia) – Aggregates and distributes food from over 40 producers on Vancouver Island.
• FoodShare Toronto – Operates several food justice initiatives including wholesale local food programs.

Case study: Eat Local Huron and Local Line

In Huron County, Ontario, a region rich in agriculture, sourcing local food used to mean driving from farm to farm or visiting seasonal markets. That changed with Eat Local Huron, a food hub launched during the COVID-19 pandemic to centralize access to local products through a delivery service.

Meeting the needs of 50+ producers

With more than 1,500 products from over 50 vendors, the logistics were overwhelming until they adopted Local Line, a food hub management software.

Local Line allowed each producer to:

• Manage their own product listings
• Update inventory weekly
• Get automated sales summaries
• Receive clear fulfillment instructions

Read more recommendations for the best online food hub software.

Time savings for the hub

Despite the volume, the team spends just 5–8 hours per week managing hub operations thanks to the Local Line's centralized features.

Expanding to a physical storefront

When Eat Local Huron opened a retail store in Goderich in 2023, they didn’t need a new system. Instead, they adapted Local Line by setting up a wholesale buyer account for their own store, streamlining ordering and payouts without additional producer involvement.

Results of adopting Local Line

• Small-scale producers participate without fees
• Orders are packed and delivered across the county in one day
• Staff manage online and in-person sales from a single system

“We can run our whole system with way fewer hours of labour than you'd imagine it would take,” says founder Chris Spaleta. “It’s been a game-changer.”

Read more about How Eat Local Huron Built a Thriving Local Food Network with Local Line

Future trends of food hubs in North America

1. Growing demand for local food

Consumers increasingly want to know where their food comes from and how it is produced. Institutions such as schools, hospitals, and restaurants are turning to food hubs to meet sustainability goals and respond to customer demand for fresher, regional products.

2. Policy and funding support

Governments are recognizing the critical role food hubs play in building resilient food systems, especially during times of crisis. Continued investment through federal and regional programs is expected, creating more opportunities for hubs to grow and stabilize.

3. Technology-driven growth

Digital tools are becoming essential for food hubs that need to manage large inventories and complex logistics with small teams. Platforms like Local Line allow hubs to scale efficiently by providing:

• Online ordering, inventory tracking, and delivery planning in one system
• Lower barriers for new and small producers to join
• Integration with point-of-sale systems and physical storefronts

Download our FREE guide on how to run your food hub on Local Line.

How to get involved or support a food hub near you

Consumers

• Shop through a local food hub's online store
• Volunteer with local food access programs
• Encourage institutions like schools and hospitals to buy local

Producers

• Join a local food hub network or co-operative
• Use tools like Local Line to streamline sales
• Collaborate with other farms to meet larger buyer needs

Community leaders and entrepreneurs

• Explore funding through programs like USDA's Local Agriculture Market Program (LAMP) or Canada’s LFIF
• Support the development of food hub business models and food hub business plans that strengthen local food systems. Read more about how to start a food hub.
• Identify community needs and partners to build a sustainable hub model