SHORT FOOD SUPPLY CHAINS FOR PROMOTING LOCAL FOOD ON LOCAL MARKETS - INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT - SUS-TER
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SHORT FOOD SUPPLY CHAINS
FOR PROMOTING LOCAL FOOD
ON LOCAL MARKETS
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
Acknowledgements This document was prepared by Giovanni Belletti and Andrea Marescotti, Professors at the Department of Economics and Management at the University of Firenze, Italy, under the guidance of Fabio Russo, Senior Industrial Development Officer at UNIDO and with the contributions of Nuria Ackermann, UNIDO Chief Technical Advisor, Project of Market Access of Agri-food and Terroir products (PAMPAT), Tunisia, Ebe Muschialli, UNIDO Associate Industrial Development Expert, and Sabrina Arcuri, University of Firenze. The authors wish to acknowledge the valuable comments provided by Michele Clara, Senior Industrial Development Officer, UNIDO. The document is part of the activity of the Department of Trade, Investment, and Innovation (TII) of the United Nations Industrial Development Organization (UNIDO). Disclaimer This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. The opinions, figures and estimates set forth are the responsibility of the authors and should not necessarily be considered as reflecting the views or carrying the endorsement of UNIDO. Comments Comments and suggestions on issues raised in this report are welcome and may be addressed to Fabio Russo at f.russo@unido.org. Copyright © by the United Nations Industrial Development Organization, 2020
LOCAL FOODCONTENTS
FOR LOCAL MARKETS
List of abbreviations 1
Introduction 2
1. Conceptual framework 4
1.1. Defining short food supply-chains 4
1.2. “Short” or “alternative” food supply-chains? 6
1.3. Short food supply-chains and “local food” 8
2. The variety of short food supply-chains initiatives 10
2.1. On-farm selling 10
2.2. Farmers’ markets 13
2.3. Farmers’ shops, box schemes 17
2.4. Consumers-driven initiatives 18
2.5. Public (collective) procurement 21
2.6. Hotels, Restaurants, Catering (HoReCa) 22
2.7. The many dimensions of SFSCs initiatives 22
3. Display the potential of SFSCs 25
3.1. Short food supply-chains: a win-win game? 25
3.2. Expected benefits for producers 26
3.3. Expected benefits for consumers 28
3.4. Expected benefits for society 31
4. Effectiveness of Short Food Supply-Chains 33
4.1. Key-functions in SFSC and effectiveness 33
4.2. Coordination and governance functions, and the issue of 34
price regulation and risk sharing
4.3. Logistic functions, and the issue of food hubs 37
4.4. Information and guarantee functions, and the issue of common labelling 41
5. The way forward. Some reflections for action 44
References 47
Annex - UNIDO case study 50
Boosting market access and local development of the fig farmers’ community
of Djebba, Tunisia
List of Boxes 52
LOCAL FOOD FOR LOCAL MARKETS
List of abbreviations
AAFN: Alternative agri-food networks
CSA: Community supported agriculture
EU: European Union
PYO: Pick-your-own
SDG: Sustainability development goal
SFSC: Short food supply chain
SPG: Solidarity purchasing group
1
LOCAL FOOD FOR LOCAL MARKETS
Introduction
In recent decades, the agri-food system has distribution, and this explains why this model
been subject to rapid and deep changes. A has spread and is currently dominant at world
number of demographic, political, social, level. However, this model is raising concerns
technical, economic, and cultural factors and is subject to criticisms under many points
has led to the emergence of an industrialized of view, among which difficult access to market
model of food provisioning, where large- to smallholders and small and medium enter-
scale food processing firms and supermarkets prises, environment pollution, and menace
chains dominate the scene in the framework to food safety and nutrition appear the most
of a growingly globalized food system. important ones (Renting et al., 2003, Ilbery
Consumers’ behaviour and needs did and Maye, 2005, Sonnino and Marsden, 2006).
change too, due to the evolution of society
and economic systems. Urbanization is one
of the main factors that distance the places
of agricultural production from those of
food consumption, which asks for a growing
number of connections (transport, storage,
packaging, processing) carried out by a plural-
ity of actors. Moreover, both income growth
and changes in work organisation and family
structure ask for improved services incorpo-
rated into food.
In order to achieve scale economies and cut
production costs, the industrialized model of
food provisioning forced farms to specialize
on a few products and phases of the produc-
tion process. Consequently, farmers gradually
stopped performing direct delivery to final
consumers, as well as processing their prod- Contest of typical food products in Morocco
ucts on-farm, thus delegating food processing
and distribution to specialized firms outside The high number of steps, and the increasing
the borders of the farm, increasing the number distance between production and consump-
of steps between agricultural production and tion, are at the basis of the “revolution”
final consumption. brought by Short Food Supply-Chains initia-
Today, food processing industry and distri- tives (SFSCs), especially in Europe and in the
bution are asked to provide a growing number United States, although a number of inter-
of functions and operations to meet the new esting opportunities is also pointed out for
needs of more and more urbanized consum- other countries, included developing ones
ers, thus increasing the geographical, tempo- (Moustier and Renting, 2015).
ral, and cultural distance between agricultural The growing interest for SFSCs around
production and final consumption. the world, especially from farmers, consum-
The industrialized model of food provision- ers and citizens, and public institutions
ing seems to be highly efficient in performing (Marsden and Arce, 1995; Aguglia, 2009; Allen
these new functions as compared to previ- et al., 2003), witnesses the need for searching
ous models of organising production and alternative food systems able to provide some
2 INTRODUCTION
LOCAL FOOD FOR LOCAL MARKETS
Promotion of PDO Djebba figs in a supermarket in Tunis, Tunisia
“functions” that the industrialized model and human settlements more inclusive, safe,
seems not able or willing to provide (Anderson, resilient, and sustainable (SDG 11) and to
2008). Expected positive effects from enhanc- Combat climate change and its impacts (SDG
ing SFSCs initiatives range from economic 13). With their positive impact on income
benefits to both producers and consumers, to generation and job opportunities as well as on
strengthening social relations, preserving the building productive capacities in an inclusive
environment, improving nutritional aspects, manner, SFSCs can contribute to inclusive
and enhancing local development. and sustainable economic growth and indus-
Shortening food chains can contrib- trial development (SDG 8 and 9). Finally,
ute to more than one of the objectives of SFSCs contribute to diversify food production
United Nations Agenda 2030 for Sustainable systems and marketing channels, allowing for
Development. In particular, expected effects higher resilience in front of global market
of SFSC initiatives can mainly contribute disruption.
to Responsible consumption and produc- The United Nations Industrial Development
tion (Sustainable Development Goal 12). Organization (UNIDO) is fully committed
Moreover, SFSCs can contribute to other to contributing to the achievement of the
Sustainable development goals related to above-mentioned SDGs, thus the relevance
social issues, in particular Poverty and hunger for the Organization of promoting SFSCs.
reduction (SDGs 1 and 2), as well as to enhanc- UNIDO has a long-standing experience in
ing gender equality (SDG 5) considering that agri-food value chains development around
territorial products are often produced by the globe by fostering business linkages,
women. SFCS also contribute to the envi- improving quality compliance, enhancing
ronmental ones, specifically Making cities productivity and promoting market access.
INTRODUCTION 3
LOCAL FOOD FOR LOCAL MARKETS
Since 2010, UNIDO has been implement- market access to smallholders, and higher
ing projects valorising food origin-linked food quality to consumers, and to discuss
products and shortening food supply chains. how these initiatives may be developed in a
These projects ensure that Small and Medium sustainable way.
Enterprises (SMEs) and farmers within the Section 1 is devoted to introducing the
assisted value chains become the driving force main features of SFSCs and give the general
of endogenous process of local development, framework and basic concepts. Section 2
maximizing the potential of agri-food prod- describes the main typologies of SFSC initi-
ucts, including the linkages with the tourism atives, together with some dimensions that
sector, and that the benefits are fairly distrib- characterize these initiatives. Section 3 analy-
uted along the value chain. ses potential benefits and limits of SFSCs for
The aim of this paper is to give an insight producers, consumers, and society as a whole,
over the main typologies of SFSCs initia- while section 4 focuses on main functions
tives, and to discuss their potential benefits affecting the performance of SFSC initiatives.
and drawbacks. The ultimate goal is to raise Section 5 draws some conclusions and recom-
consciousness on the potential of SFSCs initi- mendations. A UNIDO case study is presented
atives for achieving local development, better in the Annex.
1. Conceptual framework
1.1. Defining short food supply-chains production for shopping (farm shops, farm-
The term “short food supply-chains” based hospitality and agritourism, roadside
(SFSCs) encompasses different typolo- sales, pick-your-own schemes, etc.), and
gies and operating models. Farmers might some other types are based on long-term
sell their products to consumers in many partnerships between one or more producers
ways: off-farm, in the neighbouring places and consumers, where the latter have a say
of consumption such as farmers’ markets, in in farmers’ decisions and labour, such as in
shops owned by farmers themselves, in food Community Supported Agriculture (CSA) or
festivals and fairs, through farm-based deliv- Solidarity Purchasing Groups (SPGs).
ery schemes, or through one single trade Broadly speaking, SFCSs aim at reducing
intermediary (cooperative shops, specialist the “distance” between agriculture and final
shops, supermarkets, etc.). Farmers can also consumption, directly re-connecting farm-
sell their products directly to public insti- ers to consumers, and are at the crossroad of
tutions’ collective catering, such as school economic, environmental and social issues
or hospital canteens, in the framework of and needs.
public procurement schemes, and to restau- The shortening of the supply chain may be
rants, hotels and private catering companies interpreted under three different points of
(HORECA). In some of these cases, SFSCs view:
can also correspond to non-local sales, in
particular direct internet sales/long distance -- the reduction of the physical distance
farm-based delivery schemes (Kneafsey et between the farmer and final consumers;
al., 2013). Other types of on-farm schemes -- the reduction of the number of steps that
involve consumers travelling to the place of connect the farmer to final consumers;
4 CONCEPTUAL FRAMEWORK
LOCAL FOOD FOR LOCAL MARKETS
-- the increase of cultural and social prox- both products and production process,
imity between farmers and consumers. to activate social relationships and
participated initiatives, to support
SFSCs are often defined according to these local producers, and to contribute to
three dimensions, which are not mutually environmental preservation.
exclusive1, although they may have differ-
ent emphasis depending on the players In other words, objectives pursued may
involved and the objectives of the initia- attain to different aspects:
tives. Definitions vary according to cultural,
political, social, and economic specific -- economic aspects: allow better market
contexts where these initiatives are embed- access for small farmers, jumping
ded in (EIP-AGRI, 2014)2. Therefore, the marketing middlemen and improve
world of SFSC initiatives can be conceived the value distribution along the supply
as a universe of different types of connection chain, benefitting farmers to gain
between production and consumption (Slee higher value added and/or consumers
and Kirwan, 2007; Goodman et al., 2011). to obtain final price reduction (Belletti
In the context of SFSCs, farmers and et al., 2010);
consumers are the key categories of stake- -- environment / health-nutrition aspects:
holders, and the success of the initiatives is reduce the geographical distance
often measured comparing outcomes to their between the place of production and of
expectations: consumption, which aims at granting
-- farmers’ expectations normally involve
prices, in terms of higher level and
stability over time, but also other bene-
fits such as market diversification,
long-lasting trade relations, access to
direct information from consumers;
moreover, there are “non-economic”
expectations too, such as better social
gratification, or the awareness of
contributing to environment protec-
tion;
-- consumers’ expectations are equally
diverse: from seeking lower prices for
food, to access to certain types of prod-
ucts and quality attributes (traditional
and local products, freshness), to get
more information and knowledge of Street food sale in Costa Rica
1 Physical distance reduction and number of steps reduction are not necessarily coincident: indeed, there are chains geographically
located but with a high number of intermediate steps, as well as supply chains where the farmer sells directly to an end consumer hundreds
or even thousands of miles away.
2 For example, the EU in Regulation (EU) No 1305/2013 on support for rural development by the European Agricultural Fund for Rural
Development at art.2.m defines SFSC as “a supply chain involving a limited number of economic operators, committed to co-operation,
local economic development, and close geographical and social relations between producers, processors and consumers”. In France the
National Ministry of Agriculture defines as short chain (“circuit court”) when there is no more than one intermediary between producers
and consumers, thus including those initiatives where the participation of restaurants, canteens, shops is important to foster rural
development. In case when both producers and consumers come from the same region, the term short proximity chain (“circuit court de
proximité”) will be used (EIP-AGRI, 2014, and http://www.manger-local.fr/circuits-courts/qu-est-ce-que-les-circuits-courts).
CONCEPTUAL FRAMEWORK 5
LOCAL FOOD FOR LOCAL MARKETS
higher freshness and quality of food conventional forms of distribution, but to the
delivered, guaranteeing its proveni- same industrialized model, as they wish to
ence, and reducing the environmental deeply change the rules of the game.
impact and other negative environmen- The same happens with reference to the
tal externalities (less energy for trans- role of consumers in SFSCs, who normally
portation and storage, protecting local recover a more active role than in conven-
agro-biodiversity, defending peri-ur- tional supply chains, to the point of becoming
ban agricultural land) (Pretty et al., the protagonists and activators of these new
2005; Hogan and Thorpe, 2009); forms of connection (Alkon, 2008). In other
-- social aspects: increase the active role words, it is necessary to understand whether
of farmers, final consumers, and social the consumer is driven by purely “economic”
movements in the agri-food system. principles (the desire to save money), or her
The rapprochement between farmers purchasing act responds to ethical and social
and consumers makes it possible to principles of “transformative” content, as
increase the leading role of these cate- a reaction after years of delegation to, and
gories, usually perceived as “passive” in trust in, an increasingly technological and
front of the strategies of the interme- globalized agri-food system and its negative
diate operators of the agri-food system effects on sustainability.
(processing industry, retail), and to In practice, these two visions often inte-
activate direct social relationships grate and merge within SFSCs, to the point
between farmers and consumers, build- of outlining a continuum of situations that
ing new relations of trust, solidarity, are sometimes in contrast and sometimes in
participation. agreement with modern channels, in some
cases depicting ambiguous situations too
(Hand and Martinez, 2010; Durham, King, and
1.2. “Short” or “alternative” food Roheim, 2009).
supply-chains? This is also reflected in the evolution of
SFSCs are often labelled as “alternative” SFSCs: the first initiatives labelled as SFSCs
supply-chains3 (Goodman, DuPuis, and were meant to re-create environmental-
Goodman, 2012). The assessment of the ly-sustainable agri-food systems, econom-
“alternativeness” of these new forms of ically sound, and socially fair, leaving space
connection is normally based on the message for democratic participatory process of
conveyed and the ultimate goals of the initi- co-building between producers and consum-
atives (Allen et al., 2003; Watts, Ilbery, and ers (Rossi, Brunori, and Guidi, 2008). These
Maye, 2005). characteristics have evolved in time when
In a first “soft” meaning, SFSCs can be SFSCs have grown and spread in a diversi-
seen as just another opportunity to differenti- fied set of typologies, and today we observe
ate the ways agri-food products are marketed, a certain tendency to dilution, if not to a real
and therefore they are placed side by side erosion, of the original values and objec-
with conventional forms of distribution but tives (ecological, ethical, political) (Sonnino
without questioning the fundamental princi- and Marsden, 2006; Holloway et al., 2007)
ples of industrialized agri-food system. In a and to the growth of importance of purely
second “hard” meaning, SFSCs are conceived economic objectives (Kirwan, 2004). This is
as carriers of an alternative message, there- also because players belonging to the indus-
fore being radically opposed not only to the trialized agri-food system have somehow
3 Some authors have suggested to abandon the term “alternative” to adopt “civic” or “rights-based” (Lamine, 2005).
6 CONCEPTUAL FRAMEWORK
LOCAL FOOD FOR LOCAL MARKETS
Farmers market in New York, USA
“captured” values and symbols of SFSCs are re-territorialising their supply systems in
(SUSTAIN, 2008; Mount, 2012). Indeed, order to offer better service (and a renewed
given consumers’ attraction to the under- image) for the consumer.
lying idea of SFSC, more and more play- Therefore, very significant opportunities
ers in food processing industry and both open up for the promotion of short chain
traditional and modern distribution firms values, but at the same time there are also
are trying to adopt some of their operating risks of unfair competition (i.e. where the
mechanisms and some values of the logic of “false” short chain crushes the more “authen-
shortening the chain, thus introducing logis- tic” market) and more generally of the dilu-
tical and organisational innovations. So we tion of the ideals that marked the first phase
see a “local” emphasis in large-scale distri- of development of this innovation.
bution, which (when driven by the search In conclusion, the diffusion of the “short”,
for authenticity) offers space and visibility “local” and “alternative” forms of connec-
to products of local origin. In some cases, tion between production and consumption
large-scale retail has entered into agree- cannot be interpreted according to a dichot-
ments with “farmers’ markets” by offering omous key with respect to the concepts
them space to hold their own events peri- of “long”, “global” and “standard”, as this
odically, with the purpose of revitalising its would inevitably lead to neglecting the great
image; while some retail chains are consid- complexity and variety of concrete situa-
ering the possibility of providing logistics tions. In the real world, “long” and “short”
services to joint purchasing groups in their types and logics often integrate and merge,
area. At the same time, an increasing number outlining a continuum of situations where
of traditional retail and private and public different short supply chains are in competi-
catering operators (Brunori and Galli, 2012) tion with each other.
CONCEPTUAL FRAMEWORK 7LOCAL FOOD FOR LOCAL MARKETS
Food Quality Label Harissa ready for local supermarkets distribution, Tunisia
1.3. Short food supply-chains and no matter about the number of intermediate
“local food” steps the food follows nor its “values”. The
An important dimension of SFSCs initiatives only thing that matters is the geographical
is related to the concept of “local food”, which distance (miles) between the place of produc-
is normally perceived as one of their pillars. tion and the place of consumption, while what
Consumers are showing a growing inter- may change is the maximum amount of miles
est towards localness of food, perceived as that food has to travel to be still included in
having both higher intrinsic quality (more the term “local” (Dunne et al., 2010; Martinez
healthy, fresh, and diverse), and the potential et al., 2010). In short, local food is essentially
to benefit local community and foster rural a product that has been produced close to the
development, environmental preservation, consumption area or, to be more precise, close
agrobiodiversity, and social justice, allow- to the place of purchase (a shop, a restaurant,
ing the participation of small family farms to a farm). Indeed, physical distance should be
market. As Brunori (2007) states, “local food extended to the distance between the place
conveys meanings which are strong enough to of production of other inputs (including e.g.
potentially detach consumers from conven- pesticides, animal feed) and the farm. When
tional food networks and attach them to alter- this whole network of exchanges is analysed,
native food networks whose impact is more some commonly held (mis)conceptions can
sustainable, equitable, healthy”. be reversed (Coley et al, 2009; Durham, King,
There is not a clear definition of local and Roheim, 2009).
food, its meaning depending on the specific Other criteria can be used to define the
socio-economic and political context (Tovey, “localness” of a product (Feagan, 2007;
2009). In practice, there is a variety of defi- Belletti, Casabianca e Marescotti, 2013).
nitions; the most common and easily under- Indeed, a widespread meaning of local food
standable one is strictly linked to the “food assumes a different interpretation of the local-
miles” concept (Pretty et al., 2005; Hogan and ity, not so much related to how food reaches
Thorpe, 2009). According to this definition, marketplace and consumers, looking instead
8 CONCEPTUAL FRAMEWORKLOCAL FOOD FOR LOCAL MARKETS
to the link between the product and its place which alone should have the right to use it to
of production in terms of specificity of local attain economic, social and cultural benefits.
resources used in the production process, The origin product can also represent a cata-
history of the product and the production lyst of local community action, one that can
and consumption tradition, and its collective reinforce promotion initiatives at the local
dimension (Belletti and Marescotti, 2011). level (Bérard, Marchenay and Casabianca,
These products are commonly referred to as 2005).
“origin products” or “typical products”. The link between the production system
The specificity of local resources affects the and the territory of production is in some cases
quality characteristics of the origin product, encapsulated in legally protected geographi-
too, and it may come from the physical envi- cal indications (Tregear et al, 2007), as well as
ronment where it is produced (winds, soils,
temperature and humidity, genetic resources,
etc.), as well as the human resources and know-
how (breeding, handling and processing prac-
tices, cultivation techniques, etc.). Know-how
and practices are usually highly specific, and
transmitted through time from one gener-
ation to the next, adapted to the evolution
of the environment and society on the basis
of contextual local knowledge and scientific
progress. Moreover, there is also a consump-
tion tradition specific to the place of origin,
namely knowledge of how to eat the product
and when, how to prepare and cook it, how to
taste it, and how to evaluate its quality. History
and cultural traditions are closely connected
to the third specificity, the collective dimen- Promotion of honey awarded with medals at the
Moroccan Contest of typical food products, Morocco
sion (Berriet, 1995; Barjolle, Chappuis and
Sylvander, 1998). Actually, the link of origin
products with the territorial area has been frequently being expressed in less formalized
created, and transmitted over time within a ways, often related to specific marketing chan-
community of producers and consumers in nels (Kirwan, 2006) and embedded in rela-
such a way that the product becomes part of tional/cognitive/institutional relations with
the common local patrimony, something that the community concerned. This geographi-
cannot be individually owned. The process of cal name is used as the main communication
knowledge acquisition (often contextual and leverage to market the product to consumers,
non-codified), accumulation and sedimenta- owing to the reputation acquired over time
tion makes an origin product the expression on the basis of repeated purchases and the
of a community of producers and often of the maintenance of the promise of quality.
overall local community organisation, values, In the end, the concept of local food is quite
traditions and habits. That is why origin prod- flexible, as we can observe a variety of defini-
ucts have a patrimonial dimension (Bérard tions along a “continuum” ranging from the
and Marchenay, 1995): the product character- simple criterion of distance from the place of
istics, the way of producing, storing, market- production to the place of consumption, up to
ing, consuming and appreciating an origin more articulated ones which includes other
product, are all part of the patrimony and economic, social, cultural, environmental
historical memory of the local community, criteria.
CONCEPTUAL FRAMEWORK 9LOCAL FOOD FOR LOCAL MARKETS
2. The variety of short food
supply-chains initiatives
In the real world, there is a huge variety of by farmers (both individually and collec-
SFSC initiatives, which take on very different tively), then analysing consumers-driven
characteristics and operating methods, albeit initiatives, and finally introducing other SFSC
inspired by the same principle of geographical, initiatives where the link between farmers
economic, and social reconnection between and final consumers is mediated by an inter-
production and consumption. mediary step.
Before quickly introducing the most rele-
vant ones for the purpose of this work, it is 2.1. On-farm selling
important to note that the lack of a clear defi- Farm-gate sales is a traditional form of
nition of the concept of SFSC, together with marketing that producers have always
the ambiguity and different interpretations been adopting, by just selling their produce
of the concept of local food and localness, directly on farm or close to the place where
contributes to make the picture even more the farm is located, or on roadside stalls.
complex. Farm-gate sales are characterized by the fact
In the following paragraphs an overview of that consumers are moving to the place of
the most important SFSCs initiatives will be production, devoting time and resources to
provided, starting from initiatives promoted this activity.
FARM SHOP (COSTA RICA)
Despite the fact that the coffee production Looking for that high quality standard, Don
process is composed of a plurality of steps Cayito started processing its coffee on-farm in
and typically highly globalized, interesting a micro coffee-mill since 2009. There they can
practices of SFSCs are spreading all over the give an appropriate follow-up to the work at
world, including on-farm selling. the farm, dividing the harvest in lots and micro
Don Cayito is a family-owned coffee farm lots according to coffee variety and the process
in Santa María de Dota, Costa Rica, a well applied (washed, honey or natural). Shortening
known region for quality coffee, due not only the value chain was a need, in order to better
to the characteristics both soil and climate communicate the special quality of coffee to
of the region, but also to local coffee farm- both final and professional consumers, and
Source: https://cafedoncayito.com/
ers know-how and production experience. increase the value added. Don Cayito’s coffee is
Coffee plantations are located between 1650 sold not only abroad (mainly USA and Japan),
– 2100 m of elevation in a wonderful land- but also in Costa Rica, through an online shop
scape of steep slopes. and an on-farm store, where it is possible to
taste and buy the Don Cayito specialty coffees.
BOX 1
10 THE VARIET Y OF SHORT FOOD SUPPLY-CHAINS INITIATIVESLOCAL FOOD FOR LOCAL MARKETS
PICK-YOUR-OWN (CROATIA AND BRAZIL)
Croatia produces table grapes (in 4,8 hectares since
Source: https://www.total-croatia-news.com/lifestyle/30930-want-some-fruit-pick-it-yourself-one-kuna-per-kilogram
Sven is a fruit grower from the small village 2013). In both cases, consumers use a basket
of Brežane Lekeničke, located in Sisak- and scissors (in the case of grapes) to pick the
Moslavina County wants to encourage people selected fruits, after being instructed on how
to come and pick home-grown apples them- to harvest the fruit straight from the foot,
selves, as well as use such an approach to without damaging the rest of the plant, while
potentially open up a new sales channel. The being observed by the farm staff. The price
farmer, with all types of apples growing in his to be paid occurs according to the amount
large orchard, has invited the public to come harvested, and the visitor can choose to
and pick them themselves, as many as they consume on place or take it away, using boxes
want, for a price of between just one and three provided by the producers. In the case of the
kuna depending on the type of apple taken. grape farm, the strategy has been to invest in
This initiative has been taken both to front a new grape varieties to extend the period when
workforce problem – the farm was not able to the property is open to the public. Among the
find people for harvesting – and too low prices main advantages observed, proximity and
offered by local wholesalers. loyalty of consumers, the reduction of distri-
bution costs, and reduction of product losses,
Brazil lower competition and better profitability
Lima, Pigatto, and Machado (2018),
Two small properties in the state of São Paulo for the producer. Farmers needed to adapt
chose to replace conventional distribution the structures to better accommodate the
with distribution only by the pick-your-own. visitor, in terms of organization, cleanliness,
The first farm produces strawberry (in 1,5 restroom installation, availability of covered
hectare since 2016) and the second farm areas for sun protection.
BOX 2
Nowadays, direct selling has undergone many cut-your-own or choose-your-own, and is a
evolutions thanks to the connection with the frequent direct marketing channel choice
new needs of consumers, in terms of conven- for farms growing berries, vegetables and
ience, quality of the product and personal fruits in general. PYO formally emerged
satisfaction, thus generating opportunities in the United States when prices for some
for creating value added. fruit and vegetable crops hit low levels in
Customers would come to the farm to buy the 1930-40s, prompting some producers to
seasonal produce, special products, or even, allow customers to come to the fields to pick
in some cases, to collect themselves directly their own product for purchase. An increase
on the field. The degree of organization and in “rural recreation,” as people drove to the
complexity of on-farm selling varies a lot, countryside from the cities for leisure, also
from unstructured and very seasonal selling, influenced the popularity of PYO marketing
up to the creation of shops inside the farm, (Leffew and Ernst, 2014). Besides the satisfac-
also depending on the availability of processed tion of collecting their own fruits and vege-
products such as wine, cheese, coffee. tables and enjoying some time surrounded
One emerging typology of on-farm sell- by nature, PYO also allows customers to save
ing is known as pick-your-own (PYO), u-pick, up to 40-50% compared to the prices of shops
THE VARIET Y OF SHORT FOOD SUPPLY-CHAINS INITIATIVES 11LOCAL FOOD FOR LOCAL MARKETS
AGRITOURISM (ALBANIA AND BRAZIL)
Albania Brazil
Agritourism is a relatively new phenomenon The “Caminho Caipira/Caipira Way” is a rural
in Albania. One of the first Albanian holiday agrotourism, located in the municipality of
farms is “Mrizi I Zanave”, located near the Borborema (state of São Paulo/Brazil). It
village of Fishtë. in the district of Lezha, about offers lodging, dinner, breakfast, goat milk-
80 km north of the capital Tirana. The owner, ing, cultural events, hiking, space for camp-
after some working experiences abroad, ing, lodging, rustic lunch, colonial breakfast,
opened this agritourism in a family farm, cultural events, and cows-milking. Processed
focusing on the use of local ingredients and products are based on available farm ingredi-
Source: http://www.mrizizanave.al/ Fernandes et al. (2016)
the rediscovery and reinterpretation of tradi- ents, grown without pesticides, prioritizing
tional local recipes. Also thanks to the connec- respect for the environment, conservation of
tion to Slow Food movement, Mrizi I Zanave native forests and river springs. The commer-
had great success with both local customers cialization of the production takes place
and tourists. This allowed to develop farm through meals served at the lodge and camp-
production, and to activate a demand for prod- ing, through the direct sale of jams, tamarind
ucts from numerous smallholders nearby. paste and liqueurs, breads, pasta and cheese in
Mrizi I Zanave not only uses these products the store located in the farm, and also through
for preparing meals, but also direct sell them deliveries, once a week, at home in neighbour-
to hosts. ing cities.
BOX 3
and supermarkets. Customers adopting this
method also decide the quantity, variety and
quality of the products and are sure they bring
home healthy, seasonal food. In addition, PYO
is relevant for consumers’ education, as they
can learn on the field about the various stages
of agricultural production and seasonality,
which most people are nowadays unfamiliar
with.
Besides selling fresh agricultural products,
additional direct marketing opportunities for
producers might come from services linked to
farm products, such as tasting and meals provi-
sion. One of the most widespread example is
agritourism, which entails, in its strict sense,
the introduction of hospitality and catering
activities on the farm, besides the normal agri-
cultural production. In a broader meaning,
agritourism allows to provide for a vast range of
services, from camping to food and wine trails, Argan oil consortium Vitargan promoting its products in
a mall in Casablanca, Morocco
to labour experiences at the farm.
12 THE VARIET Y OF SHORT FOOD SUPPLY-CHAINS INITIATIVESLOCAL FOOD FOR LOCAL MARKETS
FARMERS’ MARKET (LATVIA)
Straupe Farmers’ Market is located in diversity of supply at the market. Artisanal
Straupe, a rural village (1500 inhabitants) in non-food products have to be related to local
central Latvia, about 60 kilometres far from food or traditions.
the capital. It is an open-air farmers’ market, The market includes about 70 regular
organized twice per month. The market vendors. Most vendors come from the local
was launched by a group of local activists territory /region (up to 30 km), but also
that decided to provide an alternative space mobile producers coming from faraway (more
for both local producers and consumers. than 100 km) and practicing various modes of
The activists involved farmers and the local direct selling are allowed.
Source: Šumane (2014) and https://www.entergauja.com/en/things-to-do/enter-culture/straupe-farmers-market
municipality, with the main aim of better The SFSC was initiated by local people as a
valuing local producers and local food. Most reaction to the specific situation of local food
sellers are local and regional small-medium production, distribution and consumption.
farmers and artisanal producers. In addition, The main aim of the initiators was to reduce
local dwellers are allowed to sell their own food miles, intended as geographical but also
surplus and picked wild or natural products social distance between local producers and
(mushrooms, berries, flowers). Some local consumers. Specific rules for the market have
or regional food companies take also part in been developed by its initiators/organizers
the market. Consumers are local and regional (abiding by national laws and regulations)
people, as well as passers-by, as the market is and they take the relevant decisions. Local
located on a major road. origin is stressed in the market’s regulations
Straupe market regulations, developed at and compliance with quality standard is
local level by the market organisers, state that ensured, as producers-vendors have to fulfil
agricultural and artisanal products allowed food production and distribution regulations
are those ‘honestly’ produced and processed in order to be accepted in the market. Formal
by farmers themselves and which are closely rules are therefore in place besides relations
linked to local food or local traditions. Space of trust. However, products are not all 100%
limitations at the market result in prefer- local (presumably, there are not yet enough
ence being given to products of local origin, local producers to sell their produce on the
organic, natural, traditional, environmen- market), but all the products are at least tradi-
tally friendly, and which contribute to the tional Latvian or artisanal products.
BOX 4
2.2. Farmers’ markets Farmers’ markets have grown in recent years
Farmers markets are generally considered as out of the need and will of small producers
recurrent markets at fixed locations where to find alternative market outlets for their
farm products are sold directly by farmers products and give visibility to local agricul-
themselves (Brown, 2001) with a common ture. The most of these markets are held
organization and under a same image and/or once or twice a week or also once a month,
some shared rules. This is what differentiates while is quite infrequent to have a daily
farmers’ market from the simple, spontaneous frequency.
forms of selling in a route or place, common in There is a certain degree of variability
many cities. among farmers’ markets, according to the
THE VARIET Y OF SHORT FOOD SUPPLY-CHAINS INITIATIVES 13LOCAL FOOD FOR LOCAL MARKETS
different actors, interests and purposes. an instrument for rural development processes
Markets promoted by producers’ organiza- or regional marketing strategies, too.
tions, for instance, are meant as a point of Decisions on access for participants and
exchange in both commercial terms and in rules are up to the market promoters – either
terms of values, culture, awareness raising, informally or formally organized within a
and active citizenship. Small farms have committee – depending on both the market
normally a central role, such as individual characterization and the space available.
and family-run ones: in such case, support- More often, when space is reduced, ensuring
ing small farming is among the leading prin- continuity of supply and of the relationship
ciples and aims, as well as the small size a between producers and consumers explains
participation requisite. the tendency to keep the same producers to
Besides, there are farmers’ markets take part in the market.
promoted by public institutions that aim at In some cases farmers’ markets are iden-
enhancing local production and local gastro- tified as organic, biodynamic, conventional
nomic traditions and culture. When public (or a mix of the previous) and therefore
actors are involved, farmers’ markets represent producers who mean to adhere have to fulfill
FARMERS’ MARKETS NETWORKS
Earth Markets are farmers’ markets that have impact is minimised: e.g. with waste reduc-
been established according to guidelines that tion, biodegradable consumables, recycling,
follow the Slow Food philosophy. All around and energy-saving measures. Producers must
the world, 68 Earth Markets are run by local demonstrate their suitability before they are
Source: https://www.fondazioneslowfood.com/en/what-we-do/earth-markets/what-is-an-earth-market/
communities, providing a space where produc- permitted to sell at Earth Markets. The focus is
ers and consumers meet and healthy, quality on small-scale farmers and artisan producers,
food is available at fair prices and produced providing them with an important opportunity
with environmentally sustainable methods. in which they do not have to compete with large
In addition, Earth Markets allow the preserva- distribution chains. Small-scale production is
tion of food culture of the local community and also favoured as it often produces high-qual-
contribute to defending biodiversity. ity results. Producers are asked to charge a fair
An Earth Market is created when an inter- price for their work and pledge fair treatment
ested community – producers, local author- of their employees.
ities, citizens, Slow Food convivia and other A key requirement is for vendors to attend
interested parties such as restaurateurs – come the market themselves and to only sell prod-
together to establish a new place for consum- ucts that they have produced themselves. As
ers and food producers to meet. A manage- producers are meeting directly with custom-
ment committee, with representation from all ers, they must be open and willing to talk
these groups, is responsible for selecting the about their product and its qualities, the work
producers, promoting the market, and ensur- involved, and how the prices are justified.
ing the guidelines are followed. They are also Producers must come from the local region,
required to manage the logistical aspects of the within a radius specified for each Earth Market
market, and to ensure that the environmental to suit the context.
BOX 5
14 THE VARIET Y OF SHORT FOOD SUPPLY-CHAINS INITIATIVESLOCAL FOOD FOR LOCAL MARKETS
specific requirements concerning the produc- Price management is a delicate matter in
tion method used for agricultural practices. SFSCs, as principles of fairness, transpar-
Sometimes they are specialized in some prod- ency, solidarity are normally asked to be
ucts category (e.g. fruits and vegetables). fulfilled. Informal assessments by the market
However, it is more frequent to have a differ- committee and producers’ consultations
entiated offer as to be more attractive for regulate in most cases the price definition.
consumers. Moreover, managing rules for market
The organization and development of a access, and standards of production and sale
farmers’ market implies a number of resources to be complied, often pertains to non-produc-
and costs. Time is needed for organizing and ers/commercial operators, which might be
managing the market, e.g. to find, select and allowed to participate when promoters aim
organize producers, to draw-up an organiza- at expanding the market size and the range
tion able to take main decisions, make control of products supplied, but access is commonly
on the quality and, sometimes, prices. The use restricted to local products, to avoid the risk
of public spaces often requires paying a fee to of compromising the meaning and image of
the local municipality, also for the provision the market.
of some services such as energy and cleaning. Farmers markets are also identified
Some basic equipment are needed, such as depending on the place where they are held
sales banquets, and they can be provided by and the targeted customers. Most are local,
the organizers. Some promotion and commu- usual customers, even if, depending on the
nication could be necessary in order to inform place and season, farmers’ markets are also
consumers. visited by tourists, for instance, when they
Farmers market in Pisa, Italy
THE VARIET Y OF SHORT FOOD SUPPLY-CHAINS INITIATIVES 15LOCAL FOOD FOR LOCAL MARKETS
LOCAL FOOD SHOP (HUNGARY AND FRANCE)
Hungary France
The Szekszard SFSC was developed by a Brin d’Herbe is a group of 20 farmers, which
non-profit organisation (Eco-Sensus Ltd) for 20 years have been selling “cottage” and
including food producers and experts in “organic” products in two stores on the
the Szekszard wine region. It applies to any outskirts of Rennes. Main products are meat
local individual farm or enterprise in the (60 % of the turnover), fruit & vegetables,
area. Main aim of the scheme was to connect bakery, dairy products, cheeses, eggs, honey,
local producers and consumers by means of cider. Their market can be quantified as about
a point of sale and community-based enter- 1000 consumers per week. The shop opens
prise for local food. In addition, the scheme three days a week. The turnover is 1,5 million
aimed at gathering and showcasing the vari- Euro per year.
ety of local agricultural products of this To run the shop, farmers are organized into
region, which is already well known for its a specific form of association that allows them
wine, promoting products such as salami, to keep their identity and operational auton-
flours, honey, paprika, sunflower oil, jams omy vis a vis consumers, and at the same time
and cheese. to define a common space of coordination. This
The scheme entails a quality assurance aspect is also a regulatory requirement, as in
mechanism and a brand to promote local this way the shop can be classified as “direct
food. Requirements and quality criteria are selling” activity.
continuously fine-tuned through participa- They hire people to work at the shop, but
tory methods, and include the identifica- at least one of the farmers guarantees his/
tion of local producers, as well as social and her presence in the shop as well (to improve
Source: taken from Galli and Brunori (2013), and https://www.brindherbe35.fr/
ecological quality of production and packag- exchanges with the consumers about the prod-
ing. Local farmers are encouraged to qualify ucts). They have a labour time bank (linked
for the food label and are given visibility on to the turnover of each producer). The more
a dedicated website. produce a farmer sells in the shop, the more
The scheme has also launched an initia- time he/she should invest into the shop. Every
tive of regional branding in the communi- kind of work (communication, repairs, etc.) is
ty-based local food shop, and applies to all valued the same. In general, each of them dedi-
basic and seasonal products of the region. cates one day a week to the shop. Pictures of all
The Szekszard local food label is a registered associated farmers are displayed in the shops.
trademark for all various food types availa- Prices are set by each farmers, although
ble in the region. This allows local farmers there is internal communication about price
to carry out direct sales of their produce and policies. However, there is not much overlap
provides a secure market outlet. among farmers with regard to products sold, so
in shop competition is avoided.
BOX 6
are carried out on an ongoing basis and in local consumers are more oriented to local
the city centre. Often, at these markets a food provision and daily consumption.
wide range of origin foods are available for In some cases, farmers’ markets are part
tourists, whereas farmers’ markets targeting of a wider network. This implies to comply
16 THE VARIET Y OF SHORT FOOD SUPPLY-CHAINS INITIATIVESLOCAL FOOD FOR LOCAL MARKETS
BOX SCHEME (SOUTH AFRICA)
Abalimi is a social enterprise, working to quality control, harvesting, cleaning and
empower disadvantaged people in urban bunching of vegetables themselves.
areas through ecological urban agriculture. Harvest of Hope picks up the vegetables
Producers are mainly women, engaged in from the gardens once a week and delivers
vegetable gardening in home and community them to the packing shed, close to Abalimi
gardens. office and provided with all the equipment
A part of the farmers has been involved in needed to process vegetables. Here vege-
the Harvest of Hope, a box-scheme market- tables are weighed and processed (washed,
ing initiative. Abalimi provides inputs such cut and packaged or bundled) by the staff,
as seeds, seedlings, compost, fertiliser and which includes Abalimi field staff and several
equipment, paid by farmers through a share producers on a rotational basis, in order to
deducted from their monthly payment. learn how to run the whole process, from the
Although the price that producers get for field to marketing.
selling to Harvest of Hope is (often) lower Abalimi prepares different types of boxes,
than selling directly to the local community, delivered to the collection points, most of
Harvest of Hope provides, besides a regu- which are primary schools in the suburbs of
lar market, a secure and upfront source of Cape Town, but also some institutions and
income. The vegetables price is set according a retail outlet. Schools seem to be the most
to a comparative analysis of prices at differ- appreciated distribution places, as custom-
Source: Hoekstra and Small (2010)
ent supermarkets and wholesalers. ers combine collecting their children with
Producers sign simple contracts to grow picking up the food box. Consumers are
specified crops in a designated size plot for informed by weekly emails and can partic-
pre-planned yields at pre-determined prices, ipate as a volunteer or join a weekly tour to
to be harvested on targeted dates. They do the gardens and the pack shed.
BOX 7
with a standard (in terms of common format, operations, an additional, alternative distri-
internal rules, image, organization) and can bution channel involving a direct relation-
allow for easier and costless promotion and ship between producers and consumers. A
communication to consumers, thus incentiv- box-scheme entails a subscription by custom-
izing farmers participation. ers (or groups of customers) to the regu-
lar (weekly, biweekly, monthly) delivery of
2.3. Farmers’ shops, box schemes a specific quantity of fresh vegetables and
On-farm selling can evolve also going a bit fruits, the offering varying according to the
more “off-farm”, which is incorporating some season and availability at the farm. Delivery
services of proximity to consumers. This is the occurs either at the farm or to a collection
case of opening shops outside the farm or acti- point or at the doorstep, depending on the
vating home delivery services. case. Many box-schemes offer a range of
Farmers’ shops are retail outlets directly box sizes and allow the customers to order
managed by one or more associated farms, additional products, such as jams, meat or
selling produce directly from the farm. dairy products, along with the box of vegeta-
Producers might also engage in box-scheme bles. Commonly, food delivered through box
THE VARIET Y OF SHORT FOOD SUPPLY-CHAINS INITIATIVES 17LOCAL FOOD FOR LOCAL MARKETS
schemes is seasonal, locally grown and organic More specifically, an SPG is an informal
or sustainably-produced. Production might group, including between 30 and 80 house-
also assume ethically relevant connotations, holds (Fonte, 2013), although there is a great
as with the involvement of disadvantaged level of variability both in terms of numbers
workers or having the scheme being carried involved, internal arrangements and develop-
out in socially depressed contexts. ment. Typically, when the number of members
increases, a new group is organized, often
2.4. Consumers-driven initiatives linked to the previous, in order to maintain
a limited size that allows for the members to
Solidarity Purchasing Groups and consum- develop personal relationships between them.
ers’ managed shops The personal experience of the initiators is
Solidarity-based Purchase Groups (or essential for the development of the initiative:
Solidarity Purchasing Groups - SPG), are many first groups were formed by spontaneous
groups of consumers who purchase collectively initiative of individual promoters, generally
through a direct relationship with producers, consumers but also small producers, driven
according to shared ethical principles (Brunori by strong ideological motivations and often
et al., 2011). belonging to social movements’ organizations.
FOOD COOP (ITALY)
The Park Slope Food Coop is a consum- what one buys, it is possible to make good
ers-owned and operated food store, providing savings: according to a recent price compari-
an alternative to commercial profit-oriented son survey, Coop members save 20-40% off of
business. Membership is open to all, and their weekly grocery bill. All members must, in
only members may shop at the Food Coop. addition, pay a non-refundable $25.00 fee and
Members contribute with their own labour: contribute a $100.00 investment to the Coop,
this enables teamwork and trust but also which will be refunded upon request in case of
allows to keep prices as low as possible within membership suspension. For members who
the context of shared values and principles. receive certain kinds of income-based assis-
Members, in addition, share responsibilities tance, the joining fee is $5 and the refundable
and benefits equally. member investment is $10. The Coop accepts
As one of the Coop’s goals is to provide food Food Stamps coupons.
to the member-owners that is both low priced The Coop carries a wide variety of prod-
and high quality, and low prices come primar- ucts (more than 5000 items) to serve a diverse
ily from saving money in the area of payroll population with a variety of needs. Among its
expense, every member of the Coop must principles, the Food Coop supports non-toxic,
work at the Coop. The work requirement is 2 sustainable agriculture and aims at avoiding
Source: https://www.foodcoop.com/
hours and 45 minutes once every four weeks. products that depend on labour and environ-
At this rate, every member works 13 times per mental exploitation. Therefore, the offer at
calendar year. In this way, Food Coop members Park Slope is diverse but with an emphasis on
do about 75% of the work, thereby keeping organic, minimally processed and healthful
the payroll, and prices, low. Depending on foods.
BOX 8
18 THE VARIET Y OF SHORT FOOD SUPPLY-CHAINS INITIATIVESLOCAL FOOD FOR LOCAL MARKETS
Most members are middle class, well-edu- also hobby and part-time farmers;
cated people aged between 35 and 50. Main -- distance of the farm, which should pref-
motivations to engage with an SPG include erably be located nearby or within the
the need and will to engage with responsible same region;
consumption practices; awareness about ethi- -- direct relationship and knowledge, so
cal, social and environmental issues related to that the future relationship is based on
the agri-food system; support to small farmers reputation and consolidated trust;
and small-scale agriculture; the purchase and -- the farmers’ attitude to transparency
consumption of healthy, often organic, prod- and knowledge sharing, and to provid-
ucts at affordable prices. ing clear information on the production
Normally, producers are selected by the process and products characteristics;
members according to shared principles, -- environmental performance, which
including: should entail production methods with
low environmental impact – organic
-- the farm’s size: these are generally small or biodynamic farming – either with or
or very small producers, in most cases without formal certification, when the
professional/direct farmers, sometimes relationship is strongly based on trust;
COMMUNITY SUPPORTED AGRICULTURE (USA)
The basic idea of CSA farming at Paululs but in summer time the shares are “fuller.”
Mt.Airy Orchards (USA) is a cooperative For example, the very first share might
relationship between the farmer and his have asparagus, spinach, lettuce, red beets,
customers. Based on an annual commitment spring onions and apple cider donuts, and a
to each other, community members provide a share a couple weeks later might have more
pre-season payment to purchase a “share” of and different items (strawberries, rhubarb,
the season’s harvest. The member receives a asparagus, bok choy, spinach, and red beets).
Source: taken from https://paulusmtairyorchards.com/fruitsveggies/csa-program/
weekly box of a wide variety of fresh, in-sea- Then in late summer it might be peaches,
son fruits and vegetables as well as the possi- apples, sweet corn, tomatoes, cucumbers and
bility of other farm product treats such as our cabbage.
own baked goods throughout the growing Being a CSA member is a season-long
season. commitment to the farm, and in return the
A share is a weekly box of local, fresh, farmer provides the customers with the best
sustainable produce that is picked up or produce and family farm experience. In addi-
delivered each week for 18 weeks (week of tion, the customer will receive 10% off all
May 26th through September 22nd). Shares u-pick (strawberries, blueberries, blackber-
include a mix of fresh fruits and vegetables ries, black raspberries, apples, and pump-
and from time to time other treats (for exam- kins) as well as 2 free Corn Maze/PlayLand
ple homemade cider donuts, homemade jam, tickets per share purchased! The customer
new recipes to try), reflecting the growing also receive an email each Monday letting
season. The first 2-3 weeks are light because him know what will be included in that week’s
the growing season in PA is just starting share.
BOX 9
THE VARIET Y OF SHORT FOOD SUPPLY-CHAINS INITIATIVES 19You can also read
