Short food supply chains

Short food supply chains have experienced significant growth over the past few decades, particularly with the advent of digital technologies. The rise of new short food supply outlets, such as food drive-thrus and home delivery, has been made possible by this digital revolution. However, this expansion raises various logistical challenges to address.

Last update : September 22nd, 2023 by Camille Horvath

In the midst of an environmental crisis, where food consumption accounted for 17% of carbon emissions in European households in 2017 (Ivanova et al., 2017), a quarter of household carbon footprint in France (Barbier et al., 2019), and 17% of American household carbon footprint (Song et al., 2019), there exists a convergence of scientific and political consensus on the imperative need for the establishment of sustainable food systems (Berti, 2020; Chiffoleau and Dourian, 2020). In response to these challenges, the development of Short Food Supply Chains (SFSCs) emerges as one potential initiative. While there is no international consensus on the definition of these chains, which can sometimes be confused with local initiatives, an official definition of such chains has existed in France (Kneafsey et al., 2013 ; Kapala, 2022) since the Barnier Plan of 2009. This definition ensures that there is a maximum of only one intermediary between farmers and consumers, and it enables the promotion of various forms of proximity, including geographical and relational aspects.

Today, a multitude of SFSC outlets have emerged. In France in 2015, ADEME (French Environment and Energy Management Agency) estimated the existence of 1,200 producer markets, 1,600 CSA, 650 "La Ruche qui dit Oui!" (The Food Assembly), and 250 producer stores in France. A typology of SFSC outlets, developed by Chaffotte and Chiffoleau in 2007, distinguishes the one without intermediaries (direct sales) from those with intermediaries and is available in below. Direct sales at the farm, in open-air markets, and at fairs constitute "historical" forms of SFSCs.

Typology of Short Food Supply Chains sales forms (Chaffotte and Chiffoleau, 2007), translated from French

Among recent developments, the arrival and popularization of Internet usage have allowed for the creation of new sales points. These include farm drive-throughs, food lockers, and online platforms (such as Kelbongoo, My Producers My Chefs, Foodette and The Food Assembly) for pick-up and/or home delivery of SFSC food products. The proliferation of sales points, especially online, implies a commercial and logistical organization that becomes more complex for farmers, but mutual aid, whether through the sharing of marketing, equipment, or delivery routes, can partly simplify this.

Are Short Food Supply Chains more sustainable?

Concerning the sustainability of these chains, it has been the subject of several articles. It emerges that from an economic and social perspective, these short food supply chains seem more sustainable than long supply chains, as they allow for better recognition of farmers' work (Alonso Ugaglia et al., 2020; Boutry and Ferru, 2016; Chiffoleau and Dourian, 2020; Jarzębowski et al., 2020; Malak-Rawlikowska et al., 2019). However, the environmental dimension is a subject of debate (Loiseau et al., 2020; Maréchal et al., 2019; Mundler and Rumpus, 2012; Rizet et al., 2008). The primary criticism directed at SFSCs in comparison to their longer counterparts pertains to logistics: these chains are associated with frequent deliveries of small quantities of food, which can have a potentially adverse impact on their environmental footprint (Gonçalves and Zeroual, 2017; Mancini et al., 2019). Long supply chains may be less polluting when considering only the transportation aspect, as products are transported in bulk over long distances (Bell and Horvath, 2020; Schmitt et al., 2017; Tasca et al., 2017). Additionally, the narrower product ranges offered in short food supply chain outlets compared to large and medium-sized retail stores may compel consumers from these chains to make multiple trips, purchasing from different points of sale. Nevertheless, articles concur that SFSCs can be environmentally sustainable compared to long chains under certain conditions, including production methods, logistics, seasonality, the sharing of material, human, and knowledge resources, and the density of interactions among stakeholders (Boutry and Ferru, 2016; Chiffoleau and Dourian, 2020; Maréchal et al., 2019; Raton et al., 2017; Niang et al., 2020).

Malak-Rawlikowska et al. (2019) demonstrate in their study conducted in 7 countries (France, Hungary, Italy, Norway, Poland, the United Kingdom, and Vietnam) that the highest values of Food miles and carbon footprint are associated with supply chains that require significant consumer involvement in transportation, particularly when small quantities are transported, as is the case with farm pick-ups, for example. The sustainability indicators calculated for each point of sale are available below.

Sustainability indicators across food supply chains (Malak-Rawlikowska et al., 2019)

In second place, farmers' markets are among the outlets with high food miles and carbon footprints, as they involve transporting small quantities over relatively long distances for both consumers and farmers. Conversely, these values are low for hypermarkets, because of the mass transportation of goods, and for online sales with delivery. Indeed, despite the small quantities, the parcels delivered represent a small proportion of what is transported by specialized companies, thereby reducing the carbon footprint.

The ongoing debate regarding the environmental sustainability of short supply chains not only endures but also holds a profound significance, as these systems continue to enjoy substantial consumer demand. This demand underscores the enduring relevance of the discussion, as we grapple with the intricate balance between meeting consumer preferences and advancing sustainability goals.

Buying in Short Food Supply Chains

Recent surveys confirm consumers' interest in products from SFSCs. Akermann and Richard (2022) demonstrate that an increasingly significant portion of the French population frequent SFSCs (40% in the years 2013-2015, rising to 60% in 2021), although large supermarkets continue to be the primary source of groceries for 80% to 90% of the French. In the US, according to USDA’s Agricultural Marketing Service (AMS), from 1994 to 2019, the number of farmers markets rose from 1,755 to 8,771 in 2019, averaging growth of nearly 7 percent per year. According to the Rome Business School Research Cneter, over 20% of Italians buy local and artisan food products more frequently than before the lockdown to support the local economy in 2021. In Poland, Solarz et al. (2023) showed that there is a high potential demand for local agri-food products, but also a persisting low awareness regarding the existence of alternative distribution networks for local products. Recent surveys indicate a rising consumer interest in SFSCs across multiple countries, reflecting evolving shopping preferences while acknowledging the coexistence of traditional supermarket options.

When examining purchases within SFSCs, studies conducted in the early 2010s reveal that preferences for SFSC outlets vary with age, with older clientele gravitating towards more established SFSC formats. Conversely, newer formats such as CSA and basket systems tend to attract younger consumers (Prigent-Simonin et al., 2012). The study also demonstrates that SFSC buyers tend to 'shop local,' as CSA buyers take an average of 8.5 minutes to reach the point of sale, while this duration extends to 12.5 minutes for collective sales points buyers.

More recently, studies have focused on changes in SFSC consumption practices, particularly with the emergence of digital SFSC retail outlets. In France, according to Akermann and Richard (2022), 16% of SFSC purchasers conducted their transactions online, with 25% of non-online shoppers expressing potential interest, and an additional 50% to 70% of respondents expressing a desire for local retailers to offer online sales. Online SFSC product purchases have steadily risen over the past decade, with survey respondents reporting an increase in the use of food drive-throughs from 20% to 40% within a 5-year period. Solarz et al.'s 2023 study also highlights this digital allure among Polish consumers, as 81% of survey participants expressed interest in a short supply chain online sales platform. Additionally, Deprez (2016) describes farm drives as 'the most recent illustration of the agricultural world's adaptation to new consumption codes and modes constructed around the Internet.' Digitalization has enabled SFSCs to expand their reach and appeal to new audiences (Chiffoleau et al., 2018), serving as a significant catalyst for changing consumption practices towards more sustainable options (Chiffoleau et al., 2017). Consumer preferences are also spatially differentiated. Through the assessment of consumers' willingness to pay in France, Horvath (2023) has demonstrated that urban residents are willing to pay a higher price for products from SFSCs compared to rural and suburban consumers, especially for products sold through drive-through services, provided that the collection point is located near their residence.

Additionally, extensive research has focused in France on the consequences of the Covid-19 pandemic on SFSC purchasing behaviors. While many SFSC stakeholders experienced increased demand for SFSC products during the lockdown, followed by a decline post-lockdown, Maréchal et al. (2022) suggest that this may be attributed to changes in consumer locations and consumption practices. According to the results of their survey, the decrease in demand is better interpreted as a fragmentation of the demand for SFSC products, as new supply channels emerged during the crisis, and supermarkets heavily promoted products marketed as local.

Delivering the Short Food Supply Chains

In response to the high consumer demand, several logistical questions arise. Farmers may opt to personally deliver products to consumers, requiring them to acquire specific logistics skills—a departure from their engagement in longer supply chains, where such skills are handled by professionals. Furthermore, logistical considerations take center stage when exploring the scalability of short supply chains: how can the mass production and sustainable delivery of products from various farms to consumers be achieved? These are questions that are currently at the forefront of contemporary concerns and challenges.

SFSCs specifics : Farmers and logistics

For farmers, selling through SFSCs offers various advantages compared to longer supply chains. It allows them to diversify their farm activities, and ensuring additional income for farms that combine both short and long supply chain outlets. However, engaging in SFSCs also entails numerous constraints related to changes in farmers' work organization. While the core activity remains production, farmers must also master other aspects such as marketing, client outreach, diversifying their product range (which involves diversifying production and storage methods or product transformation), and frequently handling tasks like loading, unloading, order preparation, and delivery. While the costs associated with investing in equipment for production and processing are visible and factored into farm financial accounts, logistical costs are often less considered by farmers, and they are rarely passed on to consumers in the vast majority of cases (Raton et al., 2015). Notably, studies on the logistics challenges of SFSCs show that producers predominantly handle logistics operations individually and internally within their farms (Blanquart et al., 2015; Raton et al., 2015), with deliveries consuming an average of 8 hours per week (Raton et al., 2018). Logistical costs can significantly impact the profitability of farms engaged in SFSCs (Raton et al., 2015). The logistical constraints associated with product delivery influence the choices made by producers, whether opting to deliver to urban areas, sometimes at greater distances to expand market reach, or conversely, avoiding urban congestion. These are strategies developed by farmers engaged in short food supply chains in the Hauts-de-France region in France (Raton and Raimbert, 2019).

Innovations in Short Food Supply Chains Logistics

SFSCs grapple with various logistical challenges, encompassing not only the coordination of deliveries but also issues like product storage, packaging, and container management. This complexity prompted innovative distribution patterns exemplified by case studies, suggested by Paciarotti and Torregiani (2021) in their literature review. In the Netherlands, Vander Ploeg et al. (2012) describe an innovative distribution system for SFSC products : 85 interconnected farm shops operate without a rigid hierarchy. Each shop serves as an entry and exit point in the supply chain, facilitating the exchange of products among farms. This interconnected structure expands the catchment area and product variety in each shop, further augmented by sales through farmers' markets, box schemes, and online platforms. Meanwhile, DeBernardi and Torabeni (2018) explain that The Food Assembly (FA) has extended beyond its initial launch in Toulouse, France, to several countries, such as Spain, Italy, Germany, Switzerland, the Netherlands, Belgium and Denmark, merging the dynamics of farmers' markets with an online purchasing group. Hierarchically structured with administrative teams, FA's success hinges on the collaboration between local producers, community leaders, and consumers. These initiatives exemplify the blend of technology and traditional market driving SFSCs development.

In these new models, we can also mention marketplaces linked to pickup points and physical stores, like Kelbongoo in France. A significant shift is occurring in online sales, moving from entirely virtual to physical. Unlike traditional models where businesses with physical stores were transitioning to digital, these approaches leverage existing stores, saving on real estate costs but requiring more intricate logistics with citywide delivery routes, as described by Mariquivoi (2022). For example, Rechstreex18 in the Netherlands offers online sales of locally sourced food products, emphasizing fair prices and access to fresh, local goods. The pickup points, managed by 'district leaders,' vary from private homes to schools or restaurants and are serviced by the company's delivery trucks. These pickup points play a role not just in logistics but also in fostering social interaction around sustainable food, although their opening hours are typically limited to two days a week.

In a similar vein, Friedrich-Kerleroux (2022) reveals, in her study of logistics practices, that SFSC startups are utilizing unconventional spaces for logistics purposes in the Paris region. For instance, parking lots, former garages, or basements can be repurposed into logistics hubs. She also explains in her study that the SFSC sector, hindered by its limitations in using traditional large-scale distribution networks, presents an opportunity for innovative infrastructure development to overcome issues like limited space and high land costs. An example of this innovation is the startup Collectiv' Food, which serves restaurants in London and Paris. They've introduced a unique logistical solution called the ODP (Optimal Distribution Point). These ODPs, about the size of shipping containers, address space constraints and urban land costs by serving as refrigerated micro-hubs. Typically located in transitional spaces like development zones, they are delivered at night by trucks and then used by bicycle couriers to distribute products to various restaurants and clients. In the same way, in their study, Martikainen et al. (2014) identified the need for specialized and cost-effective logistical services within local food supply chains in Finland, prompting the emergence of Hybrid Food Hubs (HFHs) as an innovative aggregation and distribution model. HFHs incorporate both physical and operational infrastructure from conventional food systems, offering various services beyond what individual farmers can provide. These HFHs can be driven by producers, retailers, non-profit organizations, or consumers, and their dynamics have been studied using different approaches, such as Complex Adaptive Systems analysis and simulation modeling. However, Paciarotti and Torregiani (2021) note that there are significant risks associated with HFHs, including the potential for commercial interests to overshadow the alternative food network's goals, and challenges related to scaling up local organic food systems when introducing a third party. Nonprofit HFHs face economic sustainability challenges due to reliance on external funding, and their volunteer workforce can pose reliability and qualification issues. In France, platforms in the local food sector are viewed more as tools than intermediaries, but some farmers remain skeptical, potentially due to a lack of understanding about platform operations. To address this, awareness campaigns may be needed to promote a deeper understanding of platform objectives and operation modes.

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