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Box 5.1 Short food supply chains

Short food supply chains, such as the direct distribution of agricultural products, collective direct sales and partnerships lead to a regionalisation of markets and can reduce the farmers’ dependence on large scale, powerful retailers. Short food supply chains can reduce competition and increase farm income. Furthermore, short food supply chains can strengthen the local economy and help to keep family operated and small farms in business.

There is a great diversity of short food supply chains and local food systems in the EU. Short food supply chains and local markets have flourished here in recent years, both in rural and urban areas. On average 15% of EU farms sell more than half of their production directly to consumers through these short supply chains in 2015. In 2015, local food systems provided food for almost half a million Europeans, in particular in France, Belgium and Italy. Short food supply chains tend to be characterised by full or partial organic farming, but they are not always certified.

The rural development program 2014-2020 puts more emphasis on short food supply chains. Several measures are co-financed by the European Agricultural Fund for Rural Development to help in setting up and developing short food supply chains and local food systems through support for investment, training, the LEADER approach and organisation of producers.

Source: Kneafsey et al., 2013; IPES Food, 2016