USDA study explores local food distribution

The study, conducted by the U.S. Dept. of Agriculture’s Agricultural Marketing Service (USDA/AMS), details how these organizations help local and regional producers overcome bottlenecks in the food marketing system through collaborative and transparent planning and adherence to a shared set of operating principles.

March 20, 2012

A new study, entitled Moving Food Along the Value Chain: Innovations in Regional Food Distribution, reports on the distribution practices of eight producer networks and their partners distributing locally or regionally-grown food to retail and foodservice customers and it reveals how these networks tap into the growing commercial demand for local and regional food products while creating additional economic opportunities and expanding healthy food access.

The study, conducted by the U.S. Dept. of Agriculture’s Agricultural Marketing Service (USDA/AMS), details how these organizations help local and regional producers overcome bottlenecks in the food marketing system through collaborative and transparent planning and adherence to a shared set of operating principles. By sharing lessons learned and best practices, the new study serves as a resource for producers, food processors, and marketers organizing to supply local and regional food products to commercial customers.

To compile the report, AMS studied eight network models over a three-year period. AMS looked at network organization, product branding and labeling, infrastructure management, and price negotiation.

The report identified four factors that influenced performance across all the case studies:

The amount and timing of investments made in infrastructure are vital to the success and survival of food value chains;

Preserving the identity of growers on product labels is critical for connecting with consumers, distinguishing the product from the competition and providing traceability;

Informal farmer networks can offer additional flexibility for suppliers and buyers and allow food value chains to be highly responsive to the shifting demands of specialty food markets; and

For-profit businesses, nonprofits, and cooperatives all have unique strengths. By partnering with each other within food value chains, they can leverage organizational competencies and reduce the risk of failure.

 

Innovations in Regional Food Distribution