Moving local food through conventional food system infrastructure: Value chain framework comparisons and insights

Abstract

There is growing recognition that the direct marketing initiatives favored by many local food activists and proponents often lack the capacity to meet rapidly expanding consumer demand for local food. To address these needs, some food systems researchers have identified a role for ‘transitional’ food systems that piggyback on the pre-existing, conventional local food system infrastructure, while moving toward the social and economic benefits of direct marketing. This paper uses a value chain model (based on business management studies and adapted to the context of agrifood enterprises) as a framework for investigating how actors who are accustomed to working within the logic of the traditional produce industry incorporate local food into their overall operations. Using a qualitative comparative case study approach, the paper examines how features of the value chain structure and governance mechanisms operate in two food distribution networks that are transitioning toward localization in a rural and an urban region of Pennsylvania, respectively. Case study analysis focuses on conventional wholesale produce distributors as the link between local producers and local buyers. Interviews with the distributors, producers and buyers reveal the sources and outcomes of challenges affecting how the distributors organize their purchasing and selling of local produce. Network practices, in turn, have equity implications as distributors struggle to pay producers enough to maintain their economic viability, while still making local produce accessible to a wide range of consumers. Policy-makers and practitioners seeking to support the ‘scaling up’ of local and regional food systems should consider targeted development of technical infrastructure in processing and distribution, as well as outreach on appropriate shared ownership models. Future research should be longitudinal to determine the longer-term role and contribution of the conventional food system infrastructure in transitioning to more sustainable local and regional food systems.

Potentials and Limitations of Regional Organic Food Supply: A Qualitative Analysis of Two Food Chain Types in the Berlin Metropolitan Region

“…Regional producers are often dependent on "conventional" intermediaries in the food chain like wholesalers [4]. However, the use of conventional food system infrastructure might be helpful for the development of regional food chains and can take over a role in the transition process towards more regional food systems [38,61].…”

“…Bloom and Hinrichs [38] and Ilbery and Maye [4] have clearly shown that many small-scale producers do not rely only on alternative or short chains, but also make use of conventional long chains. In addition, a recent German study into regional initiatives reveals hybrid strategies of food chain actors, who market conventional and organic produce through different channels, including direct marketing and conventional retail [113].…”

Collaboration and Commitment in a Regional Supermarket Supply Chain

“…Analyses of SMFE use of conventional food system infrastructure have been based on case studies at single points in time, typically over one year or one growing season, and rely on interviews and observational data (e.g., Abatekassa & Peterson, 2011;Bloom & Hinrichs, 2010, 2011Clark & Inwood, 2015,;McCallum, Campbell, & MacRae, 2014). These studies have identified the factors that constrain businesses operating at different scales from successfully engaging in market relationships.…”

Can Large Retailers Localize Supply Chains? A Case Analysis of the Challenges Facing One Canadian Retailer

“…The value chain model advanced by Stevenson and Pirog (2008) is helpful for understanding why. Derived to meet the unique challenges of local food chains operating at a larger scale, value chains distinguish themselves through four core dimensions: differentiating value-added products; committing to the welfare, particularly financial, of all participants; creating strategic partnerships; and creating trust and shared governance (Bloom & Hinrichs, 2011). By incorporating these key dimensions, successful value chains are able to "operate at a larger scale than direct marketing while deliberately embedding mechanisms to ensure social, environmental and economic benefits for supply chain participants" (Bloom & Hinrichs, 2011, p. 14).…”

“…Another concept potentially applicable to major retailer involvement in localization is that of transitional food system change: piggybacking on the dominant system to advance desirable changes in supply chains (Bloom & Hinrichs, 2011). This is part of the value chain approach (Stevenson & Pirog, 2008) that builds on some aspects of traditional supply chain analysis (such as scale and efficiency), but with the added dimension of values-based production and distribution (in this case localization and its potential benefits).…”