Off to market: but which one? Understanding the participation of small-scale farmers in short food supply chains\u2014a Hungarian case study

Zsófia Benedek,Adrienn Molnár,Imre Fertő

doi:10.1007/s10460-017-9834-4

Abstract

The research described in this paper was designed to identify the factors that influence the importance small-scale farmers place on different marketing channels of short food supply chains. The focus concerns two entirely different types of market that are present in the bigger cities in Hungary: ‘conventional’ markets where there are no restrictions on locality but the farmer-market relationship is based on binding contracts, and newly-emergent farmers’ markets at which only local growers can sell ad hoc, using their own portable facilities. Results are based on a survey that was conducted in 2013 among 156 Hungarian market oriented farmer-vendors at different types of market and confirm that different markets are visited by different types of farmers. Farmers who favour conventional markets are typically less educated, operate on smaller scales and are more committed to their chosen markets via long-term contracts (which reduce the probability of their trying other outlets). The preference for farmers’ markets is stronger with farmers who are more open to cooperation, have specific investment plans for developing their farms and among those who are specifically looking to directly interact with their customers to avoid middlemen. The relevance of the findings is highlighted by the ongoing Short Food Supply Chain Thematic Sub-programme in the present European Union financing period; farmers’ profiles in any given marketing channel must be understood if short food supply chains are to be effectively promoted. Different types of small-scale farmers will benefit from different supporting frameworks, interventions, and initiatives.

Highlights

The globalisation of food production and the rapid rise of supermarkets have led to adjustment problems for smallscale farmers when they have attempted to join conventional food systems (Dries et al 2004; Watts et al 2005; Ilbery et al 2006; Burch et al 2013)
The dominance of farmers involved in horticulture (77%) is an outstanding feature of the sample; the share of animal husbandry farmers is 17%, while mixed farm farmers constitute the rest of the sample (6%). 33 farmers use organic methods of cultivation of whom 21 are officially certified. 14 organic and 10 non-organic farmers consider Conventional markets and market halls (CMs) and farmers’ markets (FMs) to be unimportant and were excluded from the pairwise comparisons
There is an overlap between CM and FM farmers as 18 farmers sell at both types of market and were classified into both groups

Summary

Introduction

The globalisation of food production and the rapid rise of supermarkets have led to adjustment problems for smallscale farmers when they have attempted to join conventional food systems (Dries et al 2004; Watts et al 2005; Ilbery et al 2006; Burch et al 2013). In line with the intentions (and wording) of the European Union (EU), ‘short food supply chains’ (SFSCs), clear examples of alternative food systems, which are characterized by their lack of middlemen and potentially offer farmers greater returns (Martinez et al 2010; Kneafsey et al 2013), is a key concept in the National Focus in the Rural Development Programme (2014–2020). Farmers’ profiles in any given marketing channel must be understood if short food supply chains are to be effectively promoted and to meet the ultimate goal of the Rural Development Programme: to ensure the viability of farmers through the rise of their potential for increasing profits

Methods

Results

Discussion

Conclusion