In today’s rapidly evolving marketplace, consumers and producers alike are seeking new ways to meet their economic, social, and environmental expectations. One approach that has gained significant popularity is the use of short distribution channels. These channels provide a means for selling agricultural products directly from the producer to the consumer or with no more than one intermediary involved. By embracing short distribution channels, both consumers and producers can enjoy the benefits of high-quality local produce, stronger relationships, and a more sustainable approach to agriculture.
Understanding Short Distribution Channels
According to the French Ministry of Agriculture and Food, short distribution channels involve selling agricultural products either through direct sales from the producer to the consumer or with the involvement of just one intermediary. In recent years, these channels have become increasingly diverse, adapting to changing consumer trends and harnessing innovative approaches to distribution.
Collective Direct Sales
One form of short distribution channels is collective direct sales. In this approach, several farmers come together to sell their products at collective points of sale. This not only allows them to reach a wider customer base but also promotes collaboration and strengthens relationships between farmers and consumers. An example of this is the “produce basket” concept, where customers can purchase weekly baskets of produce adapted to the season and farm production. Associations like the Association Pour le Maintien de l’Agriculture Paysanne (AMAP) in France are well-known for their organized sales approach.
Another form of collective direct sales is the emergence of “drive-in farms” where customers can conveniently order products online and pick them up directly from the farm. This method not only provides consumers with easy access to local produce but also fosters a closer connection between producers and urban consumers.
Individual Direct Sales
On-farm sales are another type of short distribution channel, allowing producers to sell their products directly at their own holdings. This method is not limited to individual producers but can also be utilized by organizations such as outplacement agencies and agricultural schools. Additionally, producers often sell their goods directly at local markets, fairs, and shows, providing consumers with a direct connection to the source of their food.
The rise of mail-order and web sales has also contributed to the growth of individual direct sales. Customers now have the option to have their purchases delivered to their homes, further strengthening the bond between producers and urban consumers. In some cases, producers even engage in door-to-door sales, where they personally deliver their products to their customers’ homes.
Individual Indirect Sales
While short distribution channels primarily focus on direct sales, individual indirect sales have also gained traction. Retail stores, catering businesses, and medium to large supermarkets are now venturing into this market by offering “direct from the farm” produce that is clearly identified as such. This allows consumers to access local products conveniently while supporting local producers. In some cases, producers may process their goods themselves, while others rely on cooperatives to handle the processing and marketing of their products.
To cater to the growing demand for locally consumed goods, new platforms are emerging which prioritize the consumption of products close to their point of production. This “locavore” movement aims to reduce goods transport and CO2 emissions. One example of a leading company in this sector in France is “La Ruche qui dit Oui!”, which operates a delivery-based model where consumers are provided with local products directly to their homes.
Agritourism and Wine Tourism
In addition to the various forms of direct and indirect sales, short distribution channels also extend to agritourism and wine tourism. These forms of tourism allow visitors to experience local products while staying at “farm inns,” guest houses, holiday cottages, and wine estates. Farms affiliated with national networks such as “Bienvenue à la Ferme” and “Accueil Paysan” provide customers with guarantees on product origin and quality.
The “Vignobles & Découvertes” label, awarded by Atout France, serves as a guide for wine tourism destinations that offer a wide range of services such as wine-cellar visits, tasting sessions, accommodation, catering, museums, and special events. These venues play a crucial role in organizing visits for customers, providing information, and offering advice on qualified services.
The Changing Landscape of Consumer Expectations
Consumers today are increasingly turning to short distribution channels as a response to their evolving expectations. While supermarkets still dominate the food retail sector, there is a growing interest in purchasing food from local sources. One reason for this shift is the desire to support producers by paying a fair price for their goods. Consumers also value the quality of local produce, as it is often healthier, traceable, and less processed, meeting their nutritional needs more effectively.
In addition to the quality aspect, consumers also seek to reconnect with the earth and support the local economy. They believe that consuming locally produced goods helps reduce transportation and, consequently, CO2 emissions. Furthermore, short distribution channels are seen as a means to combat food waste, as they often involve direct sales that minimize the need for excess packaging and transportation.
Empowering Producers Through Short Distribution Channels
Short distribution channels not only benefit consumers but also offer significant advantages to producers. In France, one in five producers sells their products through short distribution channels, reflecting the growing interest in these alternative methods (Agreste, 2012). These distribution systems provide producers with opportunities to reduce their dependence on the agri-food and retail industries and secure satisfactory margins for their products.
Moreover, short distribution channels enable producers to form closer bonds with their consumers and raise awareness of their expertise and know-how. By engaging directly with consumers, producers can receive valuable feedback, establish trust, and build long-term relationships. This direct connection also allows them to better understand consumer preferences and adapt their production accordingly.
Furthermore, producers share the same environmental concerns as consumers when it comes to sustainable agriculture. Short distribution channels provide them with a platform to showcase their commitment to sustainable practices and promote the benefits of locally produced goods. By minimizing transportation and embracing sustainable farming techniques, producers can contribute to the reduction of carbon emissions and promote a more environmentally friendly approach to agriculture.
Crédit Agricole: Supporting Short Distribution Channels
Crédit Agricole, the leading bank for farmers in France, recognizes the importance of short distribution channels in transforming society and the agricultural sector. As a supporter of major social transformations, Crédit Agricole actively promotes and supports producers utilizing short distribution channels and agritourism.
To assist farmers in these channels, Crédit Agricole has renewed its partnership with the Bienvenue à la Ferme network. This partnership aims to provide farmers with tailored payment solutions that simplify collection, both on-farm and at markets or events. By offering advantageous prices and tools to enhance farmers’ online presence, Crédit Agricole helps increase their attractiveness to consumers and promotes their services through the new “e-tourism” offering.
Additionally, Crédit Agricole partners with Atout France and Terre de Vins to organize the Wine Tourism Awards, which celebrate the initiatives of wine estates and cooperatives in this area. This partnership not only highlights the importance of wine tourism but also supports the development and promotion of wine-related initiatives. Regional Wine Tourism Awards have been introduced in partnership with the Provence Côte d’Azur Regional Bank, further emphasizing the commitment to local producers.
The collaboration between Crédit Agricole and Bienvenue à la Ferme includes a mutual exchange of expertise and resources. Crédit Agricole provides its payment expertise to contribute to the training of Chamber of Agriculture advisors. In return, Bienvenue à la Ferme offers the expertise of the Chambers of Agriculture in advising and supporting short-distribution and agritourism farmers, providing them with a wide range of tools, guidance, and training.
The successful implementation of this partnership relies on the extended coverage of the Crédit Agricole and Bienvenue à la Ferme networks at the local level. By working together, they create a win-win situation, promoting the growth and sustainability of short distribution channels while providing consumers with access to high-quality local products.
Village by CA: Supporting Startups in Short Distribution Channels
Village by CA, a network dedicated to supporting startups and regional economic development, plays an active role in promoting short distribution channels. By nurturing innovation and entrepreneurship, Village by CA helps startups enter the market and contribute to the growth of these channels.
Several startups within the Village by CA network have successfully established themselves in the short distribution channel market. For example, A2PASd’ICI, based in Village by CA Nord de France, has become the leading short distribution channel for catering and retail professionals. Their platform provides a convenient way for professionals to source local produce and support local producers.
Similarly, distri, a benchmark app developed by Village by CA Lorraine, connects local producers with customers, making it easier for consumers to access locally grown goods. PANIER LOCAL, located in Village by CA Atlantique Vendée, offers an online management tool for short-distribution producers, helping them overcome various business challenges. Tout Près d’Ici, a startup in Village by CA Paris, focuses on supporting the development, promotion, and B2B sales of top-quality local food.
Village by CA Milan has also made strides in the short distribution channel market with emerge, a food trading platform that connects producers with buyers through a virtual marketplace. This platform enables producers to showcase their products, sign business agreements, and reach a wider customer base. With its theme-based presentation, emerge offers customers an attractive selection of products from over 300 producers.
Conclusion
As consumer expectations continue to evolve, short distribution channels have emerged as a powerful solution for meeting the changing needs of both consumers and producers. These channels provide consumers with access to high-quality local produce while supporting the local economy and promoting sustainable agriculture practices. For producers, short distribution channels offer opportunities to establish direct connections with consumers, obtain satisfactory margins, and raise awareness of their expertise.
Crédit Agricole, as a supporter of major social transformations, actively promotes and supports producers utilizing short distribution channels and agritourism. Through partnerships with organizations like Bienvenue à la Ferme and initiatives such as the Wine Tourism Awards, Crédit Agricole provides financial and expertise support to farmers and wine estates engaged in short distribution channels.
Additionally, Village by CA contributes to the growth of short distribution channels by nurturing startups and providing them with the necessary resources to succeed in this market. Through innovative platforms and technologies, these startups are reshaping the way consumers access local produce and creating new opportunities for producers.
With the rise of short distribution channels, our society is witnessing a transformation in the way we produce, distribute, and consume agricultural products. These channels not only provide economic benefits but also contribute to building stronger relationships between farmers and consumers and promoting sustainable agricultural practices. By embracing short distribution channels, we can create a more resilient and inclusive food system that benefits both producers and consumers alike.