Competitiveness of Small Farms and Innovative Food Supply Chains: The Role of Food Hubs in Creating Sustainable Regional and Local Food Systems

Over the last decades, the economic, social and environmental sustainability of the conventional agri-food system has and continues to be contested within both academic and public institutions. For small farms, the unsustainability of the food system is even more serious; farms’ declining share of p...

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Bibliographic Details
Main Authors: Giaime Berti, Catherine Mulligan
Format: Article
Language:English
Published: MDPI AG 2016-07-01
Series:Sustainability
Subjects:
Online Access:http://www.mdpi.com/2071-1050/8/7/616
Description
Summary:Over the last decades, the economic, social and environmental sustainability of the conventional agri-food system has and continues to be contested within both academic and public institutions. For small farms, the unsustainability of the food system is even more serious; farms’ declining share of profit and the cost-price squeeze of commodity production has increased barriers to market access with the inevitable effect of agricultural abandonment. One way forward to respond to the existing conventional agri-food systems and to create a competitive or survival strategy for small family farms is the re-construction of regional and local agri-food systems, aligning with Kramer and Porter’s concept of shared value strategy. Through a critical literature review, this paper presents “regional and local food hubs” as innovative organizational arrangements capable of bridging structural holes in the agri-food markets between small producers and the consumers—individuals and families as well as big buyers. Food hubs respond to a supply chain (or supply network) organizational strategy aiming at re-territorialising the agri-food systems through the construction of what in the economic literature are defined as values-based food supply chains.
ISSN:2071-1050