Farmers increas­ingly opt for direct sales

More and more farmers are turning to short supply chains, where they sell their products directly to consumers or with just one intermediary. The Monitor Korte Ketens 2023 by Wageningen Economic Research shows that the number of businesses using this sales model has grown by 9% since 2020. The total revenue from short supply chains in 2023 is estimated at around €2.2 billion, an increase of 50% compared to 2020.

Short supply chains on the rise

Short supply chains are seen as a sustainable and profitable way to bring agricultural products to market. The growing popularity is evident: in 2023, 15.8% of agricultural businesses sold part of their products through a short supply chain. This trend is particularly strong in Gelderland and among younger entrepreneurs. Younger farm owners appear to be leading the way, with 21% of farmers under the age of 35 opting for direct sales, compared to just 10% among those over 66 years old.

Greenhouse horticulture leads the charge

Greenhouse horticulture businesses are the biggest players in this development, generating nearly €900 million in revenue. Other sectors, such as egg production and fruit cultivation, are also showing significant growth. Zuid-Holland leads at the provincial level, with a short supply chain turnover of €528 million.

While almost half of the businesses report that short supply chains account for less than 10% of their revenue, nearly 30% state that more than half of their income comes from this sales model. This highlights the potential of this expanding market.

Wur.nl

Image: ©Kitreel/Shutterstock.com