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Is corona clearing the way to short chains?

2 May 2020 - Jeannet Pennings

Shopping at the farmer around the corner is becoming increasingly popular. The corona crisis has further fueled that enthusiasm. The desired formation of shorter chains is thus gaining momentum. What will be left of that development in a few months?

'Support the entrepreneur', 'Support your locals' and 'Lekkerder bij de Boer' are just a few examples of chain shortening. The initiatives have been sprouting like mushrooms since the corona crisis. Consumers eagerly take advantage of it and have local products delivered to their homes or go out to shop at a farm shop or roadside stall. 

“In all the uncertainty we now find ourselves in, we as consumers fall back on things that are self-evident. Locally grown products are an example of this”, explains Wessel van Olst, chairman of the cooperative Landwinkel, the greater enthusiasm for buying directly from the farmer. The nearly 100 agricultural companies affiliated with Landwinkel have seen an increase in the number of visitors to their stores in recent weeks. “Some members also supply healthcare and catering. Part of that business will of course be lost, but the country shops are doing better across the board. With 40 to 80% more sales.”

Transition in gear
According to Van Olst, a transition has been going on for some time, especially among young people, to buy more from the source. “That development is going very fast now. Suddenly there is a growing awareness of what is happening in the world around us. In addition, people just want to eat good and tasty food, especially now that they are at home a lot and restaurants are closed.” Moreover, according to Van Olst, a visit to a country shop is also seen as an outing. Sales respond to a part of the consumer experience.

The Landwinkel chairman expects that some of the new business as a result of the corona outbreak will be permanent. “It's hard to predict exactly where it's going. But we do see a growing enthusiasm for short chains. Also with farmers; we are getting more requests. As a mature organization (Landwinkel was founded in 2006, ed.) we have a lot of knowledge in-house. Think of well thought-out store systems, developing concepts and launching brands. We believe in the catering function and experience, and that certainly also applies after the corona crisis.”

More home delivery
Delvry is also experiencing the growing need among consumers for local products. This, in combination with a high demand for home delivery, explains the success of the fledgling company from Dronten. The initiative comes from André Aasman, who also owns potato processing company ASN. “There are many people in my neighborhood who fall into the risk category. The request to supermarkets for a delivery service was rejected. I thought 'that must be possible, right?'” 

The entrepreneur deployed his network and within a week and a half the website Delvry.nl was launched, to which 26 local suppliers are now linked. This mainly concerns farms, including Melktap de Zuyderzee and Polder Potato, which are clearly positioned as the sender of the products. According to Aasman, Delvry is developing at a rapid pace. After 12 days of delivery, in addition to the municipality of Dronten, Lelystad is now also part of the sales area. In addition, the eyes are on Zeewolde and in the longer term Delvry would like to supply the whole of Flevoland.

Room for growth
Now that production at ASN has fallen drastically due to the corona crisis, Delvry is a welcome addition to the turnover, Aasman admits. “And we are convinced that this can and should be a keeper. If you look at figures from before the corona crisis, it appears that in the Netherlands only 3% of all groceries are done online. While this share in clothing is more than 40%. So there is room for growth and I think this time will help to give that impetus. Online supermarket Picnic is our great example. They have had their delivery service for a while and show that there is room for it in the market.”

Another early Zeeland initiative with national ambitions is Lekkerder bij de boer, where entrepreneurs with a farm shop, roadside stall, fresh vending machine or milk tap can register. This makes them easier for consumers to find and thus the short chain can take shape. The idea comes from Thomas Siahaya and gained momentum due to the corona crisis. “Now that many farmers are stuck with their harvest, local shopping is getting more priority. I had no choice but to bring forward the launch of the website.” 

Will consumers stick?
With Lekkerder bij de boer, Siahaya has 2 clear goals in mind. A fair price for producers and fresher, better, tastier and often more affordable food from the region for consumers. “Let's stop bringing fresh produce from far away.” The consumer will embrace it. It remains to be seen to what extent he will stick around once 'normal life' is resumed and the convenience of the supermarket beckons.

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Jeanette Pennings

Jeannet has her roots in the flower bulb sector and she grew up on an agricultural company in the northern part of North Holland. As a generalist she reports for Boerenbusiness across all sectors. She is also exploring the possibilities of sponsored advertising.

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