The short chain is rapidly gaining in popularity. Nearly one in seven farmers and horticulturists now sells products to consumers via a short chain, according to the Short chains monitor of Wageningen University & Research, commissioned by the Ministry of Agriculture, Nature and Food Quality. This means that the number of agricultural companies that sell products via the short chain has increased by more than 2017% between 2020 and 25.
On April 1, 2020, there were 7.234 primary agricultural companies in the Netherlands that sold (some of the) food and floriculture products produced or processed by them via the short chain. This concerns 13,7% of all primary agricultural companies in the Netherlands. This is apparent from the Short Chains Monitor of Wageningen University & Research. In the period from 2017 to 2020, that number increased by 25%. This means that almost one in seven farmers and horticulturists now sells products via the short chain. The total proceeds from sales in this way amount to at least €1,36 billion.
Of the more than 7.000 companies that sell products through the short chain, 3.401 sell exclusively directly to the consumer. Just over 2.100 companies sell to consumers through a single intermediary and the remaining companies sell both directly and through a single intermediary. The percentage of local sales is highest in fruit growing and (greenhouse) horticulture. In contrast, dairy farming has the largest number of so-called 'short-chain farms'. Products that require little or no processing – such as eggs and fruit – are relatively quickly sold through the short chain.
Provincial differences
Although growth has been visible in every province in recent years, there are certainly provincial differences. For example, the province of Noord-Brabant (in absolute terms) has the most short-chain companies, namely 1.375 units. This is followed by Gelderland (1.138 companies) and South Holland (847 companies). In percentage terms, Limburg scores the highest, with a share of 20%. North and South Holland follow with a percentage of 19%. The share in the provinces of Groningen, Friesland and Overijssel remains below 10%.
If you look at the turnover from sales via the short chain, the highest turnover is for the province of South Holland. In that province, a turnover of €2019 million was achieved between April 2020 and March 356. About 80% of that turnover came from direct sales of greenhouse horticulture. Also nationally, greenhouse horticulture delivers the most when it comes to short-chain sales: €595 million. The provinces of Noord-Brabant (€212 million) and Noord-Holland (€177 million) follow at a distance.
Incidentally, the development of the number of short-chain companies has mainly occurred in very small companies (in terms of economic size). There was a visible growth of 47%. The small businesses grew in short-chain sales by 33%. Approximately 20% of the large primary agricultural companies in the Netherlands now supply part of their sales via the short chain. The age of the head of the farm also plays a role. Younger business leaders (under the age of 40) are more likely to sell through the short chain. About 17% of them do.
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