5 golden tips for the short chain

The lion's share of entrepreneurs in the agri-food chain is staring blindly at the Dutch food hourglass. Their ideal is supply to retail and visibility on the shelf. But in that retail channel it is urgent! And why choose the long route, if there is also a shorter route to those 17 million consumers? According to Harry van Delft, Roger Engelberts and Paul Houtepen, short chains offer great opportunities.

Short chains have a few interesting advantages: more added value, more customer loyalty and loyalty and real-time market research and feedback. To take advantage of these opportunities, entrepreneurs need to choose. But 'choosing is losing' is still the 'common sense' with many agricultural entrepreneurs. That while in 2021 there is no longer room for the gray mediocrity or the middle of the road choices. Because the middle part disappears. Look at the departure of large retail chains such as V&D, Houtbrox, Vögele and Perry Sport. In our view, it is precisely a matter of 'choosing to be chosen'. And with short chains, the choice is actually a choice of fitting: not a ready-to-wear, but a tailor-made suit.

Too many entrepreneurs start from what they find unique about their product, instead of what the consumer perceives as special. We make a distinction between ego and eco values. Ego values ​​are, in food: taste, convenience and health. Eco-values ​​include animal friendliness, organic production, conservation of local farms and local nature. Please note: for the vast majority of consumers, ego wins over eco!

Too small or too big for the napkin
For certain entrepreneurs, the route through retail is a damn difficult one, because they have difficulty supplying a retailer due to all the conditions they impose. They are, as it were, too small for the napkin. An escape route is the franchise entrepreneurs of Jumbo and Albert Heijn. Because these retail entrepreneurs are still their own boss. Drop your test balloon here!

At the same time, other farmers and horticulturists are too big for the napkin, due to the focus on scale and cost leadership, among other things. But still too small for the tablecloth. We also see an escape room for them. Because what is small in production can be big in the more exclusive customer channels. An example: a small poultry farmer can quickly lay around 20.000 eggs per day, which is sufficient for a population of a medium-sized city.  

Distribution is King Kong
You probably know the saying: 'Content is King'. But distribution is King Kong. Entrepreneurs experience many bottlenecks in logistics, the intricate distribution. What cargo are you going to drive for? How do you make this efficient? Do you have to do everything yourself? Many things get stuck in logistics. From the point of view of the primary producer, fresh or processed products are difficult to include in existing logistics. So look for partners!

There are several short-chain initiatives with a large customer base that you may be able to join. From the point of view of consumers, the clusters or platforms to which many agricultural entrepreneurs are connected offer many advantages. Especially that of convenience during the ordering and delivery process. Of course, each channel makes its own demands on the farmer. After all, running your own farm shop requires completely different qualities than supplying specialty stores, food service, catering, catering or retail.

To tempt
Successful short-chain entrepreneurs have a nose for seducing people. They manage to add emotion to their fresh product. Link emotion to your product and value will accrue to you. Your unique product can then act as a commercial driver and build a bottom into the bottom of the cost price erosion. The solution in this changing zeitgeist: don't think in products, but think in concepts, solutions and services. An example: With Uber Eats, food becomes a service. And: don't think in ratio, but in emotion.

For example, if Corinne Fleuren (recently nominated by LLTB as the most innovative female agricultural entrepreneur in Europe) with the MiniTree† Corine is also destroying the entire chain in the corona time because she delivers a tree directly to the consumer via a webshop, via the very shortest chain: from one click in the webshop, until tomorrow morning a push on your DHL doorbell.

While her husband Han supplies fruit trees to fruit growers, Corine supplies the fruit trees to, for example, people who take out a mortgage with Rabobank. The MiniTree thus does not become a fruit tree or apple supplier, but an emotional promotional gift; House Tree Beast! Ah, money flows to value(s).   

Finally, our 5 golden short chain tips:

1. Explore which channel suits you as an entrepreneur.
2. Seek collaboration with non-sector peers; what size are you aiming for?
3. Think: can you develop more tracks side by side? What gives you basic income? What gives you access to new markets? What gives you a face in the market (such as supplying to a Michelin-starred restaurant or crowdfunding)?
4. Learn from other entrepreneurs in the chain, but consciously choose with which acquaintances you want to share your knowledge.
5. Make a brand of yourself (personal branding). Therefore, think carefully about your clothing, appearance and tone-of-voice and stay consistent in this. This way people will recognize and acknowledge your image and sound. Stand out in the crowd!

Written by: 
- Harry van Delft, former lecturer in AgroFood Marketing at HAS University of Applied Sciences. 
- Roger Engelberts, founder of Imagro BV and former lecturer Co-creative Entrepreneurship at HAS University of Applied Sciences.
- Paul Houtepen, senior advisor and active in the short chain at Imagro BV.

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