Typology short production and distribution chains in Italy
a) Direct sales
This is the simplest form of short supply chain. The producer opens, usually within the same company, the sale of his own products. The producers can also organize sales of their products in a set location outside the company.
The responsibility or obligation of the producer is to sell his farm's products in relevant proportion to the total amount of products offered to the consumer with the option to integrate other products from other farmers and stock-breeders.
Even in direct sales either outside or within the farm are subject to the sanitary and fiscal regulations of regular commercial activity. There are many benefits to this short supply chain:
the consumer can speak directly with the producer; in dealing with farm sales one can also get to know the farm, the cultivating methods and practices and the respect for the environment involved with organic farming. Finally the producer is able to assign value to the seasonability of his production as in no other form of sales.
It is also true that not all consumers can travel to do their shopping, including farms; furthermore some farms aren't situated in the easiest to reach places for the consumer.
In all of the regions in Italy there are developed markets and fairs for organic producers, sometimes placed in already pre-existing local markets with conventional producers.
More often than not these markets are designated exclusively for organic producers. It requires paying careful attention and distinction amongst merchants e producers who sell at these markets. A fruit and vegetable stand in a fruit and vegetable market is not necessarily run by its producer, often times it is run by a wholesaler. Instead farmers' markets by definition are only open to producers.
Organic markets are widespread in every region in Italy and often times in some regions they are organized weekly or at least monthly. Obviously for the consumer the markets are of the most value when they are more frequent since selling only once or twice a month forces the consumer to remember the markets dates and to organizes themselves around these times.
Moreover people cannot or do not buy fruits and vegetable just once or twice a month.
b) Buying Groups and Supplier Groups
Regulations for Buying Groups
These are groups organized by consumers, informally or with formal statute who decide to come together to buy organic products directly from the producer or from groups of producers organized in small (or medium sized) platforms, benefiting from a significant price cut on the final price by shortcutting the sales intermediaries.
The philosophy of a buying group goes beyond just produced cost; in fact the ethical and social factors seems to always be a priority and carefully evaluated like with the stewardship of the environment. To prize the culture and the methods of traditional cultivation and of the territory, to bring the relationship between the product and the land closer together and finally to respect working conditions of the agricultural worker. These are all concerns of the buying group.
From a financial point of view, formally organized buying groups with their buying activity and distribution of products to its members isn't considered to be of commercial nature; therefore it is not accountable to report IVA. A Buying group do not generate taxable income, and is not subject to taxation, as long as it carries out its activity only amongst its members and if it has a charter that respects the principals of profit sharing, to internally democratize and to be transparent with
the appointed leaders of the group.
b.1) How a buying group works
The participants of the group decide on the products which they want to buy collectively. Based on this list, the members compile an order which will be placed, usually via email, to a group leader or coordinator, who in turn places the order with individual producers or to an organized group of producers.
In the next step the producer or organizer amongst the producers takes steps to make the products available or to deliver them directly to the group leader who will get it to the individual families.
Some buying groups have taken on consumer awareness as a priority with sustainable development and education on buying awareness. Solidarity amongst consumers, solidarity between the consumer and the environment, solidarity between the consumer and the producer are concerns of the group.
The strength of a buying group is the voluntarily commitment that it shows; whether it be in the collecting of the orders or in their delivery.
c) Supply Group.
These groups are useful to give continuity of the supply and for quality control.
Supply groups can be cooperatives or small companies. Even transport costs are lower.
Various ways to make a shortened distribution chain Traditional, but also unexpected. Here are all the possible ways to buy and sell products with as few intermediaries as possible:
- Direct farm sales . it is the direct sale from the agricultural entrepreneur
- agricultural markets. Farmers' markets. Markets where the producers sell their products directly
- Collective selling outlets. Places where several farms work together and organize the selling of their products together.
- Buying Groups. Organizations of consumers which buy products together directly from farms.
- Home delivery, box scheme (or CSA community supported agriculture). The producer takes the time to home deliver to the consumer a pre-determined quantity of product agreed upon together with the client.
- Local festivals. Public events where producers from the area can exhibit their products, hold taste testings and sell their products.
- Vending Machines. Milk was the first product, but others are on the way. The farm directly provides a small chain of distributors which are convenient and always open for consumers.
- Direct farm pick-up or pick-up your own. The consumer buys directly from the farm (picking the produce himself)
Italian NRN contribution to the “short supply chain” workshop (2011), EU Rural Review
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