Rapid growth of direct sales from farmers to consumers | Financial issues

Rapid growth of direct sales from farmers to consumers |  Financial issues

This is evident from the Wageningen University and Research Short Chain Observatory (WUR) commissioned by the Ministry of Agriculture, Nature and Food Quality (LNV). By mid-2020, there were more than 7,200 farmers who had sold (a portion of) their food and floriculture products directly to consumers. So the halo effect is not included.

WUR estimates total annual revenue in the short chain at €1.36 billion. Greenhouse horticulture is by far the largest contributor with €595 million.

Of the 7,200 growers and gardeners in the short chain, only 3,400 sell directly to the consumer. The rest is sold directly and through brokers or only through brokers.

Especially small and large companies

Within the fruit growing and glass horticulture sector, relatively most companies supply via a short chain. The number of short-chain farms is the largest in dairy farms. It is remarkable that very small agricultural companies and especially very large companies often supply directly to the consumer.

By the way, the age of the farmer or gardener plays a major role in the choice of supply directly to consumers. In companies whose owner is less than 40 years old, 17% own a short chain. In addition, nearly 40% of farmers deliver organic directly to the consumer, compared to 13% of conventional agribusinesses. It also appears that multifunctional farmers, that is, entrepreneurs who have a farm site or care ranch, sell products at home more often.

North Brabant has the most short chain companies. The share in the northern provinces of Groningen, Friesland and Overijssel is less than 10%.

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