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Regional and Local Food –Regional and Local Food –What Future Role?

Christian JochumChristian JochumTechFood Seminar, 15 June 2011

B k dBackground

personalpersonalstudies of agricultural economics

working for Chamber of Agriculture in Austriaworking for Chamber of Agriculture in Austriaprofessional

national: in charge of agricultural marketing and special cropsg g g p pmember of Austrian marketing boardsspecialist for quality assurance, HACCP, aspects of logistics and di t ib ti t bilit tifi ti h lit ldistribution, traceability, certification schemes, quality sealsmember of Austrian Codex Alimentariusjuridical and practical experience regarding food labeling food safetyjuridical and practical experience regarding food labeling, food safety, hygiene package, direct sales

Folie 2 DI Christian Jochum 30.06.2011

B k dBackground

professionalprofessionalCopa-Cogeca:

chair of Working Party „Promotion of agricultural products“ g y g pmember WPs „Quality“, „Food chain“, „Foodstuff“

Commission:president of Advisory Group „Promotion“ 1999 – 2007 (2 periods), since 2007 vice-presidentmember of Advisory Group Quality of Agricultural Production“member of Advisory Group „Quality of Agricultural Productionmember of Coordination Committee for Rural Development

Folie 3 DI Christian Jochum 30.06.2011

C t tContents

What I want to tell youWhat I want to tell youThe role of regional and local food for the consumer

The perception of regionality and localityThe perception of regionality and locality

The Austrian experience

The EU quality packageThe EU quality package

The CAP and small scale food processing and distribution

Scenarios for the futureScenarios for the future

Summary

The role of regional and local food for the consumer

„Tell me, how you are living, and I will tell you, what you are eating“„Tell me, how you are living, and I will tell you, what you are eatingeating, cooking, purchasing food is part of lifestyle

driving forces:driving forces:time share of lifemoney share of incomeknowledge share of interest

role of eating and drinking:t f i l lif (f il f i d ll )part of social life (family, friends, colleagues, …)

identity: personal and national (“the national dish”)additional function: sports morale love etcadditional function: sports, morale, love etc.

The role of regional and local food for the consumer Time

In the morning husbands and wifes are leaving home for work, children for school.

Limited time to buy food in the evening on the way back hometo prepare food quick‘n‘easyto prepare food „quick n easyto eat food in front of the TV set

consequences:consequences: convenient food ready to eat, ready to heat, finger foodHMR (Home Meal Replacement) mass catering, gastronomyfast food „Coffee on the go“, snacking & grazingdisappearance of the breakfast, principal meal dinner in the eveningdinner in the evening


Time: BMLFUW Consumer survey 2010Time: BMLFUW Consumer survey 2010


MoneyMoneyeconomic growth increasing incomes share of household spending for food is sinkingg

industrializing of processes (farming techniques, processing, distribution) cheaper unit costs

competition between „needs and wants“ scope of prices for a good grows commodity ↔ specialityh bit ti d bilit ICT t iti l i tihabitation and energy, mobility, ICT, nutrition, leisure timenew goods: ICT

same development worldwide different levelssame development worldwide, different levels


MoneyMoney


KnowledgeKnowledgeThe more you know something (somebody), the more you love it (him/her).( )

lack of knowledge about food, farming, cooking, recipeslilac cows, strawberries in december, atlantic seafood in mediterranian fish restaurants animal welfare topicsvegetarianismvegetarianism

role of mediapictures terms and scandals ( killer cucumbers“)pictures, terms and scandals („killer cucumbers )diets (fish, fruit and vegetables, milk,…)models for a perfect body


ChallengesChallengesshare of time: What role does eating and drinking play in my life?

How to increase the time foreseen for food (planting, harvesting, (p g gpurchasing, preparing, eating, recycling)?regional/local food: role of identification, entertaining (story telling),

t id f hi t (h d d t )means to provide a sense of achievement (homemade products,…)

share of money: there is enough income availablelocal/regional food as specialitylocal/regional food as specialityeconomic attractiveness through direct sales (semi-subsistence)

share of knowledge:share of knowledge:raising of interest raising share of time and expendituresdepending on education and motivation

The role of regional and local food for the consumer Solutions

world of unsecurity and scandals local and regional food offers familiarity„You trust, what you know!“

overflow of media t b d ti t t d i i f blnon-stop broadcasting concentrated impression of problems

over-informationThink global eat local “„Think global, eat local.

new attitudes responsability for the environment, for the personal and global futurep y p gLOHAS: Lifestyle of health and sustainability„Keep the chains short and close the circuits!“D dif diti !“„Decommodify commodities!“

Th ti f i lit d l litThe perception of regionality and locality

The distance factorThe distance factordistance:

objective criteriajsubjective estimation

The perception depends on the distance and on the standpoint:the closer the more regional (local)„regional“ from a Viennese sight differs from a Styrian sight

Th ti f i lit d l litThe perception of regionality and localityThe significance of food rises depending on the distance

from abroad

farer distance, regional, county,e.g. the Tyrol

from Austria

close distance, local, e.g. the neighbour village

g y

homegrown

direct sales at the farmgate

g

source: Karmasin lecture

Th ti f i lit d l litThe perception of regionality and locality

Reasons for the purchase of regional food (2010)Reasons for the purchase of regional food (2010)

Th A t i iThe Austrian experience

Long tradition for direct sales due to political role modelLong tradition for direct sales due to political role modelsmall scale structures:

mountainous regionsgless favoured areashistorical background (physical division of agricultural holdings)

adding value through processing and direct salesin the 70‘s and 80‘s: factory outlet at the farmgate (big quantities, reasonable prices)reasonable prices)turn to specialities: meat products, cheeses, bread, juices, jams, fruit and vegetablesg

specialisation, intensification, eco-orientation

direct sales, livestock breeding, organic agricultureg g g


Limited market share for small scale food offerers:Limited market share for small scale food offerers:diminishing number of food handicraft:

2000: appr. 8.000 bakeries, butchers and pastry shopspp p y p2010: appr. 6.000

declining turn overs for direct sales at the farmgatesmaller householdsshift in demand (package of schnitzels instead half of a pig-carcasse)competitive alternative for regional food in supermarketscompetitive alternative for regional food in supermarkets


Market share direct sales for organic produceMarket share direct sales for organic produce


The profitability for small scale food processingThe profitability for small scale food processingsame dynamic as for handicrafts

economies of scale versus handmade specialitieseconomies of scale versus handmade specialities

economic benefits of „direct“ less overheadsmore flexibilityless advertisingdi t t t tdirect access to target groupsless packaging

optimisation of product rangeoptimisation of product range

cooperation

outsourcing of certain activitiesoutsourcing of certain activities


The food legislationThe food legislationhygiene official guidelines

less documentation, more information and motivationrisk based approach less general laboratory analyses, more

focus on „dangerous“ products

labeling official clarification and publication of standardized labels

fees for veterinary inspections:d d t iffreduced tariffs

perspective of risk based ante mortem inspectionsproblems: too expensive despite reducement; unnecessary controls ofproblems: too expensive despite reducement; unnecessary controls of disappeared parasites (e.g. Trichinella)


The distributionThe distributioncrucial to reach the consumer

market share of supermarkets in Austria: 90 % of which 86 % is allotted tomarket share of supermarkets in Austria: 90 % of which 86 % is allotted to three companies (Rewe, Spar, Aldi/Hofer)

store size 600 to 1.000 m², 3.000 to 5.000 articlesone stop shopwide range of regional products (including organic)

l tisolutionsselling at the farm gate: still dominatingfarmers markets farmers shopsfarmers markets, farmers shopsdelivery servicesgastronomy


Direct sales with guaranteeDirect sales with guaranteeThe quality seal „Gutes vom Bauernhof“

private quality assurance schemep q ysix criteria, assessed with pointstraining of the farmers1 600 ti i ti h ldi i 5 ti1.600 participating holdings in 5 counties

professionalisation on all levels

f d f ICTenforced use of ICT internet and intranetwww gutesvombauernhof atwww.gutesvombauernhof.attrain the trainer principle

distribution cooperation-project with Rewe p p j

Th EU lit kThe EU quality package

BackgroundBackgroundaim of the quality policy:

reconnecting farmers with consumers: gfair returns for farmers for their effortssufficient information for consumers about product characteristics and th f i tt ib tthe farming attributessimplify marketing and quality standards, reduce complexity of quality information/communicationinformation/communicationcoherence between quality schemes

covering commodities and value added productsg p

providing a legal basic framework for quality products and quality terms


The quality regulationThe quality regulationRegulation on agricultural product quality schemes:

1 single overall regulatory framework g g ysimplification and harmonization of the different EU quality schemes (PDOs and PGIs, TSGs)

ti l d t “f ” “ t i d t ”optional reserved terms “free range”, “mountain products”local farming and direct sales (“Product from my farm”): new and surprisingsurprising

hot spots:mountain products: yes/no; what definitionp y„Product from my farm“: yes/no; how? EU-Logo


PDOs, PGIs, TSGsPDOs, PGIs, TSGshot spots:

role of producer organisations ( limitation of quantities)p g ( q )international protection (WTO)definition/differentiation of PDO and PGI

d l d t il (i l d l t d/i l ti t )procedural details (incl. delegated/implementing acts)

The CAP and small scale food processing and di t ib tidistribution

political fields under construction:political fields under construction:CAP post 2013 keywords:

new challenges (climate change, biomass, water resources, g ( gbiodiversity,…)competitiveness of EU agriculture (growth smart, sustainable)

bli d f blipublic goods for public moneyfood securitysmall scale farming, direct sales, semisubsistence agriculture, shortsmall scale farming, direct sales, semisubsistence agriculture, short supply chains

role of quality within the CAP-frameworkq yactually: participation in quality schemes in Rural Developmentdepending on how quality is defined local/regional products

S i f th f tScenarios for the future

Mega-trends of the 21st century (according to Matthias Horx):Mega trends of the 21st century (according to Matthias Horx):The century of women

The century of the elderlyThe century of the elderly

The age of health

The age of mobilityThe age of mobility

The segmentation of the markets


legal frameworklegal frameworkquality schemes, optional quality terms:

provision of basic definitionspexplain the difference to EU standard qualitystrategic goal: added value, small scale farming, SME‘s, diversity

financial support by CAPinvestment, education, structures,…promotion and communication to the civil society/tax payerspromotion and communication to the civil society/tax payers

prohibition of misleading the consumerWhat is regional? What is local?What is regional? What is local?

more simplification of food legislation


strategic approachstrategic approachsimple and clear definition of local and regional

through legislationg gthrough marketing

professionalisation of holdingseconomicallyeducationquality of processing and productsquality of processing and products

professionalisation of structures advisory service

quality assurance schemesquality assurance schemesofficial EU schemes: PDO, PGI, „Product from my farm“private, national, regional sealsp g

S i f th f tScenarios for the futurestrategic approach

authenticity and trustfulnesstraditional recipes and ingredients (discover the diversity)dd dadd a story to your product

give food a face from the producer

target groups:target groups:„local“ local hero a commodity sold to local public who knows personally the producerp y p„regional“ regional speciality distributed over longer distances

new distribution channelsdelivery service + ICTone stop shopemotion events and tourismemotion events and tourism

SSummary

You are what you eat!y

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