Two weeks ago, the BBC’s Farming Today looked at the impact rising fuel costs are having on local food distribution networks - a discussion which raised some interesting questions about the resilience of emerging local food supply chains. Unfortunately the podcast is no longer available because I didn’t get around to writing this quickly enough!
Local shop owners and their suppliers were interviewed - for example, a village shop and their local bakery - about the impacts of rising fuel costs on their ability to continue working together. As expected, the increase in fuel costs was reported to be putting these relationships under strain, with distribution costs claiming higher and higher percentages of turnover for local suppliers.
In response, many suppliers are increasing wholesale prices or increasing distribution charges, leading to some suppliers being dropped by retail outlets, or the costs being passed on to the consumer.
In some cases, suppliers are looking for more inventive ways to beat the rising overheads. In some areas, local suppliers are joining together to share the cost of fuel by using a common delivery system, which picks up from multiple suppliers and delivers to a range of retail outlets.
Local shops are also under pressure to change their model, in some cases accepting fewer deliveries from each supplier to lessen the effect of distribution charges. This means that where customers were used to a constant supply from known local suppliers, they may now have to plan their shopping more carefully in order to purchase the same products, if they are only available on fewer days each week.
Hopefully we will see more innovative solutions to the lack of middle-level distribution infrastructure in response to these problems.
Posted in Food Consumption, Local Food Politics, agriculture, food miles, food politics, local food | Tags: distribution, food, fuel, local food, transport













