Distribution and food hubs

A common problem for smaller food producers is efficient distribution, especially where the producer is trying to diversify their marketplace and shorten food supply chains. The problem is particularly evident in remote rural areas where customers may be distant or dispersed, and third party distribution services are limited.

One of the potential solutions is working through a 'food hub'. Hubs are part of the physical infrastructure for distribution, where orders from multiple producers can be consolidated to offer customers a single delivery and invoice. This can be combined with marketing services, or simply act as the delivery mechanism.

Hubs have taken several forms, in a number of projects across the UK. They range from large operations focused on supply to multiple retailers, to modest sub-regional enterprises focused on direct deliveries to households. Whilst some of these are working well, others have failed. Models vary from private enterprise to collaborative systems and producer-owned businesses.

f3 has, arguably, a unique understanding of food hubs and local food distribution issues. A number of projects illustrate our work in this area:

Highlands and Islands Local Food - two major projects for Highlands and Islands Enterprise, jointly with the Scottish Agricultural College, to understand supply & demand and distribution issues, backed up by extensive market research, leading to recommendations for better marketing and distribution mechanisms.

Highlands hubs - a business plan in progress to develop an efficient local distribution network in the Highalnds. This may take the form of a main hub near Inverness, linked into micro-hubs in the more remote regions.

Sussex Food Hub - evaluation of options for the development of a food innovation centre, including assessment of distribution needs, resulting in a full business plan and action plan for a producer owned business linked to a new incubation centre.

Mapping of North East Food & Drink Production and Supply Chain Development involving GIS mapping of producers and marketplaces, and developing recommendations for sustainable distribution options, building on existing distribution infrastructure.

The modest distribution centre at Somerset Local Food Direct illustrates a social enterprise approach to local distribution. f3 did the orginal business plan for this beacon project.



Scale is a key factor in planning distribution, with sometimes quite separate systems required for smaller suppliers to logistics that are geared to serving larger foodservice or retail customers.
 
 

Contact us: 0845 458 0060 ~ mail@localfood.org.uk ~ PO Box 1234 Bristol BS99 2PG