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Urban commerce of rural provenance food- what role in fostering resilient and sustainable rural territories

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Abstract

New rural-urban linkages are being fostered in the Portuguese territory by urban specialty food stores. As privileged venues to promote traditional and locally produced products, their increasing number meets and elicits the interest of consumers on such foodstuffs (Silva et al., 2021) whilst contributing to its valorization and further agricultural production, a phenomenon that has been relatively overlooked. The present paper derives from a research project aimed at filling in this gap by typifying urban specialty food stores and comprehending their connections with producers and impact on rural territories. Specifically, we intend to explore what features the circuits of locally produced foodstuffs sold by these stores as well as the store’s owners’ perceptions about rural provenance food certification and the impact of their activity on rural development. To this end, the empirical evidence from a survey (N=113) and a semi-structured interview (N=30) to specialty stores located in three Portuguese cities: Aveiro, Lisbon and Porto, is discussed. A hierarchical cluster analysis segmented three stores’ clusters: The Wine Focused, selling wine and other beverages; The Rural Provenance Focused, selling mainly rural provenance food products and The Generalist, including a wide range of products with diverse provenances. Results indicate that the majority of the stores sell multiple types of products either as a more profitable and appealing way to present regional products (different types, villages and savoir faire) as the only way to subsist in the competitive market of foodstuffs. Only Wine Focused stores advocate for specialization as a way to gain consumers’ trust in their expertise. The majority of the stores source from multiple regions and only a few from single regions, mainly Trás-os-Montes, Serra da Estrela, Alentejo and Azores, suggestive of their profusion and regional relevance. Overall, direct contact with the producers is preferred and for similar reasons: reduced costs; closer relationships; differentiated products; quality and trustworthiness and support for small producers. There are, however, limitations in agricultural conditions and producers’ organizational skills often forcing a more viable logistic of orders and transportation through distributors. Even though the majority of the stores surveyed sell more than five certified products, there is no univocal representation of the value of the certification of origin. The skepticism comes mainly from store owners with long term relationships with producers who find many flaws in the process. The importance of fostering national-based production and the ripple effect that their activity has in rural development is acknowledged by all, with different emphasis by cluster. Wine Focused Cluster believe to be essential in sparking interest in the consumer; Rural Provenance Focused in stimulating productions and savoir-faire that otherwise would barely subsist and the Generalist in disseminating what is organic and environmentally-friendly through shorter supply chains. This dissemination is expected to influence the expansion and consolidation of these agricultural productions in rural areas. Overall, store owners’ preferences for shorter and direct supply chains and perceptions speak favorably about the role of these stores as agents for sustainable development, larger economic diversification, and overall attractiveness of rural territories (Figueiredo, 2021). Keywords: Urban Specialty Food stores; Rural Provenance Food; Sustainable Supply chains; Certification; Portuguese Territories
Urban commerce of rural provenance food-
what role in fostering resilient and sustainable
rural territories
Teresa Forte DCSPT UA, teresaforte@ua.pt
Elisabete Figueiredo DCSPT UA, elisa@ua.pt
STRINGS - Selling The Rural IN (urban) Gourmet Stores establishing new liaisons between
town and country through the sale and consumption of rural products (PTDC/GES-
OUT/29281/2017/ POCI-01-0145-FEDER-029281)
Introduction
New rural-urban linkages are being fostered in the Portuguese
territory by urban specialty food stores
As privileged venues to promote traditional and locally
produced products, their increasing number meets and elicits
the interest of consumers on such foodstuffs (Silva et al., 2021)
whilst contributing to its valorization and further agricultural
production, a phenomenon that has been relatively overlooked.
Objectives
To explore what features the circuits of locally produced
foodstuffs sold by these stores
To identify the store’s owners’ perceptions about rural
provenance food certification
The impact of their activity on rural development.
Methods: sample
The study follows a mixed methods sequential
explanatory design in two phases
1st phase Empirical evidence from a survey to
the specialty food shops (n=113). A hierarchical
cluster analysis was conducted segmenting the
stores according to the most sold rural
provenance Portuguese products.
Three clusters were identified:
1)Wine Focused (n=13)
2) The Rural Provenance Focused (n=49)
3) The Generalist (n=51)
Methods: sample
2nd phase a semi-structured interview to a sub-sample of these shops
(n=30) in Aveiro (n=5), Lisbon (n=12) and Porto (n=13).
The interviews were conducted aiming at exploring some of the
dimensions of the questionnaire and new aspects, focusing on the
reasons behind the diversity of products sold, the regions, the
certification, the features of the supply chains and the impacts and
rural development of the rural-urban linkages.
Products
Type
of products sold
*
N%
Foods
of rural
provenance
107 89,9
Beverages
104 87,4
Foods_Others
81 68,1
Handicrafts
33 27,7
Hygiene
33 27,7
Food of rural provenance* N %
Cheese and other milk
derivatives
49 41,2
Wine and other beverages
48 40,3
Vegetables
and Derivatives 47 39,5
Honey
, Jams and Preserves 24 20,2
Olive
Oil 18 15,1
Meat
13 10,9
*Based on the survey to 113 stores
Products: diversity
The majority of the stores, specially from the cluster Rural Provenance
Focused and The Generalist, sell multiple types of products, with an emphasis
on exclusivity and authenticity:
Authentic products
Provenances with particular biophysical and cultural aspects
Conserved preserved
and valorized Fostered and promoted
to national outsiders New interests or reinforcing previous
ones in specific products or respective
regions
Products: diversity
1- Stores with diverse assortment but still specialized on a few products (commonly
cheese and meat derivatives)
Diversity is seen as a more profitable and appealing way to present regional
products (different types, villages and savoir faire)
2- Stores selling many products equally representative of their aim and character (e.g.,
ecological mission, based on products from one region)
Only way to subsist in the competitive market of foodstuffs
Fit more consumers segments and preferences
Rotativity of products acquired and sold
Less dependable on unforeseeable circumstances of production
3- Stores specialized in one product
Gain consumers trust in their expertise
To buy larger quantities of a product with positive impact on the associated costs
Regions by cluster
Wine Focused stores include wine and
beverages from all regions of CDO
production, with an emphasis on Douro
region
Rural Provenance Focused stores
sources from proxies of the North (Trás-
os-Montes), Center (Serra da Estrela)
and South (Alentejo) of the mainland
and Azores . These regions of
provenance are chosen due to their
typicity, authenticity and associated
quality of the products therein
produced.
The Generalist stores choose regions
according to the weight and quality of
the productions (specially olive oil) or
the proximity (specially vegetables
and derivatives)
Single region Multple regions
Circuits /supply chain
50.9% of the urban specialty retaillers sell products that are sourced by
producers and intermediary/ distributers
38.8 % sell only directly from producers thus fostering a closer rural and
urban linkage
Type
of product sourced from the producer*
N
%
Wine
and other beverages
37
31,1%
Cheese and other milk derivatives
36
30,3%
Vegetables
and derivatives
34
28,6%
Honey
, Jams and Preserves
23
19,3%
Olive
oil
20
16,8%
Cured meat and other animal based products
17
14,3%
Meat
8
6,7%
*Based on the survey to 113 stores
Circuits/Supply chain
Urban specialty stores’ owners, in all clusters, report preferring a direct
contact with the producers for similar reasons:
reduced cost
chance to establish a closer relationship that allows to follow up the production
processes
give feedback and often mediating the interaction between producer and
consumer
specialization and differentiation of the selected products
personal guarantee of quality and trustworthiness
support for small producers and small productions
Our aim is not only to work with producers but also find new small ones” L1.4
It is the most valuable guarantee of their quality and traditional flavour “P2.1
It is a criteria of differentiation, specially when they are exclusive” P2.4
Circuits/Supply chain
Disadvantages of a direct contact with the producers
Frequent stockouts
Problems with deadlines
Difficulties in accessing the venues of production and products
Transportation and extra related costs
Weather, in the case of vegetables and derivatives
“The highway prices, gas, routes make it a tougher choice” P1.1
“If we don’t buy large quantities of the product, it is too expensive” P2.2
“It is hard sometimes to get the desirable number/volume of a certain
product” P2.11
Circuits/Supply chain
Advantages of sourcing from distributors
Easier to contact or reach them
Wider assortment of products and easy replacement
Orders can be put together with a lot of diferente products, crucial in the
case of perishable foodstuffs
So I can have a wide and careful selection” P2.3
It is so much easier and often cheaper” P3.4
“I can contact them at anytime, often they are the ones showing up”A2.2
Certification
Category of product*
%
Cheese and other milk
derivatives
48,4%
Wine and other beverages
47,4%
Vegetables and derivatives
28,4%
Olive oil
27,4%
Honey, jams and preserves
14,7%
Meat
4,2%
More than five certified products= 64.7%
Up to five products= 21%
No certified products= 6.7%
Clients like to have the certification and know that the wine is always produced in the same
way, even if more expensive” P1.1
Certified producers with some recognition are always more attractive L1.2
It is not as what lack certification is actually worseit is not---It is more for the cliente who
trusts more (…) in our country the supervision of these processes is flawed(…) the greatest
certification for me is i taste, see,, know the origin, know if it good and made by serious and
responsible people ”P2.1
Based on the survey to 113 stores
Rural-urban linkage: challenges
The majority of the retailers dealing directly with small producers and choosing
shorter supply chains is consensual about structural issues deriving both from the
agricultural conditions and organizational and management skills of the
producers:
inevitable in some products which traditional and typical production relies on seasonal
elements (such as specific cheeses);
reflecting a lack of means by the producers to efficiently reply to increasing demand,
specially in higher seasons, such as Christmas or Easter
organizational issues both by small producers as by some entities that are expected to
represent them.
issues of transportation and routes
Rural-urban linkage: challenges
perception of rural small producers as resistant to expand, innovate or take some risks
either by lack of volition or fear
difficulties in establishing trustworthy relationships with new small producers who are often
suspicious or afraid of being taken advantage of
The lack of dynamism and efficiency contributes to extra costs reflected in the final price
that is sometimes much higher than it should be if the supply chains were to be improved
There were too many changes from the subsistence agriculture sharing the surplus to an
industry that almost prohibits domestic productions” L2.4
“Stock of is frequent and impacts the morale of really small producers. They need state based
funding” A2.3
“There are so many limitations to the production. They need to hire more people, get more raw
materials- produce and sell” A2.4
Rural- urban linkage: role of the store
for rural development
Overall, stores are consensual about:
the importance of fostering national-based production, seen as being of a superior
quality
Specially for Wine focused and Rural Provenance focused stores, quality goes
hand in hand with a more protectionist concern for national producers
For the Generalist stores, there is a valorization of the sustainable and
environmentally-friendly nature of these products
To work with rural-based producers allows to sustain and promote the
production”P1.1
“Fundamental, we respect the rhythm of the producer and production”P2.1
“Important to stimulate production and preserve the know-how”P3.2
“Yes, to sell and explain how the products are made, valuing the more
sustainable productions”L3.2
Rural- urban linkage: role of the store
for rural development
the ripple effect that their activity in urban settings has in the rural
context, economy, agriculture and on the image projected nationally
and internationally
All agree that their businesses are necessary venues of rural provenance
food products, specially those from small producers who lack the means of
production and distribution to assure a steady and larger volume of
production
Stores without special products contribution in a cumulative way as
part of a larger informal network
Rural- urban linkage: role of the store
for rural development
Rural Provenance Focused Stores with historical and more traditional
products
Long term relationship with small producers (often intergenerationally)
Business crucial for the survival or success of many small rural producer
Preservation of traditional/typical ways of production
“The impact of the stores is high, specially because it is ancient, traditional and
works directly with producers” P2.5
“We help producers to stay in their provenances and produce with good quality
and innovation” A2.3
Rural- urban linkage: role of the store
for rural development
The Generalist stores
Contributing to small productions to develop and diversify
Emphasis on small and sustainable circuits and supply chains
Chance of convincing consumers of the quality of organic and
contribute to a more conscious and responsible food consumption
“To disseminate the organic products and raise awareness that even
though is more expensive, it does not compare to intensive and
unsustainable agriculture” P3.5
“Important specially when sourcing directly from the producer, maintaining
a fair and sustainable circuit”L3.4
Conclusion
The importance of fostering national-based production and the ripple
effect that their activity has in rural development is acknowledged by
all, with different emphasis by cluster
This dissemination is expected to influence the expansion and
consolidation of these agricultural productions in rural areas
Overall, store owners’ preferences for shorter and direct supply chains
and perceptions speak favorably about the role of these stores as
agents for sustainable development, larger economic diversification,
and overall attractiveness of rural territories (Figueired0,2021)
Muito Obrigada!
https://www.stringsproject.pt/
STRINGS - Selling The Rural IN (urban) Gourmet Stores establishing new liaisons between
town and country through the sale and consumption of rural products (PTDC/GES-
OUT/29281/2017/ POCI-01-0145-FEDER-029281)
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