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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 worse…it 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)