Improving Local Food Systems through the Coordination of Agriculture Supply Chain Actors

Abstract

A local food system is an alternative food network that shortens and more effectively structures the supply chain system. An intermediary actor functioning as an aggregator is needed in the local food system. The food hub is one such intermediary actor with an essential role in strengthening the local food system and increasing the competence of small farmers to compete with large-scale food distribution. Many studies have been conducted on the effectiveness and efficiency of food hubs; however, changing the supply chain system to one that is based on a local food system is challenging. This study aims to build a conceptual model that describes the activities and coordination of the actors involved in a food hub to achieve a local food system. In this study, a soft system methodology and case study approach are used to answer the research question. The results show that two transformations are needed to achieve a local food system: changing the supply chain system to one that is shorter and more structured and increasing quality consistency. Recommendations are presented in the form of a series of human activity systems to achieve transformations. Human activities to achieve a shorter and structured supply chain involve building cooperation, operating operational activities to add value, product identification, promotion, and developing fair-trade contracts. Human activities required to achieve transformation of increasing quality consistency include identifying high-demand customer requirements, forecasting, scheduling planting, and harvesting, improving training, cooperating with research institutions, farmer assistance, and quality inspection.