Author: Femke Hoekstra
Type of short supply chain addressed
Oregional is a farming cooperative of 22 producers (the shareholders). The producers are all located within an area of 50km from the city of Nijmegen. Oregional sells produce of their members directly to caterers, care institutes, restaurants and shops in the region. In 2012, they started a webshop where they sell fruit and juice boxes and boxes with an assortment of regional products. Products are produced and retailed in the specific region (or place) of production, and consumers are made aware of the ‘local’ nature of the product at the point of retail.
Area and territory where the initiative takes place
Area around Arnhem and Nijmegen.
Number of actors/producers/farmers involved Oregional has 22 member producers. They deliver to about 9 restaurants and 4 care institutes.
Type of products delivered
Products they currently source regionally include fruit; dairy (butter milk, yoghurt, custard, milk, cheese); poultry; vegetables; veal, pork and beef; eggs and juices.
Qualification of actors and/or the farmers involved
Oregional is an intermediary between the producers and the buyers. They collect the produce from the farms and deliver it to the customers preferably on the same day. Oregional has 5 board members and the following staff members: a manager, a sales person, a marketing and communication specialist, a product and market developer, a driver and a logistical manager. They work with 22 producers including pig farmers, arable farmers, dairy farmers, producers of ducks, poultry, water cress, mushrooms and fruit (blue berries, apples, pears, prunes, cherries, red currants, raspberries, black berries, gooseberries and grapes).
For all (or most) producers involved, Oregional is just one of their marketing channels.
Time length of the initiative
Oregional started from an Interreg pilot project with a care institute (St Maartenskliniek) in 2009. This pilot started from a question on how to enhance the value of rural areas with a specific focus on regional products. The pilot was successful and led to the foundation of the area cooperative Oregional 2,5 years ago.
In relation to the Evidence Document Ch 1: Identification of SFSCs.
Oregional talks about ‘regional food’. They associate regional food with physical (50km range of Nijmegen) and social (transparency) aspects. They talk about regional (and not local) food because they want to offer their customers enough variety of products that requires sourcing from a regional instead of a local area. Key issues for them:
• Delicious and healthy • Seasonal
• Freshness (within 24 hours from farm to plate) • Supports local economy
• Corporate social responsibility (reduction CO2,
food miles)
• Transparency – know your farmer, know your food
Ch 2: Sustainability and health aspects of SFSCs. The criteria they apply to select new regional producers are first of all taste and quality, then reliability, then sustainable production method. Producers do not have to be organic but at least they should make an effort regarding sustainability (e.g. in terms of animal welfare or energy use). In addition, the producers should fit a certain philosophy and have a passion for good quality food.
In terms of economic sustainability, the St Maartenskliniek found that buying regional food does not have to be more expensive. Buying seasonal products saves costs since the products are widely available and therefore less expensive. Buying fresh ingredients is less expensive than processed products. Furthermore less food is wasted because of better quality products. In general, care institutes waste around 40% of the food because patients do not like it or are unable to eat it due to their illness. In addition, they decided to cook less meat or buy better quality meat that loses less moisture during cooking.
48 Price comparison of before and after the switch to regional products has been difficult since the price agreements with the wholesaler are not transparent. They often offer quantity discounts for example.
Oregional’s aim is to give producers a fair price. “Fair” in this case means in general a price of 15% above the normal market price. Part of the money earned by Oregional (who take a percentage) is reinvested in nature and landscape management in the area.
The care institutes involved with Oregional did not measure the effects of the diet change on the patients’ health but they observe that especially the elderly ones gained weight.
Ch 3: Organizational patterns for SFSCs.
In general they want to increase their product volume. What has been challenging is the fact that the producers they work with are not used delivering highly customised products (exact weights, type of packaging, cut or processed). At the same time, customers prefer to work with one big supplier having one receipt that can deliver highly customised items.
Focus in the care institutes has been mainly on introducing regional products in the patients’ meals. However, on a daily bases the restaurant for the staff and visitors serve more meals. These staff/customer kitchens are not yet using regional products (except for fruit and juice). This could be a next step.
In their experience, opportunities depend a lot on passion of individuals and personal motivations to change something in an environment that is not yet completely institutionalised.
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