chapter 3 inventory of local food systems

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Project CP/59 - “Instruments and institutions to develop local food systems” density of a network can be expressed as the number of relations in a network, possibly also the number of hours per week spent in participating in the organisation of the community. Not a single one of these parameters can be considered separately because the intensity (and not only the duration) of the relations can be important. The dedication shown by the different members of a community should therefore also be described in a differentiated way. An example of a return is the experience of social cohesion by which is meant, among other things, the feeling to be able to fall back on other members of the community. Impact on the local economy Studies that measure the impact on the local economy are very limited. For instance, the British ‘Retail Planning Form’ has calculated that about 276 jobs are lost for every large supermarket opening its doors. When these supermarkets are established outside the centre, the impact on employment is said to be visible in a range of up to 15 km. LFS on the one hand are more inclined to use raw materials and production means from the local markets, and on the other hand they find more labour forces at local level (Sacks, 2002). However, these results cannot be generalized to other contexts. 1.3.1.2. Social impact at consumer level IFOAM (International Federation of Organic Agriculture Movements) mentions that consumers associate social justice with the organic movement. It concerns an ethical subject, through which means are searched so that all participants in the trade chain can enjoy the benefits. In this sense, the theory is no longer limited to organic agriculture, but the entire food production can be considered. It is clear that the transparency of the food chain is supported to a large extent in LFS. 1.3.1.3. Social impact at producer level Job satisfaction When one talks with the producers of an LFS, their participation in a network seems to bring back in a certain way the satisfaction of a job well done, which was considered to have been lost in the agriculture. The producer in an LFS knows who (s)he is growing the crops for, and also takes the desires of the clients into account in production. This can happen at the level of production of raw materials (e.g. more spinach and less turnip in the vegetable box), but also at the processing level (for instance: can we make simple pizzas that most children would like to eat?). Knowledge and the transfer of knowledge As soon as there is a certain stability within a network, an exchange of knowledge is possible. It is not only about the knowledge that comes from social and democratic management, but also about the access to this knowledge, and about the possibility to develop this knowledge further (knowledge development not only requires stability, but also a certain form of instability). In this way, the background present in various businesses is in fact common to the network (it is in fact the social capital of the network), and this means for every business separately an extension of its own knowledge (Flora, 1995). SPSD II - Part I - Sustainable production and consumption patterns - Agro-Food 17
Project CP/59 - “Instruments and institutions to develop local food systems” 1.3.2. Economic impact At the economic level, one can also investigate different effects of local food systems. Again, the above-quoted division (community/consumer/ producer) is followed. In general, one can state that the link which is closest to the consumer decides the price setting. When food products are marketed through mainstream systems, this link is usually the retailer. However, when a number of producers take an initiative, they are the last link in the chain, they decide on the price to be set and they receive the added value. Another important aspect of collective initiatives is the saving in development and research costs. For instance, the parent organization of Fruitnet has built knowledge concerning integrated growing methods, and this knowledge is transferred to the members. In this way, farmers have a easier access to information (Verhaegen and Van Huylenbroeck, 2001). 1.3.2.1. Economic impact at community level In the same way as employment has been mentioned for the social aspect, LFS also contribute to community income in an economic context. This happens through the tax payer on the one hand and through the purchase of local raw materials and production means on the other hand. The fact that money circulates longer locally, is equally important. Multiplier effect The local-multiplier-3-effect (LM3) measures money expenditure, describing where the money goes to at the same time. It is local because it is for local, micro-economic use. Three stands for the first three rounds of spending being measured. First, the initial incomes are measured, then how this income is spent, and in round three one measures how much of the local spending is re-spent locally. Summing the money from all three rounds, and dividing it by the initial income then makes up the LM3. The resulting LM3 will then offer a general understanding of how a variable aspect of the local economy is working. It is thus an instrument to measure the impact of ‘spending money’ and to verify where the money goes to (Sacks, 2002). Impact on employment Because of its social character, the impact on employment has already been mentioned with the social impact, but it is obvious that it also has an economic resultant. The accent is specifically on “local employment”. One can wonder whether in local networks also more persons from the direct environment need to be given employment. Indeed, local employment offers a number of advantages (Sacks, 2002): • for the community: a lower degree of unemployment, less pollution of the environment and less traffic jams due to less (or less long) transportation of persons,…; • for the employee: a shorter distance between home and work, such that more use can be made of public transportation means and bicycles, and that traffic jams can be avoided; SPSD II - Part I - Sustainable production and consumption patterns - Agro-Food 18
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