Today, we dive into the heart of a vital subject that affects all food systems: the relationship between agricultural production and distribution . From field to plate, a complex network of players interacts to provide us with the food we consume every day.
In this article, we analyze the evolution of relationships between producers and distributors, exploring the current economic and structural challenges, and highlighting the role of Soliance Alimentaire in facilitating these collaborations.
How does the food we eat get to our tables? Who are the key players involved in this journey? Aimée Fonteneau, consultant at Soliance Alimentaire, sheds light on the path our food takes, from the farm to our plate:
"All food systems are characterized by two distinct stages: production and distribution. Nevertheless, the reality is much more nuanced, with more complex systems, such as a product processing stage, as is the case with cheese production, and, conversely, simpler models where a producer directly distributes his products."
In France,large and medium-sized retailers (G MS) exert a predominant influence on food distribution, underlining a national specificity. Take fruit and vegetables, for example: we may mistakenly think that a large proportion of these products are sold direct or in markets. In reality, these channels account for only 4% and 9% respectively of sales of these products, while supermarkets capture 67% of the market. Specialized distributors such as primeurs account for 14% of total sales.
Historically, relations between producers and distributors have been complex, marked by difficulties in collaborating on issues such as pricing and food waste. However, there is a real interdependence between production and distribution, with exchanges that must and are changing. Economic and structural issues are increasingly important, and must be a source of crucial collaboration between upstream and downstream.
The current context is marked by a succession of crises, notably the COVID 19 pandemic, climate-related environmental challenges and geopolitical tensions. These crises contribute directly to the inflation we are currently observing.
Production, for its part, faces structural difficulties: a shrinking number of producers, difficulties in handing down farms, labor shortages and regulatory constraints, all complicate the sector. The climate crisis is also adding new challenges, such as water management and extreme weather events.
On the distribution side, supply disruptions are becoming more and more frequent, and the mustard shortage in the summer of 2022 left its mark.
At the same time, the food market is increasingly structured by oligopolistic situations. A concrete example can be seen in the dairy sector, with the dominant presence of Danone, Sodial and Lactalis.
Finally, the need to respond to consumer demands increases the complexity of management on the distribution side.
The supply chain is therefore in a state of tug-of-war, with production seeking to ensure the long-term viability of its business on the one hand, and distribution seeking to guarantee the stability of its supplies on the other.
Faced with these challenges, collaboration between production and distribution becomes crucial. It's essential to be creative in order to create lasting relationships between upstream and downstream , and Leslie Goussot, a specialist in supply chains and companies at Soliance Alimentaire, sheds light on the various possible collaborations.
For a more in-depth look at the subject, Aimée invites you to listen to Episode 3, Food shortages in France and around the world: what you need to know.
There are many ways and many levels of collaboration between upstream and downstream .
Initially, upstream players (farmers, agricultural cooperatives) and downstream players (manufacturers and distributors) can collaborate on innovation projects such as the development of new crops, new uses, or new ways of consuming.
Another step may be to set up a set of specifications to which farmers adhere, thus providing a framework for relations. This can take the form of in-depth work with associations, and the signing of contracts including pricing terms. This type of collaboration can also lead to technical support to help improve production practices.
Soliance Alimentaire plays a key role in facilitating upstream/downstream relations. Although there is no set formula, time is a key factor in establishing and consolidating relationships. Players need to get to know each other progressively, moving forward in stages, and creating projects that generate value.
Leslie illustrates this situation through a specific example, that of a gherkin manufacturer who wanted to relocate part of its supply to France. 25 years ago, this sector had disappeared from the French agricultural landscape. Soliance Alimentaire played a key role in identifying producers and supporting the creation of a gherkin producers' organization.
In this way, Soliance Alimentaire has contributed to structuring the sector for producers, and to meeting industrial challenges.
In addition, Soliance Alimentaire is also involved in the organization of supply chains, working with inter-professional organizations. We invite you to listen to podcast n°9 on this subject:
In conclusion, relations between production and downstream food systems are evolving towards closer collaboration, marked by a growing awareness of interdependence. In the face of increasingly complex challenges, the creation of sustainable relationships is becoming an essential issue. The sector needs to innovate in the way it works together to address these issues.
Our offers : Private agri-food expertise
Did you enjoy this content? See you next month for a new episode of Eating is Changing the World. In the meantime, feel free to share this episode with others!
In the meantime, listen to our episodes of Manger c'est changer le monde :
