Short Chains Monitor 2023: farmers increasingly sell products themselves

A 'short chain' means that produced or processed food and horticultural products are sold to consumers directly or through no more than one intermediary link. Sales of agricultural products through short chains are increasingly regarded by policy and the market as a means to achieve new earning models for farmers. In doing so, it improves the connection between producing entrepreneurs and citizens, and contributes to sustainability.

Compared to a previous measurement in 2020, the number of farms selling products through short chains rose by 9% in 2023, from 7,234 to 7,857. This was a 37% increase compared with 2017. 15.8% of all farms now sell at least some of their products this way, compared to 10.7% in 2017 and 13.9% in 2020. This data is based on the Agricultural Census conducted by Statistics Netherlands.

Location and type of business

In 2023, the number of short chain businesses increased in every province compared with 2020, with the highest increase in the province of Gelderland. The largest sales market is in poultry farming, with over 53% of farms selling eggs through a short chain. The number of sales through short chains in greenhouse horticulture (vegetables and floriculture) and perennial crops (fruit) increased the most. This is partly because a relatively large number of greenhouse horticultural businesses sell on the regular market through a single intermediary.

In the period 2017-2020, the increase in the number of short chain businesses was mostly found in very small businesses. From 2020 to 2023, this growth mainly occurred in large and very large companies, with an increase of 26% for large companies and 38% for very large companies, respectively.

Interestingly, young entrepreneurs are most likely to sell through short chains. 21% of those aged 35 and younger and 20% of the 36-45 age group engage in short-chain sales, while among those aged over 66, the percentage is 10%. Furthermore, short-chain businesses tend to be organic and have a link to extension activities such as agritourism, healthcare or education. Businesses that process their products themselves (such as artisan producers) also tend to sell directly to the consumer.

Revenue from short-chain sales

The total revenue from sales through short chains is estimated at around EUR 2.2 billion. This is 50% more than in 2020 and amounts to around 6% of agricultural production value in 2023. At the national level, greenhouse horticulture is by far the largest contributor to this turnover with almost 900 million euros. At a provincial level, the highest short-chain turnover is realised in South Holland (€528m).

The share of short-chain sales in turnover varies widely. In 46% of short-chain businesses, revenue from short chains will be less than 10% of total operating revenue by 2023. On the other hand, nearly 3 in 10 businesses say it is more than half of their total turnover.

No fisheries are included in this Short Chains Monitor. Similarly, farms that have placed their product sales in a separate company do not always report those activities in the Agricultural Census. It is therefore possible that even more is actually sold through a short chain.