Regional value chains are a form of agricultural production and marketing. They are based on close cooperation between stakeholders within a given region.
In regional value chains, farmers, traders and consumers work together to produce, process and market food and agricultural products. This promotes the local economy, strengthens local communities and gives consumers access to high-quality, fresh products from their region.
Regional value chains are also an important contribution to sustainability, as they can shorten transport distances and thereby reduce the environmental impact of transportation.
They offer the opportunity to preserve regional identity and traditions and create transparency for consumers who want to know where their food comes from.
The longer the processing chain for agricultural raw materials is in a given region, the stronger the positive effects are felt. An example of this is the processing of grain in a local mill, followed by further processing by local small bakeries and marketing of the consumer products in the region. This process helps to create and maintain jobs and may even create new jobs.
In principle, regional value chains are possible for almost all types of food. Examples include the rearing of cattle or pigs of regional breeds, subsequent processing by local butchers and marketing to restaurants and food retailers in that region. Likewise, successful regional value chains have been established throughout Europe for cereals and bread as well as for milk and cheese specialties.
Regional value creation is possible not only for food, but also for renewable raw materials such as hemp. Here, various processing stages can be carried out at the local level. This shows that regional value chains have diverse potential and can help strengthen a region’s economy and create jobs.
More and more studies are looking at the positive effects of local value chains. Many people see this as our future, and at the same time, historically speaking, it is a model that has been tried and tested for centuries.