[getsmart-l] CFFO Commentary-Getting the Model Right for Local Food Production

[John O'Gorman]

Note: Please direct correspondence on the CFFO Commentary to John Clement, General Manager at clement at christianfarmers.org.

                                                                                                  

The CFFO Commentary

Title: Getting the Model Right for Local Food Production

By John Clement

October 26, 2007

 

A lot of energy and discussion is being put into subjects like local food, lessening the environmental impact of farming, creating more value for farm products and creating stronger links between farmers and consumers. And while all these items are good in and of themselves, I find that not enough attention is being given to the development of models and coordinating structures to make these noble goals a workable reality. 

 

Recently, I had a chance to hear a presentation on an alternative French system of agricultural production, processing and marketing that is able to deliver all of these goals precisely because it has paid attention to getting its coordinating model right. The system in question is called Label Rouge and it's been a success for a number of French poultry producers.

 

Started back in the 1960s in response to a negative reaction amongst post-war French consumers to modern production methods, Label Rouge specializes in pasture-raised poultry that utilizes dozens of crosses from old regional poultry breeds. The birds are slower-growing than conventional breeds but are prized due to their flavourful and firm meat. In fact, French consumers are more than willing to pay premium prices for Label Rouge products, with prices being 50 to 150 per cent higher than for conventional chicken. 

 

Label Rouge free range products constitute 12 per cent of total French poultry production (in volume) and 16 per cent of the chickens produced in France. Figures published in the year 2,000 show that the Label Rouge poultry sector consisted of 38 organizations, 9,600 farmers, 230 feed firms, slaughterhouses and hatcheries and 112 million birds. 

 

While this small but significant part of the market could be attributed to just consumer preference, it clearly wouldn't happen without a good deal of thought given to the coordinating structure underlying the production, processing and marketing of the Label Rouge product. The supply chain is truly a highly coordinated alliance, but is constructed in such a way that a true balance of power exists between producers and other industry players. Risks and rewards are shared by all players in the supply chain.

 

In addition to the supply chain structure, Label Rouge also employs a third-party certifying organization that ensures agreed-upon standards are being followed. Inspections take place in each flock placement, with additional inspections taking place in feedmills, processing plants and hatcheries. There are even multiple taste tests conducted of the poultry each year to ensure that standards are being maintained or exceeded. Finally, the French government plays a role by working with Label Rouge to set and maintain certification standards, accredit the certifiers and protect against label and brand infringements. 

 

Label Rouge is just one example of how to make local food systems work well. Important aspects are strong collaboration between industry players, sharing of risks and rewards, transparency for consumers and appropriate government support. Although often overlooked in the rhetoric, I think that paying attention to coordinating structures and models is the key to making alternative food systems a success.

 

John Clement is the General Manager of the Christian Farmers Federation of Ontario. The CFFO Commentary is heard weekly on CFCO Chatham, CKNX Wingham and CHOK Sarnia, Ontario and is archived on the CFFO website: www.christianfarmers.org/index.html. CFFO is supported by 4,300 family farmers across Ontario. 

 

 

Christian Farmers Federation of Ontario

7660 Mill Rd.

RR 4 Guelph, ON N1H 6J1 

Ph: (519) 837-1620

Fax:(519) 824-1835

email: boconnor at christianfarmers.org

web: www.christianfarmers.org

 

 

 

 

 
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