Baltic Sea Food
Baltic Sea Food
 
PROGRAMME 2014-2020
priority
1 Innovation
objective
1.3 Non-technological innovation

Baltic Sea Food

The Interreg project Baltic Sea Food developed a new business model for business-to-business (B2B) distribution in the local food sector and helped small and medium-sized enterprises in rural areas to improve business performance.
The challenge

Small local food producers, farmers and service providers in rural areas of the Baltic Sea region are challenged by selling their products to big wholesale companies or supermarket chains. They have limited production volumes and higher prices compared with large producers. There is a need in reviewing and optimising food value chains by strengthening the farmers´ position. A short supply chain can be a solution when it is applied locally through food networks engaging small food producers, farmers, food processors, grocery stores, restaurants, cafes, tourism farms and other actors.

Besides, the market area of local food producers is usually their own home region, while established local food networks cooperate for marketing. The local food networks only have limited B2B distribution systems which hinder local food producers increase their profitability and develop as prosperous businesses. As local food networks are usually founded by family-owned micro-businesses, it is not feasible to take care of the creation of new sustainable B2B distribution solutions. The local farmers and food producers tend to sell their products to end consumers. At the same time, it is more convenient for catering businesses to buy food products from one distribution company instead of having contact with several farmers and producers.

The Interreg Baltic Sea Food project aimed to develop a sustainable business model enabling optimised short B2B distribution chains in the local food sector.

Budgets

Baltic Sea Food
in numbers
  • 2.43
    Million
    Total
  • 1.62
    Million
    Erdf
  • 0.09
    Million
    Eni + Russia
  • 0.14
    Million
    Norway

Achievements

Baltic Sea Food combines transnational strengths, experiences and ideas

Baltic Sea Food brought together 15 partners from 10 countries across the Baltic Sea region to set up a business model for local food distribution. The partners jointly developed suggestions for improvements based on the initial mapping analysis of the current situation. Local food producers got connected with business consumers from gastronomy and retail. A local speciality and the country-specific challenges were taken into consideration and incorporated into a new model for business-for-business (B2B) distribution of local food. The aim was to design a sustainable and transferable business model for B2B distribution applicable for local food nets established by local food producers and providers in rural areas. The model intends to establish shorter supply chains on local and regional level offering opportunities for growth and improved business performance.

New sales channels optimised

Additionally, the partners reviewed and developed new sales channels through small-scale local-food networks, based on cooperation and increasing value of local products in a shorter supply chain. Beyond digital channels, more traditional channels like personal calls or meetings are still a must. Other learnings included strengths of common regional brands in the products, also improving efficiency of marketing by food networks.

 

 

 

Dissemination efforts matter

The project has managed to reach out to an impressive number of stakeholders by using media, radio, press releases and events. Nearly 4,000 SMEs, about 330 food networks and more than 2,000 other interested received the information. Most notably, more than 800 SMEs such as local food producers and farmers, restaurants, farm shops, tourism farms etc. benefitted from capacity building events.

 

Outputs

E-platforms for food distribution

The project analysed and tested local, regional or national e-platforms for food distribution in the Baltic sea region. As a starting point, an advanced e-platform was identified in Sweden and promoted further in the local networks through events as well as through public media and other channels. Based on the Swedish case and other examples of providing services to local food networks or producers (B2C or B2B), the partners from Estonia, Latvia, Lithuania, Sweden, Germany, Russia (Pskov oblast), Denmark and Norway started developing the ways to improve e-platform services to food networks/distributors for ordering, communication, accounting or diversification of offers.  Regions like Mecklenburgische Schweiz in Germany, Hardangersmak in Norway or Pskov oblast in Russia especially succeeded in developments. The pilots focused on respective development in for example easy ordering or invoicing which enabled other food networks or individual producers to use such platforms.

Development of a regional business model

The project developed a series of regional business models and piloted them in the participating regions. Practical suggestions based on local actors’ real-life experience helped to drive development. Among the main changes is the new target customer group "Business gifts and food souvenirs" as an attractive customer group in several pilot regions. New marketing and sales channel "Contact events and fairs" was identified and described, as many pilot regions highlighted its importance. As regards the sales channels, the partners concluded that digital channels cannot replace traditional channels like personal calls or meetings. Other learning included that in case the region is well-known for local products, then it is useful to use the common regional brand in the products, which enables to make more efficient marketing by the food network.

Project Stories

Partners

Ministry of Rural Affairs of the Republic of Estonia

  • Town
    Tallinn
  • Region
    Põhja-Eesti
  • Country
    Estonia
Approximate total partner budget in EUR
142,153.00
59.437215524.7453688

Latvian country tourism association (LCTA)

  • Town
    Riga
  • Region
    Rīga
  • Country
    Latvia
Approximate total partner budget in EUR
144,687.00
56.949397724.1051846

Mecklenburg-Vorpommern Tourist Board

  • Town
    Rostock
  • Region
    Rostock, Kreisfreie Stadt
  • Country
    Germany
Approximate total partner budget in EUR
199,000.00
54.092444512.1286127

Ystad Municipality

  • Town
    Ystad, Sweden
  • Region
    Skåne län
  • Country
    Sweden
Approximate total partner budget in EUR
252,525.00
55.432984913.8196555

Latvian Agricultural Organization Cooperation Council

  • Town
    Rīga
  • Region
    Rīga
  • Country
    Latvia
Approximate total partner budget in EUR
66,831.00
56.949397724.1051846

Business Region Esbjerg

  • Town
    Esbjerg
  • Region
    Sydjylland
  • Country
    Denmark
Approximate total partner budget in EUR
308,202.00
55.46648928.4520751

HANEN – Norwegian Rural Tourism and Local Food association

  • Town
    Oslo
  • Region
    Oslo
  • Country
    Norway
Approximate total partner budget in EUR
288,908.00
59.913330110.7389701

NGO Estonian Rural Tourism

  • Town
    Tallinn
  • Region
    Põhja-Eesti
  • Country
    Estonia
Approximate total partner budget in EUR
109,900.20
59.437215524.7453688

The Estonian Chamber of Agriculture and Commerce

  • Town
    Tallinn
  • Region
    Põhja-Eesti
  • Country
    Estonia
Approximate total partner budget in EUR
167,880.15
59.437215524.7453688

State budgetary vocational educational institution of the Pskov region “Pskov Agrotechnical College”

  • Town
    Pskov
  • Region
    Pskov Oblast
  • Country
Approximate total partner budget in EUR
70,882.00
57.81161665000000528.36540390200804

Committee for economic development and investment policy of Pskov oblast

  • Town
    Pskov
  • Region
    Pskov Oblast
  • Country
Approximate total partner budget in EUR
35,564.00
57.81161665000000528.36540390200804

"SUCCEEDED by PP16 (01.01.2020) Lahti University of Applied Sciences ltd.

  • Town
    Lahti
  • Region
    Päijät-Häme
  • Country
    Finland
Approximate total partner budget in EUR
198,088.30
60.982601425.6613764

Lithuanian countryside tourism association

  • Town
    Kaunas
  • Region
    Kauno apskritis
  • Country
    Lithuania
Approximate total partner budget in EUR
140,053.00
54.898213923.9044817

“Polish Nature” Foundation

  • Town
    Żary
  • Region
    Zielonogórski
  • Country
    Poland
Approximate total partner budget in EUR
198,427.00
50.173839419.6935765

LAB University of Applied Sciences Ltd

  • Town
    Lahti
  • Region
    Päijät-Häme
  • Country
    Finland
Approximate total partner budget in EUR
108,582.70
60.982601425.6613764