Short Supply Chains – A Competitive Edge for Local Processors in 2025

The short supply chain – selling products directly from the producer or through a single intermediary – offers local processors a significant competitive advantage in 2025.

High logistics costs, fuel price volatility, and the pressure to reduce the carbon footprint make the short chain a viable and sustainable solution. In addition, consumers value the traceability and freshness of local products.

A study by the Ministry of Agriculture and Rural Development (MADR) shows that farms and processors using short supply chains achieve profit margins 15–20% higher than those relying on long distribution routes through multiple intermediaries.

Key advantages:

• Better prices for both producer and consumer
• Flexibility in supply – rapid adaptation to demand
• Local branding – strengthening community image

Challenges include the limited processing capacity in rural areas and the need for investments in own logistics. European funds under the National Strategic Plan (PNS) 2023–2027 and national rural development programs include dedicated lines to support short chains, including the purchase of refrigerated vehicles and the development of storage facilities.

In the medium term, short supply chains could become a cornerstone of commercial strategies for meat, dairy, and other agri-food processors aiming to reduce dependence on large retail networks and maintain control over price and quality.

(Photo: Freepik)