Problems and Possible Solutions for Small Producers Selling Directly to Consumers

Kiss, Konrád – Ruszkai, Csaba

Keywords: direct sale, production, markets, producers’ markets, primary survey, Q13, Q14, Q18

In the concentrated food commerce, small-sized agricultural producers can lose their opportunities to trade. Currently, in the European Union budgetary period (between 2014 and 2020), short supply chains are a supported priority as an alternative trade opportunity.
This study collects the opinions of 214 small producers selling in different types of marketplaces in the region of Gyöngyös and Budapest. The survey was about the problems they must face in their profession (production and trade) and their possible solutions, ideas for these problems.
After summarizing hundreds of individual opinions; most of the criticism and suggestions for changes concerned the role of the government. Small producers basically could not find subsidies for their farm sizes and development capacities. Concrete support ideas were mentioned, and producers shared some of their ideas about changing certain regulations, mainly about sales.
The main suggestion for increasing the demand was to carry out a variety of marketing activities based on product promotion. The aim of this marketing is to promote the products and their unique values to consumers and to have a loyal customer base. Intense competition can be experienced between producers for the well-functioning producers’ markets due to the limited demand (for premium prize goods). Common problems are the lack of agricultural labour force, competition in trade, the low capital background of producers and the related problems in their development. Infrastructural lacks of marketplaces, limited demand for rural areas, or lack of (adequate) trade opportunities in rural areas means further problems. It was repeatedly stated that young people, children of producers are unwilling to take over the farming business from their parents. Several respondents suggested that trade in marketplaces may come to an end in the future due to the difficulties.

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