Local food – Western trend of eco-business that seems to be created for agrarian Ukraine

In Europe and the US, the manufacturers of local food have been successfully operating for over 30 years already. Local food is another model of production and consumption in the agricultural sector, which is developing in the eco-trend along with the production of organic goods and the development of eco-farms.

This business came just in time – at the junction of the consumers' desire to eat healthy food and the global trend of sustainable development. In Ukraine, as it is the agrarian country, there are excellent opportunities to launch local food trend at full power.

Local food comprises of the products that have been grown, harvested, cooked and sold in the same geographical area. From an economic perspective, manufacturers, sellers and buyers of the local food form the local consumer network.

Each country has its own criteria of how far you can take away the food from the place where it was grown for this food to be still considered local. In the US, sales radius is 600 km; in the EU specific distance is not used, the main condition here is to adhere to the same geographic area.

The US Department of Agriculture requires the manufacturers in this segment to harvest without heavy equipment and use recyclable packaging.

The idea of growing food and selling it near the place of cultivation originated in the US in the 80s of the twentieth century. There had been several prerequisites. People were tired of fast food and junk food, and at the same time in the community the theme of green technology and saving the future of humanity began to actively develop. Small farmers appeared to be able to meet the new requirements.

By selling its environmentally friendly products in the local markets within a few hundred kilometers, these companies reduced transportation costs and thus contributed to protecting the environment: less energy consumption, less pollution by exhaust gases.

Production and consumption of the local products contribute to the economy development 

The emergence of a new subspecies of agricultural companies contributed to the development of the regional economy (the state willingly decided to support local food producers). People got eco-products and the ability to verify their purity and utility: you can always visit a company that delivers products, see the conditions in which the vegetables are grown. The opportunity to get away from the standardized food from supermarkets also played significant role.

Small farms quickly became popular. They got the opportunity to work directly with the customers. And since they do not need to pay the intermediary, consumers get more inexpensive goods and manufacturers get more benefits. Following them, farmers' markets and local food festivals became popular.

Today, local food segment in Europe and in the United States has grown to a significant component of agrarian business. According to the statistics of the US Department of Agriculture, sales volume of local food in the United States increased more than 2 times during the year (from $5 billion in 2008 to $11.7 billion in 2014).

Ukrainians began to care more about health and increasingly choose the products with the "organic" label. Under the new presidential program, Ukraine also chooses the path of sustainable development, which means that the health and safety issues occupy upper position of importance. In fact, however, plans spelled out in the program of the head of the state do not quite meet the goals of sustainable development; they need to be reviewed with the help of the experts.

Local cuisine and festivals of western Ukraine, Zakarpattia, Bukovina, and Bessarabia are gaining popularity. However, there is still no definition of local food at the legislative level as in Europe or the United States. Therefore, we consider all organic, eco-friendly products grown and produced in Ukraine to be local food. 

However, not all Ukrainian eco-farms can be considered as producers of local food products. To determine the criterion of "terrain", Ukraine can follow the American model and enter a specific distance. For example, a distance of 150 km from the farm to the final buyer will be acceptable.

In Ukraine, as well as in other countries, the demand for healthy food is growing. Consumers are more and more interested in the origin of this or that product. Moreover, our customers became more willing to buy domestic products. While the major manufacturers of food products are seeking the ways to enter Western markets in search of the solvent consumers, small farmers are able to meet the demand for healthy and tasty food within the country.

Food fairs are often hold in the big cities of Ukraine. For citizens, it is a great opportunity to buy quality seasonal food at an affordable price. However, over time (and this is already happening), farmers' fairs may disappear as buying products on the Internet is now common even between the retirees. In the US, Farmigo site has become a popular electronic resource for buying local food. In Ukraine, Internet startup Local Food is running for two years already. With the help of this site you can buy a surprise-box with a set of useful and tasty Ukrainian products on the monthly basis.

In Kiev, branded kiosks of "Molochna Ferma", where the products of the “Nina” farm are represented, are quite popular. This is a farm in the Kiev region, where cows and goats are bred and crops are cultivated. 67 people operate in the enterprise. The products of "Nina" farm can be found in Kiev supermarkets, at food fairs and branded kiosks. Wonderful shop "Dіdo", which helps local farmers to sell their products, operates in Lviv.

There are successful initiatives at the restaurant level. For example, a restaurant Klukva & Brukva in Kiev, Dmitry Borisov’s chain of restaurants "Family restaurants", which are located not only in our country but also in Spain, are using only local products. Cooking dishes of local food has become fashionable, so the farmers can sell the products directly to restaurants.

In Ukraine, the demand for farm products in big cities and tourist centers is high. Here it is easy for producers of local food to find loyal customers. Ukrainian farmers can learn from the European experience of roadside food stalls, which are opened in the areas of railway junctions and major transport interchanges. You can sell products directly on the farm where they were grown. This will allow to attract buyers, arrange tastings, tours, offer outdoor recreation, and to hold cooking classes. Taking into account the growing interest of Ukrainians to the domestic "green" tourism, all these initiatives will be a success.