Mobile distribution centre Murtal

Topic area
Agriculture and forestry, incl. value chain

Disaggregation level
Agriculture
LEADER
Local amenities
Women
Direct marketing
Short supply chains
Value added

Project region
Styria

Local Action Group (LAG)
LAG InnovationsRegion Murtal

LE– Programming Period
LE 14–20

Project period
12/2016-11/2019 (geplantes Projektende)

Project costs overall
EUR 225.593,00

Subsidy from LE 14-20
EUR 135.355,80

Priority
EN - 19.2.1. Umsetzung der lokalen Entwicklungsstrategie

Project initiator
Verein "Murtaler-Bauern-Kraft"

Short description

Domestically produced, healthy food, simply and reliably brought from the producer to the consumer " - that is the overriding goal of an initiative of the association "Murtaler-Bauern-Kraft". Together with further regional partners they want to develop a mobile distribution center. This is intended to close important gaps in the regional value chain in the area of food logistics and distribution and make a lasting contribution to strengthening the regional market. To this end, a marketing platform and a central warehouse including transport services for regionally produced food will be set up. The cooperation along the regional supply chain - from food-producing and food-processing companies and direct marketers to retail, catering and tourism businesses - will be sustainably improved through the project.

Point of departure

In the Murtal valley there are several enterprises produce high-quality food. The trend towards regionally produced, healthy food could be used by them as an opportunity for diversification, increased sales and growth. Linked to this, positive effects in terms of added value, labour market, food supply and the attractiveness of the region for tourists could be expected.

However, the problem is that a large number of agricultural producers are hardly known to consumers and other customer groups (trade, gastronomy, etc.). Also, business locations are often far away from the settlement in the Murtal, so that the transport of products - especially in smaller quantities - to distribution points or customers can hardly be economically viable. This means that the demand for regionally produced food in the Murtal cannot yet be optimally used or served.

Against this background, the association "Murtaler-Bauern-Kraft" - an association of more than 50 agricultural and agriculture-linked enterprises - wants to realize a marketing and logistics center for regionally produced food in cooperation with the the Chamber of Agriculture / District Chamber Murtal and tourism associations.

Targets and target groups

In order to meet the demand for locally produced food, the regional food supply value chain is to be optimised or expanded.

Compared to the initial situation the project objective should include:

The development:
- of central marketing services for locally produced food;
- a logistics and transport infrastructure for the distribution of regional foodstuffs (from the producer to the consumer).

These target areas are explicitly listed as relevant areas of action in the local development strategy. Fields of action for improving quality of life and economic conditions are optimally supported.

The target groups of the project include:
- Direct marketers/producers;
- Consumers and residents;
- Dealers and farm shops;
- processing enterprises (e.g. gastronomy);
- Tourism associations & businesses in the region.

Project implementation and measures

(1) Development of  a marketing platform;
(2) Setting up central/intermediate warehouse;
(3) Implement a merchandise management system;
(4) Implement marketing activities for market launch;
(5) Project management (ongoing)

1. marketing platform: Important areas of activity are increasing the market transparency of domestic producers and foodstuffs. A central online marketing platform will be set up for this purpose. At least 50 food producers, processors and marketers will be integrated into this platform by the end of 2017. The Chamber of Agriculture (Chamber Murtal) is involved and  will provide among other things support for keeping compliance with quality criteria.

2. central/intermediate warehouse: The establishment of the central/intermediate warehouse is intended to close the value chain in local supply and increase efficiency in food logistics. To this end, the central warehouse will be selected to suit the traffic situation and equipped with the necessary infrastructure (equipment, machinery, IT). Logistics processes are introduced and piloted. An important part of the solution is the transport service, via which customers are supplied from the central warehouse. The collection function of the warehouse allows economies of scale to be achieved, for example, when fulfilling larger orders.

3. goods and economic system: An inter-company system for  goods is developed and introduced for the professional handling of regional goods flows and business processes - from producers to consumers. Producers supplying the central warehouse as well as customers supplied from the warehouse are recorded in this system. Inventories are constantly updated and can be.

4. Marketing activities: The launch of the Mobile Distribution Centre is supported by extensive marketing activities. For this purpose, a corporate design is developed as the basis for the market presence. Print advertising, print media and online channels are used as communication channels. The launch event planned is expected to have a positive effect.

5. Project management: Project management and documentation activities are carried out throughout the entire duration of the project to ensure that the project is carried out in conformity with the project and funding regulations.


Milestones are:

- Start of marketing platform (03.2017)
- Start of delivery from central warehouse (06/2017)
- At least 30 producers are suppliers, at least 10 major customers are customers (11.2017)
- Project completion (11.2019)

Results and effects

- 1 (PLAN: 1) Online marketing platform for regional food products
- 18 (PLAN: 10) product groups are available on the platform (e.g. meat products, fish products, vegetables etc.)
- 48 (PLAN: at least 50) companies involved in marketing platform (food producers, marketers, processors)
- over 30 (PLAN: 30) partner companies supply/use the central warehouse
- 12 (PLAN: 10) "large customers" are supplied from the central warehouse
- 1 (PLAN: 1) professional "Corporate Design" as basis for marketing activities
- 1 (PLAN: 1) "Market launch" event with over 70 visitors
- 1 (PLAN: 0) Farm shop in Fohnsdorf

In the course of using the Internet platform - by evaluating the layers of use - a farm shop was opened in Fohnsdorf to also better address the older or less internet proficient parts of the population. Furthermore, in the more densely built-up areas away from the city centres, vending machines are used to facilitate access around the clock.

Erfahrung

The issue of supplying the population with regionally produced products is one that is very important for all those involved. On the one hand, the food awareness of the population can be supported and on the other hand, the added value can be maintained in the region. In this way, the continued existence of farms can be ensured and an important regional development indicator can be safeguarded. Especially in the farming sector, female jobs can be safeguarded with these initiatives and thus a migration of female workers from the region can be counteracted.