The traditional food supply chain model, based on multiple intermediaries, is gradually being replaced by direct contracts between farmers and retailers. This shift responds to a clear need: increasing economic efficiency and transparency in price formation.

By eliminating intermediary links, a larger share of the product’s value remains with the producer. At the same time, retailers gain access to consistent volumes, improved traceability, and greater control over quality. This model is already being used in several European countries, particularly for fresh products such as milk, meat, and vegetables.

The advantages are clear: contractual stability, financial predictability, and reduced price volatility. Farmers can plan medium-term investments, while retailers secure their supply chains.

However, this model also involves higher requirements for producers: strict standards, consistent deliveries, and logistical capacity. Not all farms can meet these conditions without cooperation or investment.

In the medium term, direct contracts can help rebalance value distribution within the food chain. For the Romanian market, they represent an opportunity to strengthen local production and reduce dependence on imports.

(Photo: Freepik)