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Skye Food Link: Linking Businesses, Cutting Costs

This case study highlights how local businesses came together to overcome the high distribution costs associated with getting products to clients in sparsely populated areas.

From its pioneering start in 2000, the Skye Food Link Van has been providing a vital service linking businesses and securing local supply chains on and bordering the Isle of Skye. The island population of only 12,000 is spread over 2,700 square kilometres so getting produce to available markets can prove a real challenge for the many micro business operating there.

Co-operating in Distribution

However, local businesses collaborated to resolve this problem with a solution that not only consolidated the local supply chains, but also resulted in both financial and carbon emission savings for the local economy. The Food Link Van now links local producers of products as diverse as shellfish and premium handmade chocolates, with local hotels, restaurants and shops to give visitors and residents a real “local food experience”.

Based on a co-operative model, the Food Link Van was set-up in March 2000 by a small group of producers, and since then the value of the products it carries has increased from £6,800 in year one, to break £100K in its tenth year of operation. The locally produced food distributed by the Van includes shellfish, cheese, bread, vegetables, salads, herbs, fruits and confectionery. In fact, some of the product lines had no outlet prior to the Van’s existence.

Cutting Miles to Market

Another outcome from the introduction of the Van has been the reduction in food miles resulting from product distribution. This has been twofold; firstly the single Van is replacing multiple journeys made by individual vehicles so cutting down on ‘repeated’ miles. However, more importantly to the local economy, the reliability and stability of the regular service has opened up new and local markets, reducing the miles produce needs to travel to find an outlet.

The operators estimate they have saved businesses 140,000 miles of travel in the last year, or an estimated 45-213 tonnes of carbon emissions [lower for car (average diesel); upper for small van (up to 1.25t)]. The financial impacts are real too, over and above the increased market reach and in addition to the significant time savings made by individual producers. With fuel costs rising, less miles mean less spent on fuel and, with a smaller proportion of the product value directed towards transport costs, the cumulative benefits are considerable.

Supporting the Community

The service is now run by a community interest group, where any profits generated are used for the benefit of the local food community. The Food Link Van currently operates from Easter to the end of October, though this may be expanded as demand increases. The routes are relatively flexible too, to keep it running as efficiently as possible.

If you think this ingenious service could work in your local area and would be interested in finding out more, you can visit the website at http://www.tastelocal.co.uk/skye/foodlink