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Craft food trend requires suitable logistics concepts

Since the outbreak of the coronavirus, the demand for craft food has increased significantly. Throughout Europe, more and more consumers are attaching importance to sustainably produced food, produced in small manufactories and not by large industrial companies. A trend that requires dedicated logistics experts.

The demand for sustainably produced food is increasing significantly. For example, 82 percent of all Germans already make sure when buying food that the product comes from the region. This is the result of the representative survey "Nutrition in the Corona Crisis" conducted by forsa on behalf of the German Federal Ministry of Food and Agriculture (BMEL) among 1000 citizens. Small businesses with craft competence and food start-ups wanting to position themselves in the market with craft food and wanting to preserve the tradition of the food craft increasingly profit from this development.

"Regionality and sustainability are gaining importance."

Consumers focus on sustainability and, in small quantities, food produced according to traditional methods. "Sustainable" has become the buzzword for healthy, environmentally friendly food. "The world is changing. It is a genetic phenomenon that in times of upheaval, people look for new sources of food," explains futurologist Max Thinius. For years he has been conducting research on the subject of food, advising various regions in Germany on the digitization of everyday life, the working and nutritional world of the population and is a frequent guest on the German government's scientific advisory council.

"Regionality and sustainability of food, but also the health of the individual, are becoming increasingly important. In the future we will have food of the best quality and new technologies to evaluate and use this quality in relation to our health". According to Thinius, new production methods such as intercropping, in which different plants are cultivated that complement each other in terms of growth and soil use, and selective care carried out by care and harvesting robots will make up to 90 percent of pesticides redundant in the future, he says.

"Soon, Craft Food will no longer be confined to the small regional grower. Together with intelligent working environments and modern technologies, large new food structures are in the process of being created here.” But the new food culture’s pioneers are currently still the small, innovative farms.

Small quantities safely transported – all across Europe

This rapidly growing craft food movement requires logistics concepts that meet the requirements. "Food manufacturers place different demands on logistics providers than industrial companies do", says Marc Hackländer, Head of European Network & Partner Development at DACHSER. The products are only manufactured in small quantities for narrow, like-minded target groups, not for an anonymous mass market where availability and price are the focus. As a result, the major European retail chains and discounters are often excluded as recipients. Nevertheless, these manufacturers, which up to now have often been regionally oriented, are looking for new sales channels and are attracting interest from customers in neighboring European countries.

The European Food Network specializes in the Europe-wide transport of food, even in small quantities. The member companies of the alliance are ideally positioned for this type of job. The food logistics companies are regional specialists who have grown over many years from family structures to national players, but have always remained close to their customers. Marc Hackländer: "The vehicles must be able to cope with the conditions at the pick-up and delivery location, often there are no ramps. Communication and customer processes take place on other levels - this is where listening and consulting are required, flexibility, solution orientation, thinking along with the customer. This is time-consuming, but it is worth it and it is a pleasure to be able to grow with the companies".

DACHSER South Africa perfects the art of picking and packing

As a fundamental part of the supply chain, picking and packing is fast growing into a sophisticated, intelligent process. This is due to client demands that necessitate logistics companies in having detailed understanding of complex product specificities and requirements when storing and moving these goods across geographical distances.

DACHSER supplies French hospitals with needed medical supplies

DACHSER Air & Sea Logistics organized a transport of emergency medical supplies from Shanghai, China, for hospitals in Nantes, France

Overcoming Africa’s logistics challenges: Dachser South Africa's approach to customs 

Trade is the lifeblood of any economy, and the smooth operation of customs and trade procedures is critical. However, logistics companies moving goods across the African continent face a unique set of challenges. These include inadequate road and rail networks, poor infrastructure, excessive official and unofficial roadblocks, significant border delays and complex customs and excise. A lack of coordination among multiple government agencies often results in inefficiencies and bottlenecks that hinder the smooth flow of goods across borders.

The establishment of a single market has introduced new distribution systems for customs and excise revenue, which has necessitated adjustments from logistics companies. The secretariat of the African Continental Free Trade Area (AfCFTA) agreement launched an interim trading arrangement with eight qualifying countries (Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia) to test the agreement’s provisions while negotiations are ongoing. Although trading under the AfCFTA started in January 2021, commercially significant trade has yet to happen, primarily due to the delayed Phase 1 negotiations on trade in goods and services such as the negotiations on Rules of Origin (RoO).

Regional integration arrangements further complicate matters. For example, the coexistence of the Southern African Customs Union (SACU) and the Common Market for Eastern and Southern Africa (COMESA) poses specific challenges. Intensive documentation requirements, samples for laboratory analysis, complex tariff classification, and valuation delays are some other hurdles that affect trade facilitation.

In this challenging environment, logistics companies play a pivotal role. DACHSER South Africa has been successfully navigating these complexities for over forty years, providing comprehensive logistics and customs management solutions that ensure the smooth movement of goods.  “Our commitment is to provide our clients with a holistic and seamless solution and we see ourselves as an extension of their businesses.  This means that we take care of all aspects of the transportation, including customs, storing, handling and the safe delivery of goods from origin to destination.” 

To deal with customs challenges, DACHSER focuses on compliance, transparency, and adaptability, says DACHSER Managing Director Detlev Duve. "Compliance with local and international customs regulations is essential, requiring a detailed understanding of these laws and regulations. Transparency in operations helps build trust with authorities and clients, while adaptability allows logistics companies to adjust to changing regulations and market conditions."

In order to avoid significant time delays and unforeseen cost implications, Duve says it’s vital that companies involved in international trade understand and comply with changing regulations and requirements. However, getting to grips with regulatory environments be challenging for companies and divert resources away from core business priorities, making a trusted logistics partner an essential part of doing business.

Duve says DACHSER's teams are well-versed in customs regulations and procedures. “We ensure compliance with customs requirements, including correct classification and documentation, which can save customers considerable time. Understanding Incoterms and maintaining a good working relationship with local customs authorities are key components of our approach. We further consider where costs can be saved or passage expedited. For example, certain processes could entitle an importer or exporter to claim back a percentage of duties paid to customs.” 

Customs developments have also created some opportunities for logistics companies and clients to streamline their operations.  For example, in South Africa, the government has introduced measures such as accredited client statuses for those registered for customs and excise activities.

Global logistics operations like DACHSER are also able to fully leverage technology to improve their customs handling processes. “Our digital tools assist in accurately calculating duties, tracking shipments, and ensuring documentation is correctly filed, reducing the risk of errors and delays,” says Duve.

DACHSER South Africa also offers value-added solutions for clients such as bonded storage, which allows cargo to be stored for up to two years, improving cash flow for importers. The company further provides an option for clients when a portion of imported goods will be directly exported, sparing them from having to pay duty and VAT twice. “If the client does not need to clear the entire shipment, DACHSER South Africa will clear the goods directly into our bond store and no duty or VAT will be paid until the cargo is moved out,” Duve explains. “If a portion of the stock needed to go to an African country, we would move this out with a bonded truck to that country, where the cargo would be cleared.” 

While the customs landscape in South Africa and Africa presents formidable challenges, logistics companies like DACHSER South Africa have found ways to navigate these complexities and deliver excellent service to their customers. Now more than ever, the value derived from using an experienced logistics provider in Africa can lead to significant cost savings.