The Importance of the Local Economy and Factors for the Development of Local Food Systems

Abstract

The aim of this article is to provide theoretical information on the importance of local economy and factors that influence the development of local food systems, to describe current trends towards decentralization of food production and to bring best practices in supporting local food production. Local food production is represented by local farmers, small and medium-sized enterprises that produce local food using local natural, financial, and human resources. The development of local entrepreneurship provides benefits not only for local people but also for cities, regions, and the state. Supporting local entrepreneurship is important for food self-sufficiency and resilience in an area, especially to ensure a functional food chain for its inhabitants. In the past decade, the preference for local food among consumers has increased rapidly, mainly due to the quality and safety of good local food, the freshness, and the immediate availability of the local production. Sustainability, in the form of reducing negative environmental impacts, also plays a key role in supporting the development of local production. The high importance of self-sufficiency in the food supply chains has appeared during the COVID-19 pandemic and continues in the energy crisis during the autumn / winter of 2022. Resilient and sustainable local food systems can ensure relevant food security for the states and long-term occupation for the inhabitants that work in local production/or local food systems. Used methodology is a narrative review, that is summarizing the functions and importance of the actors of the local food system and its development. The review is supported by the qualitative research using method of the structured expert interviews. The objective of the qualitative research was to identify motivations and barriers to local entrepreneurship and to identify key areas of support. The findings suggest that appropriate legislative support to create local food systems, reduce administrative burdens and educate consumers could bring a number of benefits to the region, such as social, economic and environmental benefits, as well as consumer benefits in the form of fresh and quality locally produced food. Key words: Local Economy, Local Food System, Decentralization, Small and Medium-sized Enterprise, Sustainable Food Procurement