Joint commercialization model that allows local producers to sell own brand in supermarkets, under the umbrella of the cluster
AgroTransilvania Cluster, set up in 2013 at the initiative Cluj County Council, is an association of 70 member organisations: agri-food producers, traders, cooperatives, local authorities, chambers of commerce, universities and research institutes from the North-West Region of Romania.
”Transilvania acasă”/ Transilvania at Home concept was born in 2013 at the initiative of the cluster and is run by a company entirely owned by the NGO association. The initiative has an important role to play in the value chain of the cluster association, being set up to maintain cluster producers members together, gain a position on the agro-food market and enter to the the major shopping centers, to market their products. Also, based on sharing facilities, prices and margins can remain competitive. Following negotiations with two global hypermarkets present in Cluj-Napoca city, held by the management of the cluster on behalf of all cluster members, Transilvania Acasa isles are located inside the two biggest shopping centers in the city, commercializing the products (including organic) of the local producers, currently 23 cluster members and keeps rising. Besides ensuring a short value chain, Transilvania acasă has been built on the premises of sustainable development, to support producers, to strengthen relationships and to create a strong brand under which products can be easily marketed.
Funding of this initiative is based on the private support of the producers that are using the cluster market channel. In addition, the cluster is operating based on membership fee and European funded projects.
Evidence of success
Thanks to joining forces under a regional agri-food cluster organisation,
local producers have taken ownership of the value chain.
23 local agri-food producers, including organic, are able to sell products with reasonable margins, maintaining own brands, on the highest markets - the urban hypermarkets, due to joint negotiation conditions held under the umbrella of the cluster.
Supermarkets resilience to local producers, week selling force individually but effective market approach collectively, through the cluster.
Potential for learning or transfer
The cluster model establishing a joint business activity can be transferred and multiplied once there is a cooperation between local producers and the cluster management dedicate staff and will to administrate the joint business and to negotiate with the supermarkets.
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