There surer is a big gap, the middle man likes there cut also, there are a few coop's they are a bit scattered around. That's a bit rough having a Farmer's Market fortnightly, don't think people that live in Auckland could live without the weekly markets, there are so many markets to choose from.
With that though their are different types of markets also, ones that only let farmers, producers to sell at the markets, markets that let people sell what ever, some that don't really have many producers selling, but those that pick up from the farmer, as there are so many markets that farmers just sell the product in bulk and go to their local market or sell to who they sell in bulk to.
I like that concentric model also, that's where smaller producers come in than big company's as consumers we have the last say, produce will keep going over seas the best thing to do is support the smaller farmers and grow what we can ourselfs.
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I think the Christchurch quake was a good example of how centralisation of products & services can affect things big-time. We need to decentralise again and support local first. I am seeing a good trend towards people becoming more and more aware of the importance of growing their own food and controlling what goes into it (no sprays etc).
I also think that big companies such as Fonterra put a lot of pressure on farmers for supply, so they have that to deal with too.
There are a few decentralized options in NZ it's just finding them, it would be neat to find and see more.
For Farmers it is hard with the pressures of big company's, that's why people need to look more at p2p options to help each other.