"This is to inform you that I have already obtained all the investment funds that I need to launch my project. I thank you for doing all you have done for me. I am thrilled beyond measure. Apparently I have a better idea than even I knew."
Posted on February 4, 2019 @ 05:16:00 AM by Paul Meagher
Most people in North America have never heard of a food retail innovation called REKO Circles (REKO is a Swedish abbreviation for "Fair Consumption"). Judging by its uptake in Finland and Sweden, expect to hear more about REKO Circles coming to a place near you.
Basically, members of a REKO Circle join a closed Facebook group (or similar social networking platform). Producers post what they have to sell and consumers add comments saying how much they would like to buy. A time and place is set where producers and consumers will congregate and exchange goods. Usually it is a parking lot. There are no booths or advertising, goods are simply provided to the customers in the amounts requested from the back of their vehicle to the consumers. Everybody leaves on their merry way within an hour of the first arrival.
There are many advantages for local producers and consumers in this arrangement. Local producers who are not big enough to sell to the local
grocery store now have a market. There are no monetary costs for producers or consumers to network online to buy and sell agricultural products. The producer gets more of the money from selling their product than they would if they sold to the grocery store, even at prices competitive with the grocery store. The consumer knows where their food comes from. Consumers can get a significant portion of their weekly food needs met in one place. Producers only bring what is necessary and don't have to transport unsold items back to their home.
REKO Circles may be acknowledged and promoted by municipalities and governments, but REKO Circles to date have generally been organized in a bottom
up fashion though people organizing on social media for the purposes of setting up a local food network.
Below are a few resources that I would recommend to learn more about REKO.
REKO Circles were initiated in Finland in 2013 by a farmer Thomas Snellman. Since then they have grown to become a significant
component of the food retail network in Finland (5% or more). Thomas Snellman gave a TED talk that is worth watching to get the concept from
the originator.
I originally learned about REKO on Richard Perkin's Youtube Channel where he has been an enthusiastic supporter of this particular method of selling his goods. Richard gives you a good nut-and-bolts view on how REKO works on Richard and Yohanna's farm:
Even though I was familiar with the REKO concept from Richard's channel, I didn't fully appreciate its history or its disruptive potential until I read the paper Farm Fresh in the City: Urban Grassroots Food Distribution Networks in Finland (S.E. Hagolani-Albov and S.J. Halvorson) which can be found in the Global Urban Agriculture (2017) collection of papers edited by
A. WinklerPrins. This chapter is one of the few academic treatments of the REKO concept and does an excellent job in explaining what is different about REKO and why it works in the Finnish context.
Will REKO Circles work in the North American context? That awaits to be seen. You don't need startup capital or the blessing of government to launch a REKO Circle near you.
Connecting California Entrepreneurs and Investors.
Notice: The California Investment Network is owned by
Dealfow Solutions Ltd. The California Investment Network is part
of a network of sites, the Dealflow Investment Network, that provides a platform
for startups and existing businesses to connect with a combined pool of potential
funders. Dealflow Solutions Ltd. is not a registered broker or dealer and
does not offer investment advice or advice on the raising of capital. The
California Investment Network does not provide direct funding or make any
recommendations or suggestions to an investor to invest in a particular company.
Nothing on this website should be construed as an offer to sell, a solicitation of an
offer to buy, or a recommendation for any security by Dealflow Solutons Ltd.
or any third party. Dealflow Solutions Ltd. does not take part in the negotiations
or execution of any transaction or deal.
The California Investment Network does not purchase, sell, negotiate,
execute, take possession or is compensated by securities in any way, or at any time,
nor is it permitted through our platform. We are not an equity crowdfunding platform
or portal. Entrepreneurs and Accredited Investors who wish to use the California Investment Network
are hereby warned that engaging in private fundraising and funding activities can expose you to
a high risk of fraud, monetary loss, and regulatory scrutiny and to proceed with caution
and professional guidance at all times.