Digifood - Transforming the Nordic REKO-rings into a sustainable Digital Local Food System

New digital consumer trends challenge traditional food value chains designed for volume production and supply. In response to increasing consumer power, new digital business models are emerging, including food networks on digital platforms and the entry of global platform players like Amazon and Alibaba into the food market through marketplace initiatives and private-label brands. The Digifood project explores how digitalization stimulates the growth of new food networks (alternative food networks – AFN). The project centers on the REKO phenomenon, which has become a key player in the Nordic local food market. However, REKO relies on Facebook, lacks formal organization, and is difficult to regulate, making the network vulnerable and highlighting sustainability challenges inherent to AFNs. The Digifood project aimed to develop and disseminate research-based knowledge on how digital platforms may radically change food value chains through four sub-goals: 1) **Identify platform attributes that stimulate consumer and producer co-creation in new food markets through studies of REKO-rings:** The project produced four academic publications addressing this topic: - Bentsen’s “Consumers in local food markets: From adoption to market co-creation?” - “Can digital platforms support moralized markets? An analysis of affordances that matter to moralization” - Alfnes, Tabarroky, and Viciunaite’s “Exploring consumer segments for online food provisioning services: Online supermarkets vs. alternative food networks” - Branstad and Solem’s “Emerging theories of consumer-driven market innovation, adoption, and diffusion: A selective review of consumer-oriented studies.” 2) **Identify variations in regional and national conditions for market innovation across over 100 rings and four countries, explaining paths to success:** The project resulted in Viciunaite’s publication “Alternative food networks on digital platforms: Consumer preferences for platform versus local food attributes” based on a national survey of REKO consumers, producers, and administrators. Additional data from longitudinal Facebook studies of 15+ REKO rings provided comparative insights, with two related studies underway. Study visits to Finland and Denmark illuminated national factors influencing market innovation. 3) **Stimulate the transformation of the REKO ecosystem into a more sustainable local food system based on scientific analysis:** The project followed all 103 REKO-rings in Norway. We conducted one nationwide and two local surveys (focused on rings piloting new functions), collected longitudinal Facebook data, and performed observational studies to analyze variability in exposure, revenue, and social dimensions. Stakeholders received ongoing knowledge dissemination and advice. The project’s 2020 kickoff seminar at Bygdøy brought together actors from the local food value chain, including producers, REKO representatives, platform developers, interest organizations, researchers, and public sector representatives. This annual event became a key arena for knowledge dissemination and networking. Results were also shared at events like the NBS yearly summit, Farmer’s Market meetings, and County Governor-led events. Media coverage of the project and the REKO phenomenon has been substantial. Digifood contributed to the "Robust småskala grønt" project (Norwegian Agriculture Agency) by creating an overview of sales channels available to small-scale horticulture producers in Norway. 4) **Position our research network as internationally known for its original research on food market innovation, documented through top-tier scientific articles and media attention:** The project produced five high-ranking academic journal publications and supported one completed and one ongoing PhD. Bentsen successfully defended her dissertation based on three years of data from Norwegian REKO rings, administrators, and national REKO sites. Reynisson has completed his mid-way assessment. The project advanced collaboration among Norwegian and Nordic researchers. Viciunaite’s research visit to Professor Sundbo at Roskilde University disseminated preliminary results and traced the history and status of REKO in Denmark. Similarly, Bentsen’s visit to Finland mapped the Finnish REKO landscape and led to a co-authored article with Associate Professor Leipämaa-Leskinen. Digifood connected with related projects, such as a Nordplus project on Short Food Supply schemes in Nordic-Baltic regions and contributed to Strength2Food’s follow-up project at OsloMet. The project catalyzed spin-offs, including BOLO (Bærekraftig offentlig innkjøp av lokalmat), funded by RFF Vestfold and Telemark, and a node-based distribution system for local food, financed by RFF Arctic. Insights also informed collaborations with NIBIO and Telemarksforskning, inspiring new projects like SmallHort (NFR) and STYRK (Norwegian Agriculture Agency).

Outcomes: Publications: The Digifood project has resulted in four academic publications to date, three of which are ranked at level 3 in the AJG ranking system. PhD Graduates: The project has successfully supported one completed PhD (Kristin Bentsen, 2021) and has another PhD candidate (Guðbjartur Karl Reynisson) in progress. His completion has been delayed due to illness and parental leave and USN will continue to support him through the remaining contractual period. Stakeholder Knowledge: Ongoing dissemination through seminars and presentations has significantly increased knowledge and competence among stakeholders. This has enabled actors, particularly those in Bergen, Oslo, and Sandvika, to make informed decisions regarding the future development of REKO and local food platforms, including understanding the implications of REKO's reliance on Facebook and exploring possible alternatives. Guidelines Development: While the REKO community has attempted to develop their own guidelines with limited success, the project has focused on continuous, tailored dissemination to practitioners, empowering them to make data-driven decisions for the sustainable development of REKO. Impacts: Research Network Strengthening: Digifood has established strong connections with food market scholars in Norway, particularly at NIBIO, Telemarksforskning, HVL, and OsloMet/SIFO. Despite challenges posed by COVID-19, the project has expanded its networks in Denmark and Finland, contributing to a robust Nordic research community. Qualified Scholars: The project has contributed to the field by producing two top-qualified scholars—a PhD and a postdoc—with an additional PhD candidate in progress, enriching the expertise available to the food sector. REKO Growth: REKO growth in the project period has been affected by many factors, recently in particular by increased cost of living. The project has primarily supported its development by enhancing stakeholder competence and facilitating interactions between REKO and potential partners. Regulatory and Industry Experimentation: The project has sparked interest among regulators in exploring new approaches, as evidenced by their participation in the spin-off project BOLO, which investigates opportunities to increase local food in the public sector. Some industry incumbents, like Lokalmat.no, have also begun to experiment with new collaborations, such as with the LocalFood platform, though the project's influence on these developments is difficult to assess. Sustaining REKO: Despite facing both challenges and successes during the project period, REKO remains a viable sales channel. It appears to have moved from a growth phase into consolidation as a niche phenomenon. Although it has not undergone significant transformation, REKO continues to play a crucial role in offering greater variety and competition in the local food market.

The Digifood project addresses the disruptive potential of digital platforms in food value chains. We analyze the Nordic, platform-based local food market phenomenon Reko, develop and disseminate knowledge of how it can stimulate radical market innovation in food value chains and help it transform into a sustainable digital food system. The research questions are: What kinds of alternative food networks (AFN) evolve as a consequence of digitalization and digital platforms?; What local, regional and national factors influence how such AFN's evolve into significant food markets?; and finally; How can such AFN's transform food value chains and become truly sustainable local food systems?. The project will conduct studies at the local (Reko-ring members), regional (regional Reko-contexts) and national (Nordic countries) levels. Because Reko uses Facebook as the digital platform, we can conduct advanced multi-level analysis of large data volumes that complements previous research conducted at only one of the three levels independently. As Reko's success formula is fragile, the project also includes an action-oriented WP that develops guidelines for how its platform and ecosystem should be further developed to secure growth and sustainability. The project mainly funds a PhD-fellow at USN, but includes a strong network of Nordic researchers on market innovation. It involves industry partners serving as recruitment and dissemination partners for SME-involvement. The project will involve more than 20 SME's in data collection, knowledge sharing and dissemination activities. They will participate in short, intensive activities ensuring high engagement based on the project group's experience from previous industry projects. Digifood aims to establish the involved research network as internationally known for its competence on market innovation, also within the context of food markets through academic and popular publications as well as direct interaction with industry.