Optimizing Food Hub Logistics for Economic and Environmental Sustainability

Food hubs play a crucial role in strengthening local food systems. By aggregating products from small-scale producers and facilitating their distribution to final consumers, these platforms help improve profit margins for farmers and stimulate local economic development. However, one of the major challenges facing food hubs is the high cost of logistics, which can hinder their efficiency and long-term viability.

The research by Arijit De of the University of Manchester, and Barbara Tocco and Matthew Gorton (Newcastle university, EU4dAdvice partners) from the National Innovation Centre for Rural Enterprise (NICRE), is published in the journal Transportation Research D: Transport and Environment.

It benefitted from a collaboration with Food and Drink North East (FADNE) and real world data from their local heroes initiative, which operated a regional food hub with an e-commerce website, featuring products from over 150 regional producers, and home delivery service during the Covid-19 pandemic.

The research explores innovative ways to enhance both the environmental and operational performance of food hubs. At the core of this work is a newly developed Mixed-Integer Linear Programming (MILP) model, designed to optimize the transportation process from producers to hubs and then to customers. This model is grounded in real-world data, ensuring that its findings are applicable to actual food hub operations.

Computational experiments reveal that encouraging greater cooperation among producers, particularly in consolidating deliveries to hubs, can significantly reduce transportation costs and associated carbon emissions. The research further highlights the environmental benefits of electrifying delivery fleets. Transitioning from conventional to electric vehicles has the potential to cut transportation costs by nearly one-third and lower carbon emissions by up to 70%.

These findings suggest that strategic coordination and greener technologies can make food hubs not only more sustainable but also more economically resilient. As food systems continue to evolve, such models can guide policymakers and practitioners in designing logistics networks that support both people and the planet.

Chris Jewitt, CEO of FADNE said “Logistics remains a significant challenge in enabling local food supply chains, but this research highlights the critical role of collaboration, aggregation, and self-organization among stakeholders. By working together, producers can streamline distribution, reduce costs, and lower carbon emissions, ultimately building more resilient and sustainable supply chains.”

Read the scientific publication here.