The impact of Alternative Food Networks on local economy

This book chapter explores the application and significance of the Local Multiplier 3 (LM3) methodology in the context of Alternative Food Networks (AFNs) within the agrifood sector. AFNs, originating from the social movements of the 1960s, emerged as countermeasures to the standardised and globalized industrial economy system. Their core objective is fostering social cohesion and promoting a sustainable, ethical, and community-oriented food system. Although AFNs propose a shortening and simplification of the food supply chain to reinforce the local economy, the literature lacks empirical research assessing their effective positive impact. For that reason, the LM3 tool, developed by the New Economics Foundation (NEF), emerges as a valuable tool for estimating the economic impact of AFNs. It provides insights into the flow of expenses and economic value within local communities, thereby offering a systematic approach to assess the real economic implications of AFNs. Underscoring the importance of AFNs in fostering economic resilience, supporting local economies, and 42 CHAPTER 3 preserving rural communities, LM3 plays a crucial role in informing policy design, guiding decision-making for supply chain actors and policymakers, and serving as an economic indicator for farmers to communicate the positive impacts.