Towards sustainable profitability in urban agriculture: motivations, models, and market connections

Insights from the sustainable profitability session led by Jan-Eelco Jansma with intervention of Esther Veen & Haissam Jijakli, Bart Willems & Jan Willem van der Schans

 

Urban and peri-urban agriculture (UA/PUA) is increasingly recognised for its potential to create resilient food systems, promote environmental sustainability, and reconnect people to the sources of their food. But how can these initiatives become economically sustainable, while maintaining their social and ecological commitments? During the “Sustainable Profitability” session at URBAGR’INN DAYS 2025, four speakers—Esther Veen, Haïssam Jijakli, Bart Willems, and Jan Willem van der Schans—explored this question from complementary angles, offering insights into everyday motivations, business models, typologies, and policy frameworks.

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Gardening for the joy of It: Social effects beyond the narrative

Esther Veen (Wageningen University) presented findings from several studies conducted in the Netherlands and the Czech Republic, challenging some of the commonly held expectations about the social effects of urban gardening. While small-scale urban agriculture initiatives such as community gardens are often perceived as fostering social cohesion and promoting healthy, sustainable lifestyles, Veen’s work reveals a more nuanced picture.

Her research distinguishes between place-based gardens—where the aim is to improve the neighbourhood—and interest-based gardens—where the main focus is gardening itself. Social cohesion tends to emerge more strongly in the former than in the latter. In other words, the social impact depends greatly on the garden’s primary orientation.

Furthermore, health and environmental motivations are seldom the primary reasons people take up gardening. Most gardeners are simply driven by the pleasure of being outdoors and the satisfaction of growing their own food. These “mundane” motivations, far from being trivial, are in fact the key to the long-term sustainability of gardening practices. Interestingly, similar patterns were observed in both Dutch and Czech contexts, despite different cultural framings of urban gardening—modern innovation versus nostalgic tradition.

Ultimately, Esther Veen reminds us that although urban agriculture is often portrayed as morally elevated, its everyday appeal lies in joy, routine, and personal satisfaction. And this is precisely what makes it resilient.

 

Business models for a sustainable urban farming sector

Haïssam Jijakli (Urban Agriculture Research Centre, University of Liège) explored the economic dimension of urban and peri-urban agriculture (UA/PUA), based on a global study combining literature analysis and interviews with 24 companies. His work identifies seven distinct business models operating within UA/PUA:

• Cost-Reduction,

• Diversification,

• Differentiation,

• Shared-Economy,

• Experience,

• Experimental, and

• Farm Management.

Each model reflects a unique combination of investment needs, profitability horizons, scalability, and alignment with urban ecosystems. Economically-oriented models, such as Cost-Reduction or Farm Management, tend to require higher capital but offer stronger scalability. In contrast, models like Shared-Economy and Experience prioritise social or educational benefits and rely more heavily on public or philanthropic funding. Diversification and Differentiation sit in between, focusing on market niches and social value with moderate investment levels.

Jijakli emphasised that urban farming businesses must tailor their strategies to local conditions rather than applying one-size-fits-all frameworks. To strengthen the sector’s sustainability, he advocates for:

• stronger public sector engagement,

• increased investment in technological R&D,

• capacity-building for urban farming professionals, and

• greater public awareness of the broader value of UA/PUA.

 

Consumer-producer chains: A market-oriented typology

Bart Willems and Jan Willem van der Schans introduced insights from the COREnet project, an EU-funded initiative that connects advisors across Europe to strengthen short food supply chains (SFSCs). They argued that while urban farming is often driven by the promise of local, transparent food systems, there remains a gap between consumer expectations and what farmers can deliver.

They proposed two complementary typologies:

1. Spatial and Technological Typology – Based on the location of agriculture in the urban fabric (e.g., building-based, inner city, city fringe, peri-urban) and the degree of control over production (open, mixed, controlled).

2. Market-Driven Typology – Focused on:

   • Supply channels (farmer-based retail, farmer-friendly retail, farmer-friendly out-of-home)

   • Scales (farm, regional, national)

   • Initiator type (consumer, intermediary, producer, or public actor)

This second typology helps identify concrete target markets, enabling tailored advisory services. It acknowledges both innovative and traditional farmer-friendly business models, highlighting that success in SFSCs requires both entrepreneurial adaptation and institutional support.

To illustrate, they presented two “Golden Cases” from the COREnet repository:

• Herenboeren: A Dutch, consumer-initiated form of community-supported agriculture operating nationally.

• Groene Hart Cooperatie: A producer cooperative partnering with supermarket chain Hoogvliet to develop a regional private label (“STREEK”) that champions transparency and fair pricing.

 

Overcoming fragmentation in knowledge and policy

Willems and van der Schans also pointed out the fragmented nature of knowledge around UA/PUA and SFSCs. Many initiatives lack systematic evaluation, making it unclear how much they truly contribute to sustainability goals like biodiversity or reduced CO₂ emissions.

Moreover, advisory services often lack expertise in short supply chains, and there’s little critical assessment of their efficacy. Through COREnet, they aim to address these gaps by:

• Building a pan-European network of SFSC experts

• Developing an online typology-based learning module

• Creating an advisory guide and case repository to share good practices

They emphasised that typologies are essential tools—not only to guide farmers and advisors but also to inform more effective, evidence-based public policy.

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Taken together, the contributions in this session underline a critical message: sustainable profitability in urban agriculture is not a singular path. It emerges from a dynamic interplay of everyday motivations, strategic planning, and supportive infrastructure. Whether through the joy of gardening, the design of robust business models, or the creation of smart policy tools, profitability must be rooted in the lived realities of those growing and consuming food.

To move forward, we must combine the wisdom of practitioners with systematic knowledge-sharing, adaptable frameworks, and long-term support. Only then can urban and peri-urban agriculture realise its full potential—as a resilient, inclusive, and economically viable part of tomorrow’s food system.