The public sector sales market, dominated by the Business-to-Government (B2G) model, is large and important for economic development

and community sustainability. It is similar but different to, in several key aspects, other markets, such as retail, ‘Business-to-

Consumer’ (B2C) and ‘Business-to-Business’ (B2B). There is a lack of knowledge and a systematic approach to how the Businessto-

Government (B2G) model works, and what opportunities exist to transform existing food systems into inclusive and sustainable

local food systems. This paper explores the implementation of the Business-to-Government (B2G) model at the municipal level. It

also examines changes in public procurement regulations, and their impact on the ability of local food producers to implement the

B2G model when organising meals for children in pre-school institutions, where a short food supply chain strategy is applied. The

business model of farmers in the Rokiškis district, who participated in the EIP project and applied the principles of the short food

supply chain to sell their products to contracting authorities, is described. The advantages and disadvantages of the B2G model, and

actions to address the disadvantages, were identified. In the case studied, the potential for local food supply has not yet been fully

exploited. Local farmers’ cooperatives, as an innovative form of food system, can be both inclusive and effective, but it is necessary

to continuously analyse how the needs of both local product consumers and cooperative members are being met. Based on the concept

of co-production, a collective process of creating alternative food supply chains and supply practices should be developed, to

help establish connections and develop relationships, and enable farmers and consumers to develop appropriate solutions, taking into

account the specific needs of production and consumption systems.