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Article

Stefano Orsini, Susanne Padel, Danilo Gambelli, Julia Lernoud, Jürn Sanders, Francesco Solfanelli, Matthias Stolze, Helga Willer and Raffaele Zanoli

The purpose of this paper is to investigate the supply chains for organic milk, apples and pasta in eight European countries and how added value is distributed among…

Abstract

Purpose

The purpose of this paper is to investigate the supply chains for organic milk, apples and pasta in eight European countries and how added value is distributed among market players.

Design/methodology/approach

Using secondary data and expert interviews, a market overview for the three products is provided as the basis of a more detailed analysis of the added value in 12 organic supply chain examples. For this, interviews with market players and an “added value calculator” tool are employed.

Findings

The farm gate and retail price of organic products is higher than conventional. Supermarkets are the main outlet for organic milk and apples in the countries studied, whereas the situation for organic pasta is varied, suggesting that the use of different sale channels is influenced by the food product. The farmers’ share of added value ranges between 3 and 65 per cent of the added value created in the organic supply chains analysed. Organic offers opportunities to increase the farmers’ share of added value both in supermarkets and alternative sale channels, by developing collaboration, physical infrastructures for organic and integrating operations upstream of the chain.

Research limitations/implications

While more research is needed into a larger number of chains, this paper indicates that there are dynamics and features at supply chain level, such as the distribution of added value and the target markets used, that cannot be interpreted according to the binary division between “mainstream” and “alternative” organic suggested by the conventionalisation hypothesis.

Originality/value

The distribution of added value for existing supply chains in eight European countries is calculated by using an effective added value calculator tool.

Details

British Food Journal, vol. 122 no. 3
Type: Research Article
ISSN: 0007-070X

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Article

Luciana Marques Vieira, Marcia Dutra De Barcellos, Alexia Hoppe and Silvio Bitencourt da Silva

Several studies focus on agri-food value chain from a consumer or from a supply chain perspective. But there is little investigation integrating both approaches and…

Abstract

Purpose

Several studies focus on agri-food value chain from a consumer or from a supply chain perspective. But there is little investigation integrating both approaches and providing empirical evidence from developing countries. The purpose of this paper is twofold: first, it describes the supply chain of organic products in Brazil, which is an emerging market. It describes how retailers manage its supply chain (wholesalers and small producers) in an organic own brand of fresh products. Second, this paper identifies the motivations, attitudes, beliefs and personal values behind Brazilian consumers' decision to purchase organic food.

Design/methodology/approach

Qualitative and quantitative techniques were used in two stages. First, it presents a case study of the organic supply chain. Then, a survey carried out with 261 consumers at supermarkets in a Brazilian city is presented.

Findings

The case study points out that retailers transfer to wholesalers the responsibility to manage small organic producers. It also suggests that as the organic product is under the retailer own brand, and therefore most of the value perceived by the consumer is retained by the retailer. Survey results indicate that organic consumers have strong individual values and benefits are the most significant predictors of attitude toward organic food for the Brazilian consumers interviewed. Availability is significantly related to the intent to purchase organic food, which is a key point for the supply chain to respond efficiently to consumers' demand.

Research limitations/implications

This paper is based on a single case study and the survey is applied in only one city of Brazil.

Originality/value

The study contributes to expand the value analysis through a combination of quantitative and qualitative techniques, including consumer behaviour and supply chain management in the same analysis. It also adds to the debate on value, proposing Schwartz Value Theory as a complementary approach to value analysis.

Details

British Food Journal, vol. 115 no. 10
Type: Research Article
ISSN: 0007-070X

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Article

Jubin Jacob-John

The purpose of this paper is to explore the sharing of sustainability and social responsibility-centric values along the export-oriented organic dry food supply chain

Abstract

Purpose

The purpose of this paper is to explore the sharing of sustainability and social responsibility-centric values along the export-oriented organic dry food supply chain (ODFSC) using an institutional lens.

Design/methodology/approach

To understand the perceptions of the shared ethos of the organic food industry along the entire supply chain, the research employed a multi-tier qualitative approach using semi-structured interviews and observations. The study focussed on supply chain actors including farmers and traders from the Indian sub-continent, and traders and retailers based in Europe and North America.

Findings

Isomorphism, brought about by the vertical channelling of consumer preferences and values resulted in a higher degree of responsibility within the industry. The responsibility-centric ethos of the supply chain affected the responsibility-orientation of the supply chain actors and their operations.

Research limitations/implications

The research focused mainly on the ODFSC actors in Kerala, a state in India, and this focus of the research could be a significant limitation in generalizing the findings to the rest of the emerging economy context because of cultural and educational differences.

Originality/value

Literature lacks in the studies of sharing of responsibility-centric values in supply chains through an institutional lens and this investigation contributes to the scant literature on isomorphism, shared values and responsible supply chain management.

Details

European Business Review, vol. 30 no. 1
Type: Research Article
ISSN: 0955-534X

Keywords

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Article

Marja‐Riitta Kottila and Päivi Rönni

Organic food offers a good case to study the relationships of actors in the food chain, because of its added value based on production methods, the imbalance of power and…

Abstract

Purpose

Organic food offers a good case to study the relationships of actors in the food chain, because of its added value based on production methods, the imbalance of power and the different value systems. The obvious problems identified call for solutions that include more efficient collaboration. This paper attempts to determine the presence of collaboration along the Finnish organic food chain, from the farmers to the multiple retailers. Collaboration is approached by focusing on communication and trust between the actors.

Design/methodology/approach

A case study with two cases.

Finding

Collaboration was found only in a few dyadic relationships, not at the chain level. Findings suggest that high frequency of communication is not an indication of collaboration, and is less important than the quality of communication in the creation of trust, the prerequisite for collaboration. Particularly the competence demonstrated as an exchange partner, seemed to hold the key for a trustful relationship. Neither the power imbalance nor the different value systems were insuperable obstacles for trustful and collaborative relationship.

Practical implications

Results encourage small organic suppliers to develop their relationships with mainstream retailers by improving their overall competence as exchange partners. To create trust and collaboration, the actors need to consider the influence of their action not only on the adjacent actors, but on the relationships within the whole organic food chain.

Originality/value

These findings contribute to existing knowledge concerning the nature of relationships along a food chain, and in particular, those of an organic food chain.

Details

British Food Journal, vol. 110 no. 4/5
Type: Research Article
ISSN: 0007-070X

Keywords

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Article

Jiang Zhao, Ksenia Gerasimova, Yala Peng and Jiping Sheng

The purpose of this paper is to discuss characteristics of organic food value chain governance and policy tools that can increase the supply of good quality of agri-products.

Abstract

Purpose

The purpose of this paper is to discuss characteristics of organic food value chain governance and policy tools that can increase the supply of good quality of agri-products.

Design/methodology/approach

This paper discusses a national organic food supply system in China, identifying the link between an organization form with a social confidence crisis and information asymmetry as the main challenges. It develops an analytical model of the market structure of organic certification based on the contract theory, which considers the certification incentive driven by both farmers and processors. Two cases of raw milk producers and processors provide empirical data.

Findings

The argument which is brought forward is that product information asymmetry together with strict requirement for ensuring organic food integrity brings the organic milk value chain into a highly integrated organization pattern. A tight value chain is effective in the governance of organic food supply chain under third party certification (TPC), while a loose value chain discourages producing organic products because of transaction costs. TPC is found to be a positively correlation with a tight value chain, but it brings high organizational cost and it raises cost for consumers.

Originality/value

This is the first paper discussing the governance of organic food value chain in Chinese milk industry.

Details

China Agricultural Economic Review, vol. 12 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

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Article

Dilupa Nakandala and H.C.W. Lau

This paper aims to investigate the characteristics of demand and supply in relation to the real-world supply chain strategies of local urban fresh food supply chains

Abstract

Purpose

This paper aims to investigate the characteristics of demand and supply in relation to the real-world supply chain strategies of local urban fresh food supply chains (FFSC). It generates insights into how a range of strategies is adopted by urban retailer businesses in attempting to cater for the particular requirements of food-literate urban consumers and small-scale local growers.

Design/methodology/approach

Using a multiple case study method, 12 urban local fresh food retailers in Sydney were studied and interview data were analyzed using thematic analysis.

Findings

Local fresh produce has characteristics of both functional and innovative products. Retailers with strong upstream and downstream collaborations adopt hybrid strategies for increased time efficiency and product variety. The dominance of strategies for time efficiency in downstream activities is aimed at maximising the product’s freshness and taste, while product range improvement strategies mean innovative retailers are working with growers to introduce new product types and offering new recipes to consumers that encourage a wider use of products. Urban retailers of local fresh produce leverage on their relationships with upstream and downstream supply chain entities in implementing hybrid strategies.

Implications

Policymakers will make use of the new knowledge generated about the real enablers of contemporary urban food systems in designing developmental policies; findings will inform urban FFSC retailers about how harmonious relationships can be leveraged for sustainability.

Originality/value

The study generates new knowledge on the implementation of a leagile approach by studying the adoption of innovative hybrid strategies by urban local FFSCs in relations to demand and supply characteristics and the utilization of strong vertical relationships in a short supply chain.

Details

Supply Chain Management: An International Journal, vol. 24 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

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Article

Brian Ilbery, Paul Courtney, James Kirwan and Damian Maye

The purpose of this paper is to examine the proportion and distribution of organic produce sold through different marketing channels by a sample of organic farmers in…

Abstract

Purpose

The purpose of this paper is to examine the proportion and distribution of organic produce sold through different marketing channels by a sample of organic farmers in three “core” areas of organic farming in England and Wales. More specifically, it conducts a quantitative analysis of marketing concentration and geographical dispersion within different travel time zones.

Design/methodology/approach

A quantitative database was constructed on the marketing channels and travel time zones used by 61 organic farmers to sell their produce and purchase necessary inputs. Indices of marketing concentration and geographical dispersion (outputs and inputs) were then calculated for each farm and region.

Findings

Results indicate a high level of marketing concentration, dominated by marketing cooperatives, direct marketing and abattoir/processors. Similar levels of concentration are recorded for the indices of geographical dispersion (especially outputs). Results vary significantly between the three regions, but it is clear that organic farmers in each region make use of different combinations of marketing channels, both local and national, in increasingly hybridised and individualised supply chains.

Research limitations/implications

Many organic farmers are developing hybridised supply chains, including both local and more conventional marketing channels, and further research is needed into the identified regional differences and the reasons for developing what are often very individualised marketing chains.

Originality/value

This is the first attempt to calculate indices of marketing concentration and geographical dispersion for organic farms in different regions of England and Wales. The paper also contributes to debates on the potential impact of organic farming on rural development and the local economy.

Details

British Food Journal, vol. 112 no. 9
Type: Research Article
ISSN: 0007-070X

Keywords

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Article

Neeraj Dangi and Sapna A. Narula

This paper explores the contextual relevance of sharing economy for the organic food market in an emerging economy like India.

Abstract

Purpose

This paper explores the contextual relevance of sharing economy for the organic food market in an emerging economy like India.

Design/methodology/approach

Case study approach was used to collect empirical data from different types of organic food markets.

Findings

Organic food farmers markets compared to online and health food stores tends to facilitate sharing economy more since it helps them to build value, scale and trust. By sharing resources, skills and spaces, organic farmers markets have increased organic food availability, reduced its cost of certification and operation besides managing consumer trust. Subjective influence through social media and offline interaction reduces information asymmetry at zero marginal cost. Organic food producers/retailers can get a competitive advantage by tapping underutilized assets to create value and opportunities besides overcoming their demand and supply constraints.

Originality/value

The research offers a fresh perspective to the organic food sector, particularly in emerging economies like India. It could assist all stakeholders to overcome the current demand and supply challenges faced in organic food markets.

Details

Management of Environmental Quality: An International Journal, vol. 32 no. 1
Type: Research Article
ISSN: 1477-7835

Keywords

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Article

Haley Baron and Carolyn Dimitri

Since the implementation of the National Organic Program in 2002, the US organic market has grown in both scale and scope, consequently placing pressure on the organic

Abstract

Purpose

Since the implementation of the National Organic Program in 2002, the US organic market has grown in both scale and scope, consequently placing pressure on the organic supply chain. The crucial role of matching consumer demand for final products with farm-level production falls to certified organic handlers, the intermediary firms that process, manufacture and distribute organic products. Locating certified organic commodities and products that meet their needs, in a timely manner, is costly and challenging. The paper aims to discuss these issues.

Design/methodology/approach

A mixed-methods study was designed to better understand organic sector supply chain relationships in the USA. Data were collected from certified organic handlers via survey and semi-structured interviews. Those interviewed were randomly selected from 153 survey respondents who expressed an interest in being interviewed. This paper presents an analysis of interviews with 26 certified organic handlers regarding the relationships with their suppliers.

Findings

Three key concepts characterize the relationships between handlers and their suppliers: closeness, support and commitment. Nearly all handler supplier relationships possess some degree of closeness, where the handler expresses interest in their supplier. The relationships follow a spectrum of intensity, where the least engaged handlers provide little support and commitment, and the most engaged handlers provide support and commitment through a long-term relationship or contract.

Originality/value

Research into the organic supply chain is challenging to undertake, given the proprietary nature of the relationships. As the organic market continues to grow, the relationships along the supply chain will need to evolve to allow firms to meet consumer demand.

Details

British Food Journal, vol. 121 no. 3
Type: Research Article
ISSN: 0007-070X

Keywords

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Article

Kim Hua Tan, Mohd Helmi Ali, Zafir Mohd Makhbul and Azman Ismail

Much has been written about the importance of external integration for the integrity of food products. To achieve food integrity, all actors along the supply chain have to…

Abstract

Purpose

Much has been written about the importance of external integration for the integrity of food products. To achieve food integrity, all actors along the supply chain have to be fully integrated and comply with an assurance system or process. The more complex the supply chain operations are, the greater will be the need for integration. This research paper investigates the impact of external integration on compliance with halal standards, as an example of product integrity within the food industry.

Design/methodology/approach

A survey of 1,000 food manufacturers was conducted. Partial least squares structural equation modelling was used to test the effect of external integration on compliance with halal standards.

Findings

The results showed that there were links between halal assurance system and external integration. Nevertheless, it was discovered that only customer integration mediated the relationship between the halal assurance system and product quality and production cost.

Practical implications

The practical implications of the findings extend to managers in the food industry who might pursue supply chain integration as a structure to achieve excellence. The findings suggested that the deployment of a halal assurance system has a positive effect on operational performance. Furthermore, the results show that managers who wish to implement the halal assurance system should carefully invest in an external integration strategy, depending upon the operational performance improvement intended.

Originality/value

This research is one of the first studies to investigate the effects of external integration on halal food in general and is the first empirical investigation of the effect of safeguarding halal integrity on operational performance.

Details

Supply Chain Management: An International Journal, vol. 22 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

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