Economic impact of values-based supply chain participation on small and midsize produce farms

Christy Anderson Brekken, Caleb Dickson, Hikaru Hanawa Peterson, Gail Feenstra, Marcia Ostrom, Keiko Tanaka, Gwenaël Engelskirchen

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

Midsize farms can improve economic viability using alternative marketing channels such as values-based supply chains (VBSCs) that market products differentiated by locality, quality, environmental, social, or health claims. We simulated the economic impact of VBSCs using secondary data and survey data from VBSC-participating farms. Across all simulation scenarios, average net economic impacts from VBSC participation was positive, where 47% of farms showed a net benefit, with wholesale-leaning farms benefiting most. VBSC economic benefits may result from lower marketing costs relative to direct marketing and higher prices than conventional wholesale. While most farms showed small or negative net economic impacts, most also reported noneconomic benefits of VBSC participation.

Original languageEnglish
Pages (from-to)1-26
Number of pages26
JournalJournal of Food Distribution Research
Volume50
Issue number2
StatePublished - Nov 2019

Bibliographical note

Funding Information:
This research was supported by the Agriculture and Food Research Initiative of the National Institute of Food and Agriculture, U.S. Department of Agriculture, Grant No. 2015-68006-25646. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the authors and do not necessarily reflect the view of the United States Department of Agriculture.

Funding Information:
This research was supported by the Agriculture and Food Research Initiative of the National Institute of Food and Agriculture, U.S. Department of Agriculture, Grant No. 2015-68006-25646. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the authors and do not necessarily reflect the view of the United States Department of Agriculture. We thank the farmers who returned surveys, the VBSCs who shared their farmer lists, and the project advisory committee, whose input made this work possible. We would also like to thank our colleagues from the USDA multistate research group NC 1198: Renewing an Agriculture of the Middle: Value Chain Design, Policy Approaches, Environment, and Social Impacts, whose ongoing efforts and comradery inspire and inform the research. We also thank the anonymous reviewers, whose insights strengthened the manuscript.

Publisher Copyright:
© 2019, Food Distribution Research Society. All rights reserved.

Keywords

  • Direct marketing
  • Economic impact
  • Farm viability
  • Marketing channels
  • Values-based supply chains
  • Wholesale

ASJC Scopus subject areas

  • Food Science
  • Agronomy and Crop Science
  • Economics and Econometrics
  • Management Science and Operations Research
  • Marketing

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