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Sales Channels From Organic Food Processing Companies

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  • SMOLUK-SIKORSKA, JOANNA

Abstract

The objective of the paper is identifying the main organic food sales channels from processing companies and attempting to determine their influence on organic food processing. Recently, the dynamic development of organic farming and its market has been observed. Nevertheless, the elements of this market show a number of weaknesses. One of the weakest links of the studied market is the processing of organic food, which bears a high transaction cost resulting from, among others, low distribution development. The paper presents the results of an inquiry research carried out in the first half of 2019 on 55 organic food processors. Conducted research shows that the production structure of the examined companies, mainly focused on fruit, vegetable and cereal products, is only partly adjusted to consumer expectations, who increasingly prefer organic dairy and meat. The main distribution channel is sales to small retail outlets. Wholesale trade came second, although still too underdeveloped, to assure effective products flow from processors to retail. More than half of the studied processors sell their products abroad, mainly to EU countries, North America and Asia. However, it is low-processed products, which are mostly exported. This is an unfavourable phenomenon from a value-added generating perspective.

Suggested Citation

  • Smoluk-Sikorska, Joanna, 2019. "Sales Channels From Organic Food Processing Companies," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2019(4).
    • Handle: RePEc:ags:paaero:302855
    DOI: 10.22004/ag.econ.302855
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    Cited by:

    1. Magdalena Jarczok-Guzy, 2022. "Financial and Marketing Purchase Conditions of Organic Baby Food," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 320-340.
    2. Smoluk-Sikorska, Joanna, 2021. "Supply Sources Of Organic Food Processing Companies In Poland," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2021(1).

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    Keywords

    Agribusiness; Agricultural and Food Policy;

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