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Vertical Coordination in Organic Food Chains: A Survey Based Analysis in France, Italy and Spain

Author

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  • Alessia Cavaliere

    (Department of Economics, Management and Quantitative Methods (DEMM), Università degli Studi di Milano, Via Celoria 2, 20133 Milan, Italy)

  • Massimo Peri

    (Department of Economics, Management and Quantitative Methods (DEMM), Università degli Studi di Milano, Via Celoria 2, 20133 Milan, Italy)

  • Alessandro Banterle

    (Department of Economics, Management and Quantitative Methods (DEMM), Università degli Studi di Milano, Via Celoria 2, 20133 Milan, Italy)

Abstract

The paper analyses characteristics of vertical relationships of organic supply chains with a specific focus on the processing and retailing sectors. The analysis takes into account different regions of the EU Mediterranean area. Data were collected through interviews using an ad hoc questionnaire. The survey was based on a sample of 306 firms, including processors and retailers. The analysis revealed that a relevant aspect for the processing firms of organic products concerns the guaranteeing of safety and quality levels for the products. The main tools to implement the quality management are based on the adoption of specific production regulations and quality controls. The premium price most frequently applied by processors ranges from 10% to 40% and similar values are revealed for retailers. The diffusion of supply contracts allows the vertical coordination between agriculture and processing firms in the organic supply chains. The main distribution channels for the processing firms are represented by specialised shops in organic products, direct sales and supermarkets.

Suggested Citation

  • Alessia Cavaliere & Massimo Peri & Alessandro Banterle, 2016. "Vertical Coordination in Organic Food Chains: A Survey Based Analysis in France, Italy and Spain," Sustainability, MDPI, vol. 8(6), pages 1-12, June.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:6:p:569-:d:72217
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    References listed on IDEAS

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    1. Alessia Cavaliere & Elena Claire Ricci & Matteo Solesin & Alessandro Banterle, 2014. "Can Health and Environmental Concerns Meet in Food Choices?," Sustainability, MDPI, vol. 6(12), pages 1-16, December.
    2. Gil, Jose Maria & Gracia, Azucena & Sanchez Garcia, Mercedes, 2000. "Market Segmentation And Willingness To Pay For Organic Products In Spain," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(2), pages 1-20.
    3. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    4. Haghiri, Morteza & Hobbs, Jill E. & McNamara, Meaghan L., 2009. "Assessing Consumer Preferences for Organically Grown Fresh Fruit and Vegetables in Eastern New Brunswick," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 12(4), pages 1-20, November.
    5. Julie A. Caswell & Eliza M. Mojduszka, 1996. "Using Informational Labeling to Influence the Market for Quality in Food Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
    6. Barreiro-Hurlé, Jesús & Gracia, Azucena & de-Magistris, Tiziana, 2010. "Does nutrition information on food products lead to healthier food choices?," Food Policy, Elsevier, vol. 35(3), pages 221-229, June.
    7. Banterle, Alessandro & Stranieri, Stefanella, 2008. "The consequences of voluntary traceability system for supply chain relationships. An application of transaction cost economics," Food Policy, Elsevier, vol. 33(6), pages 560-569, December.
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    2. Tina L. Saitone & Richard J. Sexton, 2017. "Agri-food supply chain: evolution and performance with conflicting consumer and societal demands," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(4), pages 634-657.
    3. Luigi Bollani & Alessandro Bonadonna & Giovanni Peira, 2019. "The Millennials’ Concept of Sustainability in the Food Sector," Sustainability, MDPI, vol. 11(10), pages 1-19, May.
    4. Yi Wang & Zhanguo Zhu & Feng Chu, 2017. "Organic vs. Non-Organic Food Products: Credence and Price Competition," Sustainability, MDPI, vol. 9(4), pages 1-23, April.
    5. Li Cui & Siwei Guo & Hao Zhang, 2020. "Coordinating a Green Agri-Food Supply Chain with Revenue-Sharing Contracts Considering Retailers’ Green Marketing Efforts," Sustainability, MDPI, vol. 12(4), pages 1-16, February.
    6. Hailong Yu & H. Holly Wang & Binglong Li, 2018. "Production system innovation to ensure raw milk safety in small holder economies: the case of dairy complex in China," Agricultural Economics, International Association of Agricultural Economists, vol. 49(6), pages 787-797, November.
    7. Nguyen Thi Nha Trang & Thanh-Thuy Nguyen & Hong V. Pham & Thi Thu Anh Cao & Thu Huong Trinh Thi & Javad Shahreki, 2022. "Impacts of Collaborative Partnership on the Performance of Cold Supply Chains of Agriculture and Foods: Literature Review," Sustainability, MDPI, vol. 14(11), pages 1-28, May.

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