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The agricultural treadmill - a way out through differentiation? An empirical analysis of organic farming and the agricultural treadmill

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  • Hansen, Henning Otte

Abstract

The agricultural treadmill describes how technological advances create productivity gains for the benefit of progressive farmers, but where the result is also increased supply, falling prices, economic problems for laggard farmers and thus the need for new achievements in technology. In order to escape from this treadmill, farmers are trying to differentiate and diversify into new more attractive segments. Agro-tourism and organic agriculture are examples of differentiation. The elements and processes in the treadmill are described and supported by empirical time series. Possibilities of delaying or stopping the treadmill are discussed. The question is raised whether organic farming is able to escape the treadmill. The question is answered from both a theoretical and an empirical point of view. The empirical analysis is based on examples from Danish agriculture, which has a significant organic agricultural production. The conclusion is, that the structural and productivity developments and the price trends - which are important elements in the treadmill - are almost identical in the organic and conventional agriculture.

Suggested Citation

  • Hansen, Henning Otte, 2019. "The agricultural treadmill - a way out through differentiation? An empirical analysis of organic farming and the agricultural treadmill," MPRA Paper 98210, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:98210
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    References listed on IDEAS

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    1. Dorward, Andrew, 2013. "Agricultural labour productivity, food prices and sustainable development impacts and indicators," Food Policy, Elsevier, vol. 39(C), pages 40-50.
    2. Keith O. Fuglie, 2008. "Is a slowdown in agricultural productivity growth contributing to the rise in commodity prices?," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 431-441, November.
    3. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    4. Chatzigeorgiou, Chryssoula & Christou, Evangelos & Simeli, Ioanna, 2019. "Confidence and loyalty for agrotourism brands: The Lesvos paradigm," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14(1), pages 151-166.
    5. Chatzigeorgiou, Chryssoula & Christou, Evangelos & Simeli, Ioanna, 2019. "Confidence and loyalty for agrotourism brands: The Lesvos paradigm," MPRA Paper 93898, University Library of Munich, Germany.
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    Cited by:

    1. Jaime Martínez-Valderrama & Rolando Gartzia & Jorge Olcina & Emilio Guirado & Javier Ibáñez & Fernando T. Maestre, 2024. "Uberizing Agriculture in Drylands: A Few Enriched, Everyone Endangered," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 38(1), pages 193-214, January.

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    More about this item

    Keywords

    treadmill; organic agriculture; differentiation; productivity; Blue Ocean;
    All these keywords.

    JEL classification:

    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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