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Short Value Chains in Food Production: The Role of Spatial Proximity for Economic and Land Use Dynamics

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  • Dominik Bertram

    (Institute of Geography, University of Erlangen-Nuremberg, 91058 Erlangen, Germany)

  • Tobias Chilla

    (Institute of Geography, University of Erlangen-Nuremberg, 91058 Erlangen, Germany)

  • Carola Wilhelm

    (Institute of Geography, University of Erlangen-Nuremberg, 91058 Erlangen, Germany)

Abstract

Agricultural land demand tends to be in weak condition vis-à-vis settlement development, transport infrastructure and industry expansion. At the same time, the awareness and demand of consumers for regional food is constantly rising, in particular in urban regions. The resulting challenge is that high demand for regional food is concentrated at places where land for food production tends to be particularly under pressure. Against this background, our article reflects on the extent to which regional food supply chains support the status of agricultural demand in the competition for land. The main aim of our paper is to understand the role of proximity between the different stages of value creation, including cultivation, production (manual or industrial) and trade (retail, direct marketing). Our empirical study on the example of three products in Bavaria (Germany) shows that short distances within food value chains support the agricultural condition in land use dynamics (beer, sweet cherry, asparagus). The analyses are based on official and internal statistics as well as expert interviewing. This mixed-methods approach results in value-creation mappings and provides spatial differentiation of the economic process. Proximity between at least two stages of value creation plays an important role to explain the economic trends and land use dynamic. These findings are rooted in arguments of efficiency, tacit knowledge, networks, as well as product reputation. However, the role of proximity does not automatically play a role but has to be stabilized by strategic measures such as product innovation and marketing measures.

Suggested Citation

  • Dominik Bertram & Tobias Chilla & Carola Wilhelm, 2021. "Short Value Chains in Food Production: The Role of Spatial Proximity for Economic and Land Use Dynamics," Land, MDPI, vol. 10(9), pages 1-21, September.
    • Handle: RePEc:gam:jlands:v:10:y:2021:i:9:p:979-:d:637126
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