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Economic Impact of Values-Based Supply Chain Participation on Small and Midsize Produce Farms

Author

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

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.

Suggested Citation

  • Brekken, Christy Anderson & Dickson, Caleb & Peterson, Hikaru Hanawa & Feenstra, Gail & Ostrom, Marcia & Tanaka, Keiko & Engelskirchen, Gwenaël, 2019. "Economic Impact of Values-Based Supply Chain Participation on Small and Midsize Produce Farms," Journal of Food Distribution Research, Food Distribution Research Society, vol. 50(2), November.
    • Handle: RePEc:ags:jlofdr:300074
    DOI: 10.22004/ag.econ.300074
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    Cited by:

    1. Hikaru Hanawa Peterson & Gail Feenstra & Marcia Ostrom & Keiko Tanaka & Christy Anderson Brekken & Gwenael Engelskirchen, 2022. "The value of values-based supply chains: farmer perspective," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 39(1), pages 385-403, March.
    2. Marit Rosol & Ricardo Barbosa, 2021. "Moving beyond direct marketing with new mediated models: evolution of or departure from alternative food networks?," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(4), pages 1021-1039, December.
    3. Pierre Chiaverina & Sophie Drogué & Florence Jacquet & Larry Lev & Robert King, 2023. "Does short food supply chain participation improve farm economic performance? A meta‐analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 54(3), pages 400-413, May.

    More about this item

    Keywords

    Farm Management; Marketing;

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