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Farms’ Performance and Short Supply Chains in Italy: an Econometric Analysis

Author

Listed:
  • Bonanno, Alessandro
  • Cembalo, L.
  • Caracciolo, Francesco
  • Dentoni, D.
  • Pascucci, S.

Abstract

In spite of several cases study existing that assess the profitability of farms participating in direct sales activities (Brown, 2002; Brown and Miller (2008), no analysis has verified whether the notion that farmers participating in short supply chains are profitable holds to the empirical test. The objective of this analysis is that of testing econometrically whether farmers joining short supply chains do experience better performances, accounting for confounding factors and endogeneity of channel choice decision. To that end, we use the Farm Accountancy Data Network (FADN) referred to 2010. Results indicate that participation in SSCs doesn’t positively contribute to farms profitability. We use this preliminary empirical evidence to shape future research steps in this domain, and namely to further investigate the differential impact of participation in SSCs on gross sales and variable costs.

Suggested Citation

  • Bonanno, Alessandro & Cembalo, L. & Caracciolo, Francesco & Dentoni, D. & Pascucci, S., 2013. "Farms’ Performance and Short Supply Chains in Italy: an Econometric Analysis," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149899, Italian Association of Agricultural and Applied Economics (AIEAA).
  • Handle: RePEc:ags:aiea13:149899
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    File URL: http://purl.umn.edu/149899
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    References listed on IDEAS

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    1. Conyon, M. & Machin, S., 1991. "Market structure and the empirical specification of profit margins," Economics Letters, Elsevier, vol. 35(2), pages 227-231, February.
    2. Cheryl Brown & Stacy Miller, 2008. "The Impacts of Local Markets: A Review of Research on Farmers Markets and Community Supported Agriculture (CSA)," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1298-1302.
    3. Dickson, Vaughan, 1994. "The empirical specification of price-cost margins," Economics Letters, Elsevier, vol. 44(3), pages 329-332.
    4. Fondse, Mirjam & Wubben, Emiel F.M. & Kortstee, Harry & Pascucci, Stefano, 2012. "The Economic Organizations of Short Supply Chains," 126th Seminar, June 27-29, 2012, Capri, Italy 128205, European Association of Agricultural Economists.
    5. Gilg, Andrew W. & Battershill, Martin, 1998. "Quality farm food in Europe: a possible alternative to the industrialised food market and to current agri-environmental policies: lessons from France," Food Policy, Elsevier, vol. 23(1), pages 25-40, February.
    6. Pascucci, Stefano & Cicatiello, Clara & Franco, Silvio & Pancino, Barbara & Davide, Marino, 2011. "Back to the Future? Understanding Change in Food Habits of Farmers' Market Customers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 14(4).
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    More about this item

    Keywords

    short supply chains; Price-Cost-Margin; GMM; Italy; Farm Management; Productivity Analysis; Q13;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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