Fairness-Enabling Practices in Agro-Food Chain

Abstract

Fairness in the agro-food system is an increasingly important issue. Ensuring fair and ethical practices in the agro-food chain is essential for sustainable, effective, and resilient agro-food systems. Identifying and understanding fairness-enabling practices and existing business applications in the agro-food chain is crucial to create a sustainable system. This research study is an extensive literature review analyzing academic and grey literature. Thus, this study aims: (i) to conceptualize fairness in the agro-food system; (ii) to identify the fairness-enabling practices contributing to a fair agro-food system; and (iii) to explore existing agro-food chain business applications relevant to achieving a sustainable and fair agro-food chain. Fairness-enabling practices have a vital role in achieving fairness in the upstream and downstream operational stages of the agro-food chain. On the one hand, the upstream cycle includes many elements, from a ban on unfair trading practices to ethical treatment to farmers, from transparency through technology and innovation to ensuring fair remuneration. The key goal is to improve the position of farmers in the chain. The study considers the following five upstream focused business applications to enable fairness practices: blockchain, cooperatives, interbranch organizations, business applications for small-scale farmers, and Fairtrade. On the other hand, achieving success in the downstream operational stage of the chain depends on fairness-oriented consumer food choice, consumer intention to buy fair food, consumer perceived value of fair food, and increased information and transparency on agro-food costs and price. This paper takes into account two consumer-focused business applications which provide downstream fairness practices: dual entitlement and dynamic pricing. To conclude, agro-food chain actors should learn how to find profit in fairness, and turn fairness-related costs into profitable business models.