Producers' and processors' perceptions of locality and its interaction with the concept of organic farming – empirical evidence from Denmark

Abstract

PurposeGiven the fact that local food as a tool to create value-added is a relatively new trend in Scandinavian countries with a strong emphasis on organic food, only limited – and mainly qualitative and case-based - empirical evidence on producers and processors involved in local food value chains (FVCs) has been available so far. Thus, the present paper contributes to the small but growing literature analyzing local FVCs by providing and analyzing quantitative survey data. More specifically, the authors aim at investigating (1) how agricultural producers and processors define and perceive local food, (2) which drivers are important for the decision to become involved in local FVC and (3) whether these drivers differ in a systematic way across producers and processors.Design/methodology/approachIn order to address these research questions, empirical data from a quantitative stakeholder survey carried out in spring in 2017 is used. Data are analyzed via descriptive and inductive statistics including a cluster analysis.FindingsThe survey results concerning the definition and perceptions of local food are in line with previous studies showing that there is usually a strong emphasis on geographic proximity. Besides, local (organic) food producers and processors are diverse and heterogeneous with differing distribution and product differentiation strategies being implemented and pursued. In particular, businesses employing primarily a personified distribution strategy (e.g. direct sales via farmers markets) differ quite substantially from businesses employing mainly a standardized distribution strategy (e.g. via retail) in their economic characteristics. Moreover, differences in the perception of potential benefits of local food as well as in the underlying drivers to become part of local FVCs were detected across businesses with different distribution strategies.Research limitations/implicationsAlthough the employed data sample is considered adequate for analyzing heterogeneity in firms' business strategies, the sample is not representative for Denmark and cannot straight-forwardly be extrapolated to the population level.Originality/valueOne of the first quantitative study on producers' and processors' perceptions of local food and its interaction with organic farming. So far, there is a large literature on consumers' perceptions but empirical evidence for other stakeholders is scarce. Hence, the present study provides a complementary perspective on the topic of local food.