Abstract
The paper analyses characteristics of vertical relationships of organic supply chains with a specific focus on the processing and retailing sectors. The analysis takes into account different regions of the EU Mediterranean area. Data were collected through interviews using an ad hoc questionnaire. The survey was based on a sample of 306 firms, including processors and retailers. The analysis revealed that a relevant aspect for the processing firms of organic products concerns the guaranteeing of safety and quality levels for the products. The main tools to implement the quality management are based on the adoption of specific production regulations and quality controls. The premium price most frequently applied by processors ranges from 10% to 40% and similar values are revealed for retailers. The diffusion of supply contracts allows the vertical coordination between agriculture and processing firms in the organic supply chains. The main distribution channels for the processing firms are represented by specialised shops in organic products, direct sales and supermarkets.
Highlights
In the last few decades, consumers have showed an increasing awareness that a healthy diet can contribute to decreasing the risk of some diet-related diseases, and consumers are more concerned about nutrition and health-related characteristics of food products [1,2,3,4]
The analysis revealed that a relevant aspect for the processing firms of organic products concerns the guaranteeing of safety and quality levels for the products
In line with the economic literature that underlines the importance of trust in the organic food market, a relevant issue that emerges from the survey concerns the guarantee of safety and quality levels of organic products
Summary
In the last few decades, consumers have showed an increasing awareness that a healthy diet can contribute to decreasing the risk of some diet-related diseases (for example, obesity and cardiovascular diseases), and consumers are more concerned about nutrition and health-related characteristics of food products [1,2,3,4]. Among consumers, there is growing concern about the link between health and environmental sustainability [5,6] This has resulted in greater interest towards health-related attributes and sustainable aspects of food choices. The organic production meets these two requirements This could partially explain the increased production and consumption of organic food. Previous evidence has suggested that these products are perceived by consumers as having higher nutritional value in comparison to conventional food: in this case, health represents the main motivator for organic consumption [7,8,9,10,11,12,13,14,15,16].
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