On-farm Sales Research Articles

Marketing to the foodshed: Why do farmers participate in local food systems?

The concept of embeddedness has long been central to theory about why farmers participate in local food systems. Yet few survey-based studies, and none using a representative sample of farmers who both do and do not market local food, have systematically examined the relationship of local food marketing to farmers’ sense of connection to and responsibility for larger human and ecological communities. In this paper, we address this gap in the literature by drawing on stratified, random sample survey data on 698 specialty crop growers in Michigan and Ohio. Two main findings emerge from our study. First, farmers who prioritize civic engagement and community institutions were more likely to market food through CSA, direct-to-institution and farm-to-table partnerships, and intermediaries like food hubs. Many were also earning revenue from on-farm sales, farmers markets, and mainstream sources. Results of analysis clearly show, however, that it is CSA and intermediated local supply chains that hold special appeal for, or are particularly well suited to, farmers who make farm decisions with the larger community in mind. This finding suggests that diversified, robust local food systems may provide strong support for farmers who are especially committed to making a positive impact on local politics and civic life. Second, farmers with a relatively strong sense of environmental responsibility were generally not more likely to participate in local food systems. At a minimum, this finding lends credence to skepticism that local food farmers can be considered a priori more likely to adhere to organic, biodynamic, or other sustainable farming philosophies. At the same time, farmers who express a less productivist approach to farming were more likely to market local food in nearly every way. Productivism has historically been associated with heavy reliance on external inputs to manage pests and supply nutrients. Findings about productivism arguably constitute good reason to explore further the environmental aspects of local food systems, even in the absence of a clear relationship between environmental values and marketing local food.

Factors Influencing the Sale of Local Products through Short Supply Chains: A Case of Family Dairy Farms in Slovakia

Increasing consumption of local products is a key factor for sustainable agriculture. This study deals with the factors that influence the sales of local products with a focus on value-added dairy products. The research involved 30 family businesses operating in the agro-sector. Primary data were obtained by a detailed online questionnaire survey. For deeper examination, five hypotheses were determined and statistically tested using the Friedman test and Nemenyi method. Using the acquired theoretical background and empirical research in a set of family farms, we can state that the goal of farmers is to sell their products through the shortest possible route directly to the consumer. The most commonly used tools of a short supply chain are on-farm sales and telephone order sales, on the other hand, farms rarely sell products in farmers’ markets, celebrations and anniversaries or e-shops, even though these tools all have great potential. The results show that farmers consider the product itself (quality, freshness, locality) to be the most important factor when selling local products, as well as customer recommendations and loyalty. Based on the results of the research, we propose to streamline sales support through new forms of marketing approaches to premium products, such as locally fresh products produced on family farms.

To what extent are short food supply chains (SFSCs) environmentally friendly? Application to French apple distribution using Life Cycle Assessment

There is growing interest in re-localization and re-connection of agriculture and food consumption, and Short Food Supply Chains (SFSCs) are becoming more and more popular. However, there are few studies on their environmental performance. Existing studies focus primarily on comparing imports and domestic consumption, often according to a single environmental criterion (i.e., energy or carbon footprint), without considering the great diversity of subnational commercialization patterns. This paper aims at assessing the environmental sustainability of different archetypes of food supply chains, from global ones to short ones, to identify hotspots and discuss the conditions under which a given supply chain performs better than another one. The overall methodology is based on a full Life Cycle Assessment (LCA) with a focus on a fresh and unprocessed product: apples purchased in an urban area. First, a consistent definition and classification of supply chains, is provided based on geographical and organizational features. An innovative approach is then developed to compute logistics data representative of these supply chains, using Geographic Information System tools. Finally, a comparison of the environmental performances of archetypes of apple supply chains is provided. The results show the relatively good environmental performance of the national long food supply chain which is used as the reference scenario in this study. Moreover, there are great differences in the environmental performance of SFSCs. Direct off-farm sales have the same level of performance as the reference. On the other hand, direct on-farm sales can be very impactful. Results also highlight the impacts of the final consumer trip which are significant and highly variable, depending on consumer-retailer distance, weight of apples purchased, and transport means used. This variability leads to reconsidering the questions frequently asked in LCAs of systems with extreme sensitivity to highly variable parameters. The concern is no longer whether one scenario is better than another, but to determine the values of those parameters that allow for better performance. Focusing on these parameters has direct implications in terms of decision-making by providing straightforward results with operational recommendations that are understandable to the general public, and not only LCA indicators.

Beyond the single farm – A spatial econometric analysis of spill-overs in farm diversification in the Netherlands

Farm diversification is an important component of rural development and policy in Europe. We examine the influence of neighbouring farms on farm diversification decisions. Our analysis investigates spill-over effects between farms and different activities in a spatial econometric framework. Using census data from about 66,000 farms in the Netherlands, we find significant correlations of diversification activities between spatially proximate farms. These are positive for some activities, for example for nature conservation. On a local level, positive spatial dependencies between farms may result from (tacit) cooperation and information sharing within neighbourhoods. However, for other activities, such as on-farm sales, we find negative correlations on a higher spatial level, i.e. within the region, which could result from competition. Spatial aspects of cooperation and competition have important consequences for the success of policies supporting the uptake of farm diversification. Our findings thus reveal that policy measures promoting farm diversification require implementation beyond the scale of individual farms and single activities.

Economic performance of production of Croatian cheese ripened in a lamb skin sack (Sir iz mišine)

Cheeses matured in skin sack is traditionally produced in several Mediterranean countries, which in Croatia has been retained in the territory of Dalmatian hinterland. The characteristic of this cheese is its piquant flavour and aroma, as a consequence of ripening in anaerobic conditions in lamb skin. This type of cheese has been recognized and has its customers in the wider area of the Croatia, and it is an interesting touristic product. The major constraint is that the production of this type of cheese in Croatia has been reduced to sporadic production in several families that preserve the tradition of their ancestors and the produced quantities are insufficient to meet customers needs. In 2009, Dalmatian hinterland had 11 registered producers of this type of cheese, while there are currently only 2. A production and economic analysis was performed of the remaining producers in order to determine the production performance. Both family farms produce cheese from sheep milk, while the first farm owns 300 sheep and the second 500. The selling price of cheese reaches HRK 150 per kilo, which ensures the achievement of cost-effectiveness of production. The producers point out that all the produced quantity is sold to known customers through on-farm sales and the demand exceeds the supply. Such a product would arise extreme interest among tourists, while the basic prerequisite for that is increase of the annual production of cheese by increase of the number of producers, as well as their clustering and protection of the product by one of the quality marks at the EU level.

Farm risks and management strategies among arable crop farmers in Odogbolu Local Government Area of Ogun State, Nigeria

This study examines farm risk and management strategies adopted by arable crop farmers in Ogun State, Nigeria. A two-stage sampling procedure was employed to select 120 respondents for the study with the aid of questionnaire. Data were analysed using descriptive statistics, Likert scale and logit regression model. Results revealed that erratic rainfall, pest and diseases were the major production risks faced by the farmers. Ill-health (69.2%) and low produce price (92.5%) were the major personal risk and marketing risk experienced by the farmers respectively. The major financial risks were insurance (86.7%) and lack of access to loan (83.3%) while the major institutional risk was lack of agricultural loan and subsidies (100%) from government. The major preventive strategy adopted by the arable crop farmers were use of agrochemicals and selling at reduced price. The most employed mitigation strategies were diversification (82.5%), on-farm sales (78.3%), esusu (77.5%), cooperative society membership (71.7%) and self-medication (70%). The prominent coping strategies employed were hired labour (77.5%), off-farm activities (73.3%) and borrowing (60%). The significant factors influencing the attitude of arable crop farmers to risk were sex, educational level of the farmers, household size, farming experience, membership of cooperative association, access to bank loan, farming system and off farm income The study concluded that the arable crop farmers were risk averse and recommended that efforts should be geared towards training the farmers on the appropriate management strategies with emphasis on the need for the farmers to adopt innovations that will enhance improved farm practices in the study area.Keywords: Arable crop, farm risk, management strategies, logit

The economic impact of multifunctional agriculture in Dutch regions: An input-output model

Multifunctional agriculture is a broad concept lacking a precise definition. Moreover, little is known about the societal importance of multifunctional agriculture. This paper is an empirical attempt to fill this gap. To this end, an input-output model was constructed for multifunctional agriculture in several regions in the Netherlands. The definition used included four multifunctional agricultural activities: (i) green care, (ii) tourism, recreation and education, (iii) on-farm sales, and (iv) green services. Multiplier values – indicating the chain impacts of these multifunctional activities in the rest of the economy – were calculated for four regions in the Netherlands. The results showed that, in terms of output and employment, multifunctional agriculture was not a main driver for economic growth. Moreover, from the input-output model it appeared that multifunctional agriculture led in particular to more expenditure in the agricultural sector itself, rather than in any other economic sector. The indirect feedback effects of multifunctional agriculture on the non-agricultural sectors in the Dutch economy appeared rather small. The input-output model also showed that multiplier values differed over the regions, mainly due to differences in the composition of multifunctional activities. Although the absolute size of employment in multifunctional agriculture was very small, the employment per unit of output was high, especially when compared with the employment/production rate in primary agriculture.

Why are Dutch farmers going multifunctional?

Given that current European Union policy is to stimulate and facilitate multifunctional agriculture (European farm model), it would be useful to know why farmers decide to go multifunctional. This paper presents the results of research into the factors determining the adoption of multifunctional activities. It is based on a survey of 495 farms throughout the Netherlands. Binomial logit models were estimated for multifunctional activities in general and for four specific activities. It was found that trust in the government is an important explanatory factor for participation in nature conservation and tourism, but is less important for services and on-farm sales. Farm location is important for nature conservation, services, and tourism. But farmers see tourism as an invasion of ‘farmership’. Farmers who value land ownership highly are less likely to have nature conservation contracts, as then they lose property rights over their own land.