Evaluating the impact of direct sales on farms’ sustainability: a comparison of metropolitan and overseas France

Camille Luis () and Magali Aubert ()
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Camille Luis: UPR HORTSYS - Fonctionnement agroécologique et performances des systèmes de cultures horticoles - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement, Cirad-PERSYST - Département Performances des systèmes de production et de transformation tropicaux - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement, SOURCE - SOUtenabilité et RésilienCE - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - IRD [Ile-de-France] - Institut de Recherche pour le Développement
Magali Aubert: UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement

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Abstract: In the face of growing demand for local products, farmers are developing direct sales. Our research examines the impact of this strategy on farms' sustainability. Focusing on the market gardening sector, we compare metropolitan France and its overseas departments: Martinique, Guadeloupe and Reunion. These insular economies must meet national and European requirements for healthy and local production while complying with specific organizational and geographic conditions. If direct selling is considered an innovation, we first identify the factors, such as characteristics of farmers and their farm, determining its adoption. While establishing the link between such an innovation and performance, we study the impact of direct sales on farms' sustainability, inspired by the IDEA method. We use representative farm data from 2010 and 2016 and perform a propensity score matching coupled with a difference-indifference analysis. While the impact of direct sales on sustainability is effective in metropolitan France, more nuanced results are observed in insular economies. Whatever the location, direct sales provide a response to consumers' expectations in terms of product diversification. While direct sales are initially associated with product processing and tourism, these activities are gradually abandoned, in particular because of the skills necessary to their realization. In metropolitan France, direct selling modifies the relationship with certifications by developing organic production to the detriment of other types of certification. It is also accompanied by output and employment growth. Our results question the role that the environment in which farmers evolve plays in the sustainability dynamics of farms in island economies.

Keywords: Direct sales; IDEA method; Island economies; Innovation; Propensity score matching; Difference-indifferences (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-agr and nep-env
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Published in Review of Agricultural, Food and Environmental Studies, 2023, 104, pp.243-271. ⟨10.1007/s41130-023-00195-5⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04111445

DOI: 10.1007/s41130-023-00195-5

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