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Economic Impact of Values-Based Supply Chain Participation on Small and Midsize Produce Farms

Christy Anderson Brekken, Caleb Dickson, Hikaru Hanawa Peterson, Gail Feenstra, Marcia Ostrom, Keiko Tanaka and Gwenaël Engelskirchen

Journal of Food Distribution Research, 2019, vol. 50, issue 2

Abstract: Midsize farms can improve economic viability using alternative marketing channels such as values-based supply chains (VBSCs) that market products differentiated by locality, quality, environmental, social, or health claims. We simulated the economic impact of VBSCs using secondary data and survey data from VBSC-participating farms. Across all simulation scenarios, average net economic impacts from VBSC participation was positive, where 47% of farms showed a net benefit, with wholesale-leaning farms benefiting most. VBSC economic benefits may result from lower marketing costs relative to direct marketing and higher prices than conventional wholesale. While most farms showed small or negative net economic impacts, most also reported noneconomic benefits of VBSC participation.

Keywords: Farm Management; Marketing (search for similar items in EconPapers)
Date: 2019
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DOI: 10.22004/ag.econ.300074

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