Are short food supply chains a solution for farms facing financial difficulties?

Magali Aubert (magali.aubert@inrae.fr) and Geoffroy Enjolras
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Magali Aubert: Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier

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Abstract: This article focuses on farms facing financial difficulties and to their subsequent evolution, especially considering their marketing channel. The adoption of short food supply chains appears as a way to preserve the business by retrieving more flexibility and a greater share of added value. Using data from FADN-RICA 2005-2012 for market gardening and the wine-growing sector, we perform a statistical analysis and econometric modeling. A financial score based on 7 financial key parameters measures financial difficulties and determines the contrasting profile of distressed farms. These farmers are smaller, while their holder is older and less well educated. Farm survival translates into a reduction in their cultivated area, the number of employees, expanses in chemical inputs and crop insurance. This evolution is usually not sufficient to insure the continuation of farm activity. Finally, it appears that wine-growing farms in difficulties tend to adopt retail selling in order to restore their financial situation.

Keywords: financial difficulties; short food supply chains; FADN; RICA (search for similar items in EconPapers)
Date: 2015-08-08
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Citations: View citations in EconPapers (2)

Published in 29. International Conference of Agricultural Economists: Agriculture in an Interconnected World, International Association of Agricultural Economists (IAAE). INT., Aug 2015, Milan, Italy. 32 p

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Related works:
Working Paper: Are short food supply chains a solution for farms facing financial difficulties? (2015)
Working Paper: Are short food supply chains a solution for farms facing financial difficulties? (2015)
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