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Organic food and farming: Between market subordination and retailer growth prospects

Kledal, Paul Rye (2005) Organic food and farming: Between market subordination and retailer growth prospects. Paper at: International Farm Management Association nr. 15: Developing Entrepreneurship abilities to Feed the World in a Sustainable Way, Sao Paolo, Brazil, 14 - 19th of August 2005.

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Online at: http://ifmaonline.org/pages/congress.php

Summary

The paper is based on research conducted for DARCOF II (Danish Research Centre for Organic Farming, www.darcof.dk). The aim of the research project is to analyze the future development of the Danish organic food sector through focusing on two agro-commodities: vegetables and pork. Emphasis is placed on identification of economic forces within the supply chains.
The main conclusions of the paper – being the results from the organic vegetable chain – are that the rules and regulations, and the development of alternative transaction processes in organic food and farming have so far been founded on social counter reactions to the mechanisms of a free market economy that result in the marginalization of farmers, animals welfare and the environment. However, organic farming is also part of the same free market economy, and therefore will inevitably encounter some of the same problems currently facing conventional farmers – declining prices, concentration of production and shift in bargaining power to the retailers. Logically, this situation will lead eventually to increasing conflicts between organic values and their subordination to free market forces, i.e. conventionalization. In the same time retailers are in search for new products, and new ways of creating outlets that can enhance or boost their image in an increasing international competitive environment. The organic products have a well-respected brand of trust and quality, and thereby a very strong position to create new possibilities of gaining store space and growth among supermarkets and discounters. A report of the results is in printing.


EPrint Type:Conference paper, poster, etc.
Type of presentation:Paper
Keywords:political economy, institutional economics, supply chain management, organic food & farming, farmers’ treadmill, retail bargain power,
Subjects: Food systems > Produce chain management
Research affiliation: Brazil > Embrapa - Brazilian Agricultural Research Corporation
Denmark > DARCOF II (2000-2005) > III.7 (SAMSON) Future supply and marketing strategies in the Danish organic food-sector
Deposited By: Kledal, Researcher Paul Rye
ID Code:7435
Deposited On:07 Mar 2006
Last Modified:12 Apr 2010 07:32
Document Language:English
Status:Published
Refereed:Peer-reviewed and accepted

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