Modelling results of socioeconomic impacts in the organic value chains

Summary

With the Farm-to-Fork Strategy, the EU has set targets of reaching at least 25% of the EU’s agricultural land under organic farming and significantly increasing organic aquaculture by 2030. The Horizon Europe project OrganicTargets4EU” develops in a multi-actor approach options and policy recommendations to support the achievement of these targets. Based on an assessment of key drivers and lock-ins affecting the development of the organic sector, the project develops possible scenarios for achieving the targets set by the EU. The socio-economic impacts of the expansion of organic farming on agriculture, value chains and the organic market are analysed. Furthermore, the project provides evidence on the mechanisms that can drive demand for organic food and the impact of changing diets and food waste reduction on mitigating the reduced yields from organic production. The importance of value chains in shaping production processes has been well-documented in academic and technical literature. While value chains in agriculture have been extensively studied, previous research has often overlooked the food industry, particularly in the context of organic production. This gap is especially notable given the growing importance of organic agriculture in global food systems. Organic production is influenced by a complex web of interactions among various actors within value chains, and factors such as long-term agreements with farmers, the strategic decisions of processors and retailers, policies regulating agricultural practices, and public support. Nevertheless, the role of food processors, especially in the organic sector, has remained largely unexamined. This report addresses this gap by offering an in-depth analysis of the processing of organic products within value chains in France and Denmark. It provides a detailed look at the geographical distribution of organic production, the key actors in processing organic and conventional products, and their market strategies, highlighting the importance of the food industry in shaping the future of organic agriculture. The report examines this in the context of three case studies: the poultry meat sectors in France and Denmark and the dairy sector in France.