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The value of values-based supply chains: farmer perspective.

Hikaru Hanawa Peterson1, Gail Feenstra2, Marcia Ostrom3

  • 1Department of Applied Economics, University of Minnesota, 1994 Buford Av., St. Paul, MN 55108 USA.

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Summary

Values-based supply chains (VBSCs) offer a valuable marketing option for farms of all sizes. Farmers utilize VBSCs to align with their values and preserve product identity, with smaller farms marketing more sales and larger farms perceiving specific benefits.

Keywords:
Agriculture of the middleAlternative food systemsIdentity preserved foodsIntermediated marketsRegional food systemsSmall and mid-sized farmsValues-based supply chains

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Area of Science:

  • Agricultural economics
  • Supply chain management
  • Sustainable agriculture

Background:

  • Mid-scale marketing channels, termed values-based supply chains (VBSCs), are emerging between commodity and direct markets.
  • VBSCs aim to support small and mid-sized farms and scale alternative agrifood sourcing.
  • Existing research on VBSCs primarily uses case studies from founders' perspectives.

Purpose of the Study:

  • To investigate farmer motivations for participating in VBSCs.
  • To understand how farmers utilize VBSCs relative to other marketing channels.
  • To gather insights from the perspective of farmers participating in VBSCs.

Main Methods:

  • A nationwide farmer survey conducted in 2017.
  • Analysis of farmer motivations and VBSC usage compared to alternative marketing channels.

Main Results:

  • VBSCs serve farms of all sizes.
  • Smaller farms market a higher percentage of sales through VBSCs and rank them higher in their portfolio.
  • Larger farms are more likely to perceive VBSC-specific benefits.

Conclusions:

  • Farmers perceive VBSCs as a valuable marketing option that aligns with their values and preserves product identity.
  • VBSCs help preserve the identity of farm products.
  • While current volumes are limited, VBSCs are a significant marketing channel for farmers.