System dynamics and agent-based simulation modelling approaches have a potential as tools to evaluate the impact of policy related decision making in food value chains. The context is that a food value chain involves flows of multiple products, financial flows and decision making among the food value chain players. Each decision may be viewed from the level of independent actors, each with their own motivations and agenda, but responding to externalities and to the behaviours of other actors. The focus is to show how simulation modelling can be applied to problems such as fairness and power asymmetries in European food value chains by evaluating the outcome of interventions in terms of relevant operational indicators of interorganisational fairness (e.g., profit distribution, market power, bargaining power). The main concepts of system dynamics and agent-based modelling are introduced and the applicability of a hybrid of these methods to food value chains is justified. This approach is outlined as a research agenda, and it is demonstrated how cognitive maps can help in the initial conceptual model building when implemented for specific food value chains studied in the EU Horizon 2020 VALUMICS project. The French wheat to bread chain has many characteristics of food value chains in general and is applied as an example to formulate a model that can be extended to capture the functioning of European FVCs. This work is to be further progressed in a subsequent stream of research for the other food value chain case studies with different governance modes and market organisation, in particular, farmed salmon to fillet, dairy cows to milk and raw tomato to processed tomato.

Collective action among producers is a corrective measure for power imbalance, which affects primary producers in agro-food supply chains. As associations of producers and processors, Interbranch Organisations (IBOs) promote dialogue, best practice, and market transparency. However, interbranch cooperation is still a less explored subject in agro-food governance studies. Therefore, the present paper aims to analyse the role of IBO North Italy for Processing Tomato (IBO NIPT) in the governance of the processed tomato value chain. The IBO for Processing Tomatoes of Northern Italy was chosen as a case study as it is one of the eight recognized IBOs in the country and Italy is the third biggest producer of tomatoes for processing worldwide. Semi-structured interviews with stakeholders involved in the processed tomato value chain were carried out to reach this aim. Abridged transcripts were analysed through thematic analysis by two or three researchers. The present study has three research steps: first, to explore the history of the IBO NIPT; second, to explore its current role as collective institution acting towards power imbalances; third, the IBO’s role in reference price streamlining. A multi-theoretical approach based on the following three theoretical frameworks was used to analyse the interviews: New Institutional Economics (NIE); Devaux’s framework for collective action; and Transaction Cost Economics. The paper highlights the role of local institutions in bringing innovations in the food supply chain and suggests that the future of IBOs in Italy has to be expanded beyond reference price streamlining and could benefit from the cooperation of retailers.