The value of values-based supply chains: farmer perspective

Abstract

In the last few decades, the emergence of mid-scale, intermediated marketing channels that fall between commodity and direct markets has attracted growing interest from scholars for their potential to preserve small and mid-sized farms while scaling up alternative agrifood sourcing. When such mid-scale supply chains are formed among multiple business partners with shared ethics or values related to the qualities of the food and the business relationships along the supply chain, they may be termed “values-based supply chains (VBSCs).” Most of the research on VBSCs to date has relied primarily on a case study approach that investigates the performance of VBSCs from the perspective of VBSC founders or leaders. In contrast, this research seeks out the perspectives of farmers who participate in VBSCs. A nationwide farmer survey conducted in 2017 offers original insights on farmer motivations for participating in VBSCs and how they are being used by farmers relative to other marketing channels. We find that VBSCs serve farms of all sizes. Overall, smaller farms were more likely to market a higher percentage of overall sales through their VBSC and more likely to rank their VBSC as one of the top three marketing channels in their portfolio. But it was the larger farms that were more likely to perceive VBSC-specific benefits. Our findings confirm that while there is a limited volume of product that such regional supply chains can currently handle, farmers view VBSCs as a valuable marketing option that aligns with their own values and preserves their product’s identity.

Intermediate short food supply chains: a systematic review

“…By working with intermediaries, producers can enable market devices such as contracts, financial transactions and on-line functions necessary to make their supply chain function (Le Velly and Dufeu, 2016). Intermediaries in SFSCs furthermore ensure timely payments to local producers (Peterson et al, 2022). By participating in intermediate SFSCs a stability in price fluctuations is accomplished, this leads to an increase in profit attributed to productivity advantage and farm size expansion rather than as a result of price premiums or cost savings (Zhang et al, 2019).…”

Sustainable food procurement by the University of California’s health systems: Reflections on 10 years and recent COVID-19 challenges

“…Scholars have identified values-based supply chains (VBSC) as being able to accommodate these logistical difficulties and meet the operational requirements of large-scale food consumers like hospitals while also supporting farm-to-institution principles (Klein & Michas, 2014). VBSCs can take many forms, from farmers markets to food hubs, but what they have in common is that suppliers commit to issues such as greater environmental sustainability and transparency with their food products (Peterson et al, 2022). While VBSCs have had documented success in supporting small-scale and regional producers (Bloom & Hinrichs, 2011;Feenstra & Hardesty, 2016;Klein & Michas, 2014), many larger suppliers are also participants in VBSCs (Peterson et al, 2022).…”

“…VBSCs can take many forms, from farmers markets to food hubs, but what they have in common is that suppliers commit to issues such as greater environmental sustainability and transparency with their food products (Peterson et al, 2022). While VBSCs have had documented success in supporting small-scale and regional producers (Bloom & Hinrichs, 2011;Feenstra & Hardesty, 2016;Klein & Michas, 2014), many larger suppliers are also participants in VBSCs (Peterson et al, 2022). Many hospitals are participating in VBSCs by buying products labeled with third-party sustainability certifications or claims such as "local."…”

Local Value Chain Models of Healthy Food Access: A Qualitative Study of Two Approaches

“…This includes small-and mid-scale farmers, ranchers, and regionally-based processors, distributors, and retailers [5,7,8]. Notably, FVCs-sometimes referred to as values-based supply chains or values-based food supply chains-can offer outlets suitable for small and mid-scale producers to distribute differentiated food products (e.g., products marketed as "locally grown") through strategic alliances forged with supply chain partners [9,10]. Shared mission and agreed upon values are particularly important factors in food value chains that effectively enhance product value for consumers [4].…”

“…Given the salience of FVCs in both for-profit and nonprofit sectors and the well-established influence of the food environment on diet-related behaviors, FVCs may represent a novel and understudied mechanism by which to achieve health equity at the local scale. Though there are different conceptualizations of "local" food, with some conflation of geospatial proximity with relational proximity, the concept of local remains a driving force behind innovative, value-based food supply chains [10,19]. For this work, we adhere to the definition of local food as that which is "raised, produced, and processed in the locality or region where the final product is marketed," [12] (p. 2).…”