The aim of this paper is twofold. First, it discusses how the functioning and performance of food chains are affected by the way stakeholders are embedded in the chains, by the coordination modes, and by the kind of governance. Second, by depicting six relevant agro-food chains, attention is raised on the kind of the stakeholders that participate in the chain and on the role of each with a special focus on possible drawbacks of an effective functioning of the supply chains. The chains outlined are (i) supply chains driven by a large retailer; (ii) supply chains driven by a global processing company; (iii) supply chains driven by a cooperative; (iv) supply chains for geographical indications; (v) short supply chains; and (vi) supply chains driven by a specialized high quality retailer. Special consideration is given to the positioning of farmers in each of the six chains and to the outcomes they get. It is shown how: (i) going spot on the marketplace may leave them with difficult market access and no bargaining power; (ii) being embedded in supply chains framed in the context of a captive governance may result in a squeeze of their profits as well as in unreliable market access; and (iii) supply chains are populated by reciprocal and pooled relationships and ruled by a more relational kind of governance, beside potentially bringing advantages in terms of decision power and economic benefits, also raises difficulties and drawbacks due to complexity of functioning, heterogeneity of stakeholders, and ambiguity of the nature of relations among them.

Protected designations of origin (PDOs) and protected geographical indications (PGIs) for food products are used by the European Union with the goal of achieving several policy objectives. We build a multi-criteria analysis framework for ex post assessment of the performance of PDOs. The performance criteria are based on five policy objectives, as defined by European policy makers in regulations, with each criterion measured by a set of indicators. We apply the framework to analyze the performance of all Italian PDO cheeses and olive oils from 2004 to 2008. The results show that for the PDOs studied it is feasible, in general, to perform on all five objectives at the same time, although partial tradeoffs are present between the bargaining power and local development objectives on one side and the market performance objective on the other. A ranking of PDOs in the two sectors on all objectives using multi-criteria analysis and equal weights on all objectives shows overall higher performance for smaller PDOs that are well rooted in the territory of origin and targeted to niche market segments. Lower ranked PDOs under this scenario tend to be bigger, older, and better established in wider markets. Alternative weighting scenarios that emphasize niche/local market PDOs or market performing PDOs yield different relative rankings. The results provide insights for both policy makers and stakeholders into the evaluation of PDO policy, as well as into the performance of individual PDO products.

This paper explores the relationships between food and places and how these affect the organization and functioning of different supply chains. The theme is increasingly relevant due to demand trends and new production patterns, including globalization, that deeply affect the (re)localization of production. This is a conceptual paper extensively relying on previous studies done by the author and on evidence and concepts discussed in the literature; it does not present new in-depth case studies or any other original evidences. First, the different ways of conceptualizing and thinking the linkages between food and production places are discussed. Then, three chains that seek at delivering products for which the place of origin is important are compared: (i) short chains, where producers integrate the whole process in order to access the final consumer; (ii) geographical indications, where producers gather under a common name in order to build their reputation in connection with the place of production; (iii) retailers specialized in high quality foods, where advantages of large retailers are combined with the strong identity of products. The objective is to contribute understanding differences in the coordination modes and in the kind of governance at stake in each chain and to compare their strengths and drawbacks in terms of capacity to assure place-related quality and of delivering reliable information to consumers. Attention is also given to the role of farmers within the different chains, as these are usually strongly rooted in the place of origin but the weakest knots in the chain in terms of bargaining power. Vertical and horizontal coordination, together with collective actions, are essential for an effective alignment of the production process that can enhance quality and create/distribute value. The discussion also assesses difficulties and drawbacks related to sharing decisions and to managing common resources.

Purpose – The purpose of this paper is to focus on high segments of the Italian olive oil and wine markets. The main goal is to compare the role and the effectiveness of the certification of origin in the creation of value in the two selected markets. Moreover, the authors investigate how different quality clues in the olive oil and wine sectors are related to prices. Design/methodology/approach – To meet the goal the authors estimate two separate hedonic price models where the price of the product is regressed over different quality clues some of which are sector specific and some are common to the two sectors. The models are estimated on data which come from two of the major Italian guides chosen for their well established reputation and for the richness of information. Findings – The results indicate that: product origin and the relative certification schemes play a relevant role in the formation of prices in both markets; while the olive oil price seems to be more sensitive to farm location than to the certification of origin, the opposite happens for the wines; the higher segments of the Italian olive oil market is increasingly sophisticated and follows the main tendencies established in the quality wine markets where many quality attributes are intensely active. Research limitations/implications – First, it should be kept in mind that results for higher market segment may not hold for different segments where relevant quality clues may be different. Second, reader should be aware that comparability of the two samples is constrained by limited data availability for the olive oil sector compared to the wine sector. Originality/value – This study represents one of the first attempts to compare the role of the certification of origin in the creation of value in the Italian agro-food markets.

» Articles | Agricultural Journals