write a letter to the local organic food Supermarket asking them to deliver groceries to your grandmother's place
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Looking at the present food chain, concerns are related to anxiety among consumers about the quality of the food they eat, GMOs, use of pesticides and antibiotics, and industrialization of the agricultural system. Growing consumer demand for organic food (OF) is based on most of these facts [1, 2]. Although OF is generally considered to present less risk than conventional foods, this debate has been re-launched as a direct consequence of rising concerns related to risks associated with intensive agricultural production, food industrialization, and the effects of food technologies and food scares [1, 3]. An increasing number of organic brands, certification labels, and wider range of organic product categories has been observed in terms of efforts to provide higher food safety and food quality. But these factors do not seem to have increased consumers’ perceived value of organic food products nor trust in OF. Moreover, consumers seem to be ambivalent about channels of distribution as trust/mistrust appears to be an important factor in deciding, not only where to buy products, but also whether to buy OF products or not [17].
From the production and supply side, there are some unique challenges to the cost and logistics of moving locally or regionally produced organic food to the market. Of particular interest are the operations size and the situation of small and medium size farms. The production of the latter is of little interest to mainstream grocery chains as it is limited to a few hundred tons. Among other factors, production methods and operations size are key here. Large-scale farming is sustained by important economies of scale while small scale farming leads to higher prices. This covers the extra costs of not using fertilizers and antibiotics. As a result, there is a wide variety of product classifications depending on the production methods and thus, the operations’ size. This in turn gives raise to 2 distinct distribution systems: long channels, eg. retail chains, that add value through price and high distribution intensity, and short channels, eg. direct from producers, that add value through their production methods and sustainable practices. Hence, discrepancies between market realities, the value chain and the value delivery system are still a challenge for the organic food sector. The main issue here is to determine the factors on which the different production methods and distribution systems rely on in order to add value to the organic food products offered. This study first presents the current literature related to the structure of the production and distribution of the organic food system and market, supported by an integrative production-distribution model. The model integrates the different levels of the production/supply side key factors. Challenges and strategies that add value to the organic food products are analyzed. These strategies are used by (i) the pre-supply, (ii) the supply/production, and (iii) the distribution channels.
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