Agriculture Reference
In-Depth Information
premiums, up to 100% (cf. Hamzaoui and Zahaf, 2009). Since OF are premium priced
products then the expected performance of these products is higher then regular products.
Having said this, there is clear-cut in the respondents' perception of the OF industry and
market. The shorter the channel of distribution (sales at farms gate, direct from
producer/farmer), the simpler the logistics. The trust relationship between consumers and
these sellers is very strong and is based on direct knowledge of how the product is grown,
how it is certified, and marketed: ” trust can be increased by advice, and more importantly the
relationship established with the consumer ”; and more importantly it is based on the direct
impacts on the local economy and the environment. Food mileage and local foods are the
most important new trends described by channels members: “ They would like organic local…
they also go for local because they know where it's from ”. Consumers using short channels look
for different product attributes and have different motivations than consumers using
standard channels of distribution, eg. grocery chains.
The OF market is growing and new product lines with additional attributes are emerging:
organic products that are local or fair trade. Organic is becoming omnipresent in the food
market. It targets all consumers as well as actual regular OF consumers and hardcore
consumers. Because of their motivations and ethical values, they are interested in fair trade
organic products or local organic products. These differences lead to a distribution system
based on different channels: organic foods are mainly sold through standard channels of
distribution, whereas fair trade and local organic food require shorter channels. Weekly
baskets delivered to hardcore consumers seem to be the best way to satisfy these consumers
looking for ethical organic products: ” a basket delivered weekly is a key to have products that are
organic and local ”. It is clear that the OF supply is driven by the new trends in the OF market.
7.2 Current distribution system
The second theme deals with the channel members' perception of the industry, the
distribution system, and their distribution structure. Results are consistent with the first
section of the interviews. All channel members from various channels agree to say that
consumers are becoming more educated and make smarter food choices. However, there are
clear differences in their purchasing behavior. Shorter channels managers stated that
consumers buying at their point of sale have certain needs and certain motivations to buy
organic foods. Conversely consumers buying from longer channels are looking for a
different shopping and consumption experience. This is directly related to the OF adoption
process. Consumers trusting the labels and certifications are either in the interest-
evaluation-trial phase while consumers trusting stores are in the adoption phase. In fact,
there are different levels of trust according to the channel members: trust related to the
labeling and certification, trust related to the channel of distribution, and trust of the
producer.
7.3 Sustainability
The third theme deals with (i) the importance attributed to sustainable development in the
OF industry, (ii) if sustainable development may be considered as a competitive advantage
in relation to organic food, and (iii) if it can increase consumers' trust in organic food
products. Generally speaking, there is some consensus among the interviewed suppliers on
these three aspects. The importance attributed so far to sustainable development is not really
strong with few exceptions. Adding the sustainability claim to organic seems difficult to
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