Differences in retail strategies on the emerging organic market

Abstract: Purpose – The organic product market can be considered as an emerging market. Since the 1990s it has experienced rapid growth, and supermarket chains have become the sales channel with the largest market share and are the main driver for further growth. However, different supermarket retail groups have very different strategies concerning the marketing of organic products. The purpose of this paper is to gain insight into the different strategies of retailers who are active in the organic product market and to explain the drivers which may underlie them. Design/methodology/approach – The strategies of the three most important Belgian retailers that market organic products, and in particular organic beef, are analyzed. Data were collected through interviews with the retailers' staff and through observations in retail outlets. Also, GfK-household panel data which recorded all purchases of 3,000 Belgian households and a postal survey with 529 respondents were used as data sources. Findings – The different strategies used by retailers to market organic foods are associated with the overall characteristics and marketing strategies of the retail groups. Some retail groups have clear “first mover” advantages from engaging in the organic product line, while for others an adaptive strategy is more appropriate. Research limitations/implications – The insights from this paper will help the understanding and facilitate the development of future strategies for organic and other high-value or premium products, which will be of interest to researchers and stakeholders who are active in these markets. Practical implications – The retail sector is not a single homogeneous block, but instead consists of retailers who pursue quite different strategies. This concept may have major implications for the future development of high-value markets. Originality/value – Existing relevant theories were applied to the adoption of the organic product line, a segment in the portfolio of retailers that is becoming more important. The empirical material collected sheds new light on the drivers behind retail strategies

- Surplus Value of Organic Food and Farming

This document presents a multidisciplinary research project concerning a possible surplus value for Or-ganic Food and Farming (OFF). The project has started January 1st 2006 and ends November 30th 2007. By weighing results collected through a review of the literature it will be scientifically assessed whether or not OFF outperform conventional food and farming from a point of view of environment friendli-ness, nutritional value and safety. Net benefits for society will then be calculated indicating whether the present support given to OFF is at the optimal level. The scientific evidence will be compared with the perception of 400 Flemish consumers. Based on po-tential gaps between evidence and perception, com-bined with consumer characteristics, interesting sug-gestions for communication and promotion strategies concerning OFF will emerge

Personal determinants of organic food consumption: a review

Purpose - A lot of literature is available that discusses personal determinants of organic food consumption. However different models and determinants are used in the literature. This paper aims to provide an overview, within a framework linking Schwartz' values theory and the theory of planned behaviour (TPB). Also it seeks to focus on the importance of affective attitude, emotions, personal norm, involvement and uncertainty related to organic food consumption. Design/methodology/approach - The paper is based on secondary data sources, namely the literature concerning personal determinants of organic food consumption. Findings - Both the values theory and the theory of planned behaviour have been referred to as relevant theories for better understanding consumers' choice for organic food. Organic food consumption decisions can be explained by relating attributes of organic food with more abstract values such as "security", "hedonism", "universalism", "benevolence", "stimulation", "self-direction" and "conformity". Appealing to these values can positively influence attitudes towards organic food consumption. Besides attitude, subjective and personal norm and (perceived) behavioural control influence consumption of organic food. Research limitations/implications - More research related to the role of uncertainty (reduction) during the process of buying organic food is recommended. Practical implications - Relatively little research has examined the affective component of attitude and emotions in relation to organic food consumption, while these may play an important role as drivers of involvement and thus help to jolt food purchasers out of their routine of buying conventional food and set a first step to adopt organic food. Originality/value - To the authors' knowledge, this is the first paper providing a comprehensive overview and linking the literature on organic food consumption to the values theory and the theory of planned behaviour, including the role of personal norm and focusing on emotions. The proposed integration of mental processing in an organic food consumption model leads to interesting hypotheses and recommendations for policy makers, researchers and stakeholders involved in the organic food market

The nutritional and toxicological value of organic vegetables : consumer perception versus scientific evidence

Purpose - The present study aims to explore and compare consumer perception and scientific evidence related to food quality and food safety aspects of organic versus conventional vegetables. Design/methodology/approach - Primary data on consumer perception were gathered in 2006-2007 through a consumer survey with Flemish adults (n = 529) and compared with scientific evidence from literature. Consumers of organic and conventional vegetables were selected by means of a convenience sampling procedure. Subjects were asked to complete a self-administered questionnaire concerning the perception of the nutritional and toxicological value of organic relative to conventional vegetables. Data processing and analysis included descriptive analysis (frequency distributions), data reduction (Cronbach's alpha test, factor analysis), bivariate analysis (correlations, t-test, ANOVA) and multivariate analysis (stepwise multiple regression). Findings - It was found that organic vegetables are perceived as containing less contaminants and more nutrients, and as such, being healthier and safer compared to conventional vegetables. However, not enough evidence is currently available in the literature to support or refute such a perception, indicating a certain mismatch between consumer perception and scientific evidence. The gap between perception and evidence is larger among older consumers with children. The perception is stronger when the consumption frequency is higher, but is independent of gender, place of residence (rural or urban), education and income level. Also non-users, on average, perceive that organic vegetables have a nutritional and toxicological advantage over conventional vegetables. Research limitations/implications - A non-probability convenience sampling method was applied which limits generalisation of the findings beyond the sample characteristics. Originality/value - This paper is original in comparing consumer perception and scientific facts related to both nutritional and safety aspects of organic versus conventional vegetables

Assessing the ecological soundness of organic and conventional agriculture by means of life cycle assessment (LCA) - a case study of leek production

Purpose – Sustainable agriculture implies the ability of agro-ecosystems to remain productive in the long-term. It is not easy to point out unambiguously whether or not current production systems meet this sustainability demand. A priori thinking would suggest that organic crops are environmentally favourable, but may ignore the effect of reduced productivity, which shifts the potential impact to other parts of the food provision system. The purpose of this paper is to assess the ecological sustainability of conventional and organic leek production by means of life cycle assessment (LCA). Design/methodology/approach – A cradle-to-farm gate LCA is applied, based on real farm data from two research centres. For a consistent comparison, two functional units (FU) were defined: 1ha and 1?kg of leek production. Findings – Assessed on an area basis, organic farming shows a more favourable environmental profile. These overall benefits are strongly reduced when the lower yields are taken into account. Related to organic farming it is therefore important that solutions are found to substantially increase the yields without increasing the environmental burden. Related to conventional farming, important potential for environmental improvements are in optimising the farm nutrient flows, reducing pesticide use and increasing its self-supporting capacity. Research limitations/implications – The research is a cradle-to-farm gate LCA, future research can be expanded to comprise all phases from cradle-to-grave to get an idea of the total sustainability of our present food consumption patterns. The research is also limited to the case of leek production. Future research can apply the methodology to other crops. Originality/value – To date, there is still lack of clear evidence of the added value of organic farming compared to conventional farming on environmental basis. Few studies have compared organic and conventional food production by means of LCA. This paper addresses these issues

HOW CAN ORGANIC FARMING CONTRIBUTE TO THE SUSTAINABLE PRODUCTION AND CONSUMPTION PATTERNS?

The project’s overall objective is to define the sustainability of organic agriculture based on three two-part dimensions that must be confronted with each other and balanced, namely, - economic sustainability: competitive position and potential for development, - environmental sustainability: reproduction of resources and balance of specific externalities; and - social sustainability: innovative abilities and social/territorial externalities. These dimensions must be evaluated, matched up with effective sets of references, and backed up by policy instruments. This makes it possible to define the research’s specific aims: 1. To establish technical references for the two major stakes linked to the organic ranching and fattening of cattle, namely, rations and health. That entails making use of/improving the positive externalities of organic cattle ranching schemes (nitrogen balance, biodiversity) and analysing their environmental and social costs. 2. To study and test the organisational forms that permit negotiation between marketing requirements and the dimensions of sustainability and to reinforce the guarantees that the various production and processing networks appear to give consumers. 3. To analyse consumer demand and the most suitable communication tools and to initiate a participatory and experimental approach to negotiation