Are Certified Supply Chains More Socially Sustainable? A Bargaining Power Analysis

Food quality schemes (FQS: organic and geographical indication products) are often supposed to be more sustainable by their political advocates. We explore the social sustainability advantage of FQS through the lens of supply chains' bargaining power (BP) distribution. We propose an indicator synthesizing different sources underlying BP (competition-based, transactional, institutional) and counting two dimensions (fair BP distribution and adaptation capacity), that we apply to 18 FQS supply chains and corresponding reference. FQS perform better than their reference products on both dimensions. This better performance is due to a combination of sources

Foodmiles: The Logistics of Food Chains Applied to Food Quality Schemes

This paper estimates the foodmiles (embedded distances) and transport-related carbon emissions of 27 Food Quality Scheme (FQS) products-Protected Designation of Origin (PDO), Protected Geographical Indications (PGI) and organic- A nd their reference products. It goes further than the existing literature by adopting a value chain perspective, instead of the traditional consumer perspective, and focusing on FQS products. The same methodology is applied across all the case studies. The article specifically investigates the determinants of differences between FQS and their references. FQS products travel significantly shorter distances (-30%) and generate significantly lower transport-related emissions (-23%) than conventional food products. The differences are even greater for vegetal and organic products. The relationship between distance and transport-related emissions is not exactly proportional and highlights the importance of transport modes and logistics, in particular for exports and imports. Finally, we stress the importance of the spatial distribution of the different stages in the value chains (e.g. production, processing). PDO technical specifications delimit a geographical area for production and processing, thereby limiting distances and transport-related emissions compared to conventional food products, but also compared to other types of FQS

Do Food Quality Schemes and Net Price Premiums Go Together?

This article addresses the issue of the profitability of Food Quality Scheme (FQS) products as compared to reference products, which are defined as analogous products without quality label. We approach this question by taking into account the level of the value chain (upstream, processing, and downstream), the sector (vegetal, animal, seafood) and the type of FQS (PGI, PDO, Organic). We collected original data for several products produced in selected European countries, as well as in Thailand and Vietnam. Comparisons depending on value chain level, sector and FQS are possible by using two comparable indicators: price premium and net price premium (including cost differential). The following principal conclusions were reached: 1) Price is higher for FQS products than for the reference products, regardless of the production level, the type of FQS or the sector; 2) Price premiums generated by FQS do not differ along the value chain, nor between sectors (vegetal, animal or seafood/fish); 3) Price premium for organic products is significantly higher than for PGI products, and this conclusion holds at upstream and processing levels, taking into account the costs directly related to production; 4) All organic products and almost all PDO and PGI products analysed benefit from a positive quality rent; 5) At upstream level and processing level, the relative weight of intermediate consumption in the cost structure is lower for organic products than for reference products