Cheng, Siu Yee

Moxham, Claire

English

University of Huddersfield Repository

University of Huddersfield RepositoryCheng, Siu Yee and Moxham, ClaireRethinking food supply chains: examining the case for alternative food networksOriginal CitationCheng, Siu Yee and Moxham, Claire (2013) Rethinking food supply chains: examining the case for alternative food networks. In: 73rd Annual Meeting of the Academy of Management, 9th-13th August 2013, Florida, USA. (Unpublished) This version is available at http://eprints.hud.ac.uk/19170/The University Repository is a digital collection of the research output of theUniversity, available on Open Access. Copyright and Moral Rights for the itemson this site are retained by the individual author and/or other copyright owners.Users may access full items free of charge; copies of full text items generallycan be reproduced, displayed or performed and given to third parties in anyformat or medium for personal research or study, educational or not-for-profitpurposes without prior permission or charge, provided:• The authors, title and full bibliographic details is credited in any copy;• A hyperlink and/or URL is included for the original metadata page; and• The content is not changed in any way.For more information, including our policy and submission procedure, pleasecontact the Repository Team at: E.mailbox@hud.ac.uk.http://eprints.hud.ac.uk/Rethinking Food Supply Chains:Examining the case for Alternative Food NetworksSiu Cheng, University of Huddersfield, UKDr Claire Moxham, University of Liverpool, UK Contribution of the Study• Provides a preliminary investigation of Alternative Food Networks – primarily farmers’ markets• Develops 4 propositions (based on the RBV) for further research in this topical areaBackground: An Increasing Demand for Local Food• Consumers want to make informed choices about where their food comes from• Concerns over traceability and safety of food in international supply chains e.g. European horsemeat scandal this year, E.coli in salad vegetables in 2011• Negative perception of GM foods = higher demand for organic• Consumers demanding country of origin and certification markings • Food miles – robust environmental impact indicator?• Alternative supply channels….known as Alternative Food NetworksAlternative Food NetworksBox SchemeFarm ShopSpeciality ShopFarmers’ MarketFarmers’ MarketFarmers’ MarketFarmers’ MarketsCustomer In US – increased from 1700 in 1994 to over 8000 in 2013 High quality goods, reconnecting consumer with foods Higher price than more conventional outlets –consumers willing to payFarmer× Sales – time away from farm× Can only attend limited number of markets× Fuel, transport, display equipment, packaging× Quantity required?Attributes of Farmers’ Markets• Valuable – permit short supply chains• Enjoyed selling and ‘market place ambience’• Proposition 1: Farmers’ markets shorten the food supply chain thus permitting customers to exploit valuable superior product information• Rare – provide a single outlet for high quality produce• Reliant on cluster of primary producers• Committed to maintaining product quality• Authenticity?  Craft goods, products not local• Degradation of concept of local farmers’ selling local produce – a market?• Proposition 2: Leveraging the scarce and distinctive characteristics of farmers’ markets to achieve abnormal rents can only be achieved through a commitment to quality and authenticity from all primary producers and market organisersAttributes of Farmers’ Markets• Imperfectly inimitable – synonymous with sustainability• High quality produce, low food miles, healthier lifestyles, community• Customer profile attractive to farmers – “customers come to spend money”• Proposition 3: Farmers’ markets possess socially complex phenomena that are synonymous with sustainability and impose constraints on imitation by competitors• Non-substitutable – primary producers selling local produce• Farmers satisfied by service provided by farmers’ markets• Difficult for supermarkets emphasise ‘locality’ (maximum distance)• Difficult for supermarkets to impart knowledge held by primary producers• Proposition 4: The presence of primary producers at farmers’ markets yields additional value to customers that cannot be substituted by conventional product labellingFurther Work• Farmers in this study appeared satisfied with farmers’ markets as a viable supply outlet due to:• Customer base• Ambience• Connection with customers• Findings suggest farmers’ markets are a viable distribution channel for small scale, local producers• Comparison of AFN characteristics with concept of global value chains (Gereffi et al, 2005) – AFNs a new type of producer driven supply chain offering different competitive advantages?

Rethinking food supply chains: examining the case for alternative food networks

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